Automated Fare Collection Market
Automated Fare Collection Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021
Press Release :
Global Automated Fare Collection Market: Snapshot
The recent developments in the transportation systems across developed and developing economies alike are creating a huge demand for automated fare collection. This applies especially to a majority of Europe and Asia Pacific countries, where the development of smart transport systems is helping create a greater application scope for automated fare collection vendors. At the same time, the integration of stable automated fare collection systems can impart significant improvements in the transportation networks that already exist.
Another driver that automated fare collection companies can look for is the growth of the car rental business across the globe, coupled with the growing demand for e-payment solutions. App-based car rental and public transport is expected to be upcoming key trend in the market.
There are, however, complications in installing automated fare collection systems, such as the high installation cost and integration issues. These problems can be solved through improving technologies and the growth of healthy vendor competition.
These factors are collectively expected to put the automated fare collection at a revenue of US$10.87 bn by the end of 2021. This market is expected to progress at a CAGR of 11.4% from 2015 to 2021 by revenue.
North America App-driven Automated Fare Collection System Leads its Global Market
One of the key advantages that automated fare collection players are looking forward to is the large scale use of smartphones. This encourages the companies to create apps that can make it easier to implement automated fare collection in both public transport and car rental services. Government agencies and private transport companies are highly interested in the use of mobile apps to help reduce the need for separate additional software and transaction machines.
By the end of 2021, North America is expected to hold 35.6% of the market revenue, which will be the largest share held by a key region. This is primarily due to the massive usage of automated fare collection systems in the U.S. Almost all public transportation systems make use of some form of automated fare collection in this country, while the demand for advanced systems is increasing even further.
Car Rental Services Show Highest Demand for Automated Fare Collection Systems
By 2021, an estimated 26.8% of the total automated fare collection market revenue will be held by the car rental applications. The use of app-based fare collection for car rental services is rapidly increasing in the Asia Pacific region, creating a high scope of market penetration for automated fare collection service providers. This complements the overall rise in demand for rental cars in the region. This demand is generated through both increasing civilian and tourist traffic.
The use of apps for pre-booking taxi services is also a key avenue for automated fare collection players to look into. The large demand for efficient taxi apps in most developing economies is helping create a greater application scope for automated fare collection systems.
The top players in the global automated fare collected market are NXP Semiconductors, Omron Corporation, Siemens AG, GMV, Atos, and Advanced Card Systems.
This market research study analyzes the automated fare collection market on a global level and provides estimates in terms of revenue (USD billion) from 2015 to 2021. It gives a comprehensive overview of the AFC market from all the important strategic perspectives. It recognizes the drivers and restraints affecting the industry and analyzes their impact over the forecast period. Moreover, it identifies the significant opportunities for market growth in the coming years. By geography, the automated fare collection market has been segmented into North America, Europe, Asia Pacific and Rest of the world (RoW). The current market size and forecast till 2021 is provided in the report.
Automated fare collection market is the automated ticketing systems designed for transportation networks. Automated fare collection system enables efficiency in the fare collection and helps in improving the transaction rate. The Automated fare collection AFC also helps in broadening the customer base for the transport system and establishment. The AFC system helps in saving considerable amount of time as it eliminates the need for waiting in queues for buying tickets. Moreover, installation of AFC systems enables the transport authorities to enhance services to the end users. Development of mono rail and metro services in rising cities and other metro cities is a major driver in the automated fare collection market. Government focus at improvement of transportation security and infrastructure is likely to drive the market. Use of account-based payment systems like credit, debit and bank card is likely to drive the market further. The cost of installation and development of infrastructure for the automated fare collection system is very high and is a major restraint for the growth of the automated fare collection market. The growth in demand for enhancement for business process to maximize profitability among organization is likely to help the growth in demand for AFC system over the forecast period. Established transportation agencies are getting into strategic partnerships with AFC manufactures, AFC solution providers and financial institutions to integrate the AFC process and help them reduce the overall cost
Smart Cards led the automated fare collection market segmented by technology type. Smart cards are the most widely used technology in the automated fare collection market as they are secure and reliable. However, emergence of government norms on the smart card manufacturers is likely to restrain the smart card market over the forecast period.
North America is the leader in the global automated fare collection market due to presence of developed nations like the U.S and Canada. AFC is used in all kind of transportation system in the region and thus have high demand for AFC systems. Asia Pacific is the most attractive regional market for AFS. There are a lot of construction and development actives which are taking place in the region to improve the transportation infrastructure and modernize the transportation system. Moreover, a lot of express ways are built to improve the connectivity in the region and most of these express road ways have toll charges on them, which are mostly collected using AFC systems, thus driving the market.
The report provides strategic analysis of the automated fare collection market and the growth forecast for the period 2015-2021. The report covers competitive analysis of various market segments based on the automated fare collection technology types, automated fare collection components and automated fare collection industrial application.
The market share of various key industry players operating in the automated fare collection market along with their company overview, market presence (by segment and geography), financial overview, business strategies and recent developments are also included in the report. The key players operating in the automated fare collection market are Advanced Card Systems Ltd., Atos, Cubic Transportation Systems, Fare Logistics, GMV, LG, NXP Semiconductors, Omron Corporation, and Samsung SDS.
The Automated fare collection market has been segmented as follows:
Automated Fare Collection Market: By Technology Type
- Smart cards
- Magnetic strips
Automated Fare Collection Market: By Component
Automated Fare Collection Market: By Industrial Application
- Car rental
Automated Fare Collection Market: By Geography
- North America
- United Kingdom
- Rest of Europe)
- Asia Pacific
- South Korea
- Rest of Asia Pacific)
- Rest of the World
- South America
- Middle East