What Has Been the Growth of the Automatic Fare Collection System Market So Far?
The automatic fare collection system market has seen considerable growth due to a variety of factors.
• The market size of the automatic fare collection system has witnessed substantial growth in the past few years. The market, which stood at $10.75 billion in 2024, is projected to escalate to $12.2 billion in 2025, with a compound annual growth rate (CAGR) of 13.4%.
The historic growth has been attributed to numerous factors including increased boarding speed and efficiency, minimized revenue loss and fare evasion, improved passenger convenience, alignment with multi-modal transportation, and the ability to gather data for operational analysis.
What Is the Forecasted Market Size and Growth Rate for The Automatic Fare Collection System Market Size In The Coming Years?
The automatic fare collection system market is expected to maintain its strong growth trajectory in upcoming years.
• Over the coming years, considerable growth is forecasted for the automatic fare collection system market. The market size is projected to rise to $17.6 billion by 2029, with an impressive compound annual growth rate (CAGR) of 9.6%.
The escalation during this forecast period is due to several contributing factors, including smart city initiatives, IoT connectivity, the integration of mobility as a service (maas), government initiatives, and regulations. Additional influences include a heightened emphasis on improving passenger experience and the prevention of cybercrime and fraud. Major developing trends within the forecasted period includes the adaptation of contactless and mobile payments, intermodal integration and seamlessness in mobility, and the use of data analytics for optimization alongside the integration of emerging technologies. Other important trends involve biometric authentication and facial recognition technology.
What Factors Are Driving Growth In The Automatic Fare Collection System Market?
The rise in smartphone usage is predicted to drive the expansion of the automatic fare collection system market. A smartphone, a portable device that combines the features of a conventional cell phone and computer, plays a significant role in automatic fare collection (AFC) systems. By enabling cashless and contactless transactions, smartphones improve the efficacy, convenience, and customer experience of public transportation. In particular, the Pew Research Center, a think tank organization in the United States, reported in January 2024 that the proportion of adults possessing a smartphone in the country rose from 85% in 2021 to 90% in 2023. Consequently, this growing prevalence of smartphones underpins the automatic fare collection system market's advancement.
What Are The Main Segments Of The Global Automatic Fare Collection System Market?
The automatic fare collection system market covered in this report is segmented –
1) By Component: Hardware, Software
2) By Technology: Smart Card, Magnetic Stripe, Near-Field Communication (NFC), Optical Character Recognition (OCR)
3) By Application: Railways And Transportation, Parking, Entertainment, Other Applications
Subsegments:
1) By Hardware: Ticket Vending Machines, Smart Cards, Turnstiles, Mobile Payment Devices, Fare Gates
2) By Software: Fare Management Software, Reporting And Analytics Software, Integration Software, Mobile Applications, Cloud-Based Software Solutions
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Which Emerging Market Trends Are Altering The Automatic Fare Collection System Industry?
Prominent firms in the automatic fare collection system market are concentrating on innovations like automatic fare collection systems to boost operational competence, enrich the passenger experience, and create new revenue opportunities. Automatic Fare Collection (AFC) systems are technological innovations used in public transport systems to mechanize passengers' fare payment process. For example, in October 2023, the Metropolitan Atlanta Rapid Transit Authority (MARTA), an establishment based in Georgia, declared the inauguration of its novel automated fare collection system. This fresh layout enables passengers to make payments using debit and credit cards, as well as digital wallets, right at the fare gate, removing the necessity of conventional vending machines. It encompasses numerous characteristics devised to augment the passenger experience and optimize operational efficiency, like diverse payment choices, and the integration of contactless payments.
Who Are the Key Players In The Automatic Fare Collection System Market?
Major companies operating in the automatic fare collection system market report are:
• Sony Corporation
• Siemens AG
• Thales Group
• NXP Semiconductors
• Atos SE
• Seiko Epson Corporation
• Singapore Technologies Engineering Ltd
• OMRON Corporation
• Gaoxin Modern
• KML Technology Group Ltd
• Indra Sistemas
• S.A
• Chinasoft International Ltd
• Cubic Corporation
• SATO Holdings Corporation
• NIPPON SIGNAL CO LTD
• Dormakaba Holding AG
• TSC Auto ID Technology Co.Ltd
• Star Micronics Co.Ltd
• Vix Technology
• Scheidt & Bachmann GmbH
• LECIP HOLDINGS CORPORATION
• Trapeze Group
• Leadway Tech
• GRGBanking
• Masabi Ltd
• Advanced Card Systems Ltd
What Is The Most Dominant Region In The Automatic Fare Collection System Market?
Asia-Pacific was the largest region in the automatic fare collection (AFC) system market in 2024. The regions covered in the automatic fare collection system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
