Public Transportation Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 250.47 Billion |
| Market Size (2029) | USD 386.25 Billion |
| CAGR (2024 - 2029) | 9.05 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Public Transportation Market Analysis
The Public Transportation Market size is estimated at USD 250.47 billion in 2024, and is expected to reach USD 386.25 billion by 2029, at a CAGR of 9.05% during the forecast period (2024-2029).
- Driven by evolving demands, technological advancements, and a renewed focus on sustainability, the public transportation sector is undergoing significant transformations. A growing emphasis on last-mile connectivity is evident, with micro-mobility options like bikes and scooters gaining traction. This trend seeks to ensure seamless transitions between various transport modes, enhancing the accessibility and convenience of public transit.
- Transit agencies are adapting to changing mobility patterns by exploring alternative service models. These include on-demand services and expanded microtransit options, offering more personalized and flexible travel solutions.
- Recognizing the rising demands, governments are making significant investments in public transportation infrastructure. Notably, projects centered on Bus Rapid Transit (BRT) systems are making waves. These systems utilize existing road networks, boosting transit efficiency without the burden of extensive new infrastructure.
- Today's passengers have heightened expectations for their travel experiences. They desire shorter wait times, smooth transfers between transport modes, and intuitive service offerings. In response, cities are establishing mobility hubs to streamline these multi-modal transport options.
- The COVID-19 pandemic underscored the importance of health and safety in public transport. In response, operators are prioritizing cleanliness and crowd control, key factors in bolstering passenger confidence. As the world emerges from the pandemic, ridership levels are witnessing a resurgence. For instance, in North America, passenger volumes have rebounded to 79% of pre-pandemic levels by the close of 2023, according to industry experts. Furthermore, cities like Stockholm have effectively leveraged marketing campaigns to promote leisure travel, leading to a notable uptick in ridership.
Public Transportation Market Trends
Rise of Urbanization, and Population would Drive the Market
- Population growth, urbanization, and the rise of megacities are primary drivers of the market. As urban populations swell, cities grapple with transportation challenges, amplifying the demand for smart transportation solutions. For instance, the Population Reference Bureau reported that in 2023, global urbanization stood at 57%. North America led with over 80% of its populace in urban settings.
- Asia houses over half of the world's urban dwellers, with nations like India and China each boasting cities nearing a billion residents. Other regions with notable urban populations include North America, Europe, and Africa. As urbanization escalates, so do the complexities of urban transportation. Addressing these challenges is paramount for transport markets globally. The United Nations projects that by 2050, urban dwellers will constitute 68% of the global population.
- Bike-sharing programs have surged in popularity recently. These programs enable individuals, equipped with a credit card, smartphone, and helmet, to borrow bikes from docking stations and return them at any other station within the service area. Such systems democratize access to bicycles, ensuring mobility for those without personal bikes.
- In Canada, Vancouver has adopted a scenario-based approach to route planning and network expansion, emphasizing sustainable transportation. By analyzing growth patterns, land use, and transportation demand, the city has made substantial investments. These include expanding public transit like the SkyTrain rapid transit system and bus networks, enhancing cycling infrastructure, and creating pedestrian-friendly streets.
- China's 14th Five-Year Plan (2021-2025) lays out an ambitious transportation vision. By 2025, the plan envisions strides in intelligent and green transportation, alongside boosts in service quality and industry efficiency. Targeting roads, trains, ports, and waterways, the plan emphasizes technological and human resource enhancements, aligning with urbanization and market demand growth.
North America is Expected to Hold a Major Share of the Market
- In North America, public transportation demand is on the rise, influenced by economic shifts, environmental concerns, and evolving consumer preferences.
- Once a concept of science fiction, autonomous robotaxis are now operational in the U.S., with around 250 such vehicles already transporting passengers. Cities like Phoenix, San Francisco, and Los Angeles have embraced this technology, and testing is currently underway in Atlanta. These robotaxis have collectively covered millions of miles, all without the oversight of a safety driver.
- Government funding is playing a pivotal role in enhancing public transportation access and backing initiatives to curb congestion and carbon emissions. A significant portion of these investments is channeled into crafting smart cities, complete with state-of-the-art public transport infrastructures.
- New York City is on the brink of becoming the first North American city to implement a congestion charge. Under the proposed plan, vehicles entering downtown and midtown Manhattan would incur a fee of approximately USD 15. The Metropolitan Transportation Authority (MTA) estimates this initiative could generate around USD 1 billion annually, funds earmarked for infrastructure enhancements and potential subway system expansions.
- There is a strong push towards zero-emission public transport options. Data from the International Association of Public Transport highlights a 66% surge in zero-emission buses (ZEBs) in the U.S. since 2021, underscoring a national commitment to eco-friendly transportation and a reduced carbon footprint.
- Embracing cutting-edge technologies is not only boosting the efficiency of public transport but also positioning it to meet future market demands.
Public Transportation Industry Overview
The Public Transportation Market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Metropolitan Transportation Authority (MTA), Régie Autonome des Transports Parisiens (RATP), Transport for London (TfL), and others.
The public transportation market is poised for substantial growth driven by urbanization, sustainability efforts, and technological advancements. While challenges such as workforce shortages and competition from alternative transport modes persist, increasing government investment and innovative service models present significant opportunities for enhancing public transit systems. As cities continue to prioritize efficient mobility solutions, the future of public transportation looks promising, with an emphasis on accessibility, sustainability, and user experience.
Public Transportation Market Leaders
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Metropolitan Transportation Authority (MTA)
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Régie Autonome des Transports Parisiens (RATP)
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Transport for London (TfL)
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Deutsche Bahn AG
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Berliner Verkehrsbetriebe (BVG)
*Disclaimer: Major Players sorted in no particular order
Public Transportation Market News
- November 2024: KSRTC planned to launch Ashwamedha AC buses within 100-km radius of Bengaluru. In contrast to regular Ashwamedha buses, the AC version will be smaller, fully air-conditioned, and equipped with comfortable seating, and amenities like charging ports.
- September 2024: JBM ECOLIFE Mobility, a subsidiary of JBM Auto Limited, has secured USD 100 million in funding from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). The funds will be used to supply and operate approximately 650 electric buses across several Indian states under the gross cost contract model.
Public Transportation Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Urbanization and Population Growth
5.1.2 Growing Awareness of Environmental Issues
5.2 Market Restraints
5.2.1 High Initial Investment Costs
6. MARKET SEGMENTATION
6.1 By Distribution Channel
6.1.1 Online
6.1.2 Offline
6.2 By Type
6.2.1 Road
6.2.2 Rail
6.2.3 Other Types
6.3 By Geography***
6.3.1 North America
6.3.2 Europe
6.3.3 Asia
6.3.4 Australia and New Zealand
6.3.5 Latin America
6.3.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Metropolitan Transportation Authority (MTA)
7.1.2 Régie Autonome des Transports Parisiens (RATP)
7.1.3 Transport for London (TfL)
7.1.4 Deutsche Bahn AG
7.1.5 Berliner Verkehrsbetriebe (BVG)
7.1.6 Mass Transit Railway Corporation (MTR)
7.1.7 East Japan Railway Company
7.1.8 TOBU RAILWAY Co., Ltd.
7.1.9 BC Transit Corporation
7.1.10 Transdev S.A.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Public Transportation Industry Segmentation
Public transportation includes any form of transport, such as buses, trains, bicycles, subways, and motorcycles, which are available to the general public to help them move from one point to another. Public transportation's main characteristics include efficiency, openness, and accessibility.
The public transportation market is segmented by distribution channel (online, offline), by type (road, rail, other types), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Distribution Channel | |
| Online | |
| Offline |
| By Type | |
| Road | |
| Rail | |
| Other Types |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Public Transportation Market Research FAQs
How big is the Public Transportation Market?
The Public Transportation Market size is expected to reach USD 250.47 billion in 2024 and grow at a CAGR of 9.05% to reach USD 386.25 billion by 2029.
What is the current Public Transportation Market size?
In 2024, the Public Transportation Market size is expected to reach USD 250.47 billion.
Who are the key players in Public Transportation Market?
Metropolitan Transportation Authority (MTA), Régie Autonome des Transports Parisiens (RATP), Transport for London (TfL), Deutsche Bahn AG and Berliner Verkehrsbetriebe (BVG) are the major companies operating in the Public Transportation Market.
Which is the fastest growing region in Public Transportation Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Public Transportation Market?
In 2024, the North America accounts for the largest market share in Public Transportation Market.
What years does this Public Transportation Market cover, and what was the market size in 2023?
In 2023, the Public Transportation Market size was estimated at USD 227.80 billion. The report covers the Public Transportation Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Public Transportation Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Public Transportation Industry Report
Statistics for the 2024 Public Transportation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Public Transportation analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
