Automated Fare Collection Market size to grow with 10.4% CAGR to exceed $9.84bn by 2023: Global Market Insights Inc.
“Automated Fare Collection (AFC) System Market Size By Component (Software, Hardware), By Technology (Magnetic Strip, Smart Cards, Optical Character Recognition (OCR), Near Field Communication (NFC)), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2016 – 2023”
Global Automated Fare Collection (AFC) System Market size was $45.2 billion for 2015 and is projected to register CAGR of about 10.4% during forecast timeframe touching $9.84 billion by 2023. Growing transport infrastructure and favourable government policies are predicted to promote the industry growth as it benefits both transport authorities and customers.
Increasing choice for integrated ticketing and electronic payments will promote automated fare collection (AFC) market size in future. A main part of ITS (Intelligent Transportation System) industry, this technology is predicted to grow owing to enhanced transport infrastructure growth worldwide. But accessibility of paper ticketing systems can inhibit the industry growth. But the growth of internal technological replacements like contactless smart cards & NFC based mobile ticketing can propel the industry growth. Further, growing acceptance of open bank cards payment methods for transit fare have added to the industry expansion.
Rapidly expanding smartphones industry segment is predicted to fuel the industry growth trends with shipments projected to surpass 2.4 billion units by end of the forecast timeframe. Favourable regulations are also predicted to push the industry growth. Enhanced transport service planning, fraud prevention and improved revenue management are few of the key advantages of AFC system implementation.
Automated Fare Collection (AFC) industry size was more than $2.2 billion for 2015 and software segment is predicted to register 10.4% CAGR during the forecast timeframe. Software and middleware form an essential part in efficacy and effectiveness of the AFC system.
Smart cards contributed about 30% of automated fare collection system (AFC) market share for 2015 and forecast to experience expansion due to its low manufacturing costs, portability and less complexity.
NFC technology is predicted to register 12.3% CAGR during the forecast timeframe. It is fast and user friendly. Also growing use of this technique in mobiles and transit readers helps rapid & easy ticketing along with effective access control. All of these factors have contributed to the growth of the technology.
U.S. AFC system market is predicted to register CAGR of 9% during the forecast period. Growing intelligent transportation systems segment is predicted to fuel the industry growth with the global ITS industry size projected to surpass $45 billion by end of 2023.
Asia Pacific AFC (automation fare collection) system market size is predicted to cross $2.5 billion by end of forecast timeframe and is promoted by transit projects in India and China.
Read full market research report “Automated Fare Collection (AFC) System Market Size By Component (Software, Hardware), By Technology (Magnetic Strip, Smart Cards, Optical Character Recognition (OCR), Near Field Communication (NFC)), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, China, India, Japan, Brazil, Mexico, Saudi Arabia, UAE), Application Potential, Competitive Market Share & Forecast, 2016 – 2023”, please click on the link below:
Automated fare collection system market share is comprised of Thales Group, Cubic Systems, Omron Corporation, Atos, NXP Semiconductor, LG, Advance Card Systems, Samsung, etc.
Players in the industry practice high degree of innovation and customization to provide unique solutions to existing and potential customers. Due to the long life expectancy of these systems, there is fierce competition to win new contracts.
Customers primarily include global transportation authorities, and majority of the sales activities are carried out through contractors and licensees. Joint ventures, collaborations, or partnerships are among key growth strategies adopted by companies to expand their geographical presence. Industry players consider equipment-related services as a core part of their business.
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Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.