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Public Transportation - South Korea

South Korea

South Korea is expected to witness a significant growth in the Public Transportation market.
By 2024, the revenue in this market is projected to reach US$5.49bn, with an annual growth rate of 1.83%, resulting in a projected market volume of US$6.01bn by 2029.
The number of users in this market is also expected to increase, with a projected amount of 32.89m users by 2029.
The user penetration rate in South Korea is also expected to grow, with a projected rate of 61.3% in 2024 and 64.0% by 2029.
On average, the revenue generated per user (ARPU) is expected to be US$173.20.
Furthermore, it is estimated that 30% of the total revenue in this market will be generated through online sales by 2029.
In global comparison, it is worth noting that United States is projected to generate the most revenue in the Public Transportation market, with an estimated revenue of US$52bn in 2024.
South Korea's public transportation system is highly efficient, utilizing advanced technology to provide fast and reliable service to commuters.

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

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Analyst Opinion

The Public Transportation market in South Korea is experiencing significant growth and development in recent years.

Customer preferences: South Korean customers have shown a strong preference for efficient and convenient public transportation options. With a high population density and limited space for private vehicles, many individuals rely on public transportation to commute to work, school, and other daily activities. In addition, the younger generation, in particular, has shown a growing interest in sustainable and eco-friendly modes of transportation, leading to an increased demand for public transportation services.

Trends in the market: One of the key trends in the South Korean public transportation market is the adoption of smart technology. Public transportation operators are increasingly implementing digital solutions to enhance the overall user experience. This includes the use of mobile applications for ticketing and real-time information updates, as well as the integration of contactless payment systems. These technological advancements not only improve convenience for passengers but also help to streamline operations and improve efficiency for transportation providers. Another trend in the market is the expansion of the subway network. South Korea has been investing heavily in the development of its subway infrastructure, with new lines and extensions being added to existing networks. This expansion is aimed at improving connectivity and reducing congestion in major cities. The increased accessibility and coverage of the subway system have made it a preferred mode of transportation for many commuters.

Local special circumstances: South Korea's public transportation market is also influenced by unique local circumstances. For example, the country's aging population has led to a growing demand for senior-friendly transportation services. Public transportation operators have responded to this demand by introducing measures such as reserved seating for elderly passengers and improved accessibility features. Another special circumstance is the high level of competition in the market. South Korea has a well-developed public transportation sector, with multiple operators competing for passengers. This competition has led to continuous innovation and improvement in service quality, as operators strive to attract and retain customers.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the public transportation market in South Korea. The country's strong economic growth and rising urbanization have led to an increase in the number of commuters and the demand for public transportation services. Additionally, government initiatives to promote sustainable transportation and reduce carbon emissions have further fueled the growth of the market. In conclusion, the Public Transportation market in South Korea is witnessing growth and development driven by customer preferences for efficient and convenient transportation options, the adoption of smart technology, the expansion of the subway network, unique local circumstances such as an aging population, and underlying macroeconomic factors such as economic growth and government initiatives.

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.