Automated Fare Collection System Market is Estimated to Witness High Growth Owing to Rising Demand for Advanced Transport Infrastructure

 
Automated Fare Collection System Market Demand

Automated fare collection system (AFC) are electronic systems that provide an easy and quick way for transport passengers to pay for rides on public transportation systems like buses, trains and other modes of transit. AFC systems have advantages like faster boarding times, lesser queues at stations and accurate data collection that helps transport authorities enhance services. They also provide a convenient way for passengers to pay fares without having to carry exact change.

The global automated fare collection system market is estimated to be valued at US$ 13.71 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the automated fare collection system are Cubic Corporation, TSC Auto ID Technology Co., Ltd, TEC Corporation, Bixolon Co., Ltd, Citizen Holdings Co., Ltd., Star Micronics Co., Ltd, Seiko Epson Corporation, SATO Holdings Corporation, Brother International Corporation, and Others. The key players are focused on developing advanced solutions with improved features to gain a competitive edge in the market.

Opportunities in the Automated Fare Collection System Market Demand include integrating advanced technologies like IoT and cloud computing to offer contactless and cashless payment options. This will improve user experience and increase adoption.
Majority of key players are based in Asia Pacific and North America. However, increasing investments in public transport infrastructure in developing nations will drive the expansion of automated fare collection system market globally over the forecast period.

Market drivers

The dominant market driver for automated fare collection systems is the rising demand for modernization of public transport infrastructure across both developed and developing nations. Governments are making significant investments to implement AFC solutions to upgrade existing transport networks. This is helping to streamline operations and enhance commuter services. For example, introduction of open payment systems allowing use of credit/debit cards and mobile wallets has boosted adoption. Further, need to reduce operational costs is also prompting transport authorities to adopt automated fare collection systems.

PEST Analysis

Political: Automated fare collection systems help governments and transit agencies tackle issues like overcrowding, delays and fare evasion. Governments support adoption of AFC systems through financing and promotion.

Economic: AFC systems help reduce operating costs for transit operators through efficient fare collection, providing commuters a convenient way to pay for transportation, and offering opportunity to generate non-fare revenues.

Social: AFC solutions enhance the travel experience for commuters through contactless and cashless payment options. They allow easy top-ups and management of transit accounts on mobile phones.

Technological: Advanced technologies like NFC, RFID, QR codes and mobile apps allow for fast and seamless transactions. Multifunction smartcards offer integration with other transit modes and services. Continuous research drives innovations in security, interoperability and personalized services.

Geographical regions with high market concentration

East Asia accounts for the largest share of the global AFC systems market value due to widespread adoption across countries like China, Japan and South Korea. Japan has deployed AFC systems since 1970s, while China's national rollout since 2010 backed the regional growth.
Europe follows East Asia with significant demand from countries pursuing integrated public transportation networks. Scandinavia and the U.K. were early adopters, while deployment accelerated across major cities elsewhere in the region.

Fastest growing region

South and Southeast Asia are poised to emerge as the fastest growing regional markets for AFC systems over the forecast period. Urbanization, growing middle class, government investments in public transit and internet penetration are driving the adoption of cashless and contactless fare payment options. Countries like India, Indonesia, Philippines and Vietnam are strategically rolling out AFC systems across metro cities to modernize commuter mobility infrastructure.

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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191

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