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Public Transportation - El Salvador

El Salvador

El Salvador is projected to witness a revenue of US$112.10m in the Public Transportation market by 2024.
The revenue is further expected to grow annually at a rate of 2.54%, resulting in a market volume of US$127.10m by 2029.
The number of users is estimated to reach 3.87m users by 2029, and user penetration is expected to be 55.6% in 2024 and 59.3% by 2029.
The average revenue per user (ARPU) is projected to be US$31.52.
By 2029, 17% of the total revenue in the Public Transportation market is expected to be generated through online sales.
In comparison to global figures, United States is expected to generate the most revenue, amounting to US$52bn in 2024.
El Salvador's public transportation system is characterized by overcrowded buses, frequent breakdowns and safety concerns.

Key regions: South America, Malaysia, China, Thailand, United States

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Analyst Opinion

The Public Transportation market in El Salvador is experiencing significant growth and development in recent years.

Customer preferences: Customers in El Salvador are increasingly opting for public transportation due to several reasons. Firstly, the rising cost of owning and maintaining a private vehicle has made public transportation a more affordable option for many individuals and families. Additionally, the increasing traffic congestion in major cities has made public transportation a more convenient and time-efficient choice for commuting. Furthermore, the growing awareness about environmental sustainability has led to a shift in customer preferences towards greener modes of transportation, such as buses and trains.

Trends in the market: One of the key trends in the public transportation market in El Salvador is the modernization and expansion of existing infrastructure. The government has been investing heavily in upgrading the public transportation system, including the construction of new bus terminals, the introduction of new routes, and the implementation of technology-driven solutions for ticketing and scheduling. These efforts have not only improved the overall efficiency and reliability of the public transportation system but have also attracted more customers. Another trend in the market is the integration of different modes of public transportation. El Salvador has been working towards creating a seamless and integrated transportation network by connecting buses, trains, and other modes of public transportation. This integration allows customers to easily switch between different modes of transportation, making their journeys more convenient and efficient.

Local special circumstances: One of the unique aspects of the public transportation market in El Salvador is the dominance of buses as the primary mode of transportation. Buses are not only affordable but also widely available, making them the preferred choice for a large portion of the population. The government has recognized the importance of buses and has implemented various measures to improve their quality and safety.

Underlying macroeconomic factors: The development of the public transportation market in El Salvador is also influenced by several underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and purchasing power among the population. This has allowed more individuals to afford public transportation services and has contributed to the growth of the market. Furthermore, the government's focus on infrastructure development and urban planning has played a crucial role in the expansion of the public transportation market. Investments in transportation infrastructure not only improve connectivity within cities but also promote economic development and attract foreign investment. In conclusion, the Public Transportation market in El Salvador is witnessing significant growth and development due to customer preferences for affordability, convenience, and environmental sustainability. The modernization and expansion of infrastructure, integration of different modes of transportation, dominance of buses, and underlying macroeconomic factors such as economic growth and government investments are key drivers of this market development.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of public transportation.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.