• Stacy Lawlor

Global Automated Fare Collection System Market Size to reach USD 16.82 billion by 2028

The Global Automated Fare Collection (AFC) System Market Size was valued at USD 9.2 billion in 2020 and is projected to reach USD 16.82 billion by 2028, at a CAGR of 13.6% during the forecast period.

Global Automated Fare Collection System Market Size to reach USD 16.82 billion by 2028

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Increased demand for smartphones, contactless open payment, improved efficiency, low fraud rates, improved transportation infrastructure and security system, and customizable fare plans are all significant influencing elements in the expansion of the automated fare collection market. In addition, factors such as an increase in public transportation's high speed, the rise of technology payment, and global interoperability have a beneficial impact on the industry. During the forecast years, each of these factors is likely to have a favorable impact on the Automated Fare Collection Market. Furthermore, the need for a convenient and user-friendly method of fare payment has skyrocketed.

Global Automated Fare Collection System Market Size

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The COVID 19 outbreak has had a significant impact on the market for automated collecting fares. The COVID 19 imposed limits on public and private transportation, leading in a low utilization of automated fare collection systems in the majority of countries. Furthermore, the media and entertainment industry was one of the prominent implement of these systems, but fewer events occurred due to the COVID 19, resulting in a drop in the AFC market. Furthermore, the market for automatic fare collection (AFC) is expected to rise in the near future as digital technologies such as automated and contactless payments gain traction.


Smartphone demand is on the rise


Smartphones have become an important tool for automated ticketing, helping the automated fare collecting system market's overall growth. With separate smartphone applications for bus and train travel, cellphones make booking tickets more convenient, fueling industry growth. It allows customers to book any form of ticket and pay without using cash. Furthermore, one of the most significant advantages of mobile app-based ticketing is that it decreases boarding time and cash-handling procedures. Customers nowadays value the convenience of utilizing prepaid cards for transactions in order to improve their transit experience.


Demand For Smart Transportation Infrastructure Grows Is Drive Market Growth


The increasing use of modern fare collection systems, not just to collect money but also to combine with data collection, has become critical to a public transit agency's profitability. The transportation industry has seen a rapid shift from purchasing tickets to a number of more secure and efficient payment solutions. Technology advancements have resulted in the expansion of numerous smart card technologies that provide uniformity and minimal faults. In addition, as the demand for smart transportation infrastructure grows, so does the demand for improved fare collection systems to improve service and allow operators to transfer passengers more easily.


North America is expected to the largest market for Automated Fare Collection (AFC) system due to its extensive transportation network and adoption of cutting-edge smart transportation technology. AI-augmented mobility, digital identification, integrated frictionless travel, and user experience are some of the technologies that will drive demand for automatic fare collection systems in the region and help the market grow. Furthermore, top AFC manufacturers such as Cubic Corporation, headquartered in California, United States, are focusing on the implementation and development of new solutions, which are assisting in the market's growth.

Global Automated Fare Collection System Market Size

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Europe is likely to see substantial growth in the autonomous fare collection system market due to the sustainable transportation policies and digitization of public transportation. Furthermore, many cities in South America are introducing innovative fare collection technologies for public transportation, such as contactless smart ticketing, which is expected to fuel regional market expansion. For instance, Buenos Aires has launched a fare wallet called "TAG wallet." The wallet includes a sticker that may be stuck to wallets, phones, or other objects and used to pay for fares using near-field communication (NFC) technology.


KEY INDUSTRY DEVELOPMENTS:


February 2021 – Cubic stated that its Cubic Transportation System has inked a contract with the New York Metropolitan Transportation Authority to modernize the Long Island Railroad and Metro North Railroad's contactless fare payment systems for free.


In July 2020, Thales Group delivered the automatic fare collection (AFC) system to Bangkok's blue line 19 MRT stations.


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https://extrapolate.com/Automotive/automated-fare-collection-afc-system-market/25687

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