by The automated fare collection system is revolutionizing public transportation with contactless payment technology. An automated fare collection system facilitates cashless or contactless payment for journeys on metros, trains and buses, enhancing the overall commuting experience. The system utilizes smart cards or mobile apps to allow passengers to electronically pay fares and pass through exit gates, thereby reducing queues and waiting time at ticketing counters.
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 12.4% over the forecast period from 2024 to 2031.
Automated Fare Collection System Market Demand offer numerous advantages including faster transaction times, enhanced security through encrypted data communication, and improved data analytics for transportation authorities. They eliminate the need to carry exact change or tickets and allow multi-modal journeys with a single payment. This has increased demand across cities globally to modernize public transportation infrastructure.
Key Takeaways
Key players operating in the Automated Fare Collection System market 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.
Growing population and rapid urbanization have led to increased passenger traffic on public transportation systems. This has augmented demand for automated fare collection systems to ease overcrowding and facilitate contactless travel. Several cities are adopting integrated account-based payment solutions to enable seamless travel across different modes of transportation using a single card or mobile app.
Major transportation providers are also focusing on global expansion into new markets. For instance, Cubic Corporation has deployed its Umo platform in hundreds of cities across 50 countries. Other players are actively bidding for large automated fare collection projects worldwide to leverage opportunities in emerging economies with developing transit infrastructure.
Market Key Trends
Contactless payment technology is a major trend enhancing the automated fare collection market. The transition from magnetic stripe cards to contactless smart cards and mobile wallet integration has accelerated over the pandemic. This allows fare deductions with just a tap or wave and eliminates the need for physical contact with ticket machines or turnstiles. The improved user experience and hygiene are driving preference for contactless automated fare collection systems.
Porter’s Analysis
Threat of new entrants: High capital requirements and economies of scale in terms of technology required pose significant barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternative options.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to the presence of many suppliers in the market.
Threat of new substitutes: Low threat of new substitutes as automated fare collection provides convenience and security.
Competitive rivalry: Intense competition due to the presence of global as well as regional players.
Geographical Regions
Asia Pacific holds the largest share in the global automated fare collection system market in terms of value due to large populated cities and growing transit systems in countries like China and India.
North America is expected to grow at the fastest CAGR during the forecast period. This is attributed to ongoing modernization of existing transportation infrastructure and adoption of advanced technologies in metropolitan areas of the U.S. and Canada.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
