Automated Fare Collection Market Size, Share & Trends Report

Automated Fare Collection Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Technology, By System, By Application, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: 978-1-68038-508-3
  • Number of Report Pages: 150
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2021
  • Forecast Period: 2023 - 2030 
  • Industry: Technology

Research Methodology

A three-pronged approach was followed for deducing the automated fare collection market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for automated fare collection market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of automated fare collection market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Automated Fare Collection Market Categorization:

The automated fare collection market was categorized into five segments, namely component (Hardware, Software), technology (Smart Card, Magnetic Stripe, Near-field communication, Optical Character Recognition), system (Ticket Vending Machine, Ticket Office Machine, Fare Gates, IC Cards), application (Railways & Transportation, Parking, Entertainment, Others (Government, Retail)), and region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

Segment Market Methodology:

The automated fare collection market was segmented into component, technology, system, application, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The automated fare collection market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into eighteen countries, namely, the U.S.; Canada; Germany; the UK; France; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Mexico; Argentina; UAE; Saudi Arabia; South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Automated fare collection market companies & financials:

The automated fare collection market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • Advanced Card Systems Ltd. - Advanced Card Systems Ltd. is a company that functions within the fintech and smart living sectors. Their work involves the creation, promotion, and distribution of hardware, software, and products related to smart cards. They are recognized for their development of comprehensive Automatic Fare Collection (AFC) solutions that are adaptable for various micropayment operations. These operations span across different services such as rail, bus, and ferry transportation; parking areas; road toll stations; convenience and fast-food stores; and vending machines.

  • Atos SE - Atos SE is a firm specializing in information technology, offering a comprehensive range of digital products and solutions. Their focus is on delivering digital security solutions, managed services, business process outsourcing (BPO) services, consulting and system integration services, big data and cybersecurity solutions, and cloud solutions. Their clientele includes public sector companies and key players in various industries such as defense, healthcare, financial services, manufacturing, media, telecommunications, retail, utilities, and transportation. Atos SE has a global presence with operations in North America, Europe, and the Asia-Pacific region.

  • Cubic Transportation Systems, Inc. - Cubic Transportation Systems, Inc. is a provider of smart transportation solutions, including congestion management, intersection safety and efficiency, and roadway planning and simulation. Their offerings are categorized into vehicle and pedestrian detection, intelligent systems, and Synchro Studio. They create and design solutions to enhance safety, effectiveness, and benefits for all road users in cities. Their intersection management system is designed to alleviate traffic and enhance mobility for all users, whether in suburban areas or densely populated city centers.

  • GMV Innovating Solutions S.L. - GMV Innovating Solutions S.L. is a technology business group that supports clients' processes with advanced technologies. The company holds expertise in healthcare, defense, and security. It also offers consultancy and engineering services, turnkey systems integration, and backup and recovery services.

  • Indra Sistemas SA - Indra Sistemas SA is a company that specializes in the creation of IT solutions and defense systems. They provide a variety of services and solutions such as consulting, BPO, IT, financial services, election-related solutions, health information systems, ticketing systems, aircraft simulation solutions, project development, and application integration, to name a few. Their operations span across Europe, North America, and South America.

  • LECIP Holding - LECIP Holdings Corporation is a company that mainly produces and markets transportation equipment and systems. It operates in two main sectors: transportation equipment and industrial equipment. The transportation equipment sector provides operation management systems, vehicle lighting equipment, and fare collection systems for the bus, railway, and automobile industries. On the other hand, the industrial equipment sector provides LED lighting equipment, neon transformers, battery chargers for forklifts, and uninterruptible power supply equipment for high voltage, power supply, and environmental lighting markets. In addition, the company runs an Electronics Manufacturing Service (EMS) business that specializes in mounting Printed Circuit Boards (PCBs).

  • LG CNS -LG CNS offers a wide range of IT services with an emphasis on the manufacturing, banking and finance, energy, transportation, and government sectors. The company provides industry-specific IT services, such as specialized consulting, IT infrastructure maintenance, outsourcing, system implementation, and operation, supporting clients with unique business prospects and models.

  • Siemens AG - Siemens AG is an industrial manufacturing company that specializes in delivering electronic and electrical solutions. Its business divisions encompass Digital Industries, Smart Infrastructure, Mobility, and Siemens Healthineers. It serves various sectors including oil & gas, energy & utility, and healthcare, among others. With a global footprint in over 200 countries and more than 290 significant manufacturing and production facilities worldwide, Siemens AG has a substantial global presence. The company is publicly traded on the Frankfurt Stock Exchange under the ticker symbol ‘SIE’.

  • Thales Group - Thale Group is a comprehensive tech and services firm offering solutions in IT infrastructure, analytics, Artificial Intelligence (AI), and cloud computing. Its customer base comprises defense & aerospace firms, research entities, ground transportation businesses, and security agencies. The company’s operations are divided into four key areas: Aerospace, Transport, Defense & Security, and Digital Identity & Security. The Defense & Security division provides Security Digital Platform (SDP) solutions to safeguard vital infrastructures such as ports, industrial facilities, and government and military sites against new threats, including cyber threats. Thale Group has a global presence with offices in the Americas, Europe, Asia Pacific, and Middle East & Africa.

  • Omron Corporation - Omron Corporation is an electrical and electronics manufacturing company. The company’s business is segmented into industrial automation, Healthcare, Social Systems, and Device and Module Solutions. The company provides software solutions to various industries such as manufacturing, energy, and casinos.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Automated Fare Collection Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Automated Fare Collection Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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