Skip to main content

Growth Anticipated for Mobile Ticketing Applications

The smartphone in your pocket is capable of many things -- including making payments to purchase tickets for use on public transportation, and a host of other useful applications for this emerging m-commerce technology.

As consumer adoption of smartphones increases, usage of mobile devices to purchase goods and services has soared. The mobile phone user base, once cautious of using the technology, increasingly expects to be able to easily complete these transactions.

Just over 950 million mobile phone users worldwide are expected to use their handsets for mobile ticketing by 2018 -- that's up from 458 million this year, according to the latest market study by Juniper Research.

Growth is expected to be driven primarily within key transport verticals, although significant uptake is anticipated across other key sectors -- such as live entertainment events and cinema ticketing.


Air, Metro Ticketing will Fuel New Growth

Juniper analysts noted that the airline industry was a particularly strong proponent of mobile ticketing, with adoption of mobile boarding passes rising sharply since the worldwide implementation of BCBPs (Barcoded Boarding Passes) in 2010.

Furthermore, they observed that while mobile has already been a key ticketing delivery channel across Scandinavian metros, deployments were increasing both elsewhere in Europe and in the U.S. market.

These applications are achieving strong levels of adoption. As an example, at Boston’s Massachusetts Bay Transportation Authority (MBTA) -- which introduced mobile ticketing in late-2012 -- mobile accounted for 10 percent of ticket sales within seven weeks of launch.

NFC Deployments are Still Limited

However, Juniper also noted that in the short term, the outlook for Near Field Communications (NFC) ticketing was less optimistic, with a lack of implementation standards a key barrier to interoperability.

Furthermore, transaction speed targets have yet to be achieved, providing a further obstacle to widespread deployments and increasing the probability that contact-less cards, rather than NFC handsets, will be the primary delivery mechanism.

"We had already scaled back our forecasts for NFC Ticketing deployments in the wake of Apple’s decision not to include an NFC chipset in the iPhone 5," said Dr Windsor Holden, research director at Juniper Research.

Given the outstanding technical issues and the continuing failure of NFC stakeholders to communicate the value proposition to transport operators, further downward revisions were required.

Juniper Research says that they do not envisage anything other than ad-hoc deployments in the immediate future.

Popular posts from this blog

The $150B Race for AI Dominance

Two years after ChatGPT captured the world's imagination, there's a dichotomy in the enterprise artificial intelligence (AI) market. On one side, technology vendors are making unprecedented investments in AI infrastructure and new feature capabilities. On the other, there's measured adoption from customers who carefully weigh the AI costs and proven use case benefits. Artificial Intelligence Market Development The scale of new investment is significant. Cloud vendors alone were expected to invest over $150 billion in capital expenditures in 2024, with AI infrastructure being the primary driver. This massive bet on AI's future is reflected in the rapid growth of AI server revenue. Looking at just two major players - Dell Technologies and HPE - their combined AI server revenue surged from $1.2 billion in Q4 2023 to $4.4 billion in Q3 2024, highlighting the dramatic expansion. Yet despite these investments, the revenue returns remain relatively modest. The latest TBR resea...