By Ronak Bora
Automated fare collection system market based on the component is mainly segmented into hardware and software. The hardware segment worth more than USD 2.2 billion in 2015, is expected to witness a CAGR of 10.4% over the period of 2016 to 2023. To reduce the complexity as well as to improve the efficiency of the AFC system, software-based technical support has deployed by the software developers and firms which will provide software development kits, database management systems, middleware, mobile platforms, server solutions. Many of the transportation agencies are increasingly looking for software based AFC system, which will stimulate software automated fare collection system industry size lucratively.
Global Automated Fare Collection System market worth USD 4.51 billion in 2015, will exhibit an annual growth rate of 10.4% over the period of 2016 to 2023. Transportation infrastructure will drive AFC system industry extensively, as it is used for maintaining customers log, estimating best fare calculation and to check relevant discounts. The implementation of AFC system across the various sectors such as transportation will offer benefits like improved revenue management and fraud prevention.
Get sample copy of this research report @ https://www.gminsights.com/request-sample/detail/406
Automated fare collection system industry comprises technologies such as optical character recognition (OCR), magnetic strip, near field communication (NFC), and smart cards. OCR technology is extensively used to generate receipts and tickets. The near field communication technology is projected to record a CAGR of 12.3% over the coming six years, owing to the high demand for this technology owing to its high degree of compatibility. In addition, NFC is a user-friendly technology, which will add benefit over other alternatives such as QR codes and BLE (Bluetooth low-energy). Smart card accounted for 30% of the worldwide automated fare collection system market revenue in 2015 and will display eye-catching growth opportunities over the coming timeline. The smart cards offer favorable features such as portability, low complexity, and reliability, which influence the industry trends considerably.
Key insights from the report include:
Major hardware includes booking office machines, Ticket Vending Machines (TVM), handheld and mobile terminals, fare gates, etc. The segment is expected to grow at 10.3% CAGR from 2016 to 2023.
Based on the usage location, these products can be categorized into on-board and off-board equipment. Consumables include proximity cards, flash pass, ticket personalization equipment, etc.
Intelligent AFC systems are capable of estimating the best fare on the basis of parameters such as relevant discounts, prior journey logs, and travel length. Transparent fee collection methods help significantly boost customer satisfaction and bring value to transport authorities and end users.
U.S. automated fare collection system market share was over 85% of the North American revenue in 2015, and is forecast to remain the leading country over the forecast timeline.
The availability of improved transport statistics for future infrastructure planning and service enhancements is a compelling growth driver for the industry.
Major companies accounting for automated fare collection system market share are Thales Group, Omron Corporation, Cubic Transportation, etc. Long life span and limited number of industry participants has led to intense competition. Companies enter into long term service contracts with buyers, leading to high entry barriers.
Bora, Ronak. “Automated Fare Collection System Market Expected to Witness a Sustainable Growth over 2024.” Fractovia, 14 Sept. 2020, www.fractovia.org/news/automated-fare-collection-system-market-share/11721
Automated fare collection can eliminate interactions between transit operators and passengers especially during COVID-19. Automated fare collection is not a new concept, but it is expected to grow. Even without the pandemic, this makes fare collection extremely convenient and efficient, which is desirable to passengers and workers alike. This article only touches on the growth of automated fare collection through 2024, but I think looking at how this will be implemented in every form of public transportation will be interesting.
This article is relevant to my research because it provides me with more insights on how businesses could improve the safety of transportation workers. Right now, when taking the COTA you just walk in through the far end door with swiping. Essentially, we are given a free pass. However, after the pandemic, if automated fare collection was implemented it would eliminate the need to interact with the bus driver in order to board and boarding would be so easy.