Automated Fare Collection (AFC) System Market by Components Type, Application, End Use (metro rails, railways, waterways, parking lots, Others) and Region - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits - Forecast 2024-2032

Industry : Information Technology | Pages : 194 Pages | Published On : May 2024

The Automated Fare Collection (AFC) System Market is Valued USD 10.26 billion in 2024 and projected to reach USD 27 billion by 2030, growing at a CAGR of CAGR of 12.86% During the Forecast period of 2024-2032.

Market Overview

The Automatic Fare Collection System serves as essential station infrastructure comprising automatic gate machines, ticket vending machines, and ticket checking devices. To ensure seamless passenger flow during peak hours, stable and integrated platforms are crucial. Simultaneously, all data is gathered and transmitted to the central system. This state-of-the-art solution is designed for digitally advanced urban transport systems like metro rails, automated parking lots, and rapid bus transport systems, handling significant foot traffic. It guarantees high security, scalability, and reliability without compromising user experience even with large passenger volumes. The modularity of the AFC system facilitates integration with various technologies and fare media, including open loop, EMV open loop, QR Code, NFC, account-based ticketing, card-based ticketing, and contactless mobile ticketing. The benefits include enhanced efficiency through electronic ticket encoding, processing, and distribution, the expansion of digitalization, increased smartphone usage, reduced cash handling costs, and transparent settlement with transport and other services. The AFC system market is driven by these factors, with opportunities arising from technological advancements, service quality improvements, system expansions, and growing demands for cashless payments, enhancing consumer lifestyles. In essence, the fare collection system extends beyond visible hardware, involving intricate software development, integration, and thorough testing before deployment. The dynamic evolution of technology in these systems enables transit operators to offer advanced services, gain more control over fare collection, improve customer experience, increase revenue, and reduce costs in the public transport value chain. Ultimately, automated fare collection systems contribute to an elevated passenger commuting experience and a more efficient overall transit operation.

Automated Fare Collection (AFC) System Market Size

Market Size ValueUSD 10.26 billion in 2024
Market Size ValueUSD 27 billion by 2030
CAGRCAGR of 12.86%
Forecast Period2024-2032
Base Year 2023
Historic Data2020
Segments CoveredComponents Type, Application, End User and Region
Geographics CoveredNorth America, Europe, Asia Pacific, and RoW

Major vendors in the global Automated Fare Collection (AFC) System Market are Cubic Corporation,Gaoxin Modern, GMV Innovating Solutions S.L., LECIP HOLDINGS CORPORATION, LG CNS, Masabi LtdNXP Semiconductors, OMRON SOFTWARE Co., Ltd., Scheidt & Bachmann GmbH, Thales and Others.

Growth in the use of smartphones

One of the primary drivers for the global Automated Fare Collection (AFC) System Market is the significant shift in consumer lifestyles. The fast-paced nature of modern life has led to an increased demand for convenient contactless and easily cashless options. The smartphone has become a crucial companion in our increasingly complex world, permeating various facets of daily life. Beyond its role as a communication device, it functions as a versatile 'life organizer' and a gateway to information and entertainment.

For public transport users, the smartphone merges travel information and ticketing into a single, possibly unified application. With a simple tap, users can effortlessly access journey planning and route details, while seamlessly managing ticketing processes on the same device.

Market Dynamics


  • Expansion of digitalization
  • Centrally managed electronic ticket distribution eliminates the need for cash
  • Growth in the use of smartphones
  • Eliminates the cost of cash handling
  • Transparent settlement with transport and other services


  • Technological Advancements
  • Upgrading existing AFC systems to record the utilized service
  • Expansion of the AFC system
  • Demands for cashless payments

 Technological Advancements

 Contactless payment technologies have revolutionized fare transactions in public transportation. Near Field Communication (NFC) technology, widespread in smartphones and contactless cards, enables passengers to effortlessly tap and pay, significantly boosting the speed and convenience of fare transactions. Mobile payment apps further contribute to this streamlined process by integrating with digital wallets, reducing the reliance on physical cards and cash. Biometric authentication methods, such as fingerprint and facial recognition, enhance security and efficiency in fare collection, providing passengers with a quick and secure identification method that diminishes the need for traditional ticketing methods. Integration with the Internet of Things (IoT) has ushered in a new era of connectivity in Automatic Fare Collection (AFC) systems. Utilizing connected devices allows real-time communication among fare collection gates, ticketing machines, and central systems. This connectivity facilitates immediate updates, remote monitoring, and efficient fare transaction management. Advanced analytics tools, driven by big data insights, empower operators to gain valuable information on passenger behavior, optimize route planning, and make informed decisions that enhance the overall efficiency of public transportation services.

North America dominates the market for Automated Fare Collection.

North America is ready for substantial expansion, driven by its extensive transportation network and widespread adoption of cutting-edge smart technologies in the transportation sector. Advanced technologies like AI-augmented mobility, integrated frictionless travel, digital identity, and enhanced customer experience are expected to fuel demand for automatic fare collection (AFC) systems in the region, contributing to overall market growth. Furthermore, the presence of key AFC manufacturers, such as Cubic Corporation based in California, United States, actively engaged in deploying and developing innovative solutions, further bolsters the market's upward trajectory.

In the Asia-Pacific region, automated fare collection is projected to capture a significant market share, experiencing substantial growth in the future. Leading countries in the region, including Japan, South Korea, China, and Singapore, are driving this growth with robust economic expansion, increasing disposable income, rising infrastructure investments by local governments, and substantial commitments from industry leaders who recognize the growth potential in the region. India, in particular, emerges as a promising market within Asia-Pacific, driven by ongoing urban metro projects and the expanding car rental industry, which is likely to elevate the demand for automated fare collection systems in the coming years.

The Application Segments is anticipated to hold the Largest Market Share during the Forecast Period

In the global Automated Fare Collection System Market, the Application segment covers diverse categories, including Automatic Gate Machines, Ticket Vending Machines, Ticket Kiosks, Checking Machines, Industrial Ethernet Switches for AFC Systems, and Others. The importance of this segment can be attributed to its crucial role across various transportation modes such as metro rails, railways, bus rapid transit systems, ferries, waterways, parking lots, and more. A Ticket Machine, also referred to as a Ticket Vending Machine, functions as a vending machine capable of producing paper or electronic tickets or recharging stored-value cards, smart cards, or users' mobile wallets accessible through smartphones. Token machines can dispense tickets in the form of tokens, functioning similarly to traditional paper or electronic tickets. In locations such as railway stations, bus stations, metro stations, and airports, passenger ticket vending devices generate fare tickets with minimal need for additional assistance. The integration of smart technology in the public transportation sector directly influences the demand for passenger ticket vending machines. This market is categorized based on four criteria: component, input type, application, and geography. Components are classified as hardware and software, while input types include smart cards, near-field communications, and other alternatives. This technology stands out as a more operationally efficient option compared to traditional ticketing systems, eliminating long queues at public transit stations and significantly saving time.

Major Segmentations Are Distributed as follows:

  • By components Type
    • Hardware
    •  Software
    • Others
  • By Application
    • Automatic Gate Machine
    •  Ticket Vending Machine
    •  Ticket Kiosk, and Checking Machine
    •  Industrial Ethernet Switches for AFC Systems
    •  Others
  • By End Use
    • Metro rails
    •  Railways
    • Bus rapid transit systems
    •  Ferries, waterways
    •  Parking lots
    •  Others
  • By Region
    • North America
      • US
      • Canada
    • Latin America
      • Brazil
      • Mexico
      • Argentina
      • Colombia
      • Chile
      • Peru
      • Rest of Latin America
    • Europe
      • UK
      • Germany
      • France
      • Italy
      • Spain
      • Russia
      • BENELUX
      • CIS & Russia
      • Nordics
      • Austria
      • Poland
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Thailand
      • Indonesia
      • Malaysia
      • Vietnam
      • Australia & New Zealand
      • Rest of Asia Pacific
    • Middle East & Africa
      • Saudi Arabia
      • UAE
      • South Africa
      • Nigeria
      • Egypt
      • Israel
      • Turkey
      • Rest of Middle East & Africa

Recent Developments

  • In 2023, The Gujarat Metro Rail Corporation (GMRC) Limited granted PayCraft Solutions and Airtel Payments Bank the authorization to develop, produce, provide, install, test, commission, and maintain the NCMC (National Common Mobility Card) EMV (Europay MasterCard and Visa) automated fare collection system for the upcoming Surat Metro.

Automated Fare Collection (AFC) System Market Report Gives Answers to Following Key Questions:

  • What will be the Automated Fare Collection (AFC) System Market’s Trends & growth rate? What analysis has been done of the prices, sales, and volume of the top producers of Automated Fare Collection (AFC) System Market?
  • What are the main forces behind the worldwide Automated Fare Collection (AFC) System Market? Which companies dominate the Automated Fare Collection (AFC) System Market?
  • Which companies dominate the Automated Fare Collection (AFC) System Market? Which business possibilities, dangers, and tactics did they embrace in the market?
  • What are the global Automated Fare Collection (AFC) System industry's suppliers' opportunities and dangers in Automated Fare Collection (AFC) System Market?
  • What is the Automated Fare Collection (AFC) System industry's regional sales, income, and pricing analysis? In the Automated Fare Collection (AFC) System Market, who are the distributors, traders, and resellers?
  • What are the main geographic areas for various trades that are anticipated to have astounding expansion over the Automated Fare Collection (AFC) System Market?
  • What are the main geographical areas for various industries that are anticipated to observe an astounding expansion in Automated Fare Collection (AFC) System Market?
  • What are the dominant revenue-generating regions for Automated Fare Collection (AFC) System Market, as well as regional growth trends?
  • By the end of the forecast period, what will the market size and growth rate be?
  • What are the main Automated Fare Collection (AFC) System Market trends that are influencing the market's expansion?
  • Which key product categories dominate the Automated Fare Collection (AFC) System Market? What are the Automated Fare Collection (AFC) System Market’s main applications?
  • In the coming years, which Automated Fare Collection (AFC) System Market technology will dominate the market?

Reason to purchase this Automated Fare Collection (AFC) System Market Report:

  • Determine prospective investment areas based on a detailed trend analysis of the global Automated Fare Collection (AFC) System Market over the next years.
  • Gain an in-depth understanding of the underlying factors driving demand for different Automated Fare Collection (AFC) System Market segments in the top spending countries across the world and identify the opportunities each offers.
  • Strengthen your understanding of the market in terms of demand drivers, industry trends, and the latest technological developments, among others.
  • Identify the major channels that are driving the global Automated Fare Collection (AFC) System Market, providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channelize resources by focusing on the ongoing programs that are being undertaken by the different countries within the global Automated Fare Collection (AFC) System Market.
  • Make correct business decisions based on a thorough analysis of the total competitive landscape of the sector with detailed profiles of the top Automated Fare Collection (AFC) System Market providers worldwide, including information about their products, alliances, recent contract wins, and financial analysis wherever available.


Table and Figures


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