Title: Automated Fare Collection System Market: Core Technologies & Applications
1Automated Fare Collection System Market Core
Technologies Applications As a computerized
version of manual fare collection, an
automated fare collection (AFC) system
entails a diverse range of components that
automate a public transportation networks
ticketing system. The innovative system is
typically the foundation for integrated
ticketing, comprising a smartcard-based
contactless back-to-back solution for fare
collection as well as payments. According to
Inkwood Research, the global automated fare
collection system market is estimated to grow
with a CAGR of 11.63 during the forecast years
of 2023 to 2032.
Automated ticketing systems enable operators
to execute variable as well as flexible
fare plans based on time, means of travel, or
type of commuter. In addition, it also equips
operators to cater to the demands of passengers
through the customization of travel fare options,
such as unlimited ride passes, discounted passes
during off-peak periods, free intermodal
transfers, and other modes. Whats Trending?
Seamless Tech Integration for Operators
Consumers With the growing advantages of
enhanced convenience and minimized
operational costs, commuters, consumers, and
operators alike are rapidly transitioning to
automated fare collection systems from
conventional ticketing solutions. While these
systems help operators avoid manpower expenses
and cash leakage, it also enables customers to
avoid fare-related frauds and subsequently avail
of efficient transaction processes. Moreover, the
rise in mass rapid transportation systems (MRTS),
such as light rails, bus rapid transit systems,
and metro rails, has led to unprecedented
passenger volumes. This factor has created a
significant need for smart, next-generation
automatic fare collection system
technologies. In
2- addition, these systems and solutions also
pave the way for more intricate operations
and also minimize the risks associated with
infections amid the novel coronavirus pandemic. - Aligning with this, here are the top three
technologies projected to facilitate the rapid
adoption of automated fare collection systems
over the upcoming years - Optical Character Recognition (OCR) Optical
character recognition (OCR), also known as
optical character reader, is the mechanical
or electronic conversion of images of
typed, printed, or handwritten text into
machine-encoded text, whether from a photo
of a document, a scanned document, or other
formats. By eliminating the need to type in
or write down information, optical character
recognition enables inspectors to instantly scan
passenger IDs and ticket barcodes, thus enabling
a smoother transit process. - Inkwood Research estimates that the optical
character recognition (OCR) segment, under the
technology category, is projected to record a
CAGR of 11.89 during the forecasted years of
2023 to 2032. - Smartcards A smartcard is a
credit-card-sized plastic board embedded
with a microprocessor. The card is portable and
easily fits in a wallet. Moreover, it only
requires a connection to a battery or other
power sources when read or written.
Smartcards are preferred over paper tickets
owing to their increased data-storage capacity as
well as high levels of security encryption. In
countries such as Australia New Zealand,
governments have significantly influenced the
adoption of public transportation in order to aid
the shift away from private vehicles via the
implementation of smartcard ticketing. - As per Inkwood Research, smartcards are expected
to be the dominating technology in the global
automated fare collection system market by the
end of the forecast period. - Leading players operating in the market,
including Scheidt Bachmann GmbH (Germany),
are engaged in providing fare collection
systems such as smartcard ticketing and
ticketing software. - Near-Field Communication (NFC) Near-Field
communication (NFC) entails a wireless
technology that facilitates two-way
communication between electronic devices.
Over the upcoming years, NFC technology is
projected to provide a secure system of fare
collection and subsequently incorporate myriad
capabilities, such as ease of use as well as
minimized cash handling. Likewise, the
reduction in cash handling, in addition to
enhanced traffic control, is set to foster the
demand for NFC predominantly in the avenue of
public transport. o Under the technology
category, the near-field communication (NFC)
segment is - estimated to grow with the highest CAGR of 13.07
between 2023-2032. - Automated Fare Collection Systems An
Application-Based Perspective - Inkwood Research estimates that the global
automated fare collection market is
projected to capture a revenue of 21652.05
million by the year 2032, as the advantages of
contactless payment systems gain traction, and
transportation infrastructure continues to
develop on a significant scale. For example,
governments across the Asia-Pacific, including
Japan, China, and recently India, have been
focusing on enhancing the transportation
structure as well as security systems, including
the High-Speed Railway (HSR). - Aligning with this, the transport logistics
segment, under the application category, is
expected to capture the highest revenue share
of 54.86 by 2032. The automated mode of
fare collection
3- revolution in this segment is further
fuelled by the surging adoption of bank
cards as well as smartphones, thereby making
the ticketing and transit process relatively
seamless. - In essence, automated fare collection
systems offer a significant advantage by
aggregating tremendous amounts of data that can
be utilized to optimize the operations of parking
facilities as well as the media and entertainment
industry. In this regard, while validators
collect data on the number of passengers or
demonstrate a users eligibility to attend an
event, the data pool plays an integral role in
improving the overall customer experience. Hence,
owing to the shift in how users interact with
technology, combined with the demand for
easier-to-use and safer technologies, the global
automated fare collection system market is
projected to grow substantially during the
forecast period. - Frequently Asked Questions (FAQs)
- Which are the key players operating in the
global automated fare collection system
market? - A LG CNS, Atos SE, Dormakaba Group, Cubic
Transportation Systems Inc, Lecip Holdings
Corporation, etc., are among the key
players operating in the global automated
fare collection system market. - What are some of the major findings of
the global automated fare collection system
market? - A As per Inkwood Research, the major
findings of the global automated fare
collection system market include customized
travel fare options, efficient transaction
processes, and reduced manpower costs.