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The global public transportation market size is estimated to grow by USD 90.07 billion between 2022 and 2027 accelerating at a CAGR of 5.84%.
The growth of the market depends on several factors, including an increase in government funding for transportation, increasing domestic trips for public transportation, and increasing emphasis on vehicular emission reduction.
This report extensively covers market segmentation by distribution channel (offline and online), type (bus, metro, suburban rail, and light rail transit), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market share growth by the offline segment will be significant during the forecast period. Offline is a well-established channel that operators and customers have long utilized. Offline public transportation channels refer to traditional purchasing methods, such as through physical ticket vending machines or at a ticket counter. These channels are often found at transportation hubs or stations and provide an alternative for those who may not have access to online or mobile ticketing options.
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The offline segment was valued at USD 161.90 billion in 2017 and continued to grow until 2021. Offline channels for public transportation include ticket vending machines and ticket counters. The ticket vending machines allow passengers to purchase tickets using cash or credit/debit cards. They can be found at transportation hubs or stations and provide a convenient way for passengers to purchase tickets. Ticket counters are staffed by agents who can assist passengers with purchasing tickets, answering questions, and providing information. They can be found at transportation hubs or stations and provide an alternative for those who may need additional assistance. Many players and customers, particularly in developing countries, rely on these offline distribution routes of public transportation tickets. Moreover, the absence of platforms for online ticket distribution and customers' unwillingness to adopt online solutions owing to personal and financial privacy concerns are propelling the rise of the physical channel segment and the global during the forecast period.
APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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APAC is anticipated to dominate the market over the forecast period. The growing urban population, as well as the desire in cities for efficient public transportation, has added fuel to the industry. The primary reason for this is to prevent traffic and control the emissions from private vehicles. Additionally, the rapid investments in the expansion of public transport, increasing urbanization, and growing disposable income are fueling the market growth in this region. The increasing adoption of smartphones, growing internet connectivity, and rapid growth in the number of tourists are also driving the growth of the market in the region.
In addition, due to growing concern about reducing air pollution by vehicular emissions, countries such as Japan, China, South Korea, India, and others have been adopting electric buses for public transport. For instance, In June 2021, the Maharashtra State Road Transport Corporation (MSRTC) board cleared the proposal for 100 new electric buses in Maharashtra, India. Additionally, growing investments for light rail transit, metro, and suburban rail in this region also drive the regional market. For example, in September 2020, East Japan Railway announced investing USD 6.8 billion in infrastructure. This investment is to implement safety measures, including countermeasures to deal with large earthquakes, installing obstacle detection equipment at level crossings, and expanding the installation of operating safety devices. Thus, these factors maintain the dominance of the APAC region in the market.
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APAC's public transport industry was adversely impacted in 2020 due to COVID-19. However, the declining pandemic cases, increasing vaccination rates, and ease of government lockdown resumed the public transport services in the region. Hence, the market is anticipated to grow during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Public Transportation Market.
Consat AB - The company offers services in IT, life science, vehicles, automation, product development, and systems for public transport and energy efficiency to network and system maintenance. The key offerings of the company include public transportation.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing emphasis on vehicular emission reduction is notably driving market growth. One of the most significant technological benefits of public transportation is the ability to outfit buses and other public vehicles with alternative fuel sources. Some systems are completely electric or run entirely on renewable energy. In cities with integrated public transportation, reduced gasoline consumption improves air quality. Daily commutes account for approximately 85% of transportation-related greenhouse gas emissions.
Improving fuel economy can be achieved by using more efficient engines, reducing vehicle weight, and implementing advanced technologies such as hybrid or electric powertrains. These measures can reduce the number of emissions produced by vehicles and decrease the number of fossil fuels consumed, which in turn helps to decrease air pollution. Thus, an increase in fuel economy and reduced vehicular emissions are expected to fuel the growth of the global market during the forecast period.
The initiation of self-driving vehicle programs is an emerging trend in the market. The initiation of a self-driving vehicle program can potentially increase public transportation use by making it more convenient and accessible. Self-driving vehicles, also known as autonomous vehicles (AVs), have the potential to improve the efficiency of transportation by reducing the need for human drivers. This can lead to more frequent and reliable public transportation services, which can make it more convenient for people to use. Self-driving vehicles can also help increase the capacity of public transportation systems by allowing more efficient use of resources.
AVs also have the potential to improve accessibility by providing transportation services to people who are unable to drive, such as the elderly, disabled, and young children. This could open new opportunities for public transportation, particularly in areas where traditional services are limited. The development of a self-driving vehicle program would require collaboration between different stakeholders, such as the government, the private sector, and research institutions. Therefore, the initiation of the self-driving program is expected to drive the global market during the forecast period.
The high infrastructure maintenance costs are major challenges impeding market growth. High infrastructure maintenance costs for public transportation can significantly challenge governments and transportation agencies. The cost of maintaining and upgrading public transportation systems such as buses, subways, and trains can be quite high due to the need for regular inspections, repairs, and replacements.
Additionally, many public transportation systems are aging and require significant upgrades to meet modern safety and accessibility standards, which can also add to the cost. The high costs of infrastructure maintenance can make it difficult for transportation agencies to expand public transportation services or improve existing systems, which can limit the ability of people to access affordable and reliable transportation. Thus, high infrastructure and maintenance cost is expected to hinder the growth of the global market during the forecast period.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Public Transportation Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Public Transportation Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.84% |
Market growth 2023-2027 |
USD 90.07 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.6 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bay Area Rapid Transit, Chicago Transit Authority, Consat AB, Cubic Corp., Deutsche Bahn AG, FirstGroup plc, Flix SE, London and Partners Ltd., Massachusetts Bay Transportation Authority, Metro de Madrid SA, Metropolitan Transportation Authority, MTR Corp. Ltd., San Diego Metropolitan Transit System, Seoul Tourism Organization, Sin U Lian Group, Southern California Regional Rail Authority, SRS Travels, Transdev Group SA, VRL Logistics Ltd., and Washington Metropolitan Area Transit Authority |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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