Authored By: Sarah
15 Jul 2024

 Automatic Fare Collection (Afc) Systems Market Size to grow by USD 5853.4 million between 2024-2028

According to a research report “ Automatic Fare Collection (Afc) Systems Market” by Component (Hardware, Software) Application (Railways, Parking , Entertainment, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 5853.4 million, at a CAGR of 10.87% during the forecast period. The Automatic Fare Collection (AFC) systems market is poised for significant expansion, driven by cutting-edge technological innovations such as mobile ticketing, Radio Frequency Identification (RFID), and Near Field Communication (NFC). RFID technology plays a pivotal role in AFC systems, enabling the connection of various electronic devices and facilitating identification, payment, and security functions. With the integration of RFID tags, embedded systems, and RFID readers, AFC systems offer enhanced efficiency and convenience. Most metro stations worldwide incorporate RFID reader circuits, enabling automatic calculation of ticket fares based on distance and number of stations traveled, which are then deducted from the user's account..

Browse market data tables, figures, and in-depth TOC on “Automatic Fare Collection (Afc) Systems Market” by Component (Hardware, Software) Application (Railways, Parking , Entertainment, Others) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Component, the Hardware segment is projected to dominate the market size in 2024

The Automatic Fare Collection (AFC) systems market is experiencing significant growth due to the increasing adoption of contactless payment technologies and the integration of real-time data analytics. These systems enhance operational efficiency, reduce manual errors, and offer seamless passenger experience. Key players are focusing on developing advanced solutions that support multiple payment methods and provide interoperability across different transport modes. The market is expected to continue its expansion, driven by urbanization, infrastructure development, and government initiatives to modernize public transportation.

By Application, Railways  segment is expected to hold the largest market size for the year 2024

In the realm of Automatic Fare Collection (AFC) Systems, hardware components play a pivotal role in ensuring seamless and automated fare collection and processing. Two essential hardware elements are the AFC gates and Ticket Vending Machines (TVMs). AFC gates, outfitted with sensors, monitor passenger movement and grant access to designated fare zones. These gates are indispensable in various transport sectors, including airports, metro stations, and bus terminals. In addition, TVMs are integral to the AFC ecosystem. They dispense tickets and offer multiple payment options, such as cash, checks, debit cards, credit cards, mobile payments, and electronic bank transfers, enhancing passenger convenience.

North America is forecasted to hold the largest market size by region in 2024

The Automatic Fare Collection (AFC) systems market is experiencing significant growth due to the increasing adoption of contactless payment technologies and the integration of real-time data analytics. These advanced systems enable efficient fare collection, enhance passenger experience, and provide valuable insights for transportation authorities. Additionally, government initiatives and investments in smart city projects are fueling market expansion.

The Automatic Fare Collection (Afc) Systems Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Atos SE
  • Chinasoft International Ltd.
  • Cubic Corp.
  • Dormakaba Holding AG
  • Gaoxin Modern
  • GMV Innovating Solutions SL
  • GRGBanking
  • Gunnebo AB
  • Indra Sistemas SA
  • KML Technology Group Ltd.
  • Leadway Tech
  • LECIP Holdings Corp.
  • LG Corp.
  • Masabi Ltd.
  • Nippon Signal Co. Ltd.
  • NXP Semiconductors NV
  • OMRON Corp.
  • Scheidt and Bachmann GmbH
  • Shanghai Huaming Intelligent Terminal Equipment Co. Ltd.
  • Siemens AG
  • STMicroelectronics International N.V.
  • Thales Group
.

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Research Analysis Overview

The Automatic Fare Collection (AFC) systems market is witnessing significant growth due to the increasing adoption of cashless payment methods in the transportation sector. With the high penetration of smartphones and contactless technology, AFC systems based on smartcards, QR code-based ticketing, and UPI payment mode are becoming increasingly popular. These systems offer ease of payment and operational efficiency, reducing the need for manpower and operational expenditures. Infrastructure repair and maintenance are essential for the smooth functioning of AFC systems. Municipal operations in smart cities require advanced AFC systems to manage traffic flow and resources effectively. AFC systems support various payment methods, including debit cards, pre-paid/credit cards, and contactless smart cards. Magnetic stripe cards and paper tickets are being gradually phased out due to their inherent limitations. AFC systems provide end-to-end solutions, integrating vending machines and digital tickets to offer a seamless experience to commuters. However, ensuring security and preventing fraud is a critical challenge for the AFC industry. Datasets and records need to be securely managed to maintain transparency and accountability. The future of AFC systems lies in contactless technology, offering a more convenient and secure payment experience for commuters.

Market Research Overview

The Automatic Fare Collection (AFC) Systems market is witnessing significant growth due to the increasing adoption of contactless payments, smartcards, and digital tickets in public transportation. Regional Transit Services are upgrading their transit modalities with Account-Based Tickets, QR Tickets, and Contactless smart cards, replacing traditional paper tickets and magnetic stripe cards. Metro projects, Monorail, BRT, and LRT systems are integrating Automated Fare Collection systems using driverless Metrino pods and Ticket Vending Machines with NFC technology and electronic validators. Cybersecurity concerns and servers downtime are major challenges for the AFC industry, necessitating robust security measures such as biometric identification through fingerprinting, facial recognition, and voice recognition. Cloud computing, Internet of Things, Machine Learning, and Artificial Intelligence are being leveraged to enhance security and operational efficiency. The AFC market comprises hardware segment (Ticket Vending Machines, Fare gates, and Electronic validators), software segment (POS terminals, Acquisitions, and eWallet technology), and the NFC and Smart card segments. The transportation sector's growth is fueled by the population explosion, cashless payment methods, and smartphone penetration. Ease of payment, operational efficiency, and fraud detection techniques are key drivers for the AFC industry. Resources, manpower, and operational expenditures are essential for the growth of the AFC industry. The market's future growth is expected to be driven by the integration of eWallet technology, UPI payment mode, and smartphone applications. The entertainment segment, railway and transportation, and municipal operations in smart cities are significant end-users of AFC systems.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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