“Growing digitalization along with public awareness towards 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 2023 to 2030, starting from US$ 68.86 Bn in 2021.
A smart card is defined as a small computer chip that is used for a fare payment system to keep track on the user's ticketing value. The increase in online payments is one of the factors which is driving the market across the globe. With the rise in digitalization the requirement for secure and decentralized digital payments is increasing with each passing year, therefore to reduce the fraudulent companies are moving towards digital currencies.
Furthermore, rising utilization of public transport and rising digitalization in the payment mode are some of the major factors which are driving the market across the globe. The emerging economies are heavily investing in public transport due to the rising population and increasing cost of fuels. To gain profit from public transport the government of various nations is adopting smart cards resulting in a reduction in fraudulent.
“Public transport smart card with microcontroller based smart cards will spark the market growth”
In 2021, 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 including security and intellectual data processing features are a few factors which is driving the segment across the globe. 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, and using radio frequency (RF) 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, MasterCard® PayPass™. For instance, Infineon have developed a “32-bit AURIX™” a microcontroller based on TriCore™ embedded with safety and security features basically targeted towards automotive industries.
Regional Analysis
“Dominance is led by the technological expansion 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, in terms of revenue, of than more 40% in the year 2021. This is due to increasing investment by various manufactures 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 are also contributing to the growth of the market. Moreover, the smart card is also being adapted to reduce the fraudulent caused by the 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 applications sectors. For instance, the transportion sector have 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, introduction of smart contactless cards by developing countries like “TAIPEI’S EASYCARD”, “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.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Public Transport Smart Cards market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Billion |
| Segmentation | |
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Interface Type
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Mode of Transportation
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Region Segment (2022-2032; US$ Billion)
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Key questions answered in this report
