Automated Fare Collection (AFC) System Market Overview:
Worldwide automated fare collection system market volume was predicted at 4.01 billion US dollars in year 2014. Constantly changing conditions of business and increasing need for reducing travel charges globally is predicted to propel the automated fare collection system market growth over the estimated period.
This solution mechanizes the ticketing structure in the transportation systems. It offers affordable functionalities, improves the rate of transaction and enables more proficient ticketing system. Technology like contactless technique, smart card technique and electronic payment method is predicted to propel the acceptance of automated fare collection method over the estimated period.
Government concentrates on boosting the infrastructure of transport and security is predicted to enhance the growth of the automated fare collection system market. New and innovative methods of payment like account based system of payments like credit card, debit card and bank card are projected to boost the growth of automated fare collection business sector over the estimated period.
Rising regional amalgamation and interoperability is predicted to add to the market demand in future. There has been rise in regional integration between the operated systems by various transit groups and other amenities like airports, railroads and parking. Such assimilation needs cooperative association to establish regional items.
Increasing requirement to boost business process for achieving good profit edge among the firms is predicted to boost the automated fare collection system market in the specified estimated period. Transport firms are forming strategic alliance with payment device providers, financial firms and system integrators concentrating on minimizing overall price. This association will offer advantage like cost effective assets proprietorship agreement, shared infrastructure and more equitable risk mitigating measure.
Rising popularity and incursion of payment cards like credit cards as well as debit cards will benefit the automated fare collection system market over a specified time. Direct use of these cards will fuel the market growth over the projected period.
Organizations face challenge with these solutions integration with different parts offering efficient revenue collection services. This may affect the automated fare collection system market growth negatively over the projected time.
Automated Fare Collection (AFC) System Market By Technology:
The industry can be bifurcated into magnetic strips, OCR, smart cards and NFC. Requirement of huge capital investments is predicted to pose challenge to smart card based automated fare collection expansion and growth over the projected time. The smart card section was valued at 1.34 billion US dollars in year 2014 and is predicted to grow at a CAGR of 10.6% from year 2015 to year 2023.
Advantage like stability, high speed contactless deal, security and fault tolerance is predicted to favor NFC acceptance over the specified time. Development of NFC enabled smart phones is also projected to boost the market demand. NFC enabled products permit travelers to carry out safe deal simply by sharing it with the terminal.
Smart card methods provide benefits like reduction in operation costs, manufacturing costs and costs of maintenance. It improves the efficiency, opens up business avenues as well as marketing opportunities and reduces fraudulent business cases, such benefits are expected to favor the growing use of smart card systems over the estimated time cycle.
Automated Fare Collection (AFC) System Market By Component:
Hardware parts encompass vending machines, fare gates, booking office equipments, hand held terminals and mobiles. The hardware section contributed to more than forty five percentage of total market share in year 2014. It is expected to grow at a CAGR of 9.9 % from year 2015 to 2023.
Due to the technical convolution in functioning of collection of revenues and payment systems, transportation authorities are looking to their system dealers for maintenance and operating activities. These activities encompass consumer support services, regional settlement and card management that may otherwise be carried out by the authorities.
Automated Fare Collection (AFC) System Market By Region:
Regions of North America and Europe are predicted to be main geographical locations over the forecasted period as there is increase in capital investment by the government for improving/boosting the road & transport in these regions.
Automated Fare Collection System Market of North America is predicted to grow at a CAGR rate of 8.6% from year 2015 to 2023. APEC automated fare collection systems market is also predicted to observe the growth due to rise in focus of nations like China, Japan and India to create best commutation amenities like mono rail, metro rail , road metros and high speed trains in their respective areas. Technological modernization and advances is also predicted to propel the growth of the automated fare collection system market in Countries like China and India.
Competitive Landscape:
Leading market players of this business sector include Thales Group, Vix Technology Omron Corporation, Cubic Transportation Systems, Atos and Advanced Card Systems Limited in year 2014.
