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Public Transportation - EU-27

EU-27

In the EU-27, the Public Transportation market is forecasted to witness a steady growth over the coming years.
By 2024, the revenue in this market is expected to reach US$76.93bn without any changes to the currency format.
Furthermore, the expected Compound Annual Growth Rate (CAGR) between 2024 and 2029 is 1.59%, leading to a projected market volume of US$83.23bn by 2029.
It is estimated that there will be 303.70m users users in this market by 2029, and the user penetration rate is expected to increase from 65.4% in 2024 to 68.4% by 2029.
The average revenue per user (ARPU) is projected to be US$262.80, without any changes to the number format.
Additionally, it is anticipated that online sales will generate 29% of total revenue in the Public Transportation market by 2029.
Notably, United States is expected to generate the most revenue in the global comparison, with a projected revenue of US$52bn in 2024.
In Germany, public transportation is heavily subsidized, resulting in affordable and reliable services for commuters.

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

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Analyst Opinion

The Public Transportation market in EU-27 is experiencing significant growth and development due to several factors. Customer preferences are shifting towards more sustainable and cost-effective modes of transportation, leading to increased demand for public transportation services. Additionally, local special circumstances such as urbanization and congestion in major cities are driving the need for efficient and reliable public transportation systems. Furthermore, underlying macroeconomic factors such as government investments and initiatives are supporting the expansion and improvement of public transportation networks.

Customer preferences: Customer preferences in the EU-27 are increasingly focused on sustainable transportation options. With growing awareness of the environmental impact of private vehicles, many individuals are opting for public transportation as a more eco-friendly alternative. Additionally, the rising cost of fuel and parking fees is making public transportation an attractive option for cost-conscious consumers. Furthermore, the convenience and time-saving benefits of public transportation, such as avoiding traffic congestion and finding parking, are appealing to a wide range of customers.

Trends in the market: A key trend in the EU-27 public transportation market is the integration of various modes of transportation. Many cities are implementing multimodal transportation systems, which combine different modes such as buses, trains, trams, and bicycles. This integration allows for seamless travel and encourages individuals to use public transportation for their entire journey, from start to finish. Another trend is the adoption of smart technologies in public transportation, such as mobile ticketing, real-time tracking, and digital payment systems. These technologies enhance the user experience and improve the efficiency of public transportation services.

Local special circumstances: Urbanization and congestion in major cities are driving the need for efficient and reliable public transportation systems in the EU-27. As cities become more densely populated, the demand for transportation options that can accommodate large numbers of people is increasing. Public transportation offers a solution to alleviate traffic congestion and reduce the environmental impact of individual vehicles. Additionally, the EU-27 has a well-developed network of cities and towns, making it feasible to connect different regions through public transportation infrastructure.

Underlying macroeconomic factors: Government investments and initiatives play a crucial role in the development of public transportation in the EU-27. Many governments are investing in the expansion and improvement of public transportation networks to meet the growing demand and address environmental concerns. These investments include the construction of new infrastructure, the purchase of modern and energy-efficient vehicles, and the implementation of smart technologies. Furthermore, government subsidies and incentives are encouraging individuals to choose public transportation over private vehicles. These macroeconomic factors are driving the growth and development of the public transportation market in the EU-27.

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.