The automated fare collection market is expected to reach USD 8.51 billion by 2022 according to a new report by Grand View Research, Inc. Automated fare collection systems are the collective components, which enable the automated ticketing system for public transportation network. They provide a stable and integrated platform for all the activities concerned with the fare collection with equipment like automatic gate machine, ticket vending machine, and ticket checking machine. Automated fare collection systems are used in a number of high transit areas including government buildings, large commercial workplaces, and public transport ports. The growing demand for efficient, automated, and hassle-free transportation is fueling the need for automated Fare collection systems.
The passenger traffic is growing by leaps and bounds worldwide due to ever-rising population, which in turn is pressurizing the government to initiate and implement new and innovative ways to manage the public transportation services. This is expected to provide for a thriving market for automated fare collection in several countries as the government is investing increasingly in the infrastructure development. The need for automated, easy-to-use and compact systems for everyday use is also driving the automated fare collection market. With recent technological advancements, fare collection has become wireless and multifunctional.
There is a growing demand for the automated fare collection systems owing to the developments in the metro infrastructures and increasing government investments from developing economies of the Asia Pacific region. The ability of these systems to deliver better management, revenue generation, fraud prevention, and better future planning are impelling the automated fare collection system markets.
The increasing use of wireless connections, smartphone users, smart cards, contactless technology, and electronic payment is expected to append the growth of the market. The growing adoption of smart technologies and strategic alliances of transportation agencies with technology providers to establish such services is further helping the market to grow.
Further key findings from the report suggest:
The government initiatives and investment in the development of public infrastructure are increasing at a rapid rate with many countries opting for complete automation of their services and processes. This is creating a large demand for automated fare collection systems as they supplement the development of smart cities and efficient transportation systems.
With the large-scale adoption of smart phones, smart cards, cashless transaction, and new connectionless technology, there is a steady drift towards completely automated processes like revenue generation, traffic management tolling, and fine implementation. This will further propel the automated fare collection market in the developing economies.
The global market is highly competitive. The major industry participants include Cubic Systems, Omron Corporation, Thales Group, Advance Cards Systems, Atos SE, Fare Logistics, LG Corporation, NXP Semiconductor, and Samsung SDS.