Automated Fare Collection System Market Analysis

Automated Fare Collection System Market Analysis

The hardware market is expected to hold a market share of above 45% by 2023 due to the rising implementation of automatic fare collectors in public transit networks. The transport sector is witnessing a rise in the usage of hardware electronics, such as bus card processors, bus controller units, and portable ticketing devices, which are required for effective implementation of AFC systems. The massive proliferation of metro rails and bus rapid transit systems has resulted in passenger volumes, generating the need for smart fare collection systems.
 

The Optical Character Recognition (OCR) segment is estimated to hold an automated fare collection system market share of above 20% by 2023 due to the growing usage of the OCR technique for automatic ticket collection. The OCR software is widely used in various forms such as personal smartphone scanning devices, desktop applications, and server-based solutions that are capable of handling workflow without human interaction. By using OCR technique for automated data processing, the transport companies can minimize their dependency on traditional methods of data entry.  
 

Asia Pacific AFC system market growth is attributed to the rising government support for the development of transit systems to improve public transportation in the region. For instance, in June 2015, the Kuala Lumpur government introduced Bus Rapid Transit (BRT) service in Sunway to minimize traffic congestion in the area. The market is gaining momentum due to the increasing adoption of these systems in public transportations, particularly in the metro. For instance, in June 2015, Delhi (India) metro authorities installed 210 new AFC gates in key stations including Huda City Center Station and Nehru Place stations to ensure the smooth flow of passengers. AFC systems provide an enhanced ticket booking facility to users/commuters and also help operators to resolve the overload booking issue of tickets during peak hours. Rapid digitization, growing infiltration of smartphones, and demand for digital payment method followed by strong administrative visions for intelligent transportation infrastructure are anticipated to drive the market.