- AFC systems will simplify passenger data management and eliminate complicated pricing systems, finds Frost & Sullivan
MOUNTAIN VIEW, California, April 1, 2015 /PRNewswire/ -- The global transit industry is seeing historic levels of investment. In the United States, emphasis is on the development and implementation of the latest-generation technologies, including automated fare collection (AFC) systems to passengers. With cities across the US focusing on transit-oriented development to support door-to-door integrated mobility, AFC systems have huge growth potential.
New analysis from Frost & Sullivan, Strategic Analysis of the US Automated Fare Collection Market in Rail and Urban Transit Systems (http://www.frost.com/nedb), finds that the market earned revenues of $324.5 million in 2014 and estimates this to reach $634.8 million by 2021.
For complimentary access to more information on this research, please visit: http://bit.ly/1NjN7GX
The rising cost of fare management, coupled with the increasing presence of computing, sensors and connected devices, have made public transit systems more accessible to end users, thus boosting interest in AFC systems. With 33 billion connected devices expected to be used globally by 2020, the passenger transit environment has had to adapt and employ new methods, such as AFC, to interact with customers.
"By adopting AFC systems, passenger data can be collected in a structured format and will remain secure," said Frost & Sullivan Automotive & Transportation Rail Program Manager Shyam Raman. "Moreover, this will also enable passenger data to be stored and various payment modes to be used for specific purposes."
Overall, AFC provides a coherent and simple pricing system, as well as, a reasonable number of tickets in line with US passengers' needs. In addition, it also reduces cash management at railway stations by functioning through sales points distributed across cities via ticket vending machines, the internet and mobile devices.
However, a key technological challenge transport authorities (TAs) and operators face in the implementation of AFC is linking a variety of enterprises, both physically and logically, to one system. Creating such a network that incorporates all relevant data systems is essential for issuing electronic tickets that can be used countrywide.
The daunting cost to ensure that the infrastructure and equipment have a uniform design, as well as, the standardization of information exchanged across regions is a cause of concern for TAs in the US. However, there is no other viable option to achieve smooth communication between involved organizations.
"Overall, the structure of the US AFC market in rail and urban transit systems is changing across three key dimensions – the transport mode, value chain and payment media," noted Raman. "Future AFC systems will use open-loop payment methods and cater to multimodal transport."
Strategic Analysis of the US Automated Fare Collection Market in Rail and Urban Transit Systems is part of the Transportation & Logistics (http://www.transportation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Strategic Outlook of the North American Class 6-8 Truck Safety Systems Market, Strategic Analysis of the Latin American Rail Freight Market, Executive Analysis of the Global Rail Industry 2014, and Strategic Dashboard of Global Rail Passenger Volumes. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Strategic Analysis of the US Automated Fare Collection Market in Rail and Urban Transit Systems
Corporate Communications – North America
SOURCE Frost & Sullivan