The worldwide smart ticketing market size happened to be USD 7.27 billion in 2020 and is estimated to reach from USD 8.29 billion in 2021 to USD 21.33 billion by 2028, having a CAGR of 14.5% across the 2021-2028 period. Based upon the research, global market showcased quite a meaningful growth of 13.7% in 2020 vis-à-vis the average year-on-year growth throughout 2017-2019. The global market size has numerous smart ticketing systems such as IR sensors, Wi-Fi modules, ticketer compact, GPS, ticketer handheld, ticketer tap-off reader, etc.
The fact is that COVID-19 impact has been unprecedented as well as staggering, with smart ticketing seeing an adverse effect in terms of demand throughout all the regions across the pandemic. Electronic ticketing goes on to play an important role when it comes to parking and transportation, sports, as well as entertainment sectors. It goes on to save time, offers the best fare price throughout every journey, decreases environmental impact, and also offers a traveling experience that’s superior in every sense. Smart tickets happen to be more secure than traditional paper tickets. These tickets are pretty challenging to replicate, and if at all the smart card gets stolen or lost, the ticket that is associated with it can get cancelled easily. Also, the usage of smart tickets goes on to save time, as a passenger does not need to stand in queues for longer periods to purchase tickets. Moreover, many governments throughout the globe happen to be encouraging cashless transactions that are expected to develop a pretty lucrative opportunity for the market.
The Pandemic Impact
It is worth noting that the spread of the COVID-19 pandemic is anticipated to be hampering the smart ticketing market growth, as it has led to the closure of hotels and restaurants, travel restrictions happen to be contributing to financial losses in global economies, and the cancellation of sports and entertainment events. The prominent loss is witnessed across the U.S. and European countries that are dependent on travel, tourism, hospitality, as well as entertainment. The pandemic has adversely impacted the transportation system across North America. Since 2020, there has been a pretty significant decline in activity pertaining to transportation across the U.S. and Canada because of travel restrictions so as to curb the spread of novel coronavirus. The stress of the government has shifted to the adoption of measures that are preventing safeguarding citizens. Apart from this, the European region happens to be severely affected due to the coronavirus, because of which they have gone on to impose strict lockdowns in order to ensure the safety of their citizens. As per the official U.K. data, train travel decreased by 90%, and bus travel saw a decline of 87% as compared to the normal level in 2020. But with lockdown restrictions and relaxations in the second phase of 2020, public places, public transport, restaurants, sports events, as well as stadium impositions were opened, which is expected to go ahead and also fuel the growth of this market.
Trends making noise
Notably, the smart ticketing systems happen to be majorly used in the public transportation network, stadiums, concerts, as well as similar events. The incorporation in terms of advanced technologies like near field communication- NFC, plays a key role when it comes to enhancing the performance of ticketing systems. NFC technology helps two electronic devices, such as an NFC card and a card reader, communicate with each other by way of having a range of around 4cm. Moreover, the use of NFC technology aids to make payments with a wave or even place a contactless smart card near smart card readers in order to purchase tickets quickly. Besides, NFC-enabled smartphones are prominently used to go ahead and perform some safe contactless transactions, have access to digital content, and store tickets in order to have an access to transportation gates as well as parking garages. Apart from this, the demand for mobile ticketing within the public transportation networks has significantly increased so as to save time and offer the best value fare across each journey. These facilities that are offered by NFC technology help to raise the popularity of mobile ticketing systems among customers.
Driving elements
Digital transformation within transportation networks is fueled by rising digitization and enhanced connectivity. The transformation happens to be taking place within urban areas throughout the globe so as to provide superior services, enhance operational efficiencies, and also elevate customer satisfaction. In the sports and entertainment industries, public transportation networks happen to be significantly adopting electronic ticketing systems in order to attract customers, owing to their rapid, secure, as well as user-friendly traits. The ticketing system goes on to offer a cost-effective as well as efficient way for passengers so as to manage their journey on public transport. It goes on to offer many facilities to passengers, like being durable as well as being available in small sizes. Also, it enables a user to load credit amounts well in advance into their tickets for their journey. Moreover, if the smart ticket is lost or stolen, the user can go ahead and recover as well as also transfer the loaded amount to another smart card. These traits happen to make it a secure and convenient ticketing application for travelers. Hence, the prominent emphasis when it comes to public transportation networks as well as sports sectors on the adoption of mobile ticketing systems is most likely to drive the progress of this market at a pace that’s rapid across the forecast period.
Restraining aspects
Electronic ticketing systems happen to be majorly used across public transportation networks as well as sports events. The roll-out of this system’s network needs mixed efforts from various entities that include infrastructure providers, component manufacturers, the public sector, service providers, along with user groups. The involvement of such multiple entities in the successful execution of ticketing systems goes on to require a sophisticated infrastructure. This system requires complicated hardware installation along with battery-powered RFID tags that have to get distributed to passengers, and thus, it makes this system financially infeasible for most of the public transport operators. The requirement when it comes to large amount of initial investment in mobile ticketing system is anticipated to hinder the market growth.
By components
On a component basis, the market has been bifurcated into hardware as well as software. Among these, hardware went on to capture the maximum market share due to a growing demand for e-ticketing within the parking, transportation, sports, and entertainment spaces. The hardware that is used in the e-ticketing system goes on to include IR sensors, a Wi-Fi module, GPS, a ticketer tap-off reader, a ticketer handheld, a ticketer compact, and a ticketer in a case, among others.
By tech analysis
On the foundation of technology, the market has been segmented across near field communication, quick response codes, radio frequency identification, as well as others like cellular networks, etc. Among these, radio frequency identification goes on to hold the largest market share since e-ticketing can be seamlessly accessed by way of smartphones, iPads, tablets, smart cards, etc.
By Application Analysis
Based on the vertical, the market has been segmented into sports and entertainment as well as the parking and transportation sectors. Among them, parking and also transportation hold the largest market share because of the growing adoption when it comes to electronic ticketing on public transportation like buses and trains. In the digital era that we live in, the transportation sector within the big cities is going through massive transformation. Buses as well as trains in smart cities throughout the globe happen to be adopting mobile ticketing systems before the traditional physical tokens or even the paper tickets, as they go on to offer a quick as well as a superior traveling experience to passengers, which is most likely to drive market growth across the forecast period.
Regional insights
If we take into account the geographical perspective, the market happens to be fragmented into five major regions, like North America, Asia Pacific, Europe, the Middle East, and Africa, as well as South America, and these regions are further categorized into countries.
Asia Pacific is most likely to be the most rapidly growing market in the years to come. The growing adoption when it comes to internet of things- IoT devices as well as smartphones and rapid urbanization are anticipated to be the major factors that happen to be fuelling the Asia Pacific smart ticketing market surge. Furthermore, the key vendors within the market happen to be focusing on making sure to expand their businesses within developing countries like India, China, as well as Indonesia, which in all likelihood is expected to surge market growth.
