Automated Fare Collection Market Intelligence, Prescriptive Research, Execute Growth Opportunities

Automated Fare Collection Market



Automated Fare Collection (AFC) is a generic word for a public transportation ticketing system in which the fare is no longer paid directly but rather through ticket vending machines, internet services, or other methods. AFC is the standard fare collection method in any modern public transportation system.

An automated fare collection system eliminates the need for a ticket counter, saving travellers time and increasing convenience. Even for transportation authorities, these technologies simplify operation in terms of ticket distribution and checking while also assisting in cost reduction. As a result of these factors, various transit authorities are likely to increase their use of automated fare collection systems, propelling market expansion over the forecast period. Smartcard systems also make fare payment faster and easier for travellers. In fact, fare payment traction using the automated fare collection market system is approximately 3-5 times faster than manual ticket payment.

In order to obtain economies of scale, transportation authorities around the world are rapidly implementing the AFC system, particularly in mature markets. Furthermore, its usage is likely to grow in nations with a big number of tourists that use public transportation on a daily basis, such as India and China. Smartcards are provided by transportation authorities at a cost that includes a security deposit that is recoverable when commuters no longer choose to use them. For example, growing economies in South Asia such as India, China, Malaysia, Thailand, and Singapore have embraced or are in the process of adopting the Automated Fare Collection market system. This adoption is supported by an increase in investment by governments on transport infrastructure projects. Thus, these factors are expected to boost the market growth over the forecast period.
North America region dominated the global automated fare collection system market in 2019, accounting for 31.7% share in terms of value, followed by Europe and APAC, respectively.
The initial implementation cost required for automated fare collection system is significantly high, which may discourage concerning government authority from implementing the technology. Moreover, it is economically unreasonable for the government to offer services to small portion of travelers. Hence, these aspects are expected to hamper the global automated fare collection system market growth over the forecast period. Furthermore, employing this technology includes numerous software and hardware constituents such as central computer systems, cards, integration software, handheld devices, station computer system, fare gates, mobile application software, and more.

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