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Public Transportation - Iran

Iran

Iran's Public Transportation market is projected to reach a revenue of US$1.57bn by 2024, with an expected annual growth rate (CAGR 2024-2029) of 12.11%.
This growth is projected to result in a market volume of US$2.78bn by 2029.
Furthermore, the expected number of users in the Public Transportation market is 84.43m users by 2029, with a projected user penetration of 67.5% in 2024 that will increase to 91.3% by 2029.
The average revenue per user (ARPU) is expected to be US$25.87.
Online sales are projected to generate 19% of the total revenue in the Public Transportation market by 2029.
In comparison to other countries, United States is expected to generate the highest revenue in the Public Transportation market, with a projected revenue of US$52bn in 2024.
Iran's public transportation market is experiencing growth due to government investments in rail, metro, and bus systems.

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

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Analyst Opinion

The Public Transportation market in Iran is experiencing significant growth and development due to several factors.

Customer preferences: Customers in Iran are increasingly choosing public transportation options due to the convenience, affordability, and efficiency they offer. With the increasing population and urbanization in major cities, such as Tehran, there is a growing need for reliable and efficient transportation systems to alleviate traffic congestion and reduce pollution. Additionally, the younger generation in Iran is more environmentally conscious and prefers sustainable modes of transportation, further driving the demand for public transportation services.

Trends in the market: One of the key trends in the Public Transportation market in Iran is the expansion and modernization of existing transportation infrastructure. The government has been investing heavily in the development of metro systems, bus rapid transit (BRT) networks, and tram lines. These investments aim to improve connectivity, reduce travel times, and enhance the overall quality of public transportation services. Furthermore, there has been an increasing focus on integrating different modes of transportation, such as metro and bus systems, to provide seamless and efficient travel options for commuters. Another trend in the market is the adoption of smart technologies in public transportation. This includes the implementation of electronic ticketing systems, real-time passenger information systems, and mobile applications for trip planning and payment. These technologies not only enhance the overall passenger experience but also improve operational efficiency and enable better management of transportation networks.

Local special circumstances: Iran has a young and growing population, with a significant portion residing in urban areas. This demographic shift has led to increased demand for public transportation services. Moreover, the government's initiatives to promote public transportation, such as providing subsidies and incentives, have further encouraged people to choose public transportation over private vehicles. Additionally, the cultural and religious norms in Iran, which emphasize communal living and cooperation, also contribute to the popularity of public transportation among the population.

Underlying macroeconomic factors: The development of the Public Transportation market in Iran is also influenced by macroeconomic factors. The government's investments in transportation infrastructure are driven by the need to stimulate economic growth, create employment opportunities, and improve the overall quality of life for its citizens. Furthermore, the revenue generated from public transportation services, such as ticket sales and advertising, contribute to the country's economy. Additionally, the government's focus on reducing dependence on fossil fuels and promoting sustainable development aligns with the expansion of public transportation systems, which are more environmentally friendly compared to private vehicles. In conclusion, the Public Transportation market in Iran is witnessing significant growth and development due to customer preferences for convenient and sustainable transportation options, the expansion and modernization of transportation infrastructure, the adoption of smart technologies, and underlying macroeconomic factors. These trends and circumstances are shaping the public transportation landscape in Iran, providing improved mobility options for the population and contributing to the country's economic and environmental goals.

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.