August 2024
09 Sep 2024
The global public transportation market was evaluated at USD 223.91 billion in 2023 and is projected to attain around USD 466.66 billion by 2033, poised to grow at a CAGR of 16.81% during the forecast period.
Public transport refers to systems that are available for public use, charge fixed fares, operate on fixed routes and are accessible by all. This includes buses, trains, subways, light rail and trams as other form of transportation. Traditionally, public transport has been provided by subsidized public sector organizations operating modes which work in isolation from one another. This made sense from an asset management point of view but it resulted in journey options for citizens when scheduled services, ticketing systems and customer service were not always aligned to expedite movement through different transit systems.
Besides, agencies tended to adopt a monopoly mentality in order to protect their revenues and market shares. However new market entrants are disrupting the last-mile equation with better services and offers that fit well into people’s lives more importantly, they bring us closer to foreseeable future with disruptive transport increased due to frictionless service interactions in other sectors. Thus, for advanced transport systems the path ahead lies in joined-up services, integrated payments and improved customer experiences.
Urbanization to Drive the Market’s Growth
Multifaceted drivers of the public transportation market are due to the fact that various factors shape them. Urbanization and population increase invariably lead to increased demand for public transport as urban centers are populated with people who need efficient mobility options. Public transport systems are more sustainable compared to private vehicles; hence their adoption is propelled by environmental concerns and efforts at reducing carbon emissions. Significant contributions are made by government initiatives through investing in and promoting public transport infrastructure and services.
The rising cost of petrol or diesel and the consequent expenses of owning vans or cars has made buying air tickets cheaper for many people. Moreover, changing societal attitudes about car ownership such as preference for shared mobility will push further growth. Furthermore, this integration of digital platforms, smart ticketing systems and real-time information through advanced technology promotes public transport hence widening its user base.
Recent Innovations
| Company Name | Moving Tech |
| Headquarters | Bangalore, Karnataka |
| Recent Developments | In July 2024, Moving Tech company raised USD 11 million in a pre-series A funding round led by Blume ventures and Antler. Google and other investors also took part in it. |
| Company Name | The Federal Transit Administration (FTA) |
| Headquarters | Washington, D.C. |
| Recent Developments | In July 2024, FTA of the U.S. Department of Transit announced plans to fund nearly USD 1.5 billion for 117 projects that will enhance public transit in 47 states. |
North America region held the largest market share
The geographical regions that were prominent in the global public transportation market include North America where they had a big market share. This is due to the increasing population of people in the society in developing countries where there is a lack of access to transportation and high cost of personal transport solutions. To rectify this problem the government has deployed various investment strategies to ensure provision of affordable and accessible transport facilities.
For instance, the Federal Railroad Administration in June 2022 made the Consolidated Rail infrastructure and safety improvements grant program will provide the total value of 368 million USD to finance 46 programs in 32 states of United States and the district of Columbia. The financing is targeted at the upgrading of rail networks and supply chain in the region. They are also supposed to help reduce congestion and offer inexpensive regional transit services. They all enhance the growth of the public transportation market.
Asia Pacific is expected to grow at a rapid pace in the public transportation market during the forecast period. This is greatly because of the increased emission regulation; favourable government policies and increased charging facilities. Such factors have resulted in the development of the necessary conditions for the market growth in the region. Besides, the rising level of pollution and the effects of green house gases emissions to the environment have led to the development of demand for environmentally friendly vehicles in the region.
It has also been observed that to encourage green transportation several governments around the world have provided tax incentives and subsidies to procure electric buses. This has to a large extent spurred the production of electric buses, and as such has influenced the growth of the market in the region.
Owing to the availability of well developed and reasonably priced public transportation networks in Japan, China, and South Korea partly contributed to the expansion of the regional market. Secondly, it hosts a large population of the middle-income earners and most of them use public transport means in their daily commute to and from work. It also helps to a certain extent to widen the size of the market in the region but it is not very large.
Higher frequency of journeys in own country for travelling by public transport is the main reason for the public transportation market. With population growth and urbanization, it is impossible to sustain having no transportation system which includes Buses, trams, subway or metro, taxies, auto-rikshaws or autos, rail transport and many more. Pollution and traffic jam are some of the factors that are making people shun the use of personal cars and instead shift to public means of transport. Factors inclusive of the metro construction coupled with the government’s investment in modernization and expansion projects are some of the markets contributing to the growth of the market and opens the door for various opportunities to grow further in future.
| Report Attribute | Key Statistics |
| Market Revenue in 2024 | USD 240.97 billion |
| Market Revenue by 2033 | USD 466.66 billion |
| CAGR | 16.81% |
| Quantitative Units | Revenue in USD million/billion, Volume in units |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Market Segments
By Distribution Channel
By Mode Type
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