Automated Fare Collection (AFC) Market Forecasts to 2028 – Global Analysis By Component (Central Computer System, Hardware, Services), System (Fare Gates, Integrated Circuit (IC) Cards, Ticket Office Machine (TOM)), Service Type (Consulting, Managed Servi

Automated Fare Collection (AFC) Market Forecasts to 2028 – Global Analysis By Component (Central Computer System, Hardware, Services), System (Fare Gates, Integrated Circuit (IC) Cards, Ticket Office Machine (TOM)), Service Type (Consulting, Managed Service) and By Geography

According to Stratistics MRC, the Global Automated Fare Collection (AFC) Market is accounted for $12.35 billion in 2021 and is expected to reach $33.27 billion by 2028 growing at a CAGR of 15.2% during the forecast period. An automated fare collection (AFC) system is the collection of components that automate the ticketing system of a public transportation network - an automated version of manual fare collection. AFC systems are also compatible with various payment methods, such as open and closed-loop systems, mobile applications, top-ups and physical ticketing. In comparison to the traditional fare collection systems, AFCs offer various benefits, such as contactless payment, higher operational transparency and minimal risks of human error and chances of cloning, theft or missed payment.

In public transport, e-ticketing systems are not only means of payment but process huge amount of information which offer a large range of possibilities to make public transport easier to use, to manage and to control. EMTA has established a working group1 to work on the issue of electronic ticketing. This group is mandated to generate knowledge, exchange/compile information and learn from the experience of its members in the field of electronic ticketing. In this framework, EMTA has launched a study on electronic ticketing in public transport.

Market Dynamics:

Driver:

Advantage of Cashless Travel Facility

The facility of cashless travel can be obtained with it as it directly debits from a bank account of the driver/owner of a car, for the services used by the owner. This gives them the freedom and convenience to travel as and when they want without the need to carry cash around. Nowadays, the trend is shifting toward card payments, where making payments through debit and credit cards has become very common. This is a strong driver of the market.

Restraint:

High Cost

It comprises equipment and products based on advanced technologies, making the system complex and expensive. The system gives a solution to traffic congestion issues; however, it simultaneously increases the cost of the tolling process, which ultimately increases the toll price. Moreover, a large centralized Traffic Management Centre (TMC) is required to be co-located with transportation managers, system operators, dispatchers, and response agencies in it. All these lead to a huge investment. One of the major factors limiting the growth of the market is the high installation cost. Its installation requires a higher cost than other toll collection systems, such as manual tolling. The system also requires high maintenance, which further increases the expenses. In the traditional method, the expenses are compensated either by tax payment on fuel or rubber or by a budget allocation from the national income. Thus, it has become essential to consider other control strategies to decrease the overall system cost to a reasonable level without compromising the system performance or modifying the public perception of the services offered.

Opportunity:

Move Toward Open Road Tolling

As toll projects are installed on most of the roads in developed countries and are also being installed in developing countries to a great extent. The ORT system enables free-flow tolling and avoids the necessity of toll booths at toll plazas. This not only reduces the infrastructure and labor cost, but also helps in avoiding traffic congestion. Most of the upcoming toll projects of different countries are based on ORT. The impact of this opportunity is high.

Threat:

Lack of Standardization

Regularity in the implementation of various AFC systems is an issue; for instance, an electronic toll collection onboard unit (OBU) does not have any display and only performs validation functions. Besides, it cannot receive or transmit any message. Moreover, every country has a different type of OBU device. The major problem in implementing AFC is integration with IT. The implementation and significant use of IT is a process of interrelated steps. Any error or redundancy in any of the stages during the implementation reduces its efficiency. In 2014, the European Commission introduced a new standard for AFCs: EN 302 637 3, which defines the Decentralized Environmental Notification (DEN) basic service that supports road hazard warning; this European standard is different from the US standard. DEN provides information related to a road hazard or an abnormal traffic condition, including AFC type and position.

Smart Card segment is expected to be the largest during the forecast period

The smart card technology was the dominance segment is expected to continue the trend over the forecast period, owing to its enhanced operating flexibility and faster processing speed than magnetic stripe cards. Smart cards allow fare integration across several transportation modes and enable service providers to process differentiated distance- and time-based fare structures. Magnetic stripe technology-based tickets were the preferred form of ticketing. However, this technology has been gradually replaced by smart cards.

The training, support, and maintenance services segment is expected to have the highest CAGR during the forecast period

The training, support, and maintenance services segment is expected to have the highest rate as it includes the fundamental topics that will help to understand the more advanced concepts of AFC technologies. The implementation of a proper maintenance regime is essential to the efficient performance of an AFC system. Maintenance and support allow users to perform tasks without any digression. It involves fixing operational issues or performing periodic inspections to avoid the occurrence of any unscheduled or unfocused event. These AFC training, support, and maintenance services enable users to understand the various technological concepts and how to use them effectively.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, due rise in government investment, expansion of highways, metro projects for intra-city and inter-city travel, and rapid rise in the development of railway infrastructure that widely uses automatic fare collection systems. Additionally, the rapid adoption of digital payments is expected to boost the growth of the market in the province. This can be primarily attributed to the rising investments from governments of emerging economies aimed at the development of railway infrastructure, expansion of highway networks, and metro projects to facilitate inter-city and intra-city travel. The growing digital payment infrastructure and higher smartphone penetration in the region are anticipated to offer lucrative growth opportunities for key industry players in the upcoming years.

Region with highest CAGR:

North America is projected to have the highest CAGR, owing to significant investment by governments to improve the public transport infrastructure coupled with stringent regulations regarding transportation drive the growth of the market in this province. Technological advancement and the introduction of advanced systems by the market players have increased their acceptance in the region. The economic growth in countries such as China and India, and increasing investments in public infrastructure, the expansion of global players into these countries to tap market potential boosts vast transportation network and adoption of the latest smart technologies in transportation and customer experience that would create demand for automatic fare collection systems in the province and would further help in the market growth.

Key players in the market:

Some of the key players profiled in the Automated Fare Collection (AFC) Market include Advanced Card Systems Holdings Limited, Cubic Corporation, Eurotech S.P.A. , NEC Corporation, Nippon Signal Co. Ltd., NXP Semiconductors N.V., Omron Corporation, Scheidt & Bachmann GmbH, Siemens AG, Sony Corporation, Thales Group, Xerox Corporation.

Key developments:

In February 2021: Cubic announced its Cubic Transportation System (CTS) business division signed the contract with New York Metropolitan Transportation Authority to freely upgrade contactless fare payment system for Long Island Railroad and Metro North Railroad.

In May 2015: Cubic Corporation’s launched real-time passenger information system named “NextBus” had a major expansion in the east corner of the Australian State of Queensland. This enables Queensland commuters to accurately track their bus and ferry services in real-time through Passenger Information Displays and on their mobile devices, including smartphones, tablets, or computers, taking the guesswork out of riding public transport.

In July 2020: Thales Group delivered the automatic fare collection (AFC) system across Bangkok’s MRT’s blue line 19 stations.

In June 2015: Thales launched TransCity, a cloud-ready range of evolutionary fare collection solutions, destined for public transport systems. TransCity, a web-oriented technology, simplifies both passengers’ journeys and operators’ day-to-day operations.

Components Covered:
• Central Computer System
• Hardware
• Services
• Software
• Station Computer System
• Station Equipment

Systems Covered:
• Fare Gates
• Integrated Circuit (IC) Cards
• Ticket Office Machine (TOM)
• Ticket Vending Machine (TVM)
• Validator

Service Types Covered:
• Consulting
• Managed Service
• System Implementation
• Training, Support, and Maintenance

Technology’s Covered:
• Barcodes & Magnectic Strips
• Near Field Communication (NFC)
• Optical Character Recognition (OCR)
• Smart Card

Applications Covered:
• Rail and Transport
• Parking
• Electronic Toll Collection
• Theme Park
• Urban Mass Transit

End Users Covered:
• Automotive Fuel
• Government
• Large Commercial Workplaces
• Media and Entertainment
• Public Transport Authority
• Retail
• Transportation and logistics

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances