1. Market Research
  2. > Travel and Tourism
  3. > Passenger Transportation Market Trends

Strategic Analysis of the US Automated Fare Collection Market in Rail and Urban Transit Systems : Open Payment Systems Rapidly Increasing Adoption Rate

  • January 2015
  • 67 pages
  • Frost & Sullivan
Report ID: 2657751

Summary

Table of Contents

Key Findings

The increased proliferation of connected devices and increased costs of fare management are strong drivers for growth of the automatic fare collection (AFC) market.
The AFC market in United States is expected to experience strong growth driven by the government’s push to improve public transportation across the country.
The three primary drivers for AFC are infrastructure projects, technology development, and the need for secure convergent transportation solutions.
This is primarily a city-driven market. New York, Washington D.C., Chicago, Los Angeles, and San Francisco are some of the key US markets with participants such as Cubic Transportation Systems (Cubic) having a major presence.
Cubic and ACS are some of the key participants in the global and US AFC market with turnkey capabilities and a wide geographical footprint in the global AFC market.
Open payment is to become the standard AFC system type and is expected to dominate the market by 2020.

Current Outlook (2014)
This is a large market with a lot of potential for expansion. There are over x transit agencies, of which, the top x do not have complete implementation of AFC systems.
The US AFC market is concentrated heavily between 7 primary participants. Cubic dominates the market with over x % of market share.
The be-in/be-out principle (BiBo) is overtaking the check-in/check-out (CiCo) principle because BiBo eliminates physically tapping the card on the reader.
The lack of funding amongst public transit agencies is delaying the implementation of AFC.

Future Outlook (2021)
Increased ridership, patronage, municipal efforts, and regulatory framework to promote the implementation of AFC. Almost all top-50 transit operators to have AFC.
Open payment systems and commercial off-the-shelf components are expected to increase the number of participants competing in the market.
Contactless smart cards and NFC systems are showing high levels of interest. Smart cards will gradually be replaced with NFC technology using chips, which can be integrated in credit cards or smartphones.
The number of AFC systems to increase through new federal funding programs and public private partnerships.

Aim
The aim of this study is to evaluate the revenue growth opportunities available for rail operators and automated fare collection (AFC) system providers. The study offers strategic market sizing and forecasts for AFC and eTicketing technologies including near-field communication (NFC), smart cards, and mobile ticketing.

Objectives
•To provide a strategic overview of the rail AFC market in the United States, including key technology trends and market drivers and restraints for AFC systems.
•To provide market sizes and forecasts AFC technologies and breakdowns by type for the period from 2014 to 2021.
•To analyse competitive factors and capabilities

Key Questions this Study will Answer

How is the public transit AFC value chain structured in the United States?
What is the US AFC market size?
What market dynamics are influencing each of the market segments?
What are the main competitors’ business models and their competitive advantages?

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Ahmad helps you find the right report:

Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

The World Market for Public Transportation Motor Vehicles with A Capacity of At Least 10 Persons: A 2018 Global Trade Perspective

  • $ 995
  • Industry report
  • April 2017
  • by ICON Group

This series was created for international firms who rely on foreign markets for a substantial portion of their business or who might be threatened by international competition. The estimates given in this ...

The 2018-2023 World Outlook for Advanced Public Transportation Systems

  • $ 995
  • Industry report
  • April 2017
  • by ICON Group

This study covers the world outlook for advanced public transportation systems across more than 190 countries. For each year reported, estimates are given for the latent demand, or potential industry earnings ...

The World Market for Public Transport-type Passenger Motor Vehicles with Diesel or Semi-diesel Compression-ignition Internal Combustion Engines: A 2018 Global Trade Perspective

  • $ 995
  • Industry report
  • April 2017
  • by ICON Group

This series was created for international firms who rely on foreign markets for a substantial portion of their business or who might be threatened by international competition. The estimates given in this ...


ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.