Automated Fare Collection System Market Future Scope Competitive Analysis & Revenue by Fact MR

The global automated fare collection system market (자동요금 징수 시스템 시장) is projected to be valued at US$ 11,601.2 million in 2024. With a compound annual growth rate (CAGR) of 14.6% forecasted for the period from 2024 to 2034, the AFC system industry is expected to reach a valuation of US$ 45,156.3 million by 2034.The market is experiencing significant growth, driven by advancements in technology, increasing urbanization, and the need for efficient public transportation systems. AFC systems, which automate the ticketing process, offer numerous benefits including reduced operational costs, enhanced revenue management, and improved passenger convenience. These systems are integral to modern public transport infrastructure, enabling seamless travel across various modes of transportation such as buses, trains, trams, and subways.

Key benefits that drive adoption include seamless user experience via cashless payments, reduced instances of fare evasion, richer ridership dat and analytics, operational cost savings and support for complex fare plans integrating routes, modes and concessions etc. Market leaders hail from developed regions but Chinese and Indian vendors are achieving traction given large-scale government transit modernization drives.

Future Outlook

The future of the AFC system market looks promising, with continuous innovations and increasing adoption across the globe. The integration of artificial intelligence (AI) and machine learning (ML) is expected to further enhance the capabilities of AFC systems, providing predictive analytics for better decision-making and personalized passenger services. Additionally, the trend towards multimodal transportation networks and the growing emphasis on sustainability are likely to drive further advancements in AFC technologies.

List of Key Companies Profiled in The Report

• Omron Corporation
• Masabi Ltd.
• Nippon Signal
• Scheidt & Bachmann GmbH
• Samsung SDS Co. Ltd.
• Advanced Card Systems Ltd.
• Atos SE
• Cubic Transportation Systems
• GMV
• Indra Sistemas SA
• LECIP Holdings Corporation
• Others

Key Drivers

Technological Advancements: The rapid development of technologies such as NFC, RFID (Radio Frequency Identification), and IoT (Internet of Things) is a major driver of the AFC system market. These technologies enable quick, secure, and contactless fare transactions, which are increasingly preferred by passengers for their convenience and speed.

Urbanization and Population Growth: With the global population increasingly residing in urban areas, the demand for efficient public transportation systems is rising. AFC systems are crucial in managing the high volume of passengers and ensuring smooth operations in densely populated cities.

Government Initiatives: Governments worldwide are investing heavily in smart city projects and modernizing public transportation infrastructure. AFC systems are a key component of these projects, facilitating efficient fare collection and contributing to the overall smart city ecosystem.

Passenger Convenience: Modern passengers expect convenience and efficiency in their travel experience. AFC systems offer benefits such as reduced waiting times, easy access to multiple modes of transport with a single ticket, and various payment options, thereby enhancing the overall passenger experience.

Automated Fare Collection (AFC) System Market Value Chain

The AFC system market value chain constitutes:

• Research & Development: Continuous R&D activities related to product design, performance benchmarks, feature enhancement etc
• Components Sourcing: Reliable sourcing of gateways, validators, sensors, ticketing hardware, cameras etc from specialized suppliers
• System Integration: Seamless integration with back-end servers, enterprise software dashboards for holistic functionality
• Installation & Maintenance: Rigorous testing, certified installation and timely upgrades, bug fixing etc
• User Engagement: Sustained user education and query resolution for maximizing service quality and adoption

Among above activities, system integration and maintenance are vital for operational reliability and superior user experience which drives sustained utilization and expansion potential across transit routes and geographies.

Competitive Landscape

The automated fare collection system market is dynamic, witnessing the entry of new players and the expansion of existing ones. Companies provide diverse offerings, including contactless smart cards, mobile ticketing solutions, and automatic gates. Collaboration is a growing trend, with players joining forces to offer integrated solutions for enhanced passenger convenience. The market is intensely competitive, with a focus on delivering innovative and cost-effective solutions to meet the evolving needs of the transportation industry.

In 2022, Masabi Ltd and the Roaring Fork Transportation Authority (RFTA) launched the RFTA ticket mobile app, offering passengers flexibility in ticket purchasing, ensuring convenience in time, location, and platform choices.