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.
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.”
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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.