Automated Fare Collection Market Size, Sector / Industry Report & Analysis, 2019-2025 (Includes Business Impact of COVID-19)

  • TBI313689
  • August 01, 2019
  • Global
  • 132 pages
  • HCCResearch
                                              Abstract, Snapshot, Market Analysis & Market Definition: Global Automated Fare Collection Market

The global automated fare collection market size was valued at USD 8.15 billion in 2018 and is projected to expand at a CAGR of 13.6% from 2019 to 2025. AFC systems comprise automatic ticket vending machines, card recharge terminals, gate machines, and ticket checking machines. Rising demand for hassle-free and efficient transportation systems is expected to be one of the key factors driving the market.
Increasing usage of plastic money, real-time payments, and digital payment gateways, such as debit card, credit card, and Near Field Communication (NFC) payment applications are also anticipated to drive market growth over the forecast period. These systems are rapidly replacing traditional ticketing systems due to their benefits, such as better process management, revenue generation, financial fraud prevention, and superior system planning.
They enable operators to improve the transaction rate and processing efficiency of theoverall fare collection process, thereby minimizing waiting time and eliminating the need for physical currency management. Automated fare collection systems can be seen in a number of high transit areas including commercial workplaces, government buildings, parking places, amusement and entertainment parks, toll collection centers on highways, and public transport stations.
Rapid public infrastructure developments in developing economies across the world have created many opportunities for the market. In addition, increasing regional integration between system providers and transit agencies, such as airports, railways, and parking lots, is also fueling the market growth. Wide usage of wireless networks, smartphones, and contactless technology for digital transactions along with flexible fare plans offered by these systems is expected to boost the market growth.
They also provide enhanced transaction security as well as effective management of funds collected by the transportation service providers. However, high installation and maintenance costs may hinder market growth, especially in developing economies. AFC systems also act as foundation for the deployment of an integrated ticketing solution. Integrated ticketing enables commuters to travel using multiple transport modes, such as buses, railways, and subways, with a single ticket that is valid for the entire journey.
Various governments are deploying integrated ticketing solutions to simplify switching between multiple modes of transportation and to encourage commuters to use public transport services more often. For instance, in U.K., the Oyster card was introduced as an electronic ticket for use in public transport in London, by the Transport for London (TfL). The card is can be used in London Buses, London Underground, London Overground, the Docklands Light Railway (DLR), Tramlink, some river boat services, and majority of the National Rail services within the London fare zones.

Market Segmentation, Outlook & Viewpoint: Global Automated Fare Collection Market

Component Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)



Technology Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Smart Card

Magnetic Stripe

Near Field Communication (NFC)

Optical Character Recognition (OCR)

System Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Ticket Vending Machine (TVM)

Ticket Office Machine (TOM)

Fare Gates

IC Cards

Application Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Railways & Transportation




Key Players, Recent Developments & Regional Insights: Global Automated Fare Collection Market

Based on application, the market has been classified into railways & transportation, parking, entertainment, and others. Railways & transportation accounted for the major market share in 2018 and is anticipated to emerge as the fastest-growing segment over the forecast period. This growth can be attributed to the rapidly expanding railway infrastructure, highway networks, and development of expressways across a number of countries.
Electronic Toll Collection (ETC) systems - the specialized AFC systems used on highways for toll collection - form an indispensable component of smart transportation projects. These systems help government agencies and transit system operators in reducing vehicle congestion and improving the overall traffic flow on key transit routes. These systems are expected to have a widespread adoption owing to their contactless transaction processing capability and increasing number of deployments at highway toll collection centers.
Moreover, they also transmit transaction information to the vehicle owner’s mobile phone through the Global System for Mobile Communications (GSM) modem technology. ETC systems utilize the Dedicated Short Range Communication (DSRC) technology for automatic toll tax payment. Radio-Frequency Identification (RFID)-based authentication systems consisting of RFID cards and readers are rapidly gaining popularity due to their low costs and ease of operation.

Regional Insights
North America led the global market in 2018 and will continue the dominance over the forecast years owing to quick adoption of emerging technologies in this region. Factors, such as rising tech-savvy population, improved internet and communication network infrastructures, and high number of smartphone users, also remained instrumental in facilitating widespread deployment and usage of AFC systems in the region over the years. Moreover, presence of leading AFC system integrators and manufacturers that are steadily working on the development and deployment of latest solutions will boost the region’s growth.
The Asia Pacific regional market is experiencing a surge in the demand for AFC systems. This can be primarily attributed to the rising investments from governments of emerging economies aimed at the development of railway infrastructure, expansion of highway network, and metro projects to facilitate inter-city and intra-city travel. The growing digital payment infrastructure and higher smartphone penetration in the region are anticipated to offer lucrative growth opportunities for key industry players in the upcoming years. However, Asia Pacific is projected to register the highest CAGR of 17.1% from 2019 to 2025.
Automated Fare Collection Market Share Insights
Key companies in the market include Advanced Card Systems Ltd., Cubic Corporation, Atos SE, GMV, Indra Sistemas SA, LECIP Holdings Corporation, LG CNS, Masabi Ltd., Omron Corporation, Nippon Signal Co., Ltd., NXP Semiconductors N.V., Samsung SDS Co. Ltd., Scheidt & Bachmann GmbH, Siemens AG, Telexis B.V., Singapore Technologies Engineering Limited, Trapeze Group, Thales Group, UL Identity Management & Security, Vix Technology, and Thales Group.
The market is consolidated due to acquisition of smaller firms by the prominent companies. Leading companies are also focusing on M&A and establishing partnerships and collaborations to expand business operations in emerging markets of Asia Pacific and Europe. For instance, in 2018, Cubic Corp. entered into an alliance and investment agreement with Delerrok Inc., a leading provider of cloud-based electronic fare collection solution for small- and medium-sized transit operators.
According to the agreement, Cubic Corp. will leverage Delerrok Inc.’s TouchPass solution with their Transit Management as a Service (TMaaS) platform to offer a cost-effective and comprehensive real-time information and payment solution. Cubic Corporation’s TMaaS platform combined with Delerrok Inc. Software-as-a-Service (SaaS) model is ideal for transit operators looking to deploy real-time information, electronic ticketing, and mobile experiences.

Key Insights Covered: Global Automated Fare Collection Market
1.  North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automated Fare Collection industry.
2. Global major manufacturers' operating situation (sales, revenue, growth rate and gross margin) of Automated Fare Collection industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automated Fare Collection industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automated Fare Collection industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automated Fare Collection industry.

Research Methodology: Global Automated Fare Collection Market
  • Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  • Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  • Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other

Table of Content
Chapter 1 Methodology and Scope
1.1 Objective
1.2 Research Scope
    1.2.1 Segment market scope
    1.2.2 Regional scope
    1.2.3 Estimates & forecast timeline
1.3 Methodology
    1.3.1 Model details
    1.3.2 List of data sources List of secondary sources List of primary sources
    1.3.3 List of abbreviationsChapter 2 Executive Summary
2.1 Automated Fare Collection (AFC) - Industry Snapshot, 2014 - 2025Chapter 3 Automated Fare Collection (AFC) Industry Outlook
3.1 Automated Fare Collection (AFC) - Value Chain Analysis
3.2 Ticketing Technology
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