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

Updated On: 29 April 2024

Smart Cards Automated Fare Collection Systems Market Report Overview

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The global smart cards automated fare collection systems market size was USD 1351.5 million in 2022 and market is projected to touch USD 2887 million by 2031, at a CAGR of 8.8% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with smart cards automated fare collection systems market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market growth and demand returning to pre-pandemic levels once the pandemic is over. 

Use of the smart cards automated fare collection systems has become momentous with the exponential development of the internet and the augmented complexity of mobile communication technology. Smart card technology has enter the market, and attempts are being made to use it in many areas of business activity. Smart cards automated fare collection systems is used in many sectors healthcare, banking and transportation. The card is used to store identification, biometrics, photos, fingerprints, medical data, banking data, transportation fares, and other individual data. It is perceived as a secure method of user validation and fare payment. As no longer has to collect the fare. Furthermore, the smart card improves the quality of the data, gives transit a more modern look, and provides new opportunities. Mobile applications for ticketing also has the advantage of quickening boarding and reform cash-handling procedures. Customers today rise the comfort of using preloaded cards when making purchases to enhance their travel experience. Smart card automated fare collection system has benefited greatly from the UPI payment method as well. The smart cards automated fare collection systems market is anticipated to expand further over the course of the forecast period. Overall purchasing power is expected to impact developing economies significantly and is considered helpful in numerous ways. Rapid development, altering ticketing and automated fare collection technologies, and the integration of numerous multiple-mode transfer providers in the region verify to be vital growth. Companies are effectively working on new product development, and enhancement of existing products to acquire new customers and capture more market shares. There is an ease of operation in terms of ticket distribution, inspection and also supports in cost minimization.

COVID-19 Impact: Pandemic hampered the market due to unexpected disruption in the sector

COVID-19 pandemic has extremely affected the whole world. It caused many unexpected disruption and affected the industry. The supply chain got affected as there was shortage of raw material, labours. The smart cards automated fare collection system market is expected to grow due to the rise in digitalization and contactless payment.

Latest Trends

"Use of innovative technology to boost the market growth "

Technological improvement and development will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the downstream market. Technological advancement will improve performance and propel the market growth. As the demand in developing markets is projected to rise in the future, the demand for smart cards automated fare collection market will also upsurge. Technological developments and modernisation are estimated to play a crucial role in improving the performance of the product and growing its uses in several industries.

Smart Cards Automated Fare Collection Systems Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into farebox, ticket vending machines (TVM), and validator

Farebox capture the maximum market share through forecast period.

• By Application Analysis

According to application, the market can be segmented into off-board, on-board.

Smart cards automated fare collection market players cover segment as off-board will dominate the market share during forecast period.

Driving Factors

"Technological improvement to upsurge the market growth"

Smart cards automated fare collection systems generally support faster and more flexible fare collection systems. Contactless or proximity smart cards authorise faster handling times than magnetic stripe cards or contact smart cards. They also enable handling of separated fare structures such as time-based and distance-based tariff structures and fare integration across numerous ways and operators.

"Use of smartphone to drive the demand in market"

The smart cards automated fare collection systems market has accelerated as smartphones have developed into a necessary tool for online ticketing. smart cards automated fare collection systems market have made ticket acquiring stress-free and more suitable with the development of impartial applications for train and bus travel. This has helped the market expand. Customers can acquire any ticket type and pay with a cashless method. They are effectively working on new product development, and augmentation of existing products to acquire new customers and acquire more market shares.

Restraining Factors

"High installation cost to hamper the market growth"

The high installation cost is one of the primary factors limiting the smart cards automated fare collection systems market growth. Thus this may affect the growth factor and show negative effects. The system also imposes a lot of maintenance which adds to the costs. Installation cost is more expensive. Implementation of technology involves installation of number of hardware & software components such as mobile application software, central computer system, station computer system, and cards these are likely to incur high initial cost of setup.

Smart Cards Automated Fare Collection Systems Market Regional Insights

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"North America to dominate the region due to improved standard of living and digitalization"

North America is further expected to witness growth in the smart cards automated fare collection systems market share. The growth in this region can be credited to the factors such rising disposable income and improved standard of living of people. The public transportation system in North America has undergone a significant transformation as a result of investments made by local and national specialists to improve the regions transit system. Market has a larger development window thanks to the growing trend of digitization that is pushing numerous sectors. Due to the existence of a large population of travellers, growing expenditure on infrastructural projects and higher government initiatives towards digitization. The rising emphasis on cashless transactions and increasing acceptance of advanced technologies.

Key Industry Players

"Key players focus on partnerships to gain competitive advantage"

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger.

List of Market Players Profiled

• Cubic Corporation (U.S.)
• The Nippon Signal (Japan)
• Omron Corporation (Japan)
• Scheidt & Bachmann (Germany)
• Thales Group (France)

Report Coverage

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas.