Automated Fare Collection (AFC) System Market forecast to exceed Automated Fare Collection (AFC) System Market reve

Automated Fare Collection (AFC) System Size By
Component (Software, Hardware), By Technology
(Magnetic Strip, Smart Cards, Optical Character
Recognition (OCR), Near Field Communication (NFC)):
Global Market Insights Inc.
Industry Trends
Global Automated Fare Collection (AFC) System Market size was $45.2 billion for 2015 and
is projected to register CAGR of about 10.4% during forecast timeframe touching $9.84
billion by 2023. Growing transport infrastructure and favourable government policies are
predicted to promote the industry growth as it benefits both transport authorities and
customers.
Increasing choice for integrated ticketing and electronic payments will promote automated
fare collection (AFC) market size in future. A main part of ITS (Intelligent Transportation
System) industry, this technology is predicted to grow owing to enhanced transport
infrastructure growth worldwide. But accessibility of paper ticketing systems can inhibit the
industry growth. But the growth of internal technological replacements like contactless smart
cards & NFC based mobile ticketing can propel the industry growth. Further, growing
acceptance of open bank cards payment methods for transit fare have added to the industry
expansion.

Rapidly expanding smartphones industry segment is predicted to fuel the industry growth
trends with shipments projected to surpass 2.4 billion units by end of the forecast timeframe.
Favourable regulations are also predicted to push the industry growth. Enhanced transport
service planning, fraud prevention and improved revenue management are few of the key
advantages of AFC system implementation.
Component Trends
Automated Fare Collection (AFC) industry size was more than $2.2 billion for 2015 and
software segment is predicted to register 10.4% CAGR during the forecast timeframe.
Software and middleware form an essential part in efficacy and effectiveness of the AFC
system.

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