Industry
Overview
The
report “Automated Fare Collection (AFC) System
Market Size By Component (Software, Hardware), By Technology (Magnetic Strip,
Smart Cards, Optical Character Recognition (OCR), Near Field Communication
(NFC)), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK,
China, India, Japan, Brazil, Mexico, Saudi Arabia, UAE), Application Potential,
Competitive Market Share & Forecast, 2016 - 2023”, by Global Market Insights, Inc. says Global Automated Fare Collection (AFC) System market worth USD 4.51 billion in 2015, will
exhibit an annual growth rate of 10.4% over the period of 2016 to 2023.
The
growing adoption of electronic payments and integrated ticketing system across
the globe will stimulate automated fare collection (AFC) system market trends. Transportation
infrastructure will drive AFC system industry extensively, as it is used for
maintaining customers log, estimating best fare calculation and to check
relevant discounts. The implementation of AFC system across the various sectors
such as transportation will offer benefits like improved revenue management and
fraud prevention.
Automated
fare collection system industry comprises technologies such as optical
character recognition (OCR), magnetic strip, near field communication (NFC),
and smart cards. OCR technology is extensively used to generate receipts and
tickets. The near field communication technology is projected to record a CAGR
of 12.3% over the coming six years, owing to the high demand for this technology
owing to its high degree of compatibility. In addition, NFC is a user-friendly
technology, which will add benefit over other alternatives such as QR codes and
BLE (Bluetooth low-energy). Smart card accounted for 30% of the worldwide
automated fare collection system market revenue in 2015 and will display
eye-catching growth opportunities over the coming timeline. The smart cards
offer favorable features such as portability, low complexity, and reliability,
which influence the industry trends considerably.
Based
on the component, AFC industry is mainly segmented into hardware and software.
The hardware segment worth more than USD 2.2 billion in 2015, is expected to
witness a CAGR of 10.4% over the period of 2016 to 2023. To reduce the
complexity as well as to improve the efficiency of the AFC system,
software-based technical support has deployed by the software developers and
firms which will provide software development kits, database management
systems, middleware, mobile platforms, server solutions. Many of the
transportation agencies are increasingly looking for software based AFC system,
which will stimulate software automated fare collection system industry size
lucratively.
Geographically,
Asia Pacific automated fare collection system market will collect a revenue of
more than USD 2.5 billion by 2023, owing to the escalating transit projects
across this region. China and India will be the major revenue contributor.
North
America automated fare collection system market was predominantly driven by U.S in 2015 and is anticipated to continue
its dominance over the coming years. U.S. AFC system industry size will grow
significantly by registering a CAGR of 9% over the coming six years. The growth
can be attributed to the mounting intelligent transportation system market
(ITS), which is anticipated to surpass a revenue of USD 45 billion by 2023.
The
market players will invest heavily in the R&D activities to meet customer
needs as well as to improve product range over the coming years. The
collaboration and joint venture are some of the key strategies adopted by the
industry participants to gain enhanced business share. Cubic Systems, Thales
Group, Samsung, LG, Omron Corporation, Advance Card Systems, NXP
Semiconductors, and Atos are some of the leading companies in the AFC market.
View press release
of this report @ https://www.gminsights.com/pressrelease/automated-fare-collection-AFC-system-market
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