Smart Ticketing Market Size, Share & Industry Analysis, By Component (Hardware, Software), By Technology (Near Field Communication (NFC), Radio Frequency Identification (RFID), Quick Response Code (QR Code), Others), By Offering (Smart Cards, Ticket Validators, Ticketing Machine/Smart Ticketing Kiosk, E-toll, and Others), By Application (Parking and Transportation, Sports and Entertainment), and Regional Forecast, 2024-2032

The global smart ticketing market size was USD 10.80 billion in 2023. The market is projected to grow from USD 12.36 billion in 2024 to USD 32.31 billion by 2032 at a CAGR of 12.8% during the forecast period.

Smart ticketing refers to a system that electronically stocks a tourism or transportation ticket on a microchip, which is generally implanted on a smart card. The transport operator scans the contactless electronic ticket at a handheld or static ticket machine or barrier to approve the user’s travel. The smart ticket market comprises various mechanisms, including a tap-off reader, Wi-Fi modules, GPS, ticketer handheld, ticketer compact, and IR sensors.

Electronic ticketing plays an important role in parking and transportation, sports, and entertainment sectors. It saves time, provides the best fare price for each journey, lowers environmental impact, and offers a superior travelling experience. Smart tickets are more secure than traditional paper tickets. These tickets are difficult to replicate, and if the smart card is stolen or lost, the ticket associated with it can be cancelled easily. Also, the use of smart tickets saves time as a passenger is not required to stand in queues for a long time to purchase tickets. Furthermore, many governments across the globe are encouraging cashless transactions, which are expected to create a lucrative opportunity for the market.

The COVID-19 pandemic has negatively impacted the transportation system in North America. Since March 2020, there has been a major decline in transportation activity in the U.S. and Canada due to travelling restrictions to curb the spread of the novel coronavirus. The major loss is witnessed in the U.S. and European countries dependent on travel, tourism, hospitality, and entertainment. The pandemic has negatively impacted the transportation system in North America. However, with relaxation in lockdown restrictions in the second phase of 2020, public places, restaurants, public transport, sports events and stadium imposition were opened, which is expected to fuel the growth of this market.

Smart Ticketing Market Trends

Growing Adoption of Advanced Technologies in Smart Ticketing Solutions to Fuel Market Growth

Smart ticketing systems are largely used in the public transportation network, concerts, stadiums, and similar events. The incorporation of advanced technologies, such as near field communication (NFC), plays a vital role in enhancing the performance of the ticketing system. NFC technology enables two electronic devices, including NFC card and a card reader, to communicate with each other with a range of around 4cm. Furthermore, the use of NFC technology helps to make payments with a wave or place a contactless smart card near smart card readers to purchase tickets quickly. In addition, NFC-enabled smartphones are significantly used to perform safe contactless transactions, access digital content, and store tickets to access transportation gates and parking garages. Additionally, demand for mobile ticketing in public transportation networks has significantly increased to save time and provide the best value fare for each journey. These facilities provided by NFC technology help to increase the popularity of mobile ticketing systems among customers.

For instance,

• In April 2021, Calypso Networks Association (CNA) collaborated with NFC Forum to deliver secure, sustainable, and innovative mobile ticketing solutions.

In addition, the integration of smart technologies, including artificial intelligence, virtual reality maps, smartphones, and wearables in the ticketing system, is significantly increasing. Considering the aforementioned factors, the rise in the adoption of NFC technology in mobile ticketing systems is anticipated to boost the growth of the global market during the forecast period.

Smart Ticketing Market Growth Factors

Rising Demand for Smart Ticketing from Sports, Entertainment, and Tourism Sectors to Augur Well

Digital transformation in transportation networks is fueled by increasing digitization and improved connectivity. The transformation is taking place in urban areas across the globe to provide superior services, improve operational efficiencies, and enhance customer satisfaction. Public transportation networks, sports, and entertainment industries are significantly adopting electronic ticketing systems to attract customers, owing to their fast, secure, and user-friendly features. The ticketing system offers a cost-effective and efficient way for passengers to manage their journey on public transport. It provides many facilities to passengers, such as durability and availability in small sizes. Also, it allows a user to load credit amounts in advance in their tickets for their journey. Furthermore, a user can recover and transfer the sum loaded to another smart card if the smart ticket is lost or stolen. These features make it a secure and convenient ticketing application for travellers.

Thus, the prominent focus of public transportation networks and sports sectors toward the adoption of mobile ticketing systems is expected to drive the growth of this market at a rapid pace during the forecast period.

RESTRAINING FACTORS

High Installation Cost of Smart Ticketing Systems Anticipated to Restrict Market Growth

Electronic ticketing systems are majorly used in public transportation networks and sports events. The deployment of this system's network requires combined efforts from various entities that include component manufacturers, infrastructure providers, the public sector, service providers, and user groups. The involvement of these multiple entities for the successful implementation of ticketing systems needs sophisticated infrastructure. This system requires complicated hardware installation and battery-powered RFID tags that must be distributed to passengers, and it makes this system financially infeasible for most public transport operators. The requirement of large amount of initial investment in the mobile ticketing system is anticipated to hinder the market growth.

Smart Ticketing Market Segmentation Analysis

By Component Analysis

Surge in Deployment of Smart Ticketing Systems to Ramp up Manufacturing of Hardware Component

On the basis of component, the market has been bifurcated into hardware and software. Among these, hardware captured the highest market share owing to a growing demand for e-ticketing in the parking, transportation, and sports and entertainment sectors. The hardware used in the e-ticketing system includes IR sensors, GPS, a Wi-Fi module, a ticketer tap-off reader, a ticketer compact, a ticketer handheld, a ticketer in a case and others. These hardware products are significantly used at sports and entertainment events, public transport, parking, toll booths, and others to provide virtual tickets that can be stored in smart cards and smartphones with high security. These devices are easy to use, available in flexible design, and fully equipped with contactless and contact credit card device facilities, which play an important role in boosting the market growth during the forecast period.

The software segment is anticipated to grow with a leading CAGR with the growing adoption of smart digital strategies by enterprises to streamline the usage of software for employees and reduce the number of support tickets. Furthermore, the updated and modernized software features contribute to the steady progress of commuters in adopting mobile ticketing software to reserve their tickets online.

By Technology Analysis

Rise in Adoption of Near Radio Frequency Identification in Smart Ticketing Systems to Bolster Growth Potentials

Based on technology, the market has been segmented into near-field communication, radio frequency identification, quick response code, and others (cellular networks and others).

Among these, radio frequency identification holds the largest market share as e-ticketing can be easily accessed through smartphones, tablets, iPads, smart cards, etc. RFID is a non-contact and wireless technology that enables users to make payments without entering a password up to 100 m range. This technology uses electromagnetic fields to identify and track tags. This technology is widely used by customers to make seamless payments on e-toll public transportation across the globe.

In addition, near-field communication held the second-largest market share in 2023 and is anticipated to grow at the highest CAGR during the forecast period. Near-field communication (NFC) is an effective way of purchasing tickets through smartphones at any time, and the tickets can be stored on smartphones. Since 2019, android and iPhone have fully supported the NFC standards, suggesting the majority of smartphones in the market are NFC-capable.

By Offering Analysis

Smart Cards to Witness High Growth in the Market

Based on the offering, the market has been classified into smart cards, ticket validators, ticketing machines/smart ticketing kiosks, e-tolls, and others (wearables and others).

Among these, smart cards hold the largest market share in the year 2023. The popularity of smart cards is growing among passengers in smart cities as well as in small towns, as they provide passengers with the contact or contactless card payment facility to purchase tickets e-toll at the best value fare for each journey. Also, the size of smart cards is small, and they have a memory chip or microprocessor embedded in them to serve many different applications when attached to a smart card reader. In this way, smart cards can be used in many applications, which play a vital role in propelling market growth.

Ticket validators are projected to grow with the highest CAGR during the forecast period. This is due to their various benefits, such as automation of procedures and reduction in dwell time. In addition, they facilitate an extensive range of inspection and fare-gathering operations and provide support for international standards.

By Application Analysis

Higher Adoption of Smart Ticketing in Parking and Transportation

Based on vertical, the market has been segmented into parking and transportation, sports and entertainment.

Among these, parking and transportation hold the highest market share and are projected to grow with a leading CAGR during the study period due to the growing adoption of electronic ticketing in public transportation, such as buses and trains. In this digital era, the transportation sector in big cities is undergoing massive transformation. Buses and trains in smart cities across the globe are adopting mobile ticketing systems over traditional physical tokens or paper tickets, as they provide a quick and superior travelling experience to passengers, which is likely to drive the market growth over the forecast period.

The sports and entertainment sector is anticipated to grow in the coming years. In the sports industry, event organizers are increasingly using mobile ticketing to improve their attendees' ticketing experience by providing fast and secured ticketing. Near Field Communication (NFC) technology in mobile ticketing plays a vital role in transforming the ticketing experience for users.

REGIONAL INSIGHTS

Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America has the highest market share and is expected to continue its dominance during the forecast period. The adoption of emerging technologies and the presence of major players, such as Conduent, Inc., HID Global Corporation, Masabi Ltd., and others in the region, are expected to drive the growth of the market.

Asia Pacific is likely to be the fastest-growing market in the near future. The growing adoption of internet of Things (IoT) devices and smartphones and rapid urbanization are expected to be the key factors fueling the Asia Pacific smart ticketing market growth. Moreover, key vendors in the market are focusing on expanding their businesses in developing countries, such as India, China, and Indonesia, which is anticipated to boost the market growth.

Europe accounts for a significant amount of market share owing to rising investment by governments and public transportation companies. The European Union (EU) aims to support the adoption of fast, easy-to-use, and secure electronic ticketing solutions in the transportation sector, which is anticipated to fuel the growth of the market. Also, the sports and entertainment industry operating in Europe is using this platform significantly to manage the quick sale of tickets and reduce on-site queues.

Furthermore, the Middle East, Africa, and South America are investing in mobile ticketing systems, as it helps achieve a fast, secure way for contactless card payments, which plays an important role in attracting parking and transportation, sports and entertainment.

List of Key Companies in Smart Ticketing Market

Continuous Development is Key Strategy to Strengthen Company’s Position

The key players in the market strive to offer advanced electronic ticketing solutions for parking and transportation and sports and entertainment applications to continue the ticketing and travelling process more effectively. Also, vendors are engaged in collaboration and partnership with other market players to cope with the growing demands of customers effectively. Companies are also investing in research and development activities to develop cutting-edge technology systems.

List of Key Companies Profiled:

• Conduent, Inc. (New Jersey, U.S.)


• Siemens (Munich, Germany)


• Cammax Ltd (West Yorkshire, U.K.)


• Infineon Technologies AG (Neubiberg, Germany)


• HID Global Corporation (Texas, U.S.)


• Hitachi Rail Limited (London, U.K.)


• Masabi Ltd (New York, U.S.)


• NXP Semiconductors (Eindhoven, Netherlands)


• Giesecke+Devrient GmbH (Munich, Germany)


• Cubic Corporation (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – MMT (Mountain Metropolitan Transit), in collaboration with Masabi, announced the launch of the advanced account-based ticketing system. With the introduction of the new system, MMT users can use contactless payment choices that deliver fare equity, convenience, and approachability for riders.


• July 2023 - Hitachi Rail announced the launch of the 360Pass application linking Genoa's complete public transport setup. The solution is accessible to all 600,000 residents and the 3,500,000 yearly visitors after a new contract with the city's transportation authority, AMT.


• February 2023 – Infineon, in partnership with TrustSEC, introduced a modernized smart card OS (Operating System), BIO-SLCOS. The solution is preferably suited for government documentation, ticketing, and payment, as well as for application vendors looking to advance their biometric solution in terms of performance, security, and functionality.


• June 2022 - Cubic Technology announced the launch of the CTS (Cubic Transportation Systems) business segment, a new ticketing system in Australia to offer flexible rail journeys for commuters of Queensland. Its trial of Smart Ticketing on the Ferny Grove rail in Brisbane would lead to complete deployment over the whole passenger rail system.


• September 2021 – HID Global Corporation introduced a mobile ticketing solution with a software development kit (SDK). It is completely certified and compliant with Calypso HCE standards. This solution helps travellers purchase tickets securely and conveniently on their smartphones.


• August 2021 – Conduent, Inc. introduced a contactless payment system that allows tickets to be purchased directly on board railways and buses. The company has installed approximately 600 contactless validators on the railways and buses owned by Azienda Trasporti Bergamo (ATB) company in Italy.

REPORT COVERAGE

The global smart ticketing market report offers quantitative and qualitative insights on the product and in depth analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides analysis of consolidated SWOT analysis of key players, partnerships, and business strategies of leading market players, macro, and micro-economic indicators, market dynamics, emerging industry trends, and the competitive landscape.

REPORT SCOPE & SEGMENTATION