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Public Transport Market

ID: MRFR/AT/7205-CR
195 Pages
Sejal Akre
January 2025

Public Transport Market Research Report Information by Mobility (Bus, Tram, Train, Car Sharing, and Others), By Propulsion (Diesel, Gasoline, Electric, and Others) By Ownership Type (Private Owned, and Public Owned) By End Use (Intracity, Intercity, and Others) and By Region (North America, Europe, Asia-Pacific, Middle East and Africa, South America) – Market Forecast Till 2035

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Public Transport Market Infographic
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Public Transport Market Summary

As per MRFR analysis, The Global Public Transport Market Size was estimated at 345.75 USD Million in 2024. The public transport industry is projected to grow from 392.5 USD Million in 2025 to 1394.98 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 13.52 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Global Public Transport Market is experiencing a transformative shift towards sustainability and technological integration.

  • North America remains the largest market for public transport, driven by established infrastructure and high demand.
  • Asia-Pacific is emerging as the fastest-growing region, propelled by rapid urbanization and increasing population density.
  • The bus segment continues to dominate the market, while car sharing is rapidly gaining traction among urban consumers.
  • Key market drivers include urbanization and government initiatives aimed at enhancing public transport systems and promoting sustainability.

Market Size & Forecast

2024 Market Size 345.75 (USD Million)
2035 Market Size 1394.98 (USD Million)
CAGR (2025 - 2035) 13.52%

Major Players

Deutsche Bahn (DE), Transport for London (GB), MTR Corporation (HK), SNCF (FR), Amtrak (US), Metro de Madrid (ES), Tokyo Metro (JP), TransLink (CA), Singapore Mass Rapid Transit (SG)

Public Transport Market Trends

The Global Public Transport Market is currently experiencing a transformative phase, driven by various factors that influence urban mobility. As cities expand and populations grow, the demand for efficient and sustainable transportation solutions intensifies. This market appears to be shifting towards more integrated systems that combine traditional public transport with innovative technologies. The rise of smart city initiatives and the increasing focus on reducing carbon footprints suggest that public transport is evolving to meet modern needs. Furthermore, the emphasis on accessibility and inclusivity indicates a broader understanding of the diverse requirements of urban populations. In addition, The Global Public Transport Market is likely to witness advancements in digitalization and automation. Technologies such as real-time tracking, mobile ticketing, and data analytics are becoming integral to enhancing user experience and operational efficiency. This trend may lead to improved service reliability and customer satisfaction. Moreover, partnerships between public and private sectors could emerge as a strategy to foster innovation and investment in infrastructure. Overall, the landscape of public transport is poised for significant changes that could redefine urban mobility in the coming years.

Integration of Technology

The Global Public Transport Market is increasingly integrating advanced technologies to enhance operational efficiency and user experience. Innovations such as mobile applications for ticketing and real-time tracking systems are becoming commonplace, allowing passengers to plan their journeys more effectively. This trend indicates a shift towards a more user-centric approach, where technology plays a crucial role in streamlining services.

Sustainability Initiatives

There is a growing emphasis on sustainability within The Global Public Transport Market, as stakeholders recognize the importance of reducing environmental impact. Many cities are investing in electric and hybrid vehicles, as well as infrastructure that supports eco-friendly transport options. This focus on sustainability not only addresses climate concerns but also aligns with the expectations of environmentally conscious consumers.

Enhanced Accessibility

The Global Public Transport Market is increasingly prioritizing accessibility for all users, including those with disabilities and the elderly. Efforts to improve infrastructure, such as low-floor buses and accessible stations, reflect a commitment to inclusivity. This trend suggests a broader recognition of the diverse needs of urban populations, aiming to create a more equitable transport system.

Public Transport Market Drivers

Technological Advancements

Technological advancements are significantly influencing The Global Public Transport Industry. Innovations such as real-time tracking, mobile ticketing, and contactless payment systems are enhancing the overall user experience. The adoption of smart technologies is enabling transport operators to optimize routes, reduce operational costs, and improve service reliability. For example, the implementation of Internet of Things (IoT) devices in public transport vehicles allows for better monitoring and management of fleets. Additionally, data analytics is being utilized to understand commuter patterns and preferences, leading to more tailored services. The global market for smart transportation is expected to reach USD 220 billion by 2025, indicating a robust growth trajectory. As technology continues to evolve, it is likely to drive further innovations in public transport, making it more efficient and user-friendly.

Changing Consumer Preferences

Changing consumer preferences are reshaping The Global Public Transport Industry. As urban populations become more environmentally conscious, there is a noticeable shift towards public transport over private vehicle ownership. Many individuals are prioritizing convenience, cost-effectiveness, and sustainability when choosing their mode of transport. Recent surveys indicate that a significant percentage of commuters prefer public transport due to its affordability and reduced environmental impact. Additionally, the rise of shared mobility services, such as ride-sharing and bike-sharing, complements traditional public transport systems, offering more flexible options for consumers. This trend suggests that public transport operators may need to adapt their services to meet evolving consumer demands. By enhancing service quality and integrating with shared mobility solutions, public transport can remain competitive and relevant in an ever-changing market.

Government Initiatives and Funding

Government initiatives and funding play a crucial role in shaping The Global Public Transport Industry. Many governments are recognizing the importance of sustainable transport solutions and are allocating substantial budgets to improve public transport infrastructure. For instance, investments in rail systems, bus rapid transit, and electric vehicle fleets are becoming commonplace. In recent years, several countries have announced multi-billion dollar funding packages aimed at modernizing public transport networks. These initiatives not only enhance service quality but also promote economic growth by creating jobs and stimulating local economies. Furthermore, public-private partnerships are emerging as a viable strategy to leverage additional resources and expertise, thereby accelerating the development of efficient public transport systems. This trend indicates a strong commitment from governments to prioritize public transport as a key component of urban planning.

Urbanization and Population Growth

The rapid urbanization and population growth are pivotal drivers in The Global Public Transport Industry. As more individuals migrate to urban areas, the demand for efficient public transport systems escalates. According to recent data, urban areas are projected to house approximately 68% of the global population by 2050. This demographic shift necessitates the expansion and enhancement of public transport networks to accommodate the increasing number of commuters. Cities are investing in infrastructure to support mass transit systems, which not only alleviates traffic congestion but also reduces environmental impact. The integration of various transport modes, such as buses, trams, and subways, is becoming essential to create a seamless travel experience. Consequently, urbanization is likely to drive innovations and investments in the public transport sector.

Environmental Concerns and Sustainability

Environmental concerns and sustainability are increasingly becoming central themes in The Global Public Transport Industry. With growing awareness of climate change and pollution, there is a pressing need for cleaner transport solutions. Many cities are transitioning to electric and hybrid buses, which significantly reduce greenhouse gas emissions compared to traditional diesel vehicles. According to recent studies, public transport can reduce per capita carbon emissions by up to 45%. This shift towards sustainable transport not only addresses environmental issues but also aligns with global sustainability goals. Furthermore, the integration of renewable energy sources into public transport systems is gaining traction, enhancing energy efficiency. As cities strive to meet sustainability targets, investments in green public transport solutions are likely to increase, shaping the future landscape of the industry.

Market Segment Insights

Public Transport Market Platform Segment Insights

Public Transport Market Mobility Insights

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.

Public Transport Market Propulsion Insights

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.

Public Transport Market Ownership Type Insights

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)

Public Transport Market End-Use Insights

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.

Get more detailed insights about Public Transport Market

Regional Insights

North America : Innovative Transit Solutions

North America is witnessing a significant transformation in its public transport sector, driven by increasing urbanization and a push for sustainable solutions. The United States holds the largest market share at approximately 60%, followed by Canada at around 25%. Regulatory initiatives aimed at reducing carbon emissions and enhancing public transport infrastructure are key growth drivers. Federal funding and state-level incentives are catalyzing investments in electric buses and rail systems. Leading countries in this region include the United States and Canada, with major players like Amtrak and TransLink spearheading advancements. The competitive landscape is characterized by a mix of public and private entities, focusing on improving service efficiency and customer experience. Innovations in technology, such as real-time tracking and mobile ticketing, are enhancing user engagement and operational efficiency.

Europe : Sustainable Urban Mobility

Europe is at the forefront of sustainable public transport solutions, with a strong emphasis on reducing emissions and enhancing urban mobility. The region's largest market is Germany, holding approximately 30% of the market share, followed closely by France at around 25%. The European Union's Green Deal and various national policies are driving investments in electric and hybrid public transport systems, fostering a shift towards greener alternatives. Key players in this market include Deutsche Bahn and SNCF, which are leading the charge in innovation and service expansion. Countries like the UK and Spain are also significant contributors, with Transport for London and Metro de Madrid enhancing their networks. The competitive landscape is marked by collaborations between public transport authorities and private companies, focusing on integrated transport solutions and improved passenger experiences.

Asia-Pacific : Rapid Urbanization Challenges

Asia-Pacific is experiencing rapid urbanization, leading to increased demand for efficient public transport systems. China dominates the market with a share of approximately 40%, followed by Japan at around 20%. Government initiatives aimed at expanding metro and bus networks are crucial in addressing urban congestion and pollution. Investments in smart transport technologies are also gaining traction, supported by regulatory frameworks promoting sustainable practices. Leading countries include China, Japan, and India, with key players like MTR Corporation and Tokyo Metro driving innovation. The competitive landscape is evolving, with a mix of state-owned enterprises and private companies focusing on enhancing service quality and operational efficiency. The region is also witnessing a rise in public-private partnerships aimed at improving infrastructure and service delivery.

Middle East and Africa : Emerging Transport Solutions

The Middle East and Africa region is witnessing a gradual transformation in public transport, driven by urbanization and economic diversification efforts. The largest market is South Africa, holding approximately 30% of the market share, followed by the UAE at around 20%. Government initiatives aimed at enhancing public transport infrastructure, such as the Dubai Metro expansion, are key growth drivers in this region, supported by investments in sustainable transport solutions. Leading countries include South Africa and the UAE, with key players like TransLink and various local operators enhancing service offerings. The competitive landscape is characterized by a mix of public and private investments, focusing on improving connectivity and service efficiency. The region is also exploring innovative transport solutions, including ride-sharing and electric buses, to meet growing urban mobility demands.

Public Transport Market Regional Image

Key Players and Competitive Insights

The Global Public Transport is characterized by a dynamic competitive landscape, driven by increasing urbanization, environmental concerns, and technological advancements. Major players such as Deutsche Bahn (Germany), Transport for London (UK), and MTR Corporation (Hong Kong) are strategically positioning themselves to leverage these growth drivers. Deutsche Bahn (Germany) focuses on enhancing its digital infrastructure, aiming to improve operational efficiency and customer experience. Meanwhile, Transport for London (UK) emphasizes sustainability through its commitment to reducing carbon emissions, which aligns with global environmental goals. MTR Corporation (Hong Kong) is investing in smart transport solutions, indicating a shift towards integrating technology into public transport systems. Collectively, these strategies not only enhance their competitive edge but also contribute to a more sustainable and efficient public transport ecosystem.

In terms of business tactics, companies are increasingly localizing their operations and optimizing supply chains to enhance service delivery. The market appears moderately fragmented, with a mix of public and private entities competing for market share. The collective influence of key players is significant, as they set benchmarks for service quality and operational standards, thereby shaping the overall market structure.

In August 2025, Deutsche Bahn (Germany) announced a partnership with a leading tech firm to develop an AI-driven predictive maintenance system for its trains. This strategic move is likely to enhance operational reliability and reduce downtime, thereby improving customer satisfaction. The integration of AI into maintenance processes could serve as a model for other operators in the industry, potentially setting a new standard for efficiency.

In September 2025, Transport for London (UK) launched an initiative to expand its electric bus fleet, aiming to achieve a fully electric public transport system by 2030. This initiative not only underscores the company's commitment to sustainability but also positions it as a leader in the transition towards greener public transport solutions. The expansion of electric buses is expected to attract environmentally conscious commuters, thereby increasing ridership and revenue.

In October 2025, MTR Corporation (Hong Kong) unveiled a new smart ticketing system that utilizes contactless technology to streamline the passenger experience. This innovation is anticipated to enhance user convenience and operational efficiency, reflecting a broader trend towards digitalization in public transport. By adopting such technologies, MTR Corporation (Hong Kong) is likely to improve customer engagement and operational performance, setting a precedent for other operators in the region.

As of October 2025, the competitive trends in The Global Public Transport are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and adapt to changing consumer expectations.

Key Companies in the Public Transport Market market include

Industry Developments

  • In September 2024, Transport for London (TfL) has announced the launch of a new e-bike scheme aimed at enhancing sustainable transport options across the city. This initiative is part of TfL's ongoing efforts to promote greener travel and reduce congestion on public transport.
  • In August 2024, MTR Corporation has announced enhanced train services with more frequent trips on the East Rail Line, Tseung Kwan O Line, and Tuen Ma Line during various periods. This improvement aims to provide better connectivity and convenience for passengers.

Future Outlook

Public Transport Market Future Outlook

The Global Public Transport Market is poised for growth at a 13.52% CAGR from 2024 to 2035, driven by urbanization, technological advancements, and sustainability initiatives.

New opportunities lie in:

  • Integration of smart ticketing systems for seamless travel experiences.
  • Development of electric and hybrid vehicle fleets to reduce emissions.
  • Expansion of real-time data analytics for improved operational efficiency.

By 2035, the market is expected to be robust, reflecting substantial advancements and increased investment.

Market Segmentation

Public Transport Market End Use Outlook

  • Intracity
  • Intercity
  • Others

Public Transport Market Mobility Outlook

  • Bus
  • Tram
  • Train
  • Car Sharing
  • Others

Public Transport Market Propulsion Outlook

  • Diesel
  • Gasoline
  • Electric
  • Others

Public Transport Market Ownership Type Outlook

  • Private Owned
  • Public Owned

Report Scope

MARKET SIZE 2024345.75(USD Million)
MARKET SIZE 2025392.5(USD Million)
MARKET SIZE 20351394.98(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)13.52% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies ProfiledMarket analysis in progress
Segments CoveredMarket segmentation analysis in progress
Key Market OpportunitiesIntegration of smart technologies enhances efficiency and user experience in The Global Public Transport.
Key Market DynamicsRising demand for sustainable transport solutions drives innovation and regulatory changes in public transportation systems.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Sejal Akre
Senior Research Analyst

She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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FAQs

What is the projected market valuation of The Global Public Transport by 2035?

The projected market valuation for The Global Public Transport by 2035 is 1394.98 USD Million.

What was the overall market valuation of The Global Public Transport in 2024?

The overall market valuation of The Global Public Transport in 2024 was 345.75 USD Million.

What is the expected CAGR for The Global Public Transport during the forecast period 2025 - 2035?

The expected CAGR for The Global Public Transport during the forecast period 2025 - 2035 is 13.52%.

Which segments are included in the Mobility category of The Global Public Transport?

The Mobility category includes segments such as Bus, Tram, Train, Car Sharing, and Others.

What are the projected valuations for the Electric propulsion segment by 2035?

The projected valuation for the Electric propulsion segment is expected to reach 600.0 USD Million by 2035.

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