The global Transit Cards Market is estimated to be valued at US$ 75.1425 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Transit cards are used for paying fares for public transportation services like buses, trains, metros etc. They offer advantages like cashless transactions, automatic fare calculation and integrated ticketing across different modes of transport. The growing urban populations and investments in public transport infrastructure are driving the need for transit cards.
Market key trends:
Digital ticketing platforms are emerging as one of the key trends in transit cards market. Many transport authorities are adopting digital versions of transit cards that can be loaded onto smartphones. Passengers can purchase and display tickets digitally eliminating the need to carry physical cards. Technologies like near-field communication (NFC) enable contactless payments at turnstiles using smartphones. This provides enhanced convenience and security compared to physical cards. Integration of transit cards with mobile wallets is another trend, allowing passengers to pay fares using a single wallet account. Data analytics capabilities are also being incorporated to gain insights into passenger travel patterns and optimize transit network planning.
Segment Analysis
The global transit cards market is segmented by technology, components, and application. Based on technology, contact-based smart cards dominated the market in 2022 and are expected to continue their dominance over the forecast period. Contact-based smart cards are low cost and have widespread acceptance among transit operators and users.
Based on components, microprocessors dominated the market in 2022. Microprocessor-based cards have advanced security features and large memory capacity for storing applications and data.
Based on application, transport dominated the market in 2022. Growing emphasis on digital payment methods and availability of multifunction transit cards that can also be used for retail payments is driving demand for transit cards in the transport sector.
Key Takeaways
The global transit cards market is expected to witness high growth, exhibiting CAGR of 7.5% over the forecast period, due to increasing digitization of transport payments and multimodal transit systems.
Regional analysis – Asia Pacific dominated the transit cards market in 2022 and is expected to witness the highest growth during the forecast period. Rapid urbanization, growing transportation infrastructure, and government initiatives to promote cashless payments are driving the demand for transit cards in Asia Pacific countries like China and India.
Key players – Key players operating in the transit cards market are Datacard Group, Gemalto N.V, Giesecke & Devrient GmbH, Beijing Watchdata Co., Ltd. Cardlogix Corporation, Infineon Technologies AG, Eastcompeace Smart Card Co., Ltd, and 4G Identity Solutions Pvt. The market is consolidating with global players capturing a major share. Strategic partnerships for technology development and expanding into emerging markets will be the focus of key players over the forecast period.
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