Public Transportation Market

Market Overview

The global public transportation market size was valued at USD 212.80 billion in 2021. It is projected to reach USD 350.47 billion by 2030, growing at a CAGR of 5.70% during the forecast period (2022–2030). The public transportation market for mass transportation is primarily driven by factors such as increasing population, urbanization, infrastructure spending, and environmental concerns regarding pollution management. The advent of urbanization would increase the number of commuters, increasing the demand for public transportation.

This has eventually succeeded in providing commuters with a service that is not only safe and comfortable but also convenient. The public transit industry includes businesses, institutions, corporations, and organizations that run regional and local passenger transportation networks with regular routes and schedules. Due to the significance of urban infrastructure in providing services to and assistance for most urban residents, the urban public transportation system comprises public buses, electric buses, subways, taxis, auto-rickshaws, ferries, and other forms of public transport vehicles. The mission of public transportation reflects its essential function in an intricate transportation network. Public transportation may give individuals both inexpensive and secure mobility, encouraging a healthy environment and thriving metropolitan areas.

Market Dynamics

Global Public Transportation Market Drivers

Increasing Demand for Public Transit in Megacities to Aid Growth

The robust expansion of economies worldwide is a crucial factor propelling the market. In recent decades, there has been a rapid increase in the movement of people into urban areas and the growth of urban and metropolitan areas. According to the data compiled by the United Nations, around 55 percent of the world's population lived in urban regions in the year 2018. It is anticipated that this percentage will increase to 60 percent by 2030. The market's growth may be ascribed to the expansion of global infrastructure and the progression of technology. Numerous governments are constructing bus rapid transit, metro, monorail, and light rail transit systems to meet the demand for public transportation in megacities. As a result, more people are using public transportation, causing the market to grow.

Global Public Transportation Market Restraints

Rising Preference for Passenger Vehicles and Motorcycles for Commuting to Hinder Market Growth

The growing preference of commuters for passenger vehicles and two-wheelers is restraining the sector's expansion. Two-wheeled carts are the primary mode of transportation for those in the middle class in developing countries like India, Vietnam, and Bangladesh. In addition, the expansion of the global market is hampered by political regimes that are biased against investments in public transit. The spread of the Covid-19 outbreak substantially impacted the expansion of the public transportation business worldwide. As a direct consequence of the widespread dissemination of the COVID-19 virus, commuters opted for private and personal modes of transportation, which led to a steep drop in the utilization of public transportation.

Regional Analysis

The global public transportation market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific will be the most dominant region in the global public transportation market during the forecast period. The existence of public transportation networks in Japan, China, and South Korea that are well developed and reasonably priced has helped to make the expansion of the regional market possible in part. In addition, the area is home to a sizeable population classified as having a middle-income and relies on public transportation for their daily travels to and from work. This also contributes, albeit a small one, to the expansion of the market in the region, but it is not very significant.

The Middle East and Africa grow at a CAGR of 6% during the forecast period, placing them as the region with the second-highest growth rate in the world. It is anticipated that the regional market's growth will be bolstered not only by increased expenditures and investments made by the government but also by initiatives carried out by the government. For example, the Gulf Cooperation Council (GCC) authorities are working toward improving public transportation by merging metro and BRT systems into a unified network.

Segmental Analysis

The global public transportation market is segmented by distribution channels and modes.

On the Basis of Distribution Channels

Based on distribution channels, the market is divided into online and offline.

The offline channel segment dominates the market during the forecast period. Offline is a tried-and-true method that businesses and individuals have used successfully for years. Many participants and customers utilize the offline distribution channel to purchase tickets for public transportation, particularly in developing countries. It is anticipated that the market for internet services will expand at a CAGR of 8.9% during the forecast period. The expansion of internet services, the falling price of smartphones, and an increasing reliance on digital solutions are all factors driving the growth of this market segment. It is projected that the tech-savvy members of Generation Z and millennials will constitute most of the commuter population.

On the Basis of Mode

Based on mode, the market is divided into road and rail.

The road section is the most lucrative part of the global public transportation market. The broad availability of the road transportation system and the growing usage of the system are key factors contributing to the category's expansion. Installing bus rapid transit systems in megacities worldwide helps expand the road network and strives to provide more adaptable, reliable, and speedy transit. This is because of the growing demand for faster, more reliable, and more convenient modes of transportation.

The growth is primarily driven by rising expenditures and investments in constructing the necessary infrastructure for rail transportation, most notably the expansion of the metro and light rail transit systems. It is anticipated that the global market for rail transportation will display a healthy compound annual growth rate (CAGR) of 6.3 percent between 2022 and 2030. The growth is primarily driven by rising expenditures and investments in constructing the necessary infrastructure for rail transportation, most notably the expansion of the metro and light rail transit systems. For instance, in the country of India, there are currently a variety of different metro construction projects that are being built. The Pune Metro, the Patna Metro, and the Ahmedabad Metro are all projects that fall within this category.

Recent Developments

• In June 2022, TfL to begin using new enforcement powers to improve cycle safety on its roads.
• In June 2022, Customers are strongly encouraged not to travel on 21 June, ahead of a week of travel disruption across TfL and national rail services.
• In June 2022, BC Transit drivers left a lasting positive impression on German students.
• In January 2022, Transport International will sponsor 500 sets of gift vouchers to show our appreciation to the public for getting vaccinated.