Albany - NY, Sept. 27, 2016 (GLOBE NEWSWIRE) -- The recent developments in the transportation systems across developed and developing economies alike are creating a huge demand for automated fare collection. This applies especially to a majority of Europe and Asia Pacific countries, where the development of smart transport systems is helping create a greater application scope for automated fare collection vendors. At the same time, the integration of stable automated fare collection systems can impart significant improvements in the transportation networks that already exist.
Another driver that automated fare collection companies can look for is the growth of the car rental business across the globe, coupled with the growing demand for e-payment solutions. App-based car rental and public transport is expected to be upcoming key trend in the market.
There are, however, complications in installing automated fare collection systems, such as the high installation cost and integration issues. These problems can be solved through improving technologies and the growth of healthy vendor competition.
These factors are collectively expected to put the automated fare collection at a revenue of US$10.87 bn by the end of 2021. This market is expected to progress at a CAGR of 11.4% from 2015 to 2021 by revenue.
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Transport Networks Improve, Add Greater Scope for Automated Fare Collection
“All parts of the world, whether developing or developed, hold transport at a high priority when it comes to development and expansion,” states a TMR analyst. “The latest development trend in transport is the implementation of smart transport systems, which can sync perfectly with the new automated fare collection systems available in the market.”
The use of automated fare collection in smart transport is expected to improve the overall flow of traffic and help government and other agencies cut down on operation costs.
Additionally, the implementation of automated fare collection systems directly in the existing transport systems can also help substantially in reducing road congestion, which is a key cause of high fuel consumption and carbon emissions.
Organization and Integration Challenges Hinder Automated Fare Collection Vendor Growth
The implementation of automated fare collection systems involves the installation of multiple hardware and software in a transportation system. It brings out a key challenge faced by all players: the complex nature of an automated fare collection system and its integration. The various components in an automated fare collection system may make it exceedingly difficult to integrate them with a current organization, especially when it comes to switching between automatic and manual fare collection.
North America Leads Automated Fare Collection Revenue Generation
The global automated fare collection market is expected to accrue a revenue of US$10.87 bn by the end of 2021. The revenue is speculated to be progressing at a CAGR of 11.4% within a forecast period from 2015 to 2021.
Smart card technology has contributed significantly to the revenue growth. This segment is expected to reach US$4.69 bn by 2021.
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Close to only 11% of the global automated fare collection market was taken up by regional players in 2014, indicating a highly consolidated market. The top three players – NXP Semiconductors, Atos, and Omron Corporation – collectively held a share of 56% in revenue in 2014. As stated by Transparency Market Research in a new report, all top automated fare collection services and technologies providers are constantly on the cutting edge of automated fare collection technologies through continuous innovation and system development. These innovations allow the vendors to tackle the rapid increase in demand while providing safe and secure transaction methods.
Other key strategies adopted by the automated fare collection vendors include a significant scale of acquisitions and mergers to maintain and grow market value. At the same time, the players also invest heavily in improvement techniques of their own products. This includes investing in advanced bug tracking, real-time data solutions, and integrated operations.
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
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Source:Transparency Market Research