Growing demand of contactless open payment solutions and smart phones, reduction in fraud rates, flexible fare plans, reduced traffic congestion, and enhanced transport infrastructure in developed and developing economies are the major factors that contribute to market growth. Furthermore, factors such as reduced waiting time in queues, and quick and faster transactions are likely to foster the market growth throughout the forecast period. On the other hand, high installation and maintenance cost of automated fare collection systems restricts the market growth.
Portland, OR -- (SBWIRE) -- 09/25/2017 -- Automated Fare Collection System is a contactless, end-to-end result for collecting fare payment, replacing traditional ticketing system with automated ticketing and fare collection systems. It comprises automatic gate machines, ticket vending machines, recharging terminals, and ticket checking machines. This system enables efficiency in fare collection, improves the overall transaction rate, and saves extensive amount of time, thereby minimizing waiting time in queues and searching for cash to buy tickets. In addition, it is the easiest method for revenue collection.
Global automated fare collection system market is estimated to reach $10.1 billion, at a prominent CAGR of 13.2% from 2016 to 2022, according to a new report by published by Allied Market Research. The smart card segment accounted for around 41.4% of revenue share in 2015, and the market is expected to grow with a promising CAGR of 12.9% during the forecast period, owing to the increasing application of smart cards in bus, train and toll fare collection. North America and Europe collectively accounted for over 63% of the market share in 2015.
An automated fare collection system has various software enabled features including Oracle, Sybase support, support multitier architecture, and XML web services. Fare collection technology platforms such as Smart cards, NFC and OCR systems ensures full interoperability and independence of service providers. Factors such as increase in demand for smartphones, enhanced efficiency, reduced frauds, flexible fare plans, and enhanced security system strengthen the growth of this market. In addition, the government of India, China, and others are focusing on enriching the transport infrastructure and security system, which further drives the growth of the market. However, high installation and maintenance costs of automated fare collection system hinder the market growth. Opportunities such as increase in high speed of public transport, rise of technology payment, and global interoperability are likely to foster market growth.
Key Findings of Automated Fare Collection System Market:
- Asia-Pacific is likely to be one of the fastest growing markets in terms of value, growing at a CAGR of 14.5% from 2016 to 2022.
- The smart card segment is expected to maintain its foothold in the market throughout the forecast period; however, the NFC payment segment is estimated to be the fastest growing segment.
- The usage of ACFS in bus and trains, led the market, together accounting for more than half of the market revenue in 2015.
The leading players in the automated fare collection market have adopted key strategies such as collaborations, product launch, and agreement and acquisition to expand their market presence. The key companies profiled include Advanced Card Systems Ltd, Atos SE, Cubic Transportation Systems, LECIP Group, LG CNS, NXP Semiconductors, Omron Corporation, Samsung SDS, Scheidt & Bachmann, and Thales Group.
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