Fort Collins, Colorado, March 05, 2024 (GLOBE NEWSWIRE) -- The Automated Fare Collection System Market was valued at USD 6.2 Billion in 2023 and is projected to attain a market size of USD 22.1 Billion by 2032 at a CAGR of 15.1%.
The industry is expected to experience strong growth owing to government initiatives to improve public transportation services. The overall market has a huge potential for expansion as most transit agencies do not have a complete AFC implementation. The increasing ridership, municipal efforts, and favorable regulatory framework are expected to contribute to the growth over the forecast period. Transport authorities play a crucial role in the AFC implementation as all the funding and contracts are through them.
Increasing transport infrastructure developments and investments contribute to market developments. Passenger traffic worldwide is continuously increasing, owing to the rising population. According to the Organization for Economic Co-operation and Development (OECD), rail passengers and freight traffic worldwide could grow at around 4–5% per year. To meet the growing rail traffic needs, governments in several countries have planned substantial investments during the forecast period. Governments are increasingly investing in the development of metro infrastructure in several countries, which is expected to drive the demand for automated fare collection systems in the forecast period.
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Segmentation Overview:
The global automated fare collection system market has been segmented into component, technology, deployment, system, and region. The AFC market is segmented based on technology into smart cards, magnetic strips, NFC, and Optical Character Recognition (OCR). Smart card technology accounts for a substantial market share and is projected to register huge market growth during the forecast period.
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Automated Fare Collection System Market Report Highlights:
- The global automated fare collection system market growth is anticipated at a CAGR of 15.1% by 2032.
- The market is technology-driven and continuously evolving. The contactless smart cards and NFC systems are expected to have high potential. NFC systems are gradually expected to replace smart cards as they can be integrated into smartphones and credit cards.
- Europe is a fast-growing segment with a highly anticipated CAGR by the forecast period. The need to maintain statistical data about the number of passengers trains at a railway station, and so on is addressed by ticket vending machines.
- Some prominent players in the automated fare collection system market report include Smartbox Ecommerce Solutions Pvt. Ltd., KEBA AG, InPost Ltd., Cleveron AS, Neopost Group, TZ Ltd., Winnsen Industry Co., Ltd., ByBox Holdings Ltd., Bell and Howell, LLC, and ENGY Company,.
Industry Trends and Insights:
- In 2023, NEC Corporation and Sumitomo Corporation will deliver automated fare collection system for Philippine North-South Commuter Railway (NSCR). This investment reduces traffic congestion, air pollution, and eases traffic in Manila Metropolitan area.
- In 2023, LECIP Inc, successfully acquired the contract to supply farebox cash collection system to METRO (Metropolitan Transit Authority of Harris County) in Texas.
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Automated Fare Collection System Market Segmentation:
By Component: Hardware, Software
By Technology: Smart cards, NFC, OCR, magnetic strip
By Deployment: Cloud, On-premise
By System: TVM, TOM, IC Cards, Fare Gates
By Region: North America, Latin America, Europe, Asia Pacific, the Middle East and Africa
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