Automated Fare Collection System Market: Core Technologies & Applications

1
Automated 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
2

• significant need for smart, next-generation
  automatic fare collection system
  technologies. In 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).

3

• 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 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.