Automatic Fare Collection System Market Report 2026

The automatic fare collection system market size has grown strongly in recent years. It will grow from $12.1 billion in 2025 to $13.28 billion in 2026 at a compound annual growth rate (CAGR) of 9.7%. The growth in the historic period can be attributed to public transport digitization, urban rail expansion, reduction of cash handling, adoption of smart cards, fare leakage reduction.

The automatic fare collection system market size is expected to see strong growth in the next few years. It will grow to $18.8 billion in 2030 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to smart city initiatives, mobile payment adoption, interoperable fare systems, AI-driven passenger analytics, cloud-based transit platforms. Major trends in the forecast period include shift toward contactless payments, integration of mobile ticketing, deployment of cloud-based afc platforms, expansion of smart card systems, use of real-time fare analytics.

Increasing smartphone penetration is expected to propel the growth of the automatic fare collection system market going forward. A smartphone is a mobile device that combines the functions of a traditional cell phone with computing capabilities. Smartphones play a critical role in automatic fare collection (AFC) systems by enabling cashless and contactless transactions, thereby improving efficiency, convenience, and user experience in public transportation. For instance, in March 2024, according to ConsumerAffairs, a US-based consumer news and advocacy organization, smartphone ownership in the US increased to 92% in 2023 from 86% in 2022. Additionally, American adults were estimated to spend more than 4.5 hours per day on mobile devices in 2024. Therefore, increasing smartphone penetration is driving the growth of the automatic fare collection system market.

Prominent entities within the automatic fare collection system market are directing their focus towards advancements such as automated fare collection systems to bolster operational efficiency, enrich passenger experiences, and unlock supplementary revenue channels. Automated Fare Collection (AFC) systems represent technological innovations deployed in public transportation infrastructures to streamline fare payment processes for passengers. For instance, in October 2023, the Metropolitan Atlanta Rapid Transit Authority (MARTA), a metro system headquartered in Georgia, unveiled its latest automated fare collection system. This system enables passengers to make payments via debit and credit cards, as well as mobile wallets, directly at the fare gate, eliminating reliance on traditional vending machines. Featuring an array of functionalities aimed at enhancing passenger experiences and optimizing operational workflows, including diverse payment options and seamless integration of contactless payment methods, the new system exemplifies a concerted effort to modernize fare collection mechanisms within public transit networks.

In December 2023, Aurionpro Solutions Limited, a prominent India-based software company, forged a partnership with Vix Technology for an undisclosed sum. This collaboration between Aurionpro Transit and Vix Technology aims to transform public transit by combining Aurionpro Transit's automatic fare collection products with Vix Technology's intelligent solutions. Vix Technology, headquartered in Australia, specializes in designing, supplying, and operating automated fare collection systems. Through this partnership, both companies seek to enhance the efficiency and convenience of public transportation systems, ultimately improving the travel experience for commuters worldwide.

Major companies operating in the automatic fare collection system market report include Sony Corporation, Siemens AG, Thales Group, Atos SE, Singapore Technologies Engineering Ltd, OMRON Corporation, KML Technology Group Ltd, Indra Sistemas, S.A., Cubic Corporation, NIPPON SIGNAL CO., LTD, Dormakaba Holding AG, Vix Technology, Scheidt & Bachmann GmbH, LECIP HOLDINGS CORPORATION, Trapeze Group, GRGBanking, Masabi Ltd, Seiko Epson Corporation, NXP Semiconductors, SATO Holdings Corporation, Star Micronics Co., Ltd, TSC Auto ID Technology Co., Ltd, Advanced Card Systems Ltd.

Asia-Pacific was the largest region in the automatic fare collection (AFC) system market in 2025. The regions covered in the automatic fare collection system market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automatic fare collection system market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automatic fare collection (AFC) system market consists of revenues earned by entities by providing services such as contactless payments, automated entry and exit gates, real-time reporting and analytics, account management, custom fare programs, mobile ticketing, and customer support. The market value includes the value of related goods sold by the service provider or included within the service offering. The automatic fare collection (AFC) system market also includes sales of smart cards, ticket vending machines, central computer systems, and maintenance tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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