Automated Fare Collection (AFC) system consists of automatic ticket vending, ticket checking, & gate machines. It is a smartcard-based contactless back-to-back solution for payments and fare collection. Demand for efficient transportation services propels AFC growth.
AFC is a high-tech solution & exclusively designed for transport operations. Such applications require integrated & stable platforms to maintain easy flow of travelers at peak hours and gather data & transmit it to the center.
The system lets passengers pay for their ride or drive either with appropriate travel products or card balance. These systems are utilized in various high-transit spots including large commercial workplaces, governmental buildings, public transportation ports, etc.
A Boon for Consumers!
AFC is not merely a technological change substituting traditional magnetic receipts with contactless smart cards. It also offers a modular, complete, and standard-based open solution that fulfills sales objectives and operational needs. An automated fare collection system is designed to transfer the undertakings via transit operators.
Commuter traffic globally is increasing by the day due to growing population, which in turn, is compelling various governments to find new means of managing public transport services. This also boosts AFC demand across different countries since their respective governments spend on infrastructural developments.
AFC improves efficiency and reduces maintenance & operational costs for transport operators. It opens up practical marketing opportunities and has interoperability & multi-application capabilities. Such a solution enables loyalty programs, effective targeted pricing, cross-marketing, etc.
Moreover, it lowers the chances of revenue losses and fare-related frauds through safe transactions. The system ensures that buses, trains, road tolls, & retail function smoothly.
The worldwide automated fare collection market is projected at USD 11 billion by 2025. Capability of these automated systems to deliver improved future planning & management and fraud deterrence & revenues is said to drive the industry in the near future.
The need for convenient & compact automated systems for daily usage will also propel market earnings. Few industry companies are Advance Cards Systems Ltd.; Omron Corp.; Thales Group; and NXP Semiconductor N.V.
Mergers & acquisitions and partnerships are estimated to help players get a competitive edge. Also, collaborations between product manufacturers & transport service providers have been observed recently.
In-depth research report by Grand View Research, Inc. :
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