Innovation and Technology Expansion Set to Drive Contactless Ticketing Smart Card Installed Base Beyond 1 Billion by 2024
October 10, 2019 | ABI ResearchEstimated reading time: 2 minutes
According to global tech market advisory firm, ABI Research, the installed base of contactless ticketing smart cards will increase from 784 million in 2018 to over 1 billion in 2024. With increased rates of travel and widespread adoption of modern solutions, significant trends are beginning to develop in the contactless ticketing market.
“In regional terms, trends are developing in the way contactless ticketing solutions are being adopted,” said Sam Gazeley, Digital Security Analyst at ABI Research. “In Middle Eastern nations, there is a notable trend in the deployment of Account-Based Ticketing and mobile ticketing platforms, particularly across affluent areas, including the UAE and Saudi Arabia. In Asia, several contactless ticketing trials are taking place. QR codes have long existed in China as a means of digital payment, and are now being trialed on localized mass transit applications. China is looking to take advantage of WeChat's “Ride Code” to launch a QR-based transportation payment system in Hong Kong by 2021. If this finds traction in other regions as well, there is the potential for an impact on the traditional closed-loop ticketing market.”
The significant growth in the total number of ticketing smart cards worldwide is underpinned by an identifiable migration from memory to microcontroller smart cards, due to the advantage of increased processing speed and higher levels of security. Total memory shipments are set to fall from 175 million in 2018 to 144 million in 2024 as part of the noticeable trend toward the microcontroller as ticketing solutions providers look to take advantage of the functionality benefits of the smarter chips. This is shown by strong predicted growth in the microcontroller market, with shipments rising from 240 million units in 2018 to 385 million in 2024.
Innovation in the market will be primarily driven by a handful of ticketing solutions providers, such as Gemalto, Paragon ID, IDEMIA and G+D, as countries step up their contactless ticketing systems. For example, transportation integrator Cubic Corporation is looking to pursue a pivotal project in Australia utilizing an open-loop system similar to the system in London. At the same time, the U.S. Department of Transportation is planning to implement new ticketing systems, including account-based ticketing, to provide commuters with a range of device options to use as their contactless ticket.
"The vendors that are already well-positioned and established within the contactless ticketing market, such as Gemalto, Paragon ID, IDEMIA, and G+D, are poised to take advantage of innovation in ticketing solutions, including mobile ticketing and account-based ticketing to drive higher revenues and decrease costs. The use of mobile ticketing can help vendors seize opportunities in areas of high smartphone penetration to improve convenience for travelers,” concluded Gazeley.
About ABI Research
ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research’s global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.
Suggested Items
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).
Technica USA Presents Inaugural Supplier Alliance Award at IPC APEX EXPO 2024
04/24/2024 | Technica USADuring IPC APEX EXPO 2024, Technica USA took the opportunity to thank all of their supply partners that made the effort to join them for the exhibition in their booth, as well to all of our SMT partners that had their own booths, with the latest in automation and process technology.
IDTechEx Report Unveils 3D Electronics Status and Opportunities
04/22/2024 | PRNewswire3D electronics is an emerging manufacturing approach that enables electronics to be integrated within or onto the surface of objects. 3D electronic manufacturing techniques empower new features, including mass customizability, greater integration, and improved sustainability in the electronics industry.
IDTechEx Examines the Opportunities for Wearables in Digital Health
04/19/2024 | IDTechExIDTechEx’s report, “Digital Health and Artificial Intelligence 2024-2034: Trends, Opportunities, and Outlook”, covers this ongoing trend in the consumer health wearables market and includes analysis of the opportunities and roadmap for biometric monitoring.
Real Time with... IPC APEX EXPO 2024: Pluritec's Expansion and Growth in the North American Market
04/19/2024 | Real Time with...IPC APEX EXPONicola Doria, president of Pluritec, discusses the company's strategic focus on the North American market, their investment in a new sales organization, service expansion, and a new process integration line. The conversation also covers market response and future installations, as well as Pluritec's new partnership with IEC.