Smart Cards Automated Fare Collection System Market Size, Share, Growth and Industry Analysis by Type (Farebox, Ticket Vending Machines (TVM), And, Validator), By Application (On-Board AFC Equipment, And, Off-Board AFC Equipment) Regional Forecast To 2031

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Smart Cards Automated Fare Collection System Market Report Overview

The global Smart Cards Automated Fare Collection System market size was USD 1.351 billion in 2023 and will touch USD 2.84 billion by 2032 with a CAGR of 8.6% during the forecast period.

An automated fare collection system is a system of collecting components that automate ticketing system of a pubic transport. Instead of using manual fare collection automated fare collection can be used. This is based on integrated ticketing. This system has five tiers or levels. 

Automates fee and fare collection system are highly efficient. They help in hassle free payments. This is considered as the latest development in the market. With the use of this system there are very less chances of frauds. It has also helped in improving the transportation infrastructure. The security systems have also developed well. All of these factors have played an important role in increasing the smart cards automated fare collection system market share.

COVID-19 impact: Involvement of no Physical Contact in This System Increased Market Growth

The pandemic of COVID-19 brought many changes in all of the markets. The sudden rise of a health crisis called for many innovative changes all over the world. Corona was an infectious disease which could spread from contact. Hence a lot of precautions were taken in order to avoid gatherings of large number of people.

Smart cards automated fare collection systems avoid manual labor and have very less physical contact. It also became a solution for the quick payments of transport fees.  These systems were very convenient to be used especially during a global pandemic. This created a lucrative market opportunity for the system during the pandemic period.

LATEST TRENDS

"Enhanced Efficiency of These Systems to Increase Market Growth"

One of the most important advantages of using automated fare collection system is that it does not support the use of cash. There is no hassle for the collection of fares. It also helps in overcoming the language barriers between the drivers and passengers.

Just a swipe of a card can enable the immediate collection of customer or passenger data. This data is then stored in a database. As a result, all the payments are handled very efficiently. The speed of these payments is also very quick. There is elimination of manual fare collection and integration of self-service. Overall, this is a very efficient system which is hassle free and convenient to handle.

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Smart Cards Automated Fare Collection System Market SEGMENTATION

• By Type:

The market can be divided on the basis of type into the following segments:

Farebox, ticket vending machines (TVM), and, validator. The farebox segment is projected to hold the dominant market share through 2030 the forecasting period.

• By Application:

The market can be divided on the basis of application into the following segments:

On-board AFC equipment, and, Off-board AFC equipment. On-board AFC equipment segment is predicted to dominate the market through 2030.

DRIVING FACTORS

"Low Fraud Rates to Amplify Market Growth"

Smart cards automated fare collection system helps in reducing the fraud rates. Smart cards are better compared to paper tickets. There are chances that frauds could be committed with manual fare collection. However, this system does not allow any such frauds due to the incorporation of highly advanced technology.

These systems are equipped with high data storage capacity. The security is of top level as it is well encrypted. Automated fare collection system does not allow a person to board the transportation until and unless payments are done for the tokens or tickets. This minimizes any frauds are financial losses that could possibly be incurred. This is the major factor driving the smart cards automated fare collection system market growth.

"Improvement in Transportation Infrastructure to Drive Market Growth"

Automated fare payment systems have enabled in improving the transportation infrastructure as well as the security systems. A lot of countries like China, Singapore, and, Japan have such systems and they are taking measure towards developing a good infrastructure for transportation.

The growing usage of smartphones in recent days has drastically increased the scope for online booking of tickets. Online booking of tickets is driving the market growth as they are also a mode of cashless payment. This can be considered as one of the most crucial factors driving the market growth.

RESTRAINING FACTOR

"Difficulty in Adjusting to New Functionality to Deteriorate Market Growth"

Automated fare collection systems are technologically advanced, favor cashless payment, are very well efficient, however adapting to changes and new functionality can be a real challenge. The difficulty in adapting to new functionalities can hamper the market growth.

Many new changes get introduced into this system on a daily basis.  Such functionalities need to be adopted very quickly. Many surveys have found out that implementing these changes can be very difficult.  This acts as a major restraining factor for the market growth.

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Smart Cards Automated Fare Collection System Market Regional Insights

"Asia Pacific To Dominate Market in The Upcoming Years "

The region that is predicted to dominate the market during the forecast period is Asia Pacific. The main factor that is responsible for his development is the presence of highly advanced and efficient transportation systems in some of the major market players like China, and, Japan.

Many people in this region use pubic transport facilities to travel on a daily basis. Hence use of automated fare collection systems is highly prevalent in these regions. Technological advancements and innovations taking place in this region has also had a positive impact on the market.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

LIST OF TOP SMART CARDS AUTOMATED FARE COLLECTION SYSTEM COMPANIES

• Advanced Card Systems Holdings Limited (Hong Kong)
• Omron Corporation (Japan)
• Thales  Group (Paris)
• Atos SE (France)
• LG CNS (South Korea)
• NXP Semiconductor (Netherlands)
• Samsung SDS (South Korea)
• Cubic Transportation Systems (U.S.)
• GMV (Spain)
• Scheidt & Bachmann (Germany)
• Siemens (Germany)
• Sony Corporation (Japan)
• ST Electronic (Switzerland)
• GFI Genfare (U.S.)
• LECIP (Japan)
• XeroX (U.S.)
• Trapeze Group (Canada)
• Vix Technology (Australia)

Report Coverage

The report provides an insight into industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations