Public Transportation Market Size, Analysis and Advancement Outlook 2028

Public Transportation Market Growth & Trends

The global public transportation market size is expected to reach USD 309.1 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.9% from 2022 to 2028. The market is driven by the economic growth in Asia Pacific and the Middle East and Africa and the increasing number of megacities in the region. According to the World Economic Forum data, by the year 2030, six cities will emerge as new megacities, including Dar es Salaam, Luanda, and Chennai, as the population keeps flocking to urban areas. Increasing government initiatives and the development of smart cities also facilitate the growth of public transportation.

Public Transportation Market Segmentation

Grand View Research has segmented the global public transportation market based on distribution channel, mode type, and region:

Based on the Distribution Channel Insights, the market is segmented into Online and Offline.

• The offline channel held the largest revenue share of over 80.0% in 2021. Offline is an established channel and has been used for a long time by operators and consumers. Many players and consumers use the offline distribution channel of ticketing for public transit, notably in developing nations. Additionally, the lack of platforms for the online distribution of tickets and the reluctance of consumers to adopt online solutions due to the personal and financial privacy issues are fueling the growth of the offline channel.
• The online segment is anticipated to register a lucrative CAGR of 8.9% from 2022 to 2028. The segment growth can be attributed to the penetration of internet services, increasing affordability of smartphones, and increasing dependency on digital solutions. Over the forecast years, Generation z and millennials who are tech-savvy are expected to dominate the commuter’s numbers. In addition, the expansion of the digital solution companies providing online platforms is likely to boost the segment growth.

Based on the Mode Type Insights, the market is segmented into Road, Rail, Others (Water, Cable Car, etc.).

• The road segment accounted for the largest revenue share of over 55.0% in 2021. Widespread availability and higher ridership of the road transport system mainly consisting of buses, trolleybus, etc. are contributing to the growth of the segment. Bus rapid system implemented in some megacities across the globe aims at providing flexible, reliable, and faster transit, and also contributes to the growth of the road segment.
• The rail segment is anticipated to register a lucrative CAGR of 6.3% from 2022 to 2028. The segment growth is mainly fueled by the increasing spending and investments to build the infrastructure for rail transport, notably the metro system and light rail transit. For instance, in India, various metro projects are under construction, including Pune Metro, Patna Metro, and Ahmedabad Metro.

Public Transportation Regional Outlook

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East and Africa (MEA)

Market Share Insights

• September 2021: INIT Innovations in Transportation Inc. extended contactless ticketing for Nottingham buses and trams in the U.K.
• September 2019: Berliner Verkehrsbetriebe launched Jelbi app combining and integrating different types of transportation in Berlin under one platform.

Key Companies Profile & Market Share Insights

Small and local players play an important role in the highly fragmented market. Key companies are focused on adopting and implementing new and cutting-edge technologies. With the real-time arrivals of the metro, bus, and light rail, smart ticketing, and digital apps are being launched by the operators and governments to enhance the experience and efficiency of public transportation.

Some of the prominent players operating in the global public transportation market include,

• Transportation for London
• BC Transit Corporation
• Transport International Holdings Limited
• The Brussels Transport Company
• Trenitalia c2c Limited
• Metrolink
• Transdev
• Tobu Railway Co., Ltd.
• Berliner Verkehrsbetriebe

Order a free sample PDF of the Public Transportation Market Intelligence Study, published by Grand View Research.