Public Transport Market Size was valued at USD 304.63 billion in 2023. The Global Public Transport industry is projected to grow from USD 345.75 Billion in 2024 to USD 952.22 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.5% during the forecast period (2024 - 2032).
Public transport refers to transportation systems available to the public that charge set fares, run on fixed routes, and are available to all people. This includes buses, trains, subways, and other forms of transport like trams. Public transport has traditionally been provided by heavily subsidized public-sector bodies operating discrete/siloed transportation modes. This approach made sense from an asset-management perspective, but it led to journey options for citizens when timetables, ticketing and customer service were only sometimes aligned to expedite travel across various transit systems. Additionally, agencies typically took a monopoly mindset to protect revenue and market share. Today, new market entrants are changing the last-mile equation through enhanced services and convenient new offerings. Disruptive transport technologies are on the horizon. Frictionless service interactions in other sectors have raised customer expectations of public transport. Joined-up services, seamless payments and enhanced customer experiences are the way forward for mature transport systems.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
One major trend transforming public transportation is the rise of mobility as a service. New transportation startups are developing digital platforms and mobile apps that allow users to seamlessly plan, book and pay for multimodal trips using various options like buses, trains, shared rides and electric scooters. Integrating public and private transit options into a single interface, these MaaS systems make it more convenient than ever to get around urban areas without a private vehicle. As more cities and transit agencies embrace open data sharing, mobility as a service can revolutionize how the public accesses transportation networks and increase ridership across all transit modes.
Based on Mobility, the global Public Transport market segmentation includes (Bus, Tram, Train, Car Sharing, Others). Bus segment hold majority market share in 2022. Buses are one of the most widely used forms of public transportation globally. They provide flexible mobility using fixed routes and schedules. Buses can carry many people and operate on road networks, requiring less infrastructure investment than rail. This makes buses accessible for most urban and suburban communities.
Currently, buses remain the backbone of public transit systems. However, new technologies may help buses compete better with private vehicles. Integrating bus services with mobile apps and smart payment systems will improve user convenience. Connected buses could offer more accurate real-time arrival times and route planning. Autonomous vehicle technology may eventually enable driverless operation, reducing costs. Electric buses also provide opportunities for more environmentally friendly transportation. Modernized bus networks could see higher ridership over private cars for short-distance commutes if integrated into mixed-use neighborhoods and given dedicated transit lanes. Advanced buses help public transportation remain relevant to evolving mobility needs.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst ReviewPublic Transport Propulsion Insights
Based on the Propulsion, the global Public Transport market segmentation is Diesel, Gasoline, Electric, Others. Diesel dominates the propulsion market for public vehicles like buses and trains. Some of the reasons are: -
However, electric propulsion is proliferating as battery and charging technology advances. More public transport operators are piloting and adopting electric buses and trains. With the total cost of ownership decreasing and environmental regulations tightening, electric options show strong potential to overtake diesel in the coming decades.
Based on Ownership Type, the global Public Transport market segmentation includes Private Owned, Public Owned. Public ownership refers to the operation and management of transportation services by government or public authorities, such as municipal or regional transport agencies. There are several reasons why this segment often prevails. Firstly, publicly owned transport systems are driven by the objective of serving the community rather than solely focusing on profit-making. This allows for greater emphasis on accessibility, affordability, and ensuring that transportation services are available to all members of society, including low-income individuals and marginalized communities. Additionally, public-owned transport systems often benefit from government funding, enabling them to invest in infrastructure development and modernization. This financial support helps improve the overall quality and reliability of the services, attracting more passengers and encouraging higher ridership.
The intracity public transport segment likely dominates the overall market currently. This is because intracity transit networks are essential for mobility within most urban environments. They allow many people to travel shorter distances efficiently for work, education, errands, and other daily activities. Operating within one city limit, intracity buses, trains, and metros require less infrastructure than intercity options. They also benefit from serving regular commuters with high frequency along fixed routes. As more people worldwide increasingly live in urban environments, demand for convenient and affordable intracity mobility options will likely continue growing. This makes the intracity public transport segment paramount for addressing transportation needs. Investments enhancing intracity connectivity and user experience could drive its market share even higher than other categories.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The North America Public Transport market accounted for ~27.8% in 2022. The public transportation market in Europe is quite large and diverse, encompassing various modes of transport used daily by millions of people across the continent. Rail transport, including subways, trams and trains, accounts for the largest market share, with buses also representing a significant portion. Intercity rail travel between major cities is popular for business and leisure, while intracity metro and light rail systems handle high volumes of commuters in urban centers. Other modes like ferries and cable cars serve specific geographic needs. European public transportation demand has been increasing in recent years, driven by rising fuel costs, environmental concerns, and urbanization. Significant investments are being made across Europe to expand and upgrade public transit infrastructure to meet growing rider demand and shift more trips from private vehicles. According to European Investment Bank 2024 published data, between 2010 and 2019, passenger cars’ share of inland passenger transport in the EU ranged between 82.0 % and 83.1 %. This share increased to 87.2 % in 2020, reflecting the impact of the COVID-19 crisis on the use of transport in general, particularly on public transport. The share for coaches, buses and trolley buses ranged from 9.5 % to 10.4 % between 2010 and 2019 but dropped to 7.4 % in 2020. For trains, the share increased from 7.1 % in 2010 to 8.0 % by 2019 before falling back to 5.4 % in 2020.
Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The public transport market is characterized by a highly competitive landscape with numerous key players vying for market share. Companies such as Uber, Lyft, and Didi Chuxing have revolutionized the industry by introducing ride-sharing services that offer convenient and affordable transportation options. Traditional public transport providers like buses and trains face increasing competition as these digital platforms expand their reach. Companies like Lime and Bird have also disrupted the market with electric scooters and bikes, providing another alternative for short-distance commuting. As this competition intensifies, public transport providers increasingly embrace technology to improve their services and stay relevant in this dynamic market.
● In January 2024, Senegal's President Macky Sall recently inaugurated a new fleet of e-buses for Dakar's public transport network. The e-buses are part of the country's efforts to improve transportation sustainability and reduce carbon emissions. This initiative is a significant step toward promoting green mobility and tackling urban pollution in Senegal. The e-buses will contribute to a more sustainable and eco-friendly transportation system, providing a cleaner and greener commuting option for the people of Dakar.
● In December 2023, China has issued new safety guidelines for autonomous vehicles providing public transport. The guidelines cover four categories - passenger safety, operational safety, cyber security, and management of emergencies. It requires vehicles to monitor passengers, restrict maximum speed and stop in case of malfunctions. Companies need proper plans for software updates, network security, personal information protection and handling unexpected situations. The guidelines aim to ensure the safe development and application of autonomous technology in public transport.
● In December 2023, Over the next five years, HCL Technologies has won the Transport for New South Wales (TfNSW) contract to digitally transform and modernize its IT infrastructure and applications to automate the concession entitlement process for public transport users. As part of the deal, HCL will manage and transform TfNSW's applications and infrastructure to support its core functions. The company will also help TfNSW to enhance the digital experience of its customers and staff through modernization. The contract aims to improve services for over 1.5 million daily commuters in Sydney and surrounding regions.
US
Canada
Mexico
UK
Germany
France
Spain
Italy
Rest of Europe
China
Japan
India
South Korea
Vietnam
Indonesia
Rest of Asia-Pacific
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 304.63 billion |
| Market Size 2024 | USD 345.75 billion |
| Market Size 2032 | USD 952.22 billion |
| Compound Annual Growth Rate (CAGR) | 13.5% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Mobility, Propulsion, Ownership Type, End Use and Region |
| Geographies Covered | Europe, North America, Asia-Pacific, Middle East & Africa, and South America |
| Countries Covered | The U.S, Germany, Canada, U.K., Italy, France, Japan, China, India. |
| Key Companies Profiled | MTR Corporation Bay Area Rapid Transit Madrid Metro Chicago Transit Authority Uber Technologies Inc Grande West Transportation Group Ltd. The Washington Metropolitan Area Transit Authority TEMSA Global Lyft, Inc. Gillig Corporation Seoul Metro The San Diego Metropolitan Transit System Other Players |
| Key Market Opportunities | Fare capping Integration with other modes of transport |
| Key Market Dynamics | The rising population along with developing suburbs Increasing The Adoption Of Public Transport |
Public Transport Market Highlights:
Frequently Asked Questions (FAQ) :
The global Public Transport market size is expected to be valued at USD 268.4 Billion in 2022.
The global market is projected to grow at a CAGR of 13.5% during the forecast period, 2024-2032.
Europe had the largest share of the global market.
The key players in the market are MTR Corporation, Bay Area Rapid Transit, Madrid Metro, Chicago Transit Authority, Uber Technologies Inc, Grande West Transportation Group Ltd., The Washington Metropolitan Area Transit Authority, TEMSA Global, Lyft, Inc., Gillig Corporation, Seoul Metro, The San Diego Metropolitan Transit System, Other Players
City and rural areas the primary applications covered by the global public transport market report.
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