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Automatic fare collection (AFC) is a system that automates the ticketing system or fare collection in industries that need AFC systems. This solution further improves the efficiency of transaction rate and ticketing system. The implementation of these solutions offers enhanced services to end users. The integration of advanced such as smart cards, electronic payment and contactless technology with automatic fare collection helps in reducing the cost associated with manual ticketing system.
The outbreak of COVID 19 has significantly impacted the automatic fare collection system market. Due to COVID 19 majority of countries were under restrictions that has resulted in restrictions on public and private transport that led to low consumption of automatic fare collection system. Further, the media & entertainment industry were among the major industries to adopt these system but due to the outbreak of COVID 19 there were less events that has led to the downfall the AFC market. Additionally, the penetration for digital technologies such as automated and contactless payments is anticipated to drive the growth of automatic fare collection (AFC) market in near future.
Key Market Driver -
• Increasing cashless travel facility to drive the growth of AFC market. • Increasing shift towards open road tolling is anticipated to drive automatic fare collection market
Key Market Restraint -
• High installation cost of automatic fare collection (AFC) to hinder the market growth. • Lack of standardization among automated fare collection AFC products to is anticipated to restrict the market growth.
Major market players operating in the automatic fare collection (AFC) system market are Thales Group, Scheidt & Bacchhan GmbH, OMRON Corporation, NXP Semiconductor, LG CNS, Samsung SDS, LECIP Group, Atos SE, Cubic Corporation and Atos SE among others.
Key players operating in automatic fare collection (AFC) system market are using various organic and inorganic methods such as partnership, collaborations, mergers, acquisitions, and new product launch among others to enhance their market presence. For instance, in August 2018, Cubic Corporation announced that its Cubic Transportation Systems (CTS) has entered investment agreement with Dellork Inc. This will help Cubic to implement Dellork’s TouchPass Solution in its Transit Management as as Service (TMaaS) platform that would help the company to provide real time information solution and comprehensive payment to its customers.
North America is anticipated to have significant growth in the market owing to the vast transportation network and adoption of latest smart technologies in transportation. Technologies such as AI-augmented mobility, integrated frictionless travel, digital identity and customer experience that would create demand for automatic fare collection systems in the region and would further help in the market growth. Additionally, the presence of leading AFC manufacturers such as Cubic Corporation headquartered in California, United States are working on deployment and development of latest solution that are further helping in driving the market growth.
Asia Pacific is also expected to drive the AFC market due rise in government investment, expansion of highways, metro projects for intra-city and inter-city travel and rapid rise in development of railway infrastructure that widely use automatic fare collection systems. Additionally, the rapid adoption of digital payments are expected to boost the growth of the market in the region.
Europe is also expected to witness significant growth in automatic fare collection system market due to the digitization of public transit and sustainable transportation polices. Further, many cities in South America are also deploying advanced fare collection systems for public transport such as contactless smart ticketing/smart cards that is also anticipated to drive the market growth in the region. For instance, Buenos Aires launched a fare wallet “TAG wallet”. The wallet provide the sticker that be pasted on wallets, mobiles, or any other objects can further can be used to pay fare through near field communication (NFC) technology.
Furthermore, Middle East and Africa mainly use two types of ticketing options paper/magnetic-stripe ticket and smart ticketing/smart cards for all the public transport in the region, this would create high demand for automatic fare collection systems and would help in market growth.
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