"Growing digitalization and public awareness of smart transit cards will boost the market."
The global public transport smart cards market is growing proficiently, projected to grow at a CAGR of 10.20% during the expected period from 2019 to 2027, starting from US$ 57.20 Bn in 2018.
A smart card is defined as a small computer chip that is used for a fare payment system to keep track of the user's ticketing value. The increase in online payments is one of the factors which is driving the market across the globe. Furthermore, with the rise in digitalization, the requirement for secure and decentralized digital payments is increasing with each passing year; therefore, companies are moving towards digital currencies to reduce fraud.
Furthermore, rising utilization of public transport and rising digitalization in the payment mode are some of the major factors driving the global market. The emerging economies are heavily investing in public transport due to the rising population and increasing cost of fuels. Furthermore, to profit from public transport, various nations' governments are adopting smart cards, reducing fraud.
Market Synopsis
GET A SAMPLE COPY FOR MORE INFORMATION
Component Analysis
"Public transport smart card with microcontroller based smart cards will spark the market growth."
In 2018, the overall public transport smart cards market was led by the microcontroller-based smart cards segment with more than 50% market share. This is due to the additional features and functionality offered by these cards. In addition, security and intellectual data processing features are a few factors driving the segment across the globe. As a result, the segment is expected to retain its dominant position in the market over the forecast period.
In order to access the information from a smart card, the card needs an interface to communicate with a reader or terminal. Data can be transferred either by using electrical connections with the contact pads on the surface of the smart card, physical contact without contact, or radio frequency (R.F.) transmission. Additionally, the contactless data transmission is used by numerous of the newer smart cards issued for applications like mass transit tickets through debit and credit payment cards like ExpressPay from American Express®, Discover® Network ZipSM, and MasterCard® PayPass™. For instance, Infineon has developed a "32-bit AURIX™," a microcontroller based on TriCore™ embedded with safety and security features basically targeted toward automotive industries.
GET A SAMPLE COPY FOR MORE INFORMATION
Regional Analysis
"The technological expansion leads dominance in transit system coupled with rising demand for smart ticketing to drive the global public transport smart card market."
The global public transport smart cards market was dominated by Asia-Pacific holding a market share of more than 40% in the year 2018. This is due to increasing investment by various manufacturers, and advancement in technology in payment systems in the region is one of the major factors driving the market. Additionally, the rising demand for smart ticketing systems from various countries, including India, China, Japan, and others, also contributes to the market's growth. Moreover, the smart card is also being adapted to reduce the fraud caused by individuals.
Furthermore, certain contactless smart card technologies are likely to dominate certain geographical areas in the Asia Pacific region and are also likely to dominate certain application sectors. For instance, the transportation sector has implemented Sony contactless smart card technology in Singapore, which has directed a long-term goal of merging with the local electronic purse scheme by issuing a dual-interface card. Moreover, the introduction of smart contactless cards by developing countries like "TAIPEI'S EASY CARD," "SINGAPORE'S EZLINK," "HONG KONG'S OCTOPUS," "MALAYSIA'S TOUCH'N GO," "KOREA'S METROPOLITAN AFC SCHEME FOR SEOUL," "CHINA'S SHENZHEN TONG CARD," "JAPAN'S SUICA CARD," and many more is likely to fuel the market economy for public transport smart cards across the region.
GET A SAMPLE COPY FOR MORE INFORMATION
List of Companies Covered:
- Infineon Technologies AG
- NXP Semiconductors N.V.
- Texas Instruments Inc.
- Oberthur Technologies S.A.
- Gemalto NV
- Giesecke & Devrient GmbH
- CPI Card Group Inc.
- American Express Company
- Atos SE
- INSIDE Secure SA
- ZTE Corporation
- OEM Technology Solutions
Key Industry Development:
- In September 2016, the East Japan Railway announced to offer of "Suica's contactless payment and smart ticketing system" on Apple Pay. Additionally, it will allow users to use the device as contactless readers for public transit payments.
- In September 2016, the state government of West Bengal deployed digitally advanced ticketing machines on the buses which the Calcutta Road State Transport Corporation is operating.
- In September 2016, the Rajkot Municipal Corporation presented a computer-generated ticketing system for rapid transit in city buses, allowing commuters to purchase virtual tickets from e-commerce websites like Paytm and use the Q.R. code for boarding.
Historical & Forecast Period
This study report represents analysis for each segment from 2017 to 2027, considering 2018to be the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period from 2019 to 2027.Segmentation
Component Type (2017–2027; US$ Bn)
- Microcontroller-Based Smart Cards
- Memory Card-based Smart Cards
Interface Type (2017–2027; US$ Bn)
- Contact Smart Cards
- Contactless Smart Cards
- Others
Mode of Transportation (2017–2027; US$ Bn)
- Bus
- Train
- Light Rail Transit
- Others
Geography Segment (2017–2027; US$ Bn)
- North America (U.S. and Canada)
- Europe (U.K., Germany, Spain, Italy, and the Rest of Europe)
- Asia Pacific (Japan, China, India, and Rest of Asia Pacific)
- Rest of World (Middle East & Africa (MEA), Latin America)
The current report also comprehends qualitative and qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities better to understand the overall public transport smart cards market. In addition, the global report also comprises a graphical representation of the competitive landscape based on their market initiatives and strategies, product portfolio, and business strengths.
