Consumer Preference for E-payment Services Driving Automated Fare Collection Market at Rapid Pace

Rapid advancement in transportation system infrastructure is one of the most prominent factors driving the global automated fare collection (AFC) market. Transparency Market Research, in a report, titled “Automated Fare Collection Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021,” studies in detail the scope and dynamics of the global market. According to the findings of the report, the automated fare collection market is anticipated to expand at a strong CAGR of 11.4% from 2015 to 2021, rising from a value of US$5.1 bn in 2014 to US$10.8 bn by 2021.

The automated fare collection market is also fueled by the rise in government initiatives toward the cost reduction of public transport, the growing use of e-payment, and the rise in the usage pf apps dedicated to public transport systems. On the down side, the high cost of installation and the hurdles of integrating solutions to ensure smooth functioning are some of the major challenges facing the automated fare collection market.

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The report studies the global automated fare collection market on four fronts: Technology, components, industrial application, and geography.

The AFC market is fragmented on the basis of technology into magnetic strips, optical character recognition (OCR), smart cards, and near field communication. Smart cards are the most widely used technology owing to their features of increased security and reliance. This segment accounted for a share of 44% in the automated fare collection market in 2014 and is likely to continue its leading streak through 2021.

By component, the AFC market is bifurcated into hardware and software. The software segment held a 55% share in the automated fare collection market in 2014, emerging as the leading segment by component. The surging use of smartphones in making payments for various services is anticipated to continue driving this segment over the course of the forecast period.

On the basis of industrial application, the automated fare collection market is categorized into tolls, trains, buses, car rentals, e-payments, and others. Among these, car rental has emerged as the largest application segment of the AFC market by revenue. App-based car rental services have increased across the globe, especially in several rapidly developing economies in Asia Pacific. The surging penetration of smartphones, the growing demand for pre-booked taxi services, and the increase in online payment methods have significantly driven the car rental segment. This segment accounted for a 26% share in the overall AFC market in 2014.

The automated fare collection market is divided into Asia Pacific, Europe, North America, and Rest of the World on the basis of geography. In 2014, North America emerged as the largest contributor to the AFC market, driven mainly by the increased adoption of these collection systems in various transportation systems such as bus and train services and car rentals. Europe is the next largest market, followed by Asia Pacific and RoW. Emerging as the most attracting market for automated fare collection, Asia Pacific is anticipated to register a high growth rate during the forecast period. This can be attributed to the rise in government investment into improving the infrastructure of transportation systems such as mono rail, high-speed train services, and metro rail.

GMV, NXP Semiconductors, Advanced Card Systems Ltd., Samsung SDS, LG, Cubic Transportation Systems, Omron Corporation, Atos, and Fare Logistics are some of the prominent players competing in the global automated fare collection market. The report analyzes these vendors based on aspects such as company overview, financial standing, product or service portfolio, recent developments, and business strategies.

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This release was published on openPR.