The automated fare collection system is a contactless, comprehensive solution for automating the ticketing process and collecting fare payments in place of the conventional approach. It consists of ticket vending machines, recharge terminals, automated gate machines, and ticket-checking machines. This approach reduces waiting times in lines and time spent looking for cash to purchase tickets by streamlining fare collecting, increasing transaction rates overall, and saving a significant amount of time. It is also a simple technique for collecting revenue. It allows users to carry a single card for usage with all transit options.
Global Automated Fare Collection Market Driving Factors and Challenges
The market for automated ticket-collecting systems is expected to rise as a result of many key characteristics, such as contactless open payment, rising smartphone demand, improved efficiency, reduced fraud rates, improved transportation infrastructure and security, and customizable pricing plans. Additionally, the industry is positively impacted by elements like the rise in technology payments, the acceleration of public transportation, and worldwide interoperability.
One of the main issues facing the automated fare-collecting system market is cyber security, which is posing a challenge to the growth of the industry along with data protection and privacy. The usage of online payments can be impacted by ransomware attacks and phishing emails, which can eventually influence the adoption of AFC systems. Additionally, consumers may experience annoyance and less usage of the system if there is a server outage due to maintenance overload or potential cyber-attacks. As a result, businesses should prioritize cyber security and take the appropriate precautions to safeguard their systems and customer data.
Automated fare-collecting system installation is expensive. Installing payment collection and verification devices, configuring wired and wireless networks, installing network equipment (various types), repairing installed system hardware, adjusting and testing system hardware, and coordinating system components are all part of the installation of AFCS in transportation companies. Providers of taxi and bus services need to have portable collecting devices, whereas rail and underground systems need considerably larger infrastructure. This raises the total cost of installation and impedes market expansion.
Impact of COVID-19 on Global Automated Fare Collection Market
The COVID-19 pandemic significantly impacted the automated fare collection market. A decline in public transportation usage, budget constraints, and delayed projects affected revenue. The shift towards contactless payments emerged due to concerns about virus transmission. The crisis prompted a focus on technology and innovation, encouraging the development of touchless payment options. Governments introduced support measures for the public transportation sector, influencing technology upgrades. Long-term changes in commuting patterns may persist, affecting the demand for automated fare collection systems. Monitoring recent industry reports and updates is essential for understanding the current state of the market.
Automated Fare Collection Market Key Players:
Advanced Card Systems Limited (HNA Technology Investments Holdings), Atos SE, Cubic Corporation, NXP Semiconductors N.V., Omron Corporation, Scheidt & Bachmann GmbH, LECIP Group, LG CNS, Samsung SDS, and Thales Group are some of the major players in the industry that have been studied in terms of competition.
Global Automated Fare Collection Market Segmentation:
By Application: Based on the Application, Global Automated Fare Collection is segmented as Parking Applications, Rail and Transport, and Theme park applications.
By Technology Software: Based on the technology software, Global automated fare collection is segmented as Magnetic strips, near-field communication, optical character recognition, and smart cards.
By Vertical: Based on the vertical, global automated fare collection is segmented as Government, Media and entertainment, Retail, Transportation, and logistics.
By Component: Based on the component, global automated fare collection is segmented as Hardware and software.
By System: Based on the system, global automated fare collection is segmented as Fare Gates, IC Cards, Ticket Office machines, and Ticket Vending machines.
By Region: This research also includes data for North America, Asia-Pacific, Latin America, Middle East & Africa and Europe.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.