Automated fare collection system market to grow at 10.4% CAGR from 2016 to 2023

Industry Trends

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.

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Component Trends

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.

Technology Trends

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.

Regional Trends

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.

Key industry players implement business strategies like strategic alliances, joint ventures and partnerships to increase their gains and expand their business.

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