Product Code: 67262
The smart ticketing market is expected to register a CAGR of 8% during the forecast period, 2020-2025. The market is driven because of the following factors:
- Governments promote public transport patronage by investing in the supply of new infrastructure owing to the benefits associated with public transport. Thus, with the implementation of smart ticketing provides an opportunity for governments to significantly influence the demand for public transportation by understanding travel data generated from travelers.
- The Queensland government launched a month-long trial of its express smart ticketing gates at Brisbane's Central Station in October 2019, which is one of the recent examples. The government wants to understand customer behavior at the gates, and those insights would be utilized for further improvements. Moreover, the government aims to roll out the smart ticketing system completely across south-east Queensland by 2022.
- Further, according to Glemato NV, there were 1.7 billion NFC enabled handset by 2018, making it simple to make cashless payments and, 47% of the US commuters prefer to pay through mobile phones. The use of NFC in mobile phones enables fast and easy ticketing and the downloading of pertinent travel-related information. Hence, with the increasing NFC enabled handsets, it is expected to have a positive outlook on the market.
- However, increasing breaches and high cost of installation of the smart ticketing system coupled with high maintenance cost are a few factors which are restraining the market growth.
Scope of the Report
The smart ticketing system is a system where tickets are stored electronically on a microchip rather than being printed on a paper ticket. Smart ticketing allows passengers to load tickets or credit in advance of travel, which helps in speeding up boarding times and reduces the queue times. The smart ticketing report gives a detailed analysis of the connectivity of the smart ticketing such as RFID, barcode, Near-Field Communication ( NFC), etc. The report also talks about different types of offering, such as hardware and software and solutions. Hardware segments include smartcards, readers, and smart wearable devices, whereas software consists of a ticketing system, help desk, and mobile companion platforms. This report mainly focuses on geographies such as North America, Europe, and Asia-Pacific.
Key Market Trends
Smartcard Occupies the Significant Share
- The emergence of smartcard ticketing is the result of a global trend toward cashless transactions during transportation. With this current shift, major credit card companies such as Visa and MasterCard are embedding smart chips in cards that enable them to perform the functions of a public transport ticket as well as regular functions.
- For instance, in October 2019, Visa Inc acquired the Rambus Payments and Ticketing businesses. Through the acquisitions, Rambus would complement Visa's efforts, especially in the transportation industry. Therefore, the shift towards multifunction cards would have a positive outlook on the market globally.
- Moreover, government and regulatory institutions such as the Competition and Markets Authority are working to protect consumers from excessive pricing, fraud, and loss in the secondary ticket market in the sports industry. The implementation of smartcards minimizes the risk associated with the fraud.
- In August 2019, Rangers Football Club (RFC) launched its new smartcard ticketing system. And those smartcards would be valid for all turnstiles with its designated area. With the implementation of smartcards by the RFC, it is expected that it will positively influence the market globally.
Europe Holds the Largest Market Share
- Europe is the home of the leading smart ticketing solution vendors in Europe, such as Infineon Technologies, Gemalto, and Giesecke+Devrient (Germany), which are also increasing their presence in this market by offering integrated payment solutions through partnerships with smart ticket developers and operators.
- Further, these companies are also developing blockchain and big data analytics to track travelers traveling patterns and then can provide secure and personalized services.
- For instance, in August 2019, Tickets Cloud announced that they are going to launch its crypto.tickets technology in Europe. These crypto-tickets minimizes the fake tickets and scams which happens around the resale of tickets during any events.
- Moreover, according to Rail Delivery Group in the UK, the number of journeys taken with smart tickets has risen from 37% in 2018 to 50% in 2019. Hence, the government of the UK is prioritizing to implement the sell of smart tickets as a default option on every mode of transportation by January 2020.
- Hence all the above factors are expected to have a positive impact on the market globally.
The smart ticketing market is moderately concentrated and with the increasing government initiatives in support of this market, more global players are expected to enter this market. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition. Some of the global players are Cubic Corporation, Infineon Technologies AG, and HID Global amongst others. Few recent developments are:
- October 2019 - Delhi Metro Rail Corporation(DMRC) is p[lanning to install a new biometric-based ticketing system, in order to support the biometric-based smart cards. These will be integrated with the existing automatic fare collection gates at stations. Such initiatives are expected to influence other operators in the region to implement them. Moreover, smart city projects running in the nation would also supplement the growth of smart ticketing.
- August 2019 - Hitachi Rail announced that it is testing its newly developed smart ticketing system which uses sensors on trains to detect an app on passengers' smartphones as they board, removing the ticket barriers. This would charge the correct fare automatically from the passengers. This technology is currently undergoing a testing program for Trenito Transport in Trento, Italy.
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Table of Contents
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Introduction to Market Drivers and Restraints
- 4.3 Market Drivers
- 4.3.1 Increasing Adoption of Intelligent Transportation
- 4.3.2 Growing Adoption of Modern Technology for Different Mode of Transportation such as Railways and Roadways is Propelling the Implementation of Smart Ticketing is
- 4.4 Market Restraints
- 4.4.1 High Initial Setup Costs
- 4.5 Industry Value Chain Analysis
- 4.6 Industry Attractiveness - Porter's Five Force Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 By Connectivity
- 4.7.1 Near-Field Communication (NFC)
- 4.7.2 Radio-frequency identification ( Rfid )
- 4.7.3 Barcode
- 4.7.4 Cellular Network and Wifi
5 MARKET SEGMENTATION
- 5.1 By Offering
- 5.1.1 Smart Cards
- 5.1.2 Wearables
- 5.1.3 Readers
- 5.1.4 Others (Validators, Ticketing Mobile Terminals/Ticketing Machines)
- 5.2 By Application
- 5.2.1 Transportation
- 184.108.40.206 Railways
- 220.127.116.11 Airways
- 18.104.22.168 Roadways
- 5.2.2 Sports & Entertainment
- 5.3 Geography
- 5.3.1 North America
- 22.214.171.124 United States
- 126.96.36.199 Canada
- 188.8.131.52 Rest of North America
- 5.3.2 United Kingdom
- 5.3.3 Europe (except United Kingdom)
- 184.108.40.206 Germany
- 220.127.116.11 France
- 18.104.22.168 Rest of Europe
- 5.3.4 Asia-Pacific
- 5.3.5 Rest of World
6 COMPETITIVE LANDSCAPE
- 6.1 Company Profiles
- 6.1.1 Cubic Corporation
- 6.1.2 Infineon Technologies
- 6.1.3 Conduent Inc
- 6.1.4 Vix Technology
- 6.1.5 Rambus Incorporated ( Visa Inc.)
- 6.1.6 Hid Global
- 6.1.7 Gemalto Nv ( Thales Group)
- 6.1.8 Giesecke+Devrient
- 6.1.9 Indra Sistemas
- 6.1.10 Confidex Ltd.
- 6.1.11 NEC Electronics (NEC Corporation)
- 6.1.12 Paragon ID ( Paragon Group Limited)
- 6.1.13 Softjourn, Inc.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS