Smart Ticketing Market Report

Global Smart Ticketing Market, By Product Type (Ticket Machine, E-ticket, E-kiosk, Request Tracker and Others); By System (Smart Card, Open Payment, Near Fields Communications, and others); By Application (Sports & Entertainments, Transport, and Others); By Components (Hardware, Software, and Service); By Region (North America, Europe, the Asia-Pacific, the Middle-East & Africa, and Latin America)Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: May 2021
  • Report ID: BWC20361
  • Available Format: PDF
  • Page: 151

Report Overview

The Global Smart Ticketing Market - Industry Trends & Forecast Report 2027

The global smart ticketing market was worth USD 6.57 billion in the year 2020. The study reveals that the market is projected to grow at the CAGR of 12.4% during 2021-2027 (forecast period), earning revenue of around USD 15.0 billion by the end of 2027. An increase in the demand for transparent solutions through which transport, entertainment, healthcare, BFSI sector (banking, financial services & insurance) and sports industry are digitalizing their past billing system has impacted the growth of the smart ticketing market. Furthermore, technological advances such as QR codes, open systems, radio frequency recognition, and others offered by key market players have provided consumers with a variety of payment options. The popularity of smart ticketing has also grown as a result of these cost-effective technological solutions, as well as the blockchain system, rapid transit, and demand for contactless bank cards.



Source: BlueWeave Consulting

 

Global Smart Ticketing Market Overview

Smart ticketing is a billing/ticketing method in which the transaction data is processed digitally on a microchip rather than being printed on paper. The smart ticketing market is gaining prominence across industries, especially in transportation, sports, entertainment, BFSI, and healthcare. The growing demand for transparency solutions that enable players in the transportation, sports, and entertainment industries to digitize their current billing systems is propelling the growth of the global smart ticketing market. Consumers have also been drawn to the smart ticketing market due to the convenience offered by smart ticketing, which includes cashless transactions, mobile app services, contactless cards, and blockchain-based security. However, the smart ticketing industry faces a number of challenges around the world, including high setup costs and the need for a centralized system framework.

 

Global Smart Ticketing Market Trends

Growth Drivers

Blockchain Utilization Boosting Market Growth

Some of the problems witnessed in the smart ticketing market are fraudulent bookings, incomplete sales of tickets, purchases from the secondary market, and a lack of a standard refund system. Since there are no ticket resale protocols, tickets are often brought in bulk via bot networks and sold at higher rates on other platforms.  Since organizers do not know the identity of users at stadiums, concerts, and other similar activities, security becomes a major concern. The recent incorporation of blockchain services uniformly in the smart ticketing market has created transparency in the ticket booking process. Now, organizers can set criteria for refunds, resales, exchange, and pricing through smart ticketing. This breakthrough in data privacy has enhanced confidence and drawn customers all over the world to the smart ticketing industry.

Rising Demand for Contactless Tickets Fuelling Growth for the Market

Advancements in technology like contactless payments and wearable ticket technology have enabled the development of the smart ticketing market. Consumers are increasingly drawn to the use of smart tickets in the form of rings, bracelets, keychains, contactless rings, and other no-contact accessories. For instance, in 2019, FIFA Women’s World Cup tournament used the funky ToviSorga bracelets as tickets for admission. Many key market players like Thales are investing in this development to increase customer reach and expand the market.

Restraints

High Initial Set-Up Cost Restricting the Growth of the Smart Ticketing Market

The transportation sector is the major end-user of the smart ticketing market. Within the transportation sector, the public transportation network is maintained and supported by entities such as infrastructure providers, component manufacturers, and service providers for the proper working of the smart ticketing system, which usually requires huge investments. The system utilizes a very complicated framework of networks and components to function efficiently. Thus, it requires a lot of capital to set up and maintain its various establishments. These huge investments limit the expansion of the market. As a result, the high costs of the initial setup of these various components are creating a stumbling block in the demand for the smart ticketing industry.

 

Impact of COVID-19 on Smart Ticketing Market

The outbreak of the COVID-19 has severely affected the growth of the smart ticketing market. The biggest end-user of smart ticketing services, i.e., transportation, has suffered major losses during this period. For instance, since March 2020, there has been a large decrease in transportation activities worldwide due to the travel restrictions imposed by the government to curb the spread of the deadly coronavirus. Among all nations, Europe has witnessed tremendous revenue loss in transportation due to social distancing, travel ban, and limited transportation services. These losses have also affected the smart ticketing industry, which has seen a decrease in usage during the pandemic era. Apart from transportation services, its utilization also declined in toll & fare collection, entertainment billing, stadium events ticket booking, and others. This decline can be attributed to public health restrictions that have prohibited people from using these services.

Smart Ticketing Market: By Application

Based on product, the smart ticketing market type has been categorized into sports & entertainment, transport and others. The transportation segment dominates the market with the largest share. Because of changes in living standards and the busy lifestyles of the general public, smart ticketing systems are now being used to book tickets for travel and even parking, in advance. These services allow consumers to book or buy tickets on credit (credit shell) before they travel, aiding in increasing their travel efficiency and reducing boarding time and queues. In the parking industry, smart ticket systems are used to convert details from vehicle license plates into parking tickets. With an increase in the number of parking spaces around airports, shopping malls, and hospitals, this segment is rapidly growing year over year.

 

Smart Ticketing Market: By Component

Based on components, the smart ticketing market has been categorized into hardware, software, and service. The software segment is again categorized into radio frequency identification (RFID), near field communication system, and others. The software segment of the smart ticketing market holds the largest share. This growth can be attributed to the widespread use of near-field communication (NFC) systems in the ticketing market. This segment is increasingly growing in popularity because it is simple to incorporate into mobile devices such as smartphones, tablet PCs, and portable computing devices such as laptops and computers to ensure the seamless operation of smart tickets. The growing use of smart devices and their use in smart ticketing globally has accelerated the growth of the software segment of the smart ticketing market.

 

Smart Ticketing Market Regional Insights

The smart ticketing market is categorized into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. Out of these regions, Europe has the largest market share in the global smart ticketing market. Countries like Germany and France have the largest tourism industry and transit networks. This has promoted the use of smart tickets through contactless mobile ticketing. The adoption of technological innovations in European countries, and the increasing acceptance of  NFC, wristbands, and stickers with QR codes in many stadium events have been fueling the growth of Europe's smart ticketing industry.

However, Asia-Pacific is expected to grow at the fastest rate during the forecast period. The need for a sophisticated automated fare collection system in emerging economies such as India, Indonesia, Malaysia, and Thailand has increased the demand for smart ticketing services in the Asia Pacific. With technologies such as smart cards and NFC-enabled devices, there is a focus on widely incorporating these services in transportation systems. Additionally, countries such as Japan and China are investing to make more advances to make their transit systems more technologically advanced. In addition, the increased usage of smartphones has caused a spike in the use of mobile-based smart ticketing services in APAC countries.

Source: BlueWeave Consulting

 

Smart Ticketing Market Competitive Landscape

The smart ticketing market is moderately fragmented and is exhibiting the entry of new players with favorable government initiatives in favor of the market. The key players dominating the market are HID Global Corporation, Thales Digital Identity, and Security, NXP Semiconductors N.V., Giesecke & Devrient GmbH, Infineon Technologies AG, CPI Card Group Inc, Inside Secure, Xerox Corporation, Cubic Corporation, Atsuk, Cammax Limited, Conduent Inc., and other prominent players. The market players are investing in offering integrated payment solutions to increase customer reach. To maintain a competitive edge in the market, the key players have started employing analytics to track passenger travel patterns. With this knowledge, the players can offer customized services to their consumers.

 

Recent Developments

·         In April 2021, Calypso Networks Association and NFC Forum signed a Memorandum of Understanding to educate the market about the benefits of using NFC technology to provide secure, innovative smart ticketing services to customers.

·         In March 2021, the Government of Queensland celebrated the success of its smart ticketing trial, which enabled the commuters of the Gold Coast to pay for transportation using bank cards and smartwatches. The government spent USD 371 million on the initiative.

Scope

 

Attribute

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

The U.S., Canada, Germany, the U.K., France, Italy, Spain, Belgium, Netherlands, Russia, Brazil, Mexico, Argentina, Colombia, Japan, South Korea, China, India, Australia, New Zealand, UAE, South Africa, Saudi Arabia, Turkey, Kuwait, Qatar, Nigeria, Kenya, Iran

Product/Service Segmentation

By Product Type, By System, By Application, By Component, and By Region

Key Players

Key players in the market are HID Global Corporation, Thales Digital Identity and Security, NXP Semiconductors N.V., Giesecke & Devrient GmbH, Infineon Technologies AG, CPI Card Group Inc, Inside Secure, Xerox Corporation, Cubic Corporation, Atsuke, Cammax Limited, Conduent Inc., and other prominent players.

 

By Product

·         Ticket Machine

·         E-ticket

·         E-kiosk

·         Request tracker

·         Others

By System

·         Open payment system

·         Smart Card

·         Near- Fields Communications

 

By Application:

  • Sports and Entertainment
  • Transportation
  • Others

By Components:

  • Hardware
  • Software
  • Service

By Region

  • North America
  • Europe
  • The Asia-Pacific
  • Latin America
  • The Middle-East & Africa

FAQs:

  1. What is the current size of the global Smart Ticketing market?

Answer: The smart ticketing market reached USD 6.57 billion in 2020 across the globe.

  1. What are the major factors driving the growth of the Smart Ticketing market?

Answer: Some of the key market drivers include increasing demand and utilization of smart ticketing services in the sports, transport, and healthcare industry. The ease of cashless transactions, smart cards, and secure processing is also contributing to the growth of the smart ticketing industry

3.    Who are the key players in the global smart ticketing market?

Answer: The key players in the global market are HID Global Corporation, Thales Digital Identity and Security, NXP Semiconductors N.V., Giesecke & Devrient GmbH, Infineon Technologies AG, CPI Card Group Inc, Inside Secure, Xerox Corporation, Cubic Corporation, Atsuke, Cammax Limited, Conduent Inc., and other prominent players.

4.    Which segment accounted for the largest share in the global smart ticketing market?

Answer: The transportation segment accounted for the largest share in the global smart ticketing market.

5.    Which region is growing at a higher rate in the global smart ticketing market?

Answer: The Asia-Pacific region is growing at a higher rate in the global smart ticketing market.