Automated Fare Collection (AFC) System Market

Automated Fare Collection (AFC) System Market Study by Bus Rapid Transit, Light Rail Transit, Trains, and Others for Public Transport Authorities and Private Transport Authorities from 2024 to 2034

Analysis of Automated Fare Collection (AFC) System Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Automated Fare Collection (AFC) System Market Outlook (2024 to 2034)

The global automated fare collection (AFC) system market is estimated to be worth US$ 11,601.2 million in 2024. Projections put the CAGR of the market for the 2024 to 2034 period at 14.6%. The automated fare collection system industry is set to register a valuation of US$ 45,156.3 million by 2034.

With the exponential growth in population and increased commuters, the global transportation sector has witnessed a surge in demand. An innovative solution in AFC systems has revolutionized the fare collection process and is being adopted by several urban public transport systems.

While paper tickets and passes still hold a significant share in urban and rural rail transit systems and commuter rail, the trend is shifting toward magnetic stripe cards and contactless smart cards. These technologies are not only cost-effective but also provide additional data collection options, and enhanced security is expected to create lucrative opportunities for the market.

Key Market Growth Drivers

  • The increased use of advanced technology, such as smartphones and others, is expected to drive the AFC system market growth in the forecast period.
  • Increasing demand for fast payment owing to the elimination of manual ticket counters and enhancement of convenience is one of the factors driving the market growth for the projected period.
Report Attributes Details
Estimated Market Value (2024E) US$ 11,601.2 million
Forecasted Market Value (2034F) US$ 45,165.3 million
Global Market Growth Rate (2024 to 2034) 14.6% CAGR
Private Transport Authority Segment Growth Rate (2024 to 2034) 14.2% CAGR
North America Market Share (2024) 30.7%
East Asia Market Share (2024) 27.4%
Key Companies Profiled
  • 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
  • LG Corporation
  • Siemens AG
  • Thales Group

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Which Factors Have Driven the Global Surge in Automated Fare Collection (AFC) System Demand?

“The Increasing Use of Smartphones is Driving the Growth of the Market”

The use of smartphones has become an essential tool for online ticketing, which has significantly contributed to the growth of the automated fare collection system market. The availability of standalone smartphone applications for bus and train travel has made ticket purchasing more convenient and hassle-free, thus supporting market expansion.

With cashless payment options and the ability to purchase any ticket type, mobile application-based ticketing has accelerated boarding and streamlined cash-handling procedures. Preloaded cards for purchases have also become popular among customers who value convenience, which has improved the overall transportation experience for travelers. In India, the UPI mode of payment has played a significant role in the growth of the automatic fare collection system, and with further advancements in UPI and eWallet technology, the market is expected to continue expanding in the forecast period.

“Increasing Demand for Time-saving Work and Convenience Worldwide”

The convenience and time-saving benefits of automated fare collection systems are expected to drive their adoption in the transportation sector. With the elimination of ticket counters and the simplification of ticket distribution and checking, automated fare collection systems can lead to operational efficiency and cost reduction for transport authorities. Moreover, the use of smart card systems makes fare payments faster and easier for travelers, resulting in transaction times faster than manual ticket payments. As a result, the AFC system market is anticipated to grow as more transit authorities adopt these systems.

Which Factors Present Challenges to the Expansion of the Automated Fare Collection (AFC) System Market?

“Concerns over Cyber Security and Inactive Servers is Challenging for Automated Fare Collection (AFC) System Market Growth”

Along with data protection and privacy, it is one of the top concerns for the automated fare collection system market. Ransomware attacks and phishing through emails can impact the use of online payments, ultimately affecting the adoption of AFC systems. Additionally, server downtime due to maintenance, overload, or possible cyber threats can create inconvenience for customers and reduce the use of this system. Companies need to prioritize cyber security and take the necessary measures to protect their systems and customers' data.

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Country-wise Insights

In line with the increasing sales in the regions, the automated fare collection system finds a considerable portion of its consumer base in North America and East Asia. As per market analysis, North America is set to hold 30.7% of the worldwide market share in 2024. The market is expected to further progress at a healthy CAGR of 13.7% from 2024 to 2034 in the region, with the market share at the end of the period predicted to reach 26.5%.

East Asia is the other region with a considerable share of the market. In 2024, the share for East Asia is tipped to be 26.5%. The market is expected to register a promising CAGR of 15.8% in East Asia over the forecast period, at the end of which, the market share of the region is projected to be 28.4%.

What Ensures the Continued Thriving of the Automated Fare Collection (AFC) System Market in the United States?

“Rise of Ridership on Public Transport Leading to Automated Fare Collection (AFC) System Market Growth

The value of the automated fare collection (AFC) system industry in the United States for 2024 is estimated to be US$ 2,704.1 million. Over the forecast period, the market is expected to register an encouraging CAGR of 13.4% in the country, reaching a value of US$ 9,513.3 million by 2034.

The automated fare collection (AFC) system market growth in the United States is being driven by various factors, including the increasing ridership of public transportation in several cities, government funding for infrastructure upgrades, and the growing adoption of contactless payment technologies. With the rise in urbanization and population growth, the demand for efficient and convenient public transportation systems has increased, leading to the adoption of AFC systems in various regions of the United States.

Why is China Emerging as a Lucrative Country for the Automated Fare Collection (AFC) System Market?

“The Growth in Metro Projects and Need to Reduce Ticket Checking Time is Expected to Drive the Market Growth in China”

The automated fare collection (AFC) system market in China is estimated to capture a valuation of US$ 1,820 million in 2024. The market is expected to register a robust CAGR of 15.2% for the forecast period in China, with the industry value projected to reach 7,463.8 million by 2034.

The expansion of metro networks in major cities, government initiatives to promote cashless payments, and the growing use of smartphones for ticketing in China are some key factors driving the growth of the automated fare collection (AFC) system market share. With increasing urbanization and population growth, the demand for efficient and convenient public transportation systems is on the rise, which is boosting the adoption of AFC systems.

Additionally, government initiatives across various countries to promote cashless payments and reduce reliance on cash transactions are further fueling the market growth. Furthermore, the widespread use of smartphones and mobile applications for ticketing and payment in China is expected to contribute significantly to the growth of the AFC system market in the region.

Category-wise Insights

Based on end users, the private transport authority segment is expected to account for 77.3% of the market share in 2024.

Why is the Private Transport Authority Segment Dominating the Automated Fare Collection (AFC) System Market?

“Rising Need to Enhance Operational Efficiency and Improve the Overall Transportation Experience for Passengers”

The private transport authority segment is expected to contribute 77.3% of the market share by product type in 2024. For the forecast period, the CAGR for private transport authority is marked to be 14.2%.

The private transport authority segment in the automated fare collection system market is expected to witness significant growth in the coming years. The increasing adoption of automated fare collection systems by private transport authorities is driven by the need to enhance operational efficiency and improve the overall transportation experience for passengers. These systems enable private transport authorities to streamline their ticketing processes, reduce operating costs, and improve revenue collection.

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Competitive Landscape

The automated fare collection system market trend is constantly evolving, with new players entering the market and existing players expanding their offerings. Companies offer a range of products and services, including contactless smart cards, mobile ticketing solutions, and automatic gates, among others. The market is also seeing an increasing trend toward partnerships and collaborations among players to offer integrated solutions so that passengers can have a more convenient and easy time traveling. Overall, the automated fare collection system market is highly competitive, with players striving to offer innovative and cost-effective solutions to meet the evolving needs of the transportation industry.

Some of the prominent companies in the AFC system industry are Nippon Signal, Scheidt & Bachmann GmbH, Samsung SDS Co. Ltd., Advanced Card Systems Ltd., Atos SE, and Cubic Transportation Systems.

  • In 2022, Masabi Ltd and the Roaring Fork Transportation Authority (RFTA) announced the introduction of the RFTA ticket mobile app, which allows ticket purchasing freedom and ensures time, location, and platform flexibility.

Segmentation of Automated Fare Collection (AFC) System Market Research

  • By Application:

    • Bus Rapid Transit
    • Light Rail Transit
    • Train
    • Others  
  • By End User:

    • Public Transport Authority
    • Private Transport Authority
  • By Region:

    • North America 
    • Europe 
    • Latin America 
    • East Asia 
    • South Asia & Oceania 
    • The Middle East & Africa 

- FAQs -

Which is the Leading Segment in the Application Category in the Automated Fare Collection (AFC) System Market?

Train is the leading application type in the automated fare collection (AFC) system market, with an expected market share of 32.8% in 2024.

What is the Sales Outlook for the Automated Fare Collection (AFC) System Market?

The sales outlook for the automated fare collection (AFC) system market is anticipated to be valued at US$ 11,601.2 million in 2024.

What is the Demand Forecast for Automated Fare Collection (AFC) System for the Decade?

Demand for automated fare collection (AFC) systems is projected to reach a market value of US$ 45,156.3 million by the end of 2034.

What is the Adoption Growth Projection for Automated Fare Collection (AFC) System?

Automated fare collection (AFC) system market is projected to rise at a CAGR of 14.6% through 2034.

At What Rate Is the Market in North America Predicted to Grow?

The North American market for automated fare collection (AFC) systems is forecast to expand at a CAGR of 13.7% through 2034.

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Automated Fare Collection (AFC) System Market

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