The Global Automated Fare Collection Market Size accounted for USD 11.6 Billion in 2022 and is projected to achieve a market size of USD 39.8 Billion by 2032 growing at a CAGR of 13.3% from 2023 to 2032.
Automated Fare Collection Market Report Key Highlights
Automated Fare Collection (AFC) refers to a system that enables passengers to pay for public transportation electronically, eliminating the need for paper tickets and tokens. The AFC system utilizes smart cards, contactless payment methods, or mobile applications to simplify the payment process for public transportation. The system benefits passengers by providing a more convenient and efficient way to pay for transportation, while also reducing the cost and hassle of handling cash for transit operators.
The market for automated fare collection has been growing rapidly in recent years, with increasing demand for cashless transactions and contactless payments. The automated fare collection market growth can be attributed to factors such as the increasing demand for contactless payment methods, the need for improved transportation infrastructure, and government initiatives promoting the use of digital payments in public transportation. The AFC market size is expected to continue to grow as more cities and transit systems adopt the technology to improve their services and meet the evolving needs of their customers.
Global Automated Fare Collection Market Trends
Automated Fare Collection Market Report Coverage
|Market||Automated Fare Collection Market|
|Automated Fare Collection Market Size 2022||USD 11.6 Billion|
|Automated Fare Collection Market Forecast 2032||USD 39.8 Billion|
|Automated Fare Collection Market CAGR During 2023 - 2032||13.3%|
|Automated Fare Collection Market Analysis Period||2020 - 2032|
|Automated Fare Collection Market Base Year||2022|
|Automated Fare Collection Market Forecast Data||2023 - 2032|
|Segments Covered||By Component, By System, By Technology, By Application, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Indra Sistemas SA, Advanced Card Systems Ltd., GMV, LECIP Holdings Corporation, Cubic Transportation Systems, Atos SE, Siemens AG, LG Corporation, Omron Corporation, Thales Group, Nippon Signal, Masabi Ltd., Samsung SDS Co. Ltd, and Scheidt & Bachmann GmbH.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis|
Automated fare collection is a system used in transporting networks, designed to increase the efficiency in the process of collecting fares and improvement in the transaction rate. It can also be called an automated ticketing system. The automated fare collection system also facilitates the transport system in expanding its customer base and its establishment. In addition, this system aids to save time as it removes waiting in queues for purchase tickets. Furthermore, the installation of an automated fare collection system allows the transport authorities to deliver enhanced services to their customers. This is considered a smart payment method used in intelligent public transport systems. This system consists of ticket vending machines, ticket checking machines, automatic gate machines, and recharging terminals. This system enables travelers to access several transportation modes including railways, metro, buses, and taxis, for traveling using pre-paid cards and tickets to pass or cross via the automated electronic gates.
The development of metro and monorail services in developing cities is one of the key drivers facilitating the growth of the automated fare collection market value. Another reason for the growth of the market is the increasing focus of governments on the improvement and advancement of both transportation infrastructure as well as transportation security. The rising preference of people to make payments using their credit or debit cards is also driving the market for automated fare collection systems. Other factors propelling the market growth include awareness to adopt new and smart technology and increased benefits delivered by such systems. Some of the new technologies developed for automated fare collection include commercial vehicle operation, advanced traffic management systems, automated fare collection-enabled theme parks, advanced public transportation, and advanced transportation pricing systems.
The preference and adoption of these systems are increasing due to their ability to deliver more accurate and reliable operations and reduce the probability of errors as compared to the traditional methods used for collecting fare. However, the high cost of installation required for automated fare collection systems and the high cost included in the development of infrastructure are the major factors restricting the market growth. Although, the increasing demand for systems that helps in the enhancement of business operations in order to maximize profitability is anticipated to drive the market in the near future. Many established transport agencies are entering into strategic partnerships with several automated fare collection system manufacturers, financial institutions, and solution providers to incorporate the automated fare collection process and enable them to decrease overall costs.
Automated Fare Collection Market Segmentation
The global automated fare collection market segmentation is based on component, system, technology, application, and geography.
Automated Fare Collection Market By Component
According to the automated fare collection industry analysis, the hardware segment leads the market in 2022. The hardware segment of the AFC market is expected to grow due to the increasing demand for cashless and contactless payment methods in public transportation. The adoption of new technologies, such as near-field communication (NFC) and mobile payments, is also driving the growth of the hardware segment in the AFC market. The market for ticket vending machines and fare gates is expected to grow significantly as transit operators modernize their systems and upgrade their hardware components to enhance the passenger experience and improve efficiency.
Automated Fare Collection Market By System
In terms of the system, the ticket vending machine (TVM) segment holds the majority of the market share in 2022. Ticket vending machines (TVMs) are an essential component of Automated Fare Collection (AFC) systems, providing passengers with a convenient and efficient way to purchase and reload smart cards or other electronic payment devices for public transportation. The adoption of new technologies, such as mobile payments and near-field communication (NFC), is also driving the growth of the ticket vending machine segment in the AFC market.
Automated Fare Collection Market By Technology
According to the automated fare collection market forecast, the Near-field communication (NFC) segment is anticipated to grow at a rapid pace in the coming years. The NFC segment of the AFC market is growing rapidly due to the increasing demand for contactless payment methods in public transportation. NFC technology offers several advantages over traditional payment methods, such as faster and more convenient transactions, reduced handling of cash, and improved security and data privacy. NFC-enabled smart cards or other electronic payment devices can be used across multiple transit systems, providing passengers with a seamless and integrated travel experience. NFC technology also enables real-time tracking and monitoring of passenger travel patterns, allowing transit operators to optimize their services and improve efficiency.
Automated Fare Collection Market By Application
In terms of application, the railway & transportation segment dominating the market in 2022. The AFC market in the railway and transportation segment refers to the systems and solutions that enable automated ticketing and fare collection for passengers using various modes of transportation, such as trains, buses, and subways. The market for AFC systems in the railway and transportation segment is expected to grow significantly over the next few years, driven by factors such as increasing demand for efficient and convenient ticketing and fare collection solutions, growing focus on reducing operational costs, and the need for enhanced passenger experience. Some of the key players in the AFC market in the railway and transportation segment include Thales Group, Cubic Corporation, Scheidt & Bachmann GmbH, NXP Semiconductors, and INIT AG. These companies offer a range of AFC solutions, including smart cards, contactless payment systems, mobile ticketing, and self-service kiosks.
Automated Fare Collection Market Regional Outlook
The Middle East & Africa
Automated Fare Collection Market Regional Analysis
North America is currently dominating the Automated Fare Collection (AFC) market due to several factors. One of the key reasons is the high adoption rate of advanced technologies and digital payment systems in the region. The region has witnessed the widespread deployment of contactless payment solutions, including Near Field Communication (NFC) and Radio Frequency Identification (RFID) based systems, which have contributed to the growth of the AFC market. Additionally, North America has a large number of transit agencies and transport authorities that have implemented AFC solutions to enhance the passenger experience, reduce operational costs, and improve efficiency.
Another factor contributing to North America's dominance in the AFC market is the presence of several major market players in the region. These companies, including Cubic Corporation, Scheidt & Bachmann GmbH, and NXP Semiconductors, have developed advanced AFC solutions and have significant experience in implementing these solutions in the transportation sector. Moreover, the region has a robust transportation infrastructure, which has enabled the rapid adoption of AFC solutions across various modes of transportation, including buses, subways, and trains.
Automated Fare Collection Market Player
Some of the top automated fare collection market companies offered in the professional report include Indra Sistemas SA, Advanced Card Systems Ltd., GMV, LECIP Holdings Corporation, Cubic Transportation Systems, Atos SE, Siemens AG, LG Corporation, Omron Corporation, Thales Group, Nippon Signal, Masabi Ltd., Samsung SDS Co. Ltd, and Scheidt & Bachmann GmbH.
The market size of automated fare collection was USD 11.6 Billion in 2022.
The CAGR of automated fare collection market is 13.3% during the analysis period of 2023 to 2032.
The key players operating in the global automated fare collection market are Indra Sistemas SA, Advanced Card Systems Ltd., GMV, LECIP Holdings Corporation, Cubic Transportation Systems, Atos SE, Siemens AG, LG Corporation, Omron Corporation, Thales Group, Nippon Signal, Masabi Ltd., Samsung SDS Co. Ltd, and Scheidt & Bachmann GmbH.
North America held the dominating position in automated fare collection market during the analysis period of 2023 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for automated fare collection market during the analysis period of 2023 to 2032.
The current trends and dynamics in the automated fare collection industry include the increasing demand for cashless transactions and contactless payments in public transportation.
The hardware component held the maximum share of the automated fare collection market.