Smart Ticketing Market Size, Share & COVID-19 Impact 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, 2021-2028

The global smart ticketing market size was USD 7.27 billion in 2020 and is projected to reach from USD 8.29 billion in 2021 to USD 21.33 billion by 2028, at a CAGR of 14.5% during the 2021-2028 period. Based on our research, the global market exhibited a healthy growth of 13.7% in 2020 compared to the average year-on-year growth during 2017-2019. The global market size includes several smart ticketing systems, such as IR sensors, GPS, Wi-Fi module, ticketer handheld, ticketer tap off reader, ticketer compact, and others. The impact of COVID-19 has been unprecedented and staggering, with smart ticketing witnessing a negative impact on demand across all regions amid the pandemic. 

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 traveling 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 canceled easily. Also, the use of smart tickets saves time as a passenger does not require 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.

COVID-19 Impact

Slowdown in Usage of Smart Ticketing for Parking and Transportation Application during Lockdown

The spread of the COVID-19 pandemic is expected to hamper the smart ticketing market growth, as it led to closure of hotels and restaurants, cancellation of sports and entertainment events and travel restrictions are contributing to financial loss in global economies. 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. Since March 2020, there has been a major decline in transportation activity in the U.S. and Canada due to traveling restrictions to curb the spread of novel coronavirus. The focus of the government has shifted toward the adoption of preventive measures for safeguarding citizens. In addition, the European region is also severely affected by the coronavirus, due to which they have imposed strict lockdown to ensure the safety of their citizens. According to official U.K. data, train travel was reduced by 90% and bus use was reduced by 87% compared to normal level in 2020. However, with relaxation in lockdown restrictions in the second phase of 2020, the public places, restaurants, public transports, sports events and stadium imposition were opened, which is expected to fuel the growth of this market.

LATEST TRENDS

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Growing Adoption of Advanced Technologies in Smart Ticketing Solution to Fuel the 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, 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 adoption of NFC technology in mobile ticketing systems is anticipated to boost the growth of the global market during the forecast period.

DRIVING 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, secured, 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 being durable and available in small size. Also, it allows a user to load credit amounts in advance in their tickets for their journey. Furthermore, if the smart ticket is lost or stolen, a user can recover and transfer the loaded amount to another smart card. These features make it a secure and convenient ticketing application for travelers.

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.

SEGMENTATION

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 maximum market share owing to a growing demand for e-ticketing in parking and transportation and sports and entertainment sectors. The hardware used in the e-ticketing system includes IR sensors, GPS, Wi-Fi module, ticketer tap off reader, ticketer compact, ticketer handheld, ticketer in a case and others. These hardware products are significantly used at sports and entertainment events, public transports, parking, toll booth, 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.

By Technology Analysis

Rise in Adoption of Near Field Communication Technology in Smart Ticketing System to Bolster Growth Potentials

On the basis of 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. Additionally, RFID is a non-contact and wireless technology that enables users to make payments without entering the password up to 100 m range. This technology uses electromagnetic fields to identify and track tags. This technology is widely used among customers for making seamless payments at e-toll public transportation across the globe.

In addition, near field communication held the second largest market share in 2020, and it 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

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Smart Cards to Witness High Growth in Market

Based on offering, the market has been classified into smart cards, ticket validators, ticketing machine/smart ticketing kiosk, e-toll, and others (wearables, and others). Among these, smart cards hold the largest market share. 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 has a memory chip or microprocessor embedded in them to serve many different applications when attached with a smart card reader. In this way, smart cards can be used in many applications, which play a vital role in propelling market growth.

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 holds the largest market share due to the growing adoption of electronic ticketing in public transportations, 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 traveling experience to passengers, which is likely to drive the growth of the market over the forecast period.

Sports and entertainment sector is anticipated to have prominent growth in the coming years. In 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 ticketing experience for users.

REGIONAL INSIGHTS

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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 have the highest market share and is expected to continue its dominance during the forecast period. 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 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 significantly using this platform to manage the quick sale of tickets and reduce on-site queues.

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Furthermore, the Middle East and 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 sector.

KEY INDUSTRY PLAYERS

Continuous Developments 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 traveling process more effectively. Also, vendors are engaged in collaboration and partnership with other market players to cope up with growing demands of customers effectively. Companies are also investing in research and development activities to develop cutting-edge technology systems.

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

May 2019 – Rambus Inc. collaborated with Infineon Technologies AG to mutually promote mobile ticketing solutions for mobile and smart cards. This collaboration plays a significant role in driving ticketing solutions across the globe.

List of the 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:

• January 2021 – EMR, a train operating company, became the first company in the U.K. to introduce smart ticketing kiosks on their railway network. These services are provided by Cammax Ltd and SilverRail to provide user-friendly and fast ticket booking services to customers.


• 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.

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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.

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