Automatic Ticket Machine Market Size, Share & Industry Analysis, By Payment Type (Smart Card Payment, Cash Payment and Mobile Payment), By Application (Public Transport, Entertainment & Gaming and Others), and Regional Forecast, 2032

The global automatic ticket machine market size stood at USD 2.63 billion in 2019 and is expected to reach USD 12.48 billion by 2032, exhibiting a CAGR of 13.5% during the forecast period.

Automatic ticket machines (ATMs) are utilized for the automatic generation of tickets in public transport and public accessible points. These machines can serve as an urban assistance to display static or dynamic information to the user.

Technological development in digital payment options is a growing trend. Automatic ticket-generating machines with digital payment option are referred as ticket friend solution i.e. enabling the utilization of smart card to predetermine the transport details.

The demand for ATMs is growing year on year. It is complimented by the utilization of technologies, including radio-frequency identification (RFID), near-field communication (NFC), Internet of things (IoT), and others. Governmental bodies are also introducing automatic ticket vending machines (ATVMs) to minimize the public gatherings at one place, hence reducing the excess time utilization. For instance, Indian Railway utilizes ATVMs to reduce passenger queuing up at the ticket counter at railway stations. These machine systems carry approximately 23% of overall ticket market in the Mumbai division of Central India Railway Department.

However, the COVID-19 pandemic has adversely affected the automatic ticket machine market growth. It has challenged the operational flow of the ATM system at public transports and entertainment & gaming junctions across the globe. According to the Association of American Railroads (AAR), rail traffic is experiencing a downfall by nearly 21.9% compared to last year. Moreover, the International Air Transport Association (IATA) anticipates that the worldwide passenger revenue will experience approximately 19% fall in case of further intensification of the spread of COVID-19. These factors indirectly affect the market and it will experience nearly zero operational work in current year owing to the partial or complete shutdown of various industry verticals including manufacturing across the globe.

LATEST TRENDS

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Technological Development in Digital Payment Options is Laying Foundation for Future Market Growth

The manufacturers are competing in the market based on factors such as machine innovation, delivery speed, reliability, and after-sales services. To gain the competitive advantage, prominent players are focusing more on machine innovation with the help of technological developments, including radio frequency identification (RFID), Zigbee technique, and near field communication (NFC) technology. These emerging technologies are stated to be the crucial components in the product offerings. They offer remote monitoring and proactive maintenance assistance that tracks the proper functioning and identify the problems of automated ticket machines. These hi-tech developments compliment automatic ticket generation, attracting a larger number of passengers. Moreover, these technologies reduce the chances of operational failure, owing to the remote monitoring services. They ultimately enable manufacturers to increase system up time and eliminate the costs of overhead transport.

Several manufacturers offer NFC enabled ticketing solutions that allow travelers to pay transit fares directly at the point of travel. ATVMs consist of smart card RFID reader, Zigbee, and PIC microcontroller that are being utilized as a ticket friend mechanism across bus stands and bus stops. For instance, on bus stands and bus stops, transit centers have been set up across the U.S. to move more people in less time. These advanced mechanisms need to be implemented as widely as possible, especially in busy traffic areas across countries.

Considering all these factors, technological developments in digital payment options is boosting the market growth.

DRIVING FACTORS

Increased Popularity of Automatic Ticket Machines with Digital Payment Options is Upholding the Market Growth

Prominent players are integrating ATMs with digital payment solutions to reduce heavy rush on ticket counters. They are also constantly incorporating digital payment options to gain real-time consumer data. The sudden rise in passengers travelling via airplane and railways across the globe has supported the increased popularity of automated tickets generated by smart cards while travelling. Moreover, countries including India, Hungary, South Africa, Malaysia, Indonesia, and others are witnessing high adoption of E-tickets generated via digital mode of payment in the entertainment sector. This is owing to the introduction of touch screen based ticketing kiosks across the public transport sector, public access points, and the entertainment & gaming sector. This allows end-users to generate paper tickets or E-tickets. For instance, in March 2019, the Government of India launched ‘One Nation One Card’ for transport mobility. The card can be utilized by end-users travelling via suburban railways, metro, bus, parking, and even for retail purposes.

Foreseeing the robust adoption of digitalization, the digital payment option in automatic ticket vending machines is certainly boosting the revenue generation in the market.

RESTRAINING FACTORS

Failure of Operational Network is Causing Hindrance to the Market Growth

The public transport sector is facing an issue of investing money on automatic ticket machines’ maintenance, owing to the huge number of daily travelling passengers and lack of security. Additionally, the problem of network connectivity impedes the installation of machines as they require a strong internet connection to perform multiple functions at a time. Furthermore, the sudden breakdown of automated ticket machine units challenges the infrastructure facilities across commercial stores, multi-specialty hubs, and the transport sector. Sudden breakdown refers to network connectivity failure and outage caused by improper usage.

Thus, more investment is required to improve the network connectivity for uninterrupted utilization of these machines.

SEGMENTATION

By Payment Type Analysis

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Smart Card Payment Type to Experience High Demand

The payment type segment is categorized into smart card payment, cash payment, and others (mobile payment, etc.).

Smart card payment is anticipated to witness substantial growth in the forecast period, as it offers benefits such as increased convenience, security, and reduced manual cash handling over cash payment type. Smart cards with an embedded RFID chip are gaining traction in the public transport sector. Moreover, smart cards are mostly utilized in the entertainment & gaming sector as they require zero cash handling while playing a game or watching movie.

The cash payment segment is expected to witness steady growth, it being the traditional payment option if in case the smart card does not operate properly. Mobile payment option shows potential in the future ahead, attributed to the utilization of NFC technology to generate automated tickets via mobile phones without needing cash or smart cards.

Considering all these factors, smart card payment type shows maximum growth in the forecast period.

By Application Analysis

Entertainment & Gaming Segment to Boost the Market

By application analysis, this market is categorized public transports, entertainment & gaming, and others (bank, parking area, etc.).

The entertainment & gaming category is anticipated to witness exponential growth, which can be attributed to the increase in construction of multi-specialty hubs and commercial stores. This segment offers just-in-time approach for quick ticketing solutions, thus reducing the excess time required. Moreover, smart ticketing solutions have grown drastically, owing to the utilization of multimedia, backed by advancements in Artificial Intelligence (AI) technology and IoT implementation.

The public transport category is expected to witness substantial growth, owing to the utilization of smart cards by the passengers traveling via train, trams, buses, etc. The leading manufacturers are providing NFC-enabled ticketing solutions, mixed automatic ticketing solutions, etc. to their end-users. For instance, Xerox Corporation offers cloud ticketing automatic machine solutions, catering to the smallest as well as the largest transportation networks.

REGIONAL INSIGHTS

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The scope of the global market is classified into the five regions of North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific market is in the best position to lead the market share. It is attributed to factors, including ever-growing railway passenger traffic, increasing number of passengers travelling via buses, and upcoming renovation projects regarding airports and commercial infrastructure. Several regional players are catering to demand for ATMs in movie theaters, commercial stores, etc. This has resulted in customers opting for better content display and display size. Furthermore, the rising economies of countries such as India, Thailand, Malaysia, etc. have triggered the demand for automatic ticket vending machines. Governmental authorities are heavily investing in the development of infrastructural projects and are opting for partnerships to gain competitive advantage in the market. For instance, in October 2019 in Mumbai, Indian Railways launched ‘one touch ATVM’ at 42 suburban stations to offer fast ticketing to commuters. Furthermore, increasing implementation of ATVMs for parking vehicles is also expected to drive the market.

Europe market is experiencing the substantial growth, mainly as a result of the presence of most of the leading ticket kiosks manufacturers in countries such as Germany, Switzerland, Netherlands, and the UK. Additionally, high per capita spending is also complimenting the growth of the market across aforesaid European countries. Moreover, governmental authorities are providing automatic ticket solutions while travelling via railways, trams, etc., which has supported the utilization of automatic ticket vending machine systems across European Union (EU) countries. For instance, in April 2019, Cubic Corporation signed an agreement with the National Transport Authority (NTA) to provide automatic mobile ticketing system in Ireland. This system enables multimodal transportation for commuters.

North America market is expected to witness steady growth, owing to the numerous infrastructural, railways, and public transport development plans across the U.S. and Canada. In rural areas, increasing demand for smart ticketing solutions is complimenting the market growth to effectively serve the end-users. These automated machines are gradually becoming a medium of customer satisfaction across the U.S. and Canada.

Latin America and the Middle East & Africa markets are expected to show healthy growth owing to the increasing investments in public transport facilities across countries, including Kuwait, South Africa, United Arab Emirates, and Brazil. The leading manufacturers are investing in these countries to offer great satisfaction to customers while travelling via the railways and airplanes. For instance, Almex Transport in cooperation with National Department of Transport (NDoT) and the Standard Bank of South Africa developed ‘MUVO Card’ that can be utilized to make payments in trains, buses, and taxis throughout South Africa to facilitate integrated rapid public transport network (IRPTN).

KEY INDUSTRY PLAYERS

Cubic Corporation to Focus on Providing Integrated Systems for Traffic and Transportation Management

Cubic Corporation is focusing on providing integrated information-based solutions such as traffic management system technology to offer real-time ticketing experience to travelers. Moreover, the company provides intelligent travel solutions for commuters so that they can choose the easiest way to travel and pay for their journeys. It allows transportation authorities to manage demand for automated ticketing solutions across entire transportation network in real time.

Prominent Players Are Opting for Mergers with Government Associations and Firms to Offer E-tickets to End-Users

Prominent market players have adopted various strategies, including partnership with governmental bodies, advanced product launching, and investment in research and development to sustain in the intense market competition. Moreover, these players are following equipment-manufacturing standards to gain the competitive advantage in the market. For instance, in November 2018, On Track Innovations Ltd. partnered with Almex Transport for George Municipality Western Cape Government. The partnership aimed to implement ‘Go George Smart Card’ solutions in buses for the South Africa public transportation system.

LIST OF KEY COMPANIES PROFILED: 

• Parkeon (Paris, France)


• Xerox Corporation (Connecticut, U.S.)


• CPI Card Group Inc. (Colorado, U.S.)


• Infineon Technologies AG (Neubiberg, Germany)


• NXP Semiconductors (Eindhoven, Netherlands)


• Scheidt & Bachmann GmbH (Mönchengladbach, Germany)


• Gemalto NV (Amsterdam, Netherlands)


• Almex Transport (Durban, South Africa)


• Cubic Corporation (California, U.S.)


• HID Global Corporation/ASSA ABLOY AB (California, U.S.)


• Diebold Nixdorf Incorporated (Ohio, U.S.)


• SBB (Bern, Switzerland)

KEY INDUSTRY DEVELOPMENTS:

• May 2019 – Infineon Technologies AG collaborated with Rambus.com to provide mobility services in smart ticketing solutions for smart cards and mobiles across the globe. The companies are combining their expertise on ‘CIPURSE’ open standard for smart ticketing and mobile solutions to provide future proof transport ticketing solutions.


• January 2018 – Parkeon and Cale (Headquartered in Sweden) merged to offer future urban mobility technologies in parking and transport ticket solutions. The companies have formed a new global entity as ‘Flowbird’.

FUTURE SCENARIO

The future of this market analysis is promising as these machines promise better end-user day-to-day experience. The manufacturers are focusing on technological advancements including AI-based technology, RFID, NFC, and others to generate more revenue and offer competitive advantage. The prominent players are aiming at providing best quality products along with appropriate ticketing solutions to its end-users. However, the COVID-19 pandemic has hit the automatic ticket vending machine market with substantial effects. The virus has spread across approximately 70 countries as of May 25, 2020. It has halted traffic movement across all the transportation modes, and thus, has indirectly affected the aforesaid market.

The impact is expected to sustain for a considerable period in 2020 and the conditions will get clearer in the future ahead. Currently, the market is facing a challenge due to the COVID-19 outbreak, but the future ahead is promising attributable to the increasing number of commuters utilizing smart cards to generate tickets in less time.

REPORT COVERAGE

The automatic ticket machine market research report focuses on leading regions across the globe to offer a better understanding to end-users. Moreover, the market report offers insights of the global industry dynamics and analyzes technologies that are utilized at a rapid pace across the world. It also displays some of the key factors and restraints to help the readers to gain in-depth knowledge about the market.

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