Thursday 3 September 2015

Automated Fare Collection (AFC) System Market, Segment and Forecasts To 2022

The global automated fare collection (AFC) system market is expected to reach USD 8.52 billion by 2022, according to a new study by Grand View Research, Inc. Increasing government initiatives to improve public transport systems worldwide is expected to contribute to revenue growth.

Officials justify these initiatives for better management of revenue generated, fraud prevention, and better future planning of transport services, with passenger traffic worldwide constantly on the rise, owing to rising population.

The rail passenger and freight traffic worldwide could grow at a considerable rate annually. To meet growing rail traffic needs, annual transport investment is expected to increase at a significant rate. AFC systems market is a core component of intelligent transportation systems (ITS) and the technology is primarily deployed to automate and manage the fare collection in public transport.

ITS is able to estimate the best fare for the commuter, depending on the travel length, prior journeys and any relevant discounts. It can therefore bring value to end-users along with transport authorities.

Investments for global infrastructure development are on the rise; however, delays and shortages of funding may also impede ongoing and future developments.

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Further key findings from the study suggest:
  • AFC systems market is technology-driven and dynamic, with smart card, magnetic strip, NFC, and OCR being key technologies. Smart card is expected to be the key industry; accounting for over 30% of the revenue in 2014, and is expected to grow at a CAGR of 10.7% over the forecast period. Contactless smart cards and NFC systems are expected to show high potential, with the latter gradually expected to replace smart cards as they can be integrated into smartphones and credit cards.
  • Hardware components include as on-board & off-board systems, and consumables. On-board comprise products used inside the transit medium such as ticket vending machine, ticket processing unit, and inspection terminal. Off-board consist of equipment outside the transit medium such as recharging units and terminals, proximity card reader, and ticket processing units. Consumables include flash pass, proximity cards, pass reader, printers, and ticket personalization systems.
  • AFC system software market accounted for over 50% of the overall revenue share in 2014, and is expected to grow at a CAGR of 10.0% from 2015 to 2022.
  • Europe automated fare collection system market was estimated to be the key regional segment and contributed to over 35% of the global consumption. Impending new transit project particularly in Asia Pacific is expected to contribute to regional growth over the forecast period.
  • The global AFC systems industry is highly competitive, key industry participants include Cubic, Omron Corporation, Thales Group, Advance Cards, Atos SE, Fare Logistics, LG Corporation, NXP Semiconductor, and Samsung SDS.
  • Cubic comprises over 2,000 employees working in transportation markets worldwide. The company is an established partner with transit authorities and have installed approximately 130,000 devices along with around 20 regional fare systems.

Grand View Research has segmented the automated fare collection (AFC) system market on the basis of technology, component and region:

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Automated Fare Collection System Technology Outlook (Revenue, USD Million, 2012 – 2022)
  • Smart Card
  • Magnetic Strip
  • NFC
  • OCR

Automated Fare Collection System Component Outlook (Revenue, USD Million, 2012 – 2022)
  • Hardware
  • Software

Automated Fare Collection System Regional Outlook (Revenue, USD Million, 2012 – 2022)
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • MEA

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