Rising digitisation and infrastructure development activities will have a positive impact on smart ticketing market outlook by 2026. Advanced digital technologies are increasingly being utilised by transport authorities to improve customer experience as well as streamline overall operations.
Authorities are using smart ticketing software to centrally manage all data linked with travel statistics of customers and payment transactions.
These kinds of software also help in analysing traffic periods, passenger volume and other available resources to enable better scheduling of buses and trains. Smart ticketing can help increase the speed of boarding times, allow passengers to book tickets in advance and decrease the queue time.
Companies offering smart ticketing solutions and services are developing advanced technologies to help improve user experience.
For example, in 2017, smart ticketing system provider Rambus Ecebs announced the launch of its new and advanced ticketing solution enabled with Host Card Emulation (HCE) technology to safely load virtual smart cards onto smartphones for the public transport sector.
Given to such developments, Global Market Insights, suggests that the smart ticketing market may grow over USD 20 billion by 2026.
Based on offering, the smart ticketing industry is divided into request tracker, smart cards, smart card readers, ticketing mobile terminals, ticket validators, e-toll and smart ticketing kiosk. Of these, the ticket validators segment is witnessing robust demand owing to rising automation in the transport sector. Ticket validators read smart cards and provide support to the fare applications.
Turnstile validators are connected to a central computer system and are rigged with internal memory and processor. Meanwhile, on-board validators can be either contact, contactless or both, and can be integrated or stand-alone with the on-board computer. These validators, or the ones located at turnstiles, do not offer top-up services and have a simplified monochrome display.
On the other hand, station validator units have the same functions as mobile units but can display a bigger range of passenger information and offer top-up functions.
In terms of connectivity, the smart ticketing industry is bifurcated into barcode, Wi-Fi, RFID, near field communication (NFC), and cellular network. Out of these, the RFID-based smart ticketing segment is likely to grow substantially over the forecast period.
This system validates user identity easily and allows customers to travel using RFID tags, which means they do not have to pay daily for travel, thus enabling convenient and hassle-free journeys. These tags contain all the details about customers, such as the discounts they have availed. Growing popularity of wireless digital technologies may boost overall market growth.
On a regional standpoint, the Middle East and Africa smart ticketing industry is projected to record significant revenue proceeds owing to increasing infrastructure development projects executed across the region.
Advanced technologies are being incorporated in the transport sector to support easy ticketing facility. For instance, in 2019, Digital Afrique Telecom (DAT) unveiled a smart card and ticketing system that aims at enabling Ivorian public transport users to board over 700 buses every day using contactless cards.
Samikshya Borse is Content Writer at Global Market Insights.