Public Transportation - Iceland | Statista Market Forecast

In Iceland, the Public Transportation market is predicted to experience a rise in revenue to US$91.30m by 2024.
It is projected to have an annual growth rate (CAGR 2024-2029) of 2.22%, resulting in a market volume of US$101.90m by 2029.
The number of users in the Public Transportation market is expected to reach 264.20k users by 2029 with a user penetration of 63.8% in 2024 and 68.0% by 2029.
The average revenue per user (ARPU) is expected to be around US$378.60.
It is estimated that by 2029, 27% of the total revenue will be generated through online sales.
It is noteworthy that United States will be the leading country in terms of revenue generation, with US$52bn in 2024, when compared to other countries globally.
Public transportation in Iceland is dominated by buses, with limited train options, due to the country's unique geography and population distribution.

Definition:

Local public transportation is used to transport people in everyday traffic by road, water, railway tracks, and sometimes by air (cable car) for local and regional transportation. In this market, revenues generated by ticket sales from public transportation companies, such as BVG (Berlin Transport Company), TfL (Transport for London), or Toei (東京都交通局: Tokyo Metropolitan Bureau of Transportation) are considered. Most providers sell single and group tickets or time-limited tickets for up to one year. This market does not take long-distance public transportation with national travel offerings into consideration.

Additional Information:

The main performance indicators of the Flights market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

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Local and regional public transportation by road, water, rail, and air
Regular transportation by bus, train, tram, subway, suburban trains, ferries, cable car, and trolleybus
All online and offline bookings for public transportation tickets and subscriptions, irrespective of the sales channel
Time-limited subscriptions and single tickets

Tickets for long-distance public transportation with nationwide travel offers
Private transportation
Freight transportation

The Public Transportation market in Iceland has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Iceland, there has been a shift in customer preferences towards more sustainable and environmentally friendly modes of transportation. This has led to an increased demand for public transportation options, as people are becoming more conscious of their carbon footprint and are looking for alternatives to private cars. Additionally, the convenience and cost-effectiveness of public transportation have also contributed to its popularity among customers.

Trends in the market: One of the key trends in the public transportation market in Iceland is the expansion of bus networks and services. Bus companies have been investing in new routes and improving the frequency and reliability of their services to cater to the growing demand. This trend is driven by the need to provide efficient and accessible transportation options for both urban and rural areas. Another trend in the market is the integration of technology and digital solutions. Public transportation providers in Iceland are increasingly adopting advanced ticketing systems, real-time tracking, and mobile applications to enhance the overall customer experience. These technological advancements not only make it easier for customers to plan their journeys but also improve the efficiency and effectiveness of public transportation operations.

Local special circumstances: Iceland's unique geography and population distribution play a significant role in shaping the public transportation market. With a relatively small population spread across a vast area, it is essential to have a well-connected and reliable transportation system to ensure accessibility for all residents. This has led to the development of comprehensive bus networks that serve both urban centers and remote areas, addressing the specific needs of the local population.

Underlying macroeconomic factors: The strong economic growth in Iceland has also contributed to the development of the public transportation market. As the economy expands, more people are entering the workforce and commuting to their workplaces, increasing the demand for public transportation services. Additionally, the government's focus on sustainable development and reducing carbon emissions has led to increased investment in public transportation infrastructure and services. In conclusion, the Public Transportation market in Iceland is experiencing growth due to customer preferences for sustainable transportation options, trends such as the expansion of bus networks and the integration of technology, local special circumstances like the country's geography, and underlying macroeconomic factors such as economic growth and government initiatives. These factors are driving the development and improvement of public transportation services in Iceland, providing residents with efficient and accessible transportation options.

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.

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