Automated fare collection is a solution that automates fare collection or ticketing system in the transportation industry. This solution improves efficiency of ticketing system and transaction rate. Installation of automated fare collection systems enables transport authorities to offer enhanced services to end users. Integration of advanced technologies such as electronic payment, contactless technology, and smart card with automated fare collection system has reduced costs associated with manual ticketing systems in the transportation industry.
In 2017, the global automated fare collection system market is estimated to be valued at nearly US$ 6,000 Mn. By 2024 end, the global automated fare collection system market is expected to reach nearly US$ 12,000 Mn, increasing at a CAGR of 11.1% during the forecast period. Global automated fare collection system market is forecast to represent incremental $ opportunity of nearly US$ 7,000 Mn between 2016 and 2024.
Enhanced user experience with automated fare collection systems driving adoption of the technology
In automated fare collection systems, there is no need for ticket counters, thereby increasing the convenience and saving time for travelers. Even for transport authorities, due to such automated solutions, there is an ease of operation in terms of ticket distribution, checking and also aids in cost minimization. Due to such factors, various transit authorities are increasingly adopting automated fare collection solutions. An example of automated fare collection system is the smartcard. Smartcards systems make the fare payment faster and it is easy for the commuters to operate. Fare payment transactions through these technologies are three to five times faster than dropping tokens into acceptors or manual paying for the tickets.
High initial cost hampering market growth of the global automated fare collection system market
Implementation cost of automated fare systems may dissuade transport authorities from adopting the technology and it can be economically impractical for authorities to offer services to a small number of commuters. These factors are expected to adversely hamper demand for the technology over the forecast period. Implementation of the technology involves installation of a number of hardware and software components such as fare gates, cards, handheld devices, station computer systems, central computer systems, mobile application software, integration software etc. and these are likely to incur high initial costs of setup and deployment.
Increasing expenditure on transport infrastructure supported by new projects in emerging economies presents a great opportunity for players in the global automated fare collection system market
Upcoming transit infrastructure projects in emerging and mature economies represent potential opportunities for automated fare collection solution providers. In addition, opportunity for providing support services during and after installation of the system will present itself as more and more transit companies adopt the technology. India’s 100 Smart City project is set to use different modes of transportation involving Metro projects, Monorail, Light Rail Transit (LRT), Bus Rapid Transit (BRT), and Metrino driverless pods. These projects are expected to comprise installed automated fare systems because a large number of commuters are expected to use these services.
Global Automated Fare Collection System Market Attractiveness Analysis, By Application, 2016–2024
In terms of revenue, the train segment is projected to be the most attractive segment in the global automated fare collection system market during the forecast period. The light rail transit segment is expected to register high Y-o-Y growth rates throughout the forecast period. In terms of value, the light rail transit segment is expected to register a CAGR of 12.5% during the forecast period. The train segment accounted for a relatively high value share, and was valued at more than US$ 2,000 Mn in 2015. This segment is expected to remain dominant in terms of revenue throughout the forecast period.
Mobile apps to provide enhanced user experience
Transit authorities across the globe focus on targeting smartphone users via mobile apps in order to provide enhanced user experience and improved transport services. In November 2015, Cubic Corporation launched Ventra Mobile App for Chicago Transit Authority’s (CTA) commuter rail – Metra and suburban bus operator – Pace. The app enables commuters to book Chicago’s transit services via smartphones and has aided in automating its transit fare collection. In September 2011, Thales Group launched live ticketing app for android phones for online ticket booking.
Persistence Market Research analyzes the global automated fare collection system market in a new publication titled “Automated Fare Collection System Market: Global Industry Analysis and Forecast, 2016–2024”. The main objective of the report is to identify dynamics in the market and provide recent updates and insights affecting various segments of the global automated fare collection system market. To provide better understanding of the market, the report also includes an analysis of drivers, restraints, and trends which influence the current market scenario and future status of the global automated fare collection system market over the forecast period.
To understand and assess the demand and opportunities in this market, the report is categorically split into four major sections, namely by system component, by application, by end-users and by region. The report analyzes the global automated fare collection (AFC) system market in terms of market value (US$ Mn). The report starts with market overview and provides market definition and analysis about the drivers, restraints, opportunities and key trends in the market. The following section includes analysis of the global market by system component, by application, by end-users and by region. All the four sections evaluate the market on the basis of various factors affecting the market, covering the present scenario and future prospects.
Global Automated Fare Collection System Market: Segmentation
By system component
By End users
The final section of the report provides the global automated fare collection system market structure and a detailed competition landscape with company market share and performance, to provide report audiences with a dashboard view of key players operating in the global automated fare collection system market along with their business strategies. This section is intended to enable clients to assess strategies deployed by market leaders and help them develop effective strategies accordingly.
For market data analysis, the report considers 2015 as the base year, with market numbers estimated for 2016 and forecast made for 2017–2024. In order to provide an accurate forecast, the report starts by sizing up the current market, which forms the basis of how the global automated fare collection system market is expected to develop in the future. The critical market data, including the base number and segment splits, has been devised through in-depth secondary research. This data is then triangulated on the basis of different verticals, considering both supply side and demand side drivers and other dynamics of the various regional markets, along with primary interviews of manufacturers and industry experts operating in the global automated fare collection system market.
The report also analyzes the different segments of the global automated fare collection system market in terms of basis point share (BPS) to understand individual segments’ relative contribution to market growth. This detailed level of information is important for identifying the various key trends governing the global automated fare collection system market. The report also analyzes the global automated fare collection system market based on absolute dollar opportunity. This is usually overlooked while estimating the market forecast. However, from a sales perspective, it is essential to identify absolute dollar opportunity to identify potential resources in the global automated fare collection system market.
Persistence Market Research has also developed a market attractiveness index to understand the key market segments in terms of their performance and growth in the global automated fare collection system market. This market attractiveness index would help clients identify real market opportunities in the global automated fare collection system market.