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MARKET OUTLOOK

Triton Market Research’s report predicts that the automated fare collection system market in Latin America is set to garner a CAGR of 9.02% during the considered period 2021-2028. Brazil, Mexico, and Rest of Latin America model the market in this region.

In Mexico, Metrobus replaced approximately 350 standard busses with new BRT vehicles. Here, some of the BRT vehicles are privately owned, and some are owned by public companies. These vehicles operate at high frequencies, carrying a large number of passengers each day. A trust fund is set up to manage, invest, and distribute all fare revenues for these vehicles. Moreover, this fund collaborates with a fare collection contractor, which offers fare collection equipment, smart cards, and other services. Furthermore, the city metro card is required to pay for fares across various public transportation. Therefore, the growing use of smart cards will propel the automated fare collection system market on a growth path in Mexico. 

On the other hand, the SUBE card, a contactless smart card, is widely used across Argentina to commute using public transportation. This card is valid on numerous travel systems, including subways, buses, and trains. Additionally, various charging stations are available across the country to enable users to recharge cards easily. These developments will boost the demand for automated fare collection systems. Therefore, the increasing demand for automated fare systems will contribute to the growth of the automated fare collection system across Argentina. 

COMPETITIVE OUTLOOK 

The key companies thriving in the automated fare collection system market consist of NXP Semiconductors, Omron Corporation, Samsung SDS, Thales Group, and Dormakaba Holding.