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.

 

automated-fare-collection-market

 

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
  • NFC
  • OCR

Automated Fare Collection Market: By Component

  • Software
  • Hardware

Automated Fare Collection Market: By Industrial Application

  • Bus
  • Toll
  • Car rental
  • Train
  • e-payment
  • others

Automated Fare Collection Market: By Geography

  • North America
    • U.S.
    • Canada
    • Mexico)
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Rest of Europe)
  • Asia Pacific
    • China
    • India
    • Japan
    • Taiwan
    • South Korea
    • Rest of Asia Pacific)
  • Rest of the World
    • South America
    • Middle East
    • Africa)

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

With a robust experience in creating exceptional market reports, Transparency Market Research has emerged as one of the trusted market research companies among a large number of stakeholders and CXOs. Every report at Transparency Market Research goes through rigorous research activity in every aspect. The researchers at TMR keep a close watch on the market and extract beneficial growth-boosting points. These points help the stakeholders to strategize their business plans accordingly.

TMR researchers conduct exhaustive qualitative and quantitative research. This research involves taking inputs from the experts in the market, focused attention on recent developments, and others. This method of research makes TMR stand out from other market research firms.

Here's how Transparency Market Research helps the stakeholders and CXOs through the reports:

Inculcation and Evaluation of Strategic Collaborations: The TMR researchers analyze recent strategic activities like mergers, acquisitions, partnerships, collaborations, and joint ventures. All the information is compiled and included in the report.

Perfect Market Size Estimations: The report analyzes the demographics, growth potential, and capability of the market through the forecast period. This factor leads to the estimation of the market size and also provides an outline about how the market will retrieve growth during the assessment period.

Investment Research: The report focuses on the ongoing and upcoming investment opportunities across a particular market. These developments make the stakeholders aware of the current investment scenario across the market.

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.


Chapter 1 Preface
1.1 Report description
1.2 Research methodology

Chapter 2 Executive Summary

Chapter 3 Market Overview
3.1 Introduction
3.2 Key Trend Analysis
3.3 Market Dynamics
      3.3.1 Market drivers
             3.3.1.1 Advancement in the infrastructure for transportation systems 
             3.3.1.2 Increase in the usage of e-payment and rising usage of public transport systems based smart phones app
             3.3.1.3 Governments initiatives towards cost reduction of public transport 
      3.3.2 Market Restraints
             3.3.2.1 High installation cost associated with the automated fare collection system 
             3.3.2.2 Challenge of integrating solutions with various components to provide smooth working  
      3.3.3 Market opportunities
             3.3.3.1 Growth of high speed public transport like metro, high speed train and mono rail in developing nations 
3.4 Global automated fare collection  market: Market attractiveness analysis
3.5 Global automated fare collection  market: Company market share analysis

Chapter 4 Global Automated Fare Collection Market by Technology Type 2015 – 2021
4.1 Introduction
4.2 Smart Cards
      4.2.1 Smart Cards Market Revenue and Forecast, 2014 – 2021 (USD billion )
4.3 Magnetic Strips
      4.3.1 Magnetic Strips Market Revenue and Forecast, 2014 – 2021 (USD billion )
4.2 NFCs
      4.2.1 NFCs Market Revenue and Forecast, 2014 – 2021 (USD billion )
4.2 OCR
      4.2.1 OCR Market Revenue and Forecast, 2014 – 2021 (USD billion )

Chapter 5 Global Automated Fare Collection Market by Component 2015 – 2021
5.1 Introduction
5.2 Software 
      5.2.1 Software Market Revenue and Forecast, 2014 – 2021 (USD billion )
5.3  Hardware 
      5.3.1 Hardware Market Revenue and Forecast, 2014 – 2021 (USD billion )

Chapter 6 Global Automated Fare Collection Market by Industrial Application 2015 – 2021 (Revenue)
6.1 Introduction
6.2 Bus
      6.2.1 Bus Market Revenue and Forecast, 2014 – 2021 (USD billion )
6.3 Toll
      6.3.1 Toll Market Revenue and Forecast, 2014 – 2021 (USD billion )
6.4 Car rental
      6.4.1 Car Rental Market Revenue and Forecast, 2014 – 2021 (USD billion )
6.5 Train
      6.5.1 Train Market Revenue and Forecast, 2014 – 2021 (USD billion )
6.6 E-payment
      6.6.1 E-payment Market Revenue and Forecast, 2014 – 2021 (USD billion )
6.7 Others
      6.7.1 Others Market Revenue and Forecast, 2014 – 2021 (USD billion )

Chapter 7 Global Automated Fare Collection Market by Geography 2015 – 2021 (Revenue)
7.1 Introduction
      7.1.1 Global Automated Fare Collection Market Revenue Share, by Geography, 2014 and 2021 (%)
7.2 North America
      7.2.1 North America automated fare collection market revenue and forecast, 2014 – 2021 (USD billion )
      7.2.2 North America automated fare collection  market revenue and forecast, technology, 2014 – 2021 (USD billion )
      7.2.3 North America automated fare collection  market revenue and forecast, by Component, 2014 – 2021 (USD billion )
      7.2.4 North America automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
      7.2.5 North America automated fare collection  market revenue and forecast, by Country, 2014 – 2021 (USD billion )
7.2 Europe America
      7.2.1 Europe automated fare collection market revenue and forecast, 2014 – 2021 (USD billion )
      7.2.2 Europe automated fare collection  market revenue and forecast, technology, 2014 – 2021 (USD billion )
      7.2.3 Europe automated fare collection  market revenue and forecast, by Component, 2014 – 2021 (USD billion )
      7.2.4 Europe automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
      7.2.5 Europe automated fare collection  market revenue and forecast, by Country, 2014 – 2021 (USD billion )
7.2 Asia Pacific
      7.2.1 Asia Pacific automated fare collection market revenue and forecast, 2014 – 2021 (USD billion )
      7.2.2 Asia Pacific automated fare collection  market revenue and forecast, technology, 2014 – 2021 (USD billion )
      7.2.3 Asia Pacific automated fare collection  market revenue and forecast, by Component, 2014 – 2021 (USD billion )
      7.2.4 Asia Pacfic automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
      7.2.5 Asia Pacific automated fare collection  market revenue and forecast, by Country, 2014 – 2021 (USD billion )
7.2 RoW
      7.2.1 RoW automated fare collection market revenue and forecast, 2014 – 2021 (USD billion )
      7.2.2 RoW automated fare collection  market revenue and forecast, technology, 2014 – 2021 (USD billion )
      7.2.3 RoW automated fare collection  market revenue and forecast, by Component, 2014 – 2021 (USD billion )
      7.2.4 RoW automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
      7.2.5 RoW automated fare collection  market revenue and forecast, by Country, 2014 – 2021 (USD billion )

Chapter 8 Company Profiles
8.1 Advanced Card Systems Ltd.
8.2 Atos 
8.3 Cubic Transportation Systems
8.4 Fare Logistics
8.5 GMV
8.6 LG
8.7 NXP Semiconductors
8.8 Omron Corporation
8.9 Samsung SDS

List of Tables

TABLE 1 Global automated fare collection  market snapshot (revenue), 2014 and 2021
TABLE 2 Drivers: Impact analysis
TABLE 3 Restraints: Impact analysis
TABLE 4 North America automated fare collection market revenue and forecast, by technology, 2014 – 2021 (USD billion )
TABLE 5 North America automated fare collection  market revenue and forecast, by component, 2014 – 2021 (USD billion )
TABLE 6 North America automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
TABLE 7 North America automated fare collection  market revenue and forecast, by country, 2014 – 2021 (USD billion )
TABLE 8 Europe automated fare collection  market revenue and forecast, by technology type, 2014 – 2021 (USD billion )
TABLE 9 Europe automated fare collection  market revenue and forecast, by component, 2014 – 2021 (USD billion )
TABLE 10 Europe automotive fare collection market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
TABLE 11 Europe automotive fare collection market revenue and forecast, by country, 2014 – 2021 (USD billion )
TABLE 12 Asia Pacific automated fare collection market revenue and forecast, by technology type, 2014 – 2021 (USD billion )
TABLE 13 Asia Pacific automated fare collection  market revenue and forecast, by component, 2014 – 2021 (USD billion )
TABLE 14 Asia Pacific automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
TABLE 15 Asia Pacific automated fare collection  market revenue and forecast, by country, 2014 – 2021 (USD billion )
TABLE 16 RoW automated fare collection  market revenue and forecast, by technology type, 2014 – 2021 (USD billion )
TABLE 17 RoW automated fare collection  market revenue and forecast, by component, 2014 – 2021 (USD billion )
TABLE 18 RoW automated fare collection  market revenue and forecast, by industrial application, 2014 – 2021 (USD billion )
TABLE 19 RoW automated fare collection  market revenue and forecast, by country, 2014 – 2021 (USD billion )

List of Figures 

FIG. 1 Market share by key automated fare collection vendors, 2014
FIG. 2 Market attractiveness analysis, by application, 2014 (Value %)
FIG. 3 Smart Card, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 4 Magnetic Strips, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 5 NFC, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 6 OCR, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 7 Global Automated Fare Collection Market Revenue Share (%), By Component, 2014Vs 2021
FIG. 8 Software, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 9 Hardware, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 10 Global Automated Fare Collection Market Revenue Share (%), By Industrial Application, 2014Vs 2021
FIG. 11 Bus, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 12 Toll, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 13 Car rental, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 14 Train, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 15 E-payment, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 16 Others, Market Revenue and Forecast, 2014 – 2021 (USD billion )
FIG. 17 Global Automated Fare Collection Market Revenue Share, by Geography, 2014 – 2021 (%)
FIG. 18 North America automated fare collection  market revenue and forecast, 2014 – 2021 (USD billion )
FIG. 19 Europe automated fare collection  market revenue and forecast, 2014 – 2021 (USD billion )
FIG. 20 Asia Pacific automated fare collection  market revenue and forecast, 2014 – 2021 (USD billion )
FIG. 21 RoW automated fare collection  market revenue and forecast, 2014 – 2021 (USD billion )

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Automated Fare Collection Market