Report: More than 1 billion smart cards issued in public transportation by 2021

The main driver for the introduction of smart ticketing is the need to improve the efficiency of existing systems, which are costly and resource consuming. However, the current market is highly fragmented, characterized by proprietary systems that reduce the scope for future integration. Moreover, the specific characteristics of the public transportation service (e.g. constant funding need, costly investment, strong regulation, privacy and security concerns) only make it harder to bring disruption to the ticketing market.

To build a better understanding of this market, Smart Insights examines six use cases: Tokyo, London, Paris, New York, Moscow and Beijing. Tickets and cards (magstripe and smart card-based) shipments are forecasted for each of these markets, as well as the adoption of mobile and open loop ticketing solutions. A worldwide analysis is also developed for the period 2016-2021. The implementation of account-based processing will be one of the main drivers for the increasing adoption of more flexible solutions.

Thierry Spanjaard, CEO of Smart Insights declares: “The strong growth of innovative ticketing solutions, such as Near-Field-Communication (NFC)-based ticketing, continues to demonstrate the key role of the secure transactions industry. Although magnetic stripe tickets keep being used in several transportation systems in the next years, we believe these ticketing solutions will disappear in the mid-term.”

Silvana Pintão, industry analyst for Smart Insights and author of the report adds: “Despite the complexity of public transportation systems, transportation authorities and operators are showing increasing commitment for modernization and the path towards smarter cities.”

This Smart Insights Report, titled “Smart ticketing on the path to dematerialization,” has been produced combining Smart Insights long-standing experience and unique positioning in the secure transactions industry with interviews with key players in the transportation industry. It is an essential tool to all key stakeholders in secure transactions industry and transportation industry such as ticketing system providers, fare media vendors, hardware and software providers, standards organizations, technology developers and systems integrators, etc.  

The Smart Insights Report “Smart ticketing on the path to dematerialization” is available at http://www.smartinsights.net/Smart-Insights-Reports

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