Smart Ticketing on the Path to Dematerialization

  • ID: 3678323
  • Report
  • Region: Global
  • Smart Insights
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Mobile Ticketing Registering a CAGR of 51% from 2016-2021

FEATURED COMPANIES

  • Abellio Group
  • Ecebs
  • GlobeSherpa
  • MT&L
  • OMTA
  • ST Microelectronics
  • MORE
In a time of constrained budgets and efforts to do more with less, cities around the world are investing in new technologies that can help manage the growing challenges of urbanization. To pursue smart cities’ values "live well together" and "live better together," new technologies are being used to provide housing, transportation and energy in a more sustainable way than today.

Mobility and congestion are challenges for every city. More and more smart cities are turning to technology to provide better, faster and cheaper ways to get around. Many cities seek to be more sustainable by encouraging the use of mass transit or public transportation systems.

Intelligent Transportation Systems (ITS), through the implementation of smart meters, sensors and grids, and increased connectivity, are being developed and deployed to improve mobility and build a safer, smarter, more efficient and sustainable surface transportation network. The provision of an attractive and easy to understand ticketing system is one of the major challenges to improve public transportation today.

Smart ticketing systems have evolved to offer more transparent and easier to understand solutions through the automation of processes and diversification of payment means. Far away from paying with cash or buying paper tickets directly from staff, smart ticketing systems allow transportation operators to collect their fares automatically and to build value-added knowledge on behavior and mobility patterns of their passengers. This valuable insight will then help operators to improve their services and offer more suitable solutions.

The main driver for the introduction of smart ticketing is the need to improve the efficiency of existing systems, which are costly and resource-consuming, particularly paper-based ticketing considered untrustworthy. The current market is highly fragmented, characterized by proprietary systems that reduce the scope for future integration. Moreover, the specific characteristics of the public transportation service (e.g. constant funding need, costly investment, strong regulation, privacy and security concerns, lack of standardization) only make it harder to bring disruption to the ticketing market. Moreover, these also have a strong impact on stakeholders’ business models.

A complex value chain characterizes the public transportation market: the complexities behind the relationship between transportation authorities and transportation operators (which sometimes end up being the same), the particularities of their business models and the way they associate, as well as with other stakeholders (e.g. fare media providers, ticketing system developers, financial institutions) are some of the peculiarities of this market that might be taken into account.

To build a better understanding of this market, the report examines six use cases: Tokyo, London, Paris, New York, Moscow and Beijing. Tickets and cards (magstripe or smart card-based) are forecasted for each of these markets, as well as the adoption of mobile and open loop ticketing solutions. A worldwide analysis is also developed for the period 2016-2021.
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FEATURED COMPANIES

  • Abellio Group
  • Ecebs
  • GlobeSherpa
  • MT&L
  • OMTA
  • ST Microelectronics
  • MORE
- Acknowledgements

- Executive Summary

1.Introduction

2.Public transportation
2.1. Economic and regulatory framework for public transportation systems
2.1.1. Economic and regulatory framework issues
2.1.2. Financing
2.1.3. Profitability
2.1.3.1. Pricing system and fare policy
2.1.3.2. Revenue sharing between various players
2.1.4. Privacy and security framework
2.2. Value chain and its stakeholders
2.2.1. Transportation authorities
2.2.1.1. Objectives
2.2.1.2. Challenges
2.2.2. Transportation operators
2.2.2.1. Objective
2.2.2.2. Business model
2.2.2.3. Performance objectives
2.2.3. End-users
2.2.3.1. Needs
2.2.3.2. Benefits
2.2.4. Other stakeholders
2.2.4.1. Ticketing system providers
2.2.4.2. Hardware vendors
2.2.4.3. Software vendors
2.2.4.4. Systems integrators
2.2.4.5. Scheme providers
2.2.4.6. Ticketing solution providers
2.2.4.7. Financial institutions
2.2.4.8. Lobbyists
2.2.4.9. Developers of standards and specifications
2.2.4.10. Others
2.3. Different phases of implementation of a ticketing system

3.Smart ticketing
3.1. Drivers for smart ticketing
3.2. Benefits of smart ticketing
3.3. Issues of smart ticketing
3.4. Recommendation for smart ticketing
3.5. Ticketing solutions
3.5.1. Ticketing services issued by the transportation world
3.5.1.1. Tokens
3.5.1.2. Magnetic tickets
3.5.1.3. Contactless solutions
3.5.1.4. Mobile ticketing
3.5.1.5. Software-based ticketing
3.5.2. Ticketing services issued by other players
3.5.2.1. Cash
3.5.2.2. Open loop
3.5.2.3. Mobile ticketing
3.5.3. Comparing solutions
3.5.4. Smart ticketing control
3.6. Interoperability
3.6.1. Multimodal ticketing
3.7. Standardization
3.7.1. Open architecture
3.7.2. Examples of projects
3.8. Scalability / Performance
3.9. Future developments
3.9.1. Multi-application solutions
3.9.2. Marketing and Communication
3.9.3. Data analytics
3.9.4. From offering information to offer tickets

4.Ticketing systems in major networks
4.1. London
4.2. New York
4.3. Moscow
4.4. Tokyo
4.5. Paris
4.6. Beijing
4.7. Other major networks

5.Adoption of solutions
5.1. Business sizing and forecasts
5.1.1. London
5.1.2. New York
5.1.3. Moscow
5.1.4. Tokyo
5.1.5. Paris
5.1.6. Beijing
5.1.7. World

6.Companies and organizations
6.1. Abellio Group
6.2. Accenture
6.3. Advanced Card Systems
6.4. ams
6.5. ASK
6.6. Atos
6.7. Bytemark
6.8. Confidex
6.9. Cubic Transportation Systems
6.10. Ecebs
6.11. Electronic Data Magnetics
6.12. EMTA
6.13. Galitt
6.14. Global Platform
6.15. HID Global
6.16. Fujitsu
6.17. Gemalto
6.18. Giesecke & Devrient
6.19. GlobeSherpa
6.20. Infineon
6.21. Ingenico Group
6.22. INIT
6.23. Ireland’s National Transportation Authority
6.24. ITS America
6.25. Masabi
6.26. Mikron
6.27. MT&L
6.28. Mulann
6.29. Nagel Group
6.30. Netsize
6.31. NXP Semiconductors
6.32. Oberthur Technologies
6.33. Omron Corporation
6.34. OMTA
6.35. Paragon
6.36. Parkeon
6.37. Rwanda Utility and Regulatory Authority
6.38. Scheidt & Bachmann
6.39. Sequent
6.40. MTC
6.41. Smartrac
6.42. Snapper
6.43. Smart Ticketing Alliance
6.44. ST Microelectronics
6.45. Thales Group
6.46. Trapeze Group
6.47. TriMet
6.48. UL
6.49. UrbanWave
6.50. Vix Technology
6.51. Watchdata
6.52. Xerox
6.53. You Transactor

7.Glossary
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FEATURED COMPANIES

  • Abellio Group
  • Ecebs
  • GlobeSherpa
  • MT&L
  • OMTA
  • ST Microelectronics
  • MORE
In a time of constrained budgets and efforts to do more with less, cities around the world are investing in new technologies that can help manage the growing challenges of urbanization. To pursue smart cities’ values "live well together" and "live better together," new technologies are being used to provide housing, transportation and energy in a more sustainable way than today.

Mobility and congestion are challenges for every city. More and more smart cities are turning to technology to provide better, faster and cheaper ways to get around. Many cities seek to be more sustainable by encouraging the use of mass transit or public transportation systems.

Intelligent Transportation Systems (ITS), through the implementation of smart meters, sensors and grids, and increased connectivity, are being developed and deployed to improve mobility and build a safer, smarter, more efficient and sustainable surface transportation network. The provision of an attractive and easy to understand ticketing system is one of the major challenges to improve public transportation today.

Smart ticketing systems have evolved to offer more transparent and easier to understand solutions through the automation of processes and diversification of payment means. Far away from paying with cash or buying paper tickets directly from staff, smart ticketing systems allow transportation operators to collect their fares automatically and to build value-added knowledge on behavior and mobility patterns of their passengers. This valuable insight will then help operators to improve their services and offer more suitable solutions.

From tokens or paper tickets, automated fare collection (AFC) systems have evolved to include magnetic stripe cards and then contactless smart cards. Today banking cards (or other application cards) and mobile phones, using NFC (Near-Field-Communication) applications or QR codes for instance, are also used as valuable ticketing options. Other form factors (e.g. wearables) are also available. In addition to the inherent payment characteristic of these solutions, they have other features and functionalities that help to make public transportation more pleasant and efficient for end-users, such as access to schedules and directions.

Ticketing solutions are not only becoming cashless, but also effortless (for the end-user). But behind each of these solutions lays a well-structured payment system that obeys the complexities of public transportation fare systems. The need to support both commuters and occasional users obliges transport operators to accept multiple payment means (e.g. cash, bank card, mobile payment) without excluding anyone.

The main driver for the introduction of smart ticketing is the need to improve the efficiency of existing systems, which are costly and resource-consuming, particularly paper-based ticketing considered untrustworthy. The current market is highly fragmented, characterized by proprietary systems that reduce the scope for future integration. Moreover, the specific characteristics of the public transportation service (e.g. constant funding need, costly investment, strong regulation, privacy and security concerns, lack of standardization) only make it harder to bring disruption to the ticketing market. Moreover, these also have a strong impact on stakeholders’ business models.

A complex value chain characterizes the public transportation market: the complexities behind the relationship between transportation authorities and transportation operators (which sometimes end up being the same), the particularities of their business models and the way they associate, as well as with other stakeholders (e.g. fare media providers, ticketing system developers, financial institutions) are some of the peculiarities of this market that might be taken into account.

To build a better understanding of this market, the report examines six use cases: Tokyo, London, Paris, New York, Moscow and Beijing. Tickets and cards (magstripe or smart card-based) are forecasted for each of these markets, as well as the adoption of mobile and open loop ticketing solutions. A worldwide analysis is also developed for the period 2016-2021.

The report forecasts smart card shipments to reach more than 1 billion by 2021. The number of users of open loop and mobile ticketing solutions are also forecasted to experience a fast growth between 2016-2021, with mobile ticketing registering a CAGR (Compounded Annual Growth Rate) of 51% during the forecast period. Contactless and magnetic fare media (tickets and cards) shipments are expected to keep increasing but at slower pace, given the impact of more innovative solutions. The implementation of more powerful back-office systems that allow the adoption of account-based processing will be one of the main drivers for the increasing adoption of more flexible solutions (e.g. mobile applications).

Smart ticketing helps to improve the overall public transportation network level of services, image and accessibility, contributing to the main aim of developing more sustainable transportation and consequently smarter cities. Innovative solutions must simplify ticketing by offering easy and attractive payment methods. End-users are looking for easiness, simplicity and fairness.

Other criteria must also be taken into account: public policy needs (e.g. optimization of operational efficiency, reduction of public expenses in budgets, shift in modal split reducing car travel) and the transportation operator’s needs (e.g. improve fare collection efficiency, reduce operational costs of ticketing).

Fragmentation and lack of interoperability are seen as the major obstacles to achieve sustainable transportation. However, future-proof solutions are expected to arise promising simple integration with existing systems. A simpler value chain in which transport operators are waved from the responsibility of providing ticketing solutions and the bureaucracy implied in that process (e.g. collect payment, management of payment systems, compliance with payment standards) are anticipated. They will then be free to dedicate to their main function: provide transportation.

Ticketing will be more and more integrated with other applications being offered as one only integrated solution. For instance, today some mobile applications already integrate information of several transportation modes (e.g. schedules, fastest option, ride’s cost) and help end-users to move from one location to another in real time. The next step will be the ability to offer to the end-user the option to buy a ticket directly with them, eliminating therefore the complexity of looking for the right ticket and payment option by themselves.
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- Abellio Group
- Accenture
- Advanced Card Systems
- ams
- ASK
- Atos
- Bytemark
- Confidex
- Cubic Transportation Systems
- Ecebs
- Electronic Data Magnetics
- EMTA
- Galitt
- Global Platform
- HID Global
- Fujitsu
- Gemalto
- Giesecke & Devrient
- GlobeSherpa
- Infineon
- Ingenico Group
- INIT
- Ireland’s National Transportation Authority
- ITS America
- Masabi
- Mikron
- MT&L
- Mulann
- Nagel Group
- Netsize
- NXP Semiconductors
- Oberthur Technologies
- Omron Corporation
- OMTA
- Paragon
- Parkeon
- Rwanda Utility and Regulatory Authority
- Scheidt & Bachmann
- Sequent
- MTC
- Smartrac
- Snapper
- Smart Ticketing Alliance
- ST Microelectronics
- Thales Group
- Trapeze Group
- TriMet
- UL
- UrbanWave
- Vix Technology
- Watchdata
- Xerox
- You Transactor
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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