Public Transport Market Size was valued at USD 2,67,300.19 million in 2023. The Public Transport market industry is projected to grow from USD 2,80,871.82 Million in 2024 to USD 4,33,249.56 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.57% during the forecast period (2023 - 2032).
Public Transport Market evolving that demonstrates various changes due to technological development, increase of urban population, environmental issues and changes in customer demand. There are of course many factors influencing the PTP growth, but one of the most important factors can be referred to as the growth of urbanization. With growing cities and expanding population, the clamor for effective and efficient means of mass transportation also rises.
The markets are growing more and more compact, and hence traffic congestion becomes a problem in the urban cities, making public transport more significant. Such authorities and planners are beginning to appreciate the need to put their stakes in the development of public transport facilities as a way of decongesting the roads, cutting down on the time taken to travel and enhancing the mobility of inhabitants of such cities.
The direction is gradually now towards intermodal transport systems where different modes of transport including buses, rail and trams are combined making transport for the city inhabitants more efficient. Another key area that defines the market movement is the adaptation of technologies in the shared transport sector. The new solutions including mobile ticketing, real-time control, and smart payment solutions are improving passengers’ experience and company functioning. However, there are strong indications that electric and self-driving vehicles shall transform public transport.
Battery electric buses and trains are being deployed to meet sustainability initiatives, green house emission reductions and cost of operation. Mobility as a service (MaaS) solutions are also altering the way in which people engage with public transport, as it provides people with a single app where they can plan, order and pay for both single and complex trips. Such advancements are changing the efficiency, functionality, accessibility, sustainability, and ability of PT to attract a wider clientèle.
FIGURE 1: PUBLIC TRANSPORT MARKET SIZE 2019-2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Conversion from diesel buses to electric and hybrids is perhaps the most significant change in the public transport system. Electric buses use rechargeable batteries, so they emit no direct pollutants out of their tailpipe and contribute greatly to the decrease of air pollution in cities. They also produce less noise, which is more desirable in crowded places, of course, depending on the type of vehicle being used. This transfer is also in line with sustainability, as the world over, most governments and cities aim at cutting down on their emission of greenhouse gases by achieving net-zero status. Recently, public transport authorities have begun to fund charging stations for EVs as well as battery refurbishment facilities. While the first cost of electric buses is often higher than for normal buses, the overall life cycle cost is often lower due to lower operating costs.
Several different manufacturers have established new electric bus models that have a longer range and can be charged more quickly, issues that have been raised earlier in this paper concerning range issues. Some of the cities that have developed remarkable progress in the adoption of electric buses include Los Angeles, Shenzhen, and Amsterdam. Another type of vehicles is hybrids that use both the internal combustion motor and an electric motor. They offer more versatility since they can run on electricity within the low emission areas while on gas or diesel on longer distances. This technology enables the reduction of emissions and increases fuel economy is a practical solution for public transportation operators.
Based on Mobility, the Public Transport Market segmentation includes Bus, Tram, Train, Car Sharing, and Others. Bus holds the majority share in 2023, contributing around 35.18% to the market revenue. The bus transport segment is one of the most popular and easily available segments of public transportation currently used in different countries. Buses transport both the urban and rural people, and are affordable means especially for the daily commuters. Sometimes, these public buses are partly or fully funded from taxpayers’ money to allow the passengers to pay reasonable fares for transport services; public buses are therefore an essential component of public transport infrastructure; this is particularly so in growing urban areas that cannot support the use of private cars due to traffic hold-up and pollution.
Based on the Propulsion, the Public Transport Market segmentation is Diesel, Gasoline, Electric, and Others. Diesel dominated the market in 2023. Diesel propulsion has been one of the most popular systems in public transport for many years. It is very popular with buses, trains and trucks which require high torque for the long distances they travel with heavy loads, and for their fuel economy. Cars that run on diesel are especially profitable in the areas where the supporting structures of other types of fuel are still in the process of being created. Furthermore, diesel has been applied to intercity and rural transportation systems where people cover long distances frequently and the installation of charging stations or refueling points of other resources is costly.
Based on the Ownership Type, the Public Transport Market segmentation is Private Owned, and Public Owned. Private Owned dominated the market in 2023. Private operated public transport systems are those managed in the hands of private individuals, companies or organizations who are mainly involved with an intention to make profits. These services include large bus fleet operations, taxis, ride-hailing companies, and at times rail. The companies operating them are usually private firms and are in a better position to determine the prices, or introduce new services, or expand as they wish.
FIGURE 2: PUBLIC TRANSPORT MARKET, BY OWNERSHIP TYPE, 2023 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on the End-Use, the Public Transport Market segmentation is Intracity, Intercity, and Others. Intracity dominated the market in 2023. Intercity public transport is a type of transport that is used to transport people within a city or metropolitan region is called intra-city or urban or local public transportation. This segment mainly includes transportation like buses, tram, metro rail, local train, ferries and in some cases it may also include ridesharing covers taxis or ride hailing like services. The primary objectives of intra-city public transport are to offer affordable means of transport to the people within a city in order to transport people from residential areas to places of work, schools, hospitals, theatres and other social facilities.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. In 2023, the Asia-Pacific Public Transport market commands a significant share of the global market at approximately 34.58%. Asia Pacific public transportation has recorded tremendous growth over the past years due to the increasing growth of urban setting, expansion of the population, and increasing concern for the environment. The Asian countries like China, India, Japan, and Australia dominate the market as these countries have huge people living in urban areas and government policies to cut down green house emission. The public transport in the region is of different category which includes buses, rails, ferries and metros.
Although, the bus and railway segment stand out since they have a broad coverage and are more affordable. Smart transport technologies are being adopted by governments globally to deliver better customer satisfaction, cost effective solutions and security. For instance, the China boasts of having a wider coverage of high speed rail which forms a large part of the region’s public transportation.
The public transport market in North America has undergone a number of changes in the recent past due to factors such as demographic factors, trend of urbanization, technological development, and effects of the natural environment. New York, Los Angeles, and Toronto are some of the most populous cities in the USA and Canada respectively and they all depend on public transport to meet the mobility demand of their increasingly urban residents. The market is predominantly defined by transit vehicles such as buses, subway, light rail, ferries, and Commuter trains, all of which have their part to play with regard to connectivity. The problems of congestion and pollution, which are associated with the growth of urbanization, have given importance to public transport systems. However, North America public transport systems are diverse and established in some cities though the gap is very big especially in less populated areas.
FIGURE 3: PUBLIC TRANSPORT MARKET SIZE, BY REGION 2023 VS 2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Public Transport Market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. Competitors in the public transport market include a wide range of organizations whose key role is to provide means of transport for the working population. MTA is the most significant actor in New York, which is overseeing the transport system that comprises of subways and buses. MTR Corporation operates in Hong Kong, the most efficient and punctual transport system, offering rail and bus services. The Chicago Transit Authority (CTA) is one of the important public transport systems in Chicago while focusing on accessibility and high technology.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2,67,300.19 million |
| Market Size 2023 | USD 2,80,871.82 million |
| Market Size 2032 | USD 4,33,249.56 million |
| Compound Annual Growth Rate (CAGR) | 5.57% (2023-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Mobility, Propulsion, Ownership Type, End-User and Region. |
| Geographies Covered | Europe, North America, Asia-Pacific, Middle East and Africa, and South America. |
| Countries Covered | U.S. Canada Mexico Germany UK France Italy Spain China India Japan South Korea Saudi Arabia UAE South Africa Brazil Argentina And Others. |
| Key Companies Profiled | Metropolitan Transportation Authority, Transport for London, MRT Corporation, Chicago Transit Authority, Madrid Metro, and Others. |
| Key Market Opportunities | ·      Technological advancements improve operational efficiency and safety ·      Integration of smart technologies enhances user experience |
| Key Market Dynamics | ·      Increasing urbanization driving demand for efficient transport systems ·      Growing environmental concerns promoting sustainable transportation solutions |
Public Transport Market Highlights:
Frequently Asked Questions (FAQ) :
The Public Transport Market size is expected to be valued at USD 2,67,300.19 Million in 2023.
The global market is projected to grow at a CAGR of 5.57% during the forecast period, 2023-2032.
Asia-Pacific had the largest share of the global market.
The key players in the market are Metropolitan Transportation Authority, Transport for London, MRT Corporation, Chicago Transit Authority, Madrid Metro.
The “Bus” dominated the market in 2023.
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