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Automated Fare Collection System Market to Witness High Growth Owing to Advancements in Contactless Payment Technologies
The automated fare collection system market comprises ticket vending machines, ticket office machines, fare gates, and electronic register systems that are used to automate the ticketing process in mass-transit systems including subways, buses, and trains. Automated fare collection systems help streamline passenger entry and exit, eliminate queues at ticket counters, and enhance the overall travel experience. The rising demand for contactless payments and growing focus on optimizing mass transit systems are fueling the adoption of these systems globally.

The Global Automated Fare Collection System Market is estimated to be valued at US$ 13.71 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 To 2031.
Advancements in contactless payment technologies that provide faster and more convenient methods for fare payment are driving the growth of the market.

Key Takeaways

Key players operating in the Automated Fare Collection System are Cubic Corporation, TSC Auto ID Technology Co., Ltd, TEC Corporation, Bixolon Co., Ltd, Citizen Holdings Co., Ltd., Star Micronics Co., Ltd, Seiko Epson Corporation, SATO Holdings Corporation, Brother International Corporation, and Others. Cubic Corporation holds the leading market share owing to its large product portfolio and global presence.

The key opportunities in the Automated Fare Collection System Market Demand include integration with mobile ticketing apps for seamless travel and implementation of open payment systems accepting multiple payment methods including credit/debit cards, digital wallets, and contactless bankcards. This enables wider acceptance and consumer convenience.

Technological advancements such as the adoption of smartcards with near-field communication (NFC) technology and integration with automatic identification technologies like RFID and barcode are fueling the adoption of automated fare collection systems. NFC-enabled contactless payments provide faster ticketing and eliminate the need for Change.
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