The global automated fare collection (AFC) system market (자동 요금 징수(AFC) 시스템 시장) is projected to reach a value of US$ 11,601.2 million in 2024. Projections suggest that the market will witness a robust growth trajectory, with a compound annual growth rate (CAGR) of 14.6% from 2024 to 2034. By 2034, the automated fare collection system industry is expected to be valued at $45,156.3 million.

Automated fare collection (AFC) systems revolutionize the fare payment process for public transit operators by leveraging advanced collection and ticketing mechanisms without manual interventions. AFC facilitates seamless validation upon entry and exit across various transit mediums such as buses, rails, and others, utilizing smartcards, mobile tickets, and other contactless technologies while eliminating cash transactions. The global demand for AFC systems is on the rise, driven by increased government investments in digitizing transit payments.

Key benefits driving the adoption of AFC systems include enhanced user experience through cashless payments, reduced instances of fare evasion, access to comprehensive ridership data and analytics, operational cost savings, and support for complex fare plans integrating routes, modes, and concessions. Although market leaders predominantly emerge from developed regions, Chinese and Indian vendors are gaining traction, especially due to large-scale government initiatives aimed at modernizing transit systems.

Market Insights

Public transportation has been slow to modernize payment systems and revenue management capabilities relative to advances made by other passenger transport sectors like airlines. However, electronic payments adoption in wider economic sphere is now driving policy priorities around AFC systems. National standards around unified mobility cards that work across cities, routes and transport mediums act as key enablers.

AFC projects also enable rich data insights through back-end analytics related to travel patterns, peak demand profiling etc that helps plan efficient services. Gradually, open payment card options along mifare cards shall ease adoption friction emphasizing interoperability. Emerging markets specifically face opportunities to leapfrog cash dependency thus realizing operational efficiencies and customer convenience sooner than later.

List of Key Companies Profiled in The Report

• Omron Corporation
• Masabi Ltd.
• Nippon Signal
• Scheidt & Bachmann GmbH
• Samsung SDS Co. Ltd.
• Advanced Card Systems Ltd.
• Atos SE
• Cubic Transportation Systems
• GMV
• Indra Sistemas SA
• LECIP Holdings Corporation
• Others

Market Opportunities

In terms of product evolution, opportunities exist in areas like hybrid AFC models harnessing cards plus mobile wallets, open contactless bankcards support, IoT integration for connected infrastructure, and leveraging technologies like AI, cloud and data analytics for smarter functionalities encompassing predictive maintenance of validating and collecting hardware etc.

Among regional markets, highest growth upside exists in developing geographies where public transit reliance is high but cash payments still dominate. Latin America, Middle East & Africa also offer greenfield opportunities. Within developed regions, upgrading legacy AFC systems allows sizable market prospects. Among customer segments, national and state transit agencies spearhead adoption but mainline railways, proprietary network operators including campuses, theme parks etc puffer additional adoption upside.

Competitive Landscape

The automated fare collection system market is dynamic, witnessing the entry of new players and the expansion of existing ones. Companies provide diverse offerings, including contactless smart cards, mobile ticketing solutions, and automatic gates. Collaboration is a growing trend, with players joining forces to offer integrated solutions for enhanced passenger convenience. The market is intensely competitive, with a focus on delivering innovative and cost-effective solutions to meet the evolving needs of the transportation industry.

In 2022, Masabi Ltd and the Roaring Fork Transportation Authority (RFTA) launched the RFTA ticket mobile app, offering passengers flexibility in ticket purchasing, ensuring convenience in time, location, and platform choices.

The Automated Fare Collection (AFC) System market provides a multifaceted understanding of its overview, insights, growth patterns, opportunities, trends, and value chain. As this market continues to evolve, staying informed and adaptable will be crucial for businesses and stakeholders seeking to thrive in the ever-expanding realm of AFC systems.