Automated Fare Collection System Market Overview:
Automated Fare Collection System market is expected to garner $10.1 billion by 2022, registering a CAGR of 13.2% during the forecast period 2016 - 2022. The smart card segment accounted for around 41.4% of revenue share in 2015, and the market is expected to grow with a promising CAGR of 12.9% during 2016 and 2022.
Automated fare collection system is a contactless, end-to-end result for collecting fare payment, replacing traditional ticketing system with automated ticketing and fare collection systems. It comprises automatic gate machines, ticket vending machines, recharging terminals, and ticket checking machines. This system enables efficiency in fare collection, improves the overall transaction rate, and saves extensive amount of time, thereby minimizing waiting time in queues and searching for cash to buy tickets. In addition, it is the easiest method for revenue collection. It offers travelers to carry one card for use on all transit modes. For instance, in December 2015, UAE with Xerox Transportation solutions introduced automated fare collection system for Abu Dhabi buses, which reduced traffic congestion and waiting in queues.
An automated fare collection system has various software enabled features including Oracle, Sybase support, support multitier architecture, and XML web services. Fare collection technology platforms such as Smart cards, NFC and OCR systems ensures full interoperability and independence of service providers. Factors such as increase in demand for smartphones, enhanced efficiency, reduced frauds, flexible fare plans, and enhanced security system strengthen the growth of this market. In addition, the government of India, China, and others are focusing on enriching the transport infrastructure and security system, which further drives the growth of the market. However, high installation and maintenance costs of automated fare collection system hinder the market growth. Opportunities such as increase in high speed of public transport, rise of technology payment, and global interoperability are likely to foster market growth.
The market is segmented on the basis of component, application, technology platform, and geography. On the basis of component, the market is categorized into hardware and software. Application wise, it is segmented into bus, toll, car rental, and train. Besides these, on the basis of technology platform, the market is divided into smart cards, near field communications, optical character recognition, and others (magnetic strips and bar codes). Smart cards generated maximum revenue in 2015 and would continue to dominate the market throughout the forecast period. Geographically, the market is segmented across North America, Europe, Asia-Pacific, and LAMEA.
Key players operating in the global automated fare collection system market are Advanced Card Systems Ltd., Atos SE, Cubic Transportation Systems, LG CNS, NXP Semiconductors, Omron Corporation, Samsung SDS, Scheidt & Bachmann, LECIP Group and Thales Group.
- The report includes an in-depth analysis of the world automated fare collection system market, including current trends, drivers, restraints, and growth opportunities.
- Porters Five Forces model illustrates the potency of buyers and sellers, which is likely to help the market players to adopt effective strategies.
- Value chain analysis provides a clear understanding of the key intermediaries involved and their respective roles at every stage.
- Key market players have been profiled to gain an understanding of the strategies adopted by them.
- The current market trends are quantitatively analyzed and estimated for the 20152022 period, which have been provided to highlight the financial competency of the market.
AUTOMATED FARE COLLECTION SYSTEM MARKET SEGMENTATION:
On the Basis of Component
On the Basis of Application
- Car Rental
On the Basis of Technology Platform
- Smart Card
- Near Field Communications
- Optical Character Recognition
- Others (Magnetic Strips and Bar Codes)
On the Basis of Geography
- North America
- Advanced Card Systems Ltd.
- Atos SE
- Cubic Transportation Systems
- LG CNS
- NXP Semiconductors
- Omron Corp.
- Samsung SDS
- Scheidt & Bachmann
- Thales Group
- LECIP Group