Automated fare collection system market analysis

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2. AUTOMATED FARE COLLECTION SYSTEM MARKET ANALYSIS • Automated Fare Collection System Market, by System Component (Hardware (Central Computer System, Station Computer System, Station Equipment), Software and Services), by Application (Bus Rapid Transit, Light Rail Transit, Train, Others), by End Use (Public Transport Authority, and Private Transport Authority) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2019 - 2027

3. Market Overview • An automated fare collection (AFC) system is basic station equipment, consisting of automated gate machine, ticket vending machine, and ticket checking machine. This automated ticketing system is primarily used in public transportation, which is an efficient solution to conventional ticketing system. Adoption of automated fare collection system facilitates transport authorities to offer enhanced services to consumers. Moreover, incorporation of advanced technologies namely smart card, contactless technology, and electronic payment combined with automated fare collection system has decreased the cost related to manual ticketing systems in transportation industry. For AFC system, stable, and integrated platforms are essential to keep passenger flow run smoothly at peak hours. Furthermore, all the data will collected and transmitted into center. • The global automated fare collection system market is estimated to account for US$ 7,112.2 Mn in terms of value by the end of 2019

4. Market Dynamics- Drivers • Enhanced user experience offer by AFC system is expected to drive growth of the global automated fare collection system market during the forecast period • Automated fare collection system eliminates the necessity for ticket counter, saves time for travelers, and increases convenience. Even for transport authorities, these solutions provide simplicity in operation in terms of ticket distribution and checking and supports in cost reduction. Therefore, these factors are expected to boost the adoption of automated fare collection system by various transit authorities and thereby driving the market growth over the forecast period. Furthermore, smartcard systems make fare payment quicker and easier for travelers. In fact, fare payment traction through AFC system is around 3-5 times faster than manual paying for the tickets. • Proactive initiatives taken by transportation authorities, in order to support adoption of technology is expected to propel the global automated fare collection system market growth over the forecast period • Transport authorities worldwide are increasingly adopting AFC system, especially in mature markets, in order to achieve economies of scale. Moreover, this adoption is expected to increase in countries with large number of travelers commuting through public transport on daily basis such as India and China. Transport authorities are providing smartcard at a price that includes security deposit, which is refundable when commuters no longer wish to use it. For instance, emerging economies in South Asia including India, China, Malaysia, Thailand, Singapore, have adopted or are increasingly adopting AFC system. This adoption is supported by an increase in investment by governments on transport infrastructure projects. Thus, these factors are expected to boost the market growth over the forecast period. • North America region dominated the global automated fare collection system market in 2019, accounting for 31.7% share in terms of value, followed by Europe and APAC, respectively.

5. Market Dynamics- Restraints • High initial cost of installation of AFC system is expected to restrain the global automated fare collection system market growth over the forecast period • The initial implementation cost required for automated fare collection system is significantly high, which may discourage concerning government authority from implementing the technology. Moreover, it is economically unreasonable for the government to offer services to small portion of travelers. Hence, these aspects are expected to hamper the global automated fare collection system market growth over the forecast period. Furthermore, employing this technology includes numerous software and hardware constituents such as central computer systems, cards, integration software, handheld devices, station computer system, fare gates, mobile application software, and more. • Lack of component integration is expected to hinder the global automated fare collection system market growth during the forecast period • Integration of various components such as close payment and open payment fare services is major challenging task. Moreover, unavailability of common platform for commuters to pay while commuting via different transport services including metro, buses, train, etc. is expected to hamper the global automated fare collection system market growth in the near future. Furthermore, common platform travelers suffer from complexities involved in integration of vast number of system components to work together.

6. Market Opportunity • Growing investment in transport infrastructure combined with new projects in emerging economies are expected pose lucrative business opportunity • Ongoing transit infrastructure projects in developed and emerging economies are expected to pose significant growth opportunity for market players. AFC system providers have opportunity to offer supportive services after installation and during installation of the system. For instance, the Government of India ‘Smart City’ project is expected to opt for different ways of transportation including Metrino driverless pods, Bus Rapid Transit (BRT), Monorail, Metro Projects, and Light Rail Transit (LRT). These projects are expected to incorporate automated fare collection system, thereby providing market opportunity for service providers in the near future. • Up gradation of existing transit projects is expected to pose lucrative business opportunity for key players • Government authorities of various countries, especially in Europe, are focused on renovating the existing, old transit infrastructures. Since upgradation requires relatively lesser fund than installation of entirely new system, the chance of technology adoption is significantly higher. This, in turn, is expected to offer business opportunity for automated fare collection solutions provides over the forecast period.

7. Market Trends • Improved user experience with mobile apps is expected to accelerate adoption of AFC system • Transit authorities worldwide are focused on targeting smartphone users through mobile apps, so as to provide augmented user experience and improved transport services. For instance, in November 2015, Cubic Corporation introduced Ventra Mobile App for Chicago Transit Authority (CTA) commuter rail, a Metra and suburban bus operator, Pace. The app facilities travelers to book Chicago’s transit services via smartphones and has aided in automating its transit fare collection. Furthermore, in September 2011, Thales Group launched live ticketing app for android phones for online ticket booking. • Growing focus of public transport authorities towards development and deployment of advanced solutions • Public transport authorities around the world are proactively developing and deploying advanced solutions such as automated fare collection solutions, networks, and mobile applications. For instance, in September 2016, Cubic Corporation entered into contract worth US$ 35.5 Mn with Land Transport Authority, Singapore, for deployment of fare collection solutions. Moreover, in March 2016, Thales Group received a contract from Taipei Rapid Transit Corporation, Taiwan, for upgradation of its metro network.

8. Competitive Section • Major companies involved in the global automated fare collection system market are Cubic Corporation, Scheidt & Bachmann GmbH, Thales Group, Advantech Co. Ltd., Omron Corporation, Xerox Corporation, Advanced Card Systems Holdings Limited, Eurotech S.P.A., NEC Corporation, and Nippon Signal Co. Ltd. • Key Developments • Key players in the market are focused on product launches, in order to enhance their market presence. For instance, in February 2017, Cubic Transportation Systems (India), a subsidiary of Cubic Corporation, launched smartcard-based fare collection technology for buses in Delhi. • Key companies in the market are involved product launches, in order to gain competitive edge in the market. For instance, in June 2017, Thales Group provided automated fare collection system for the first section of Delhi Metro’s Phase III in India.

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