Public Transportation Market Size, Share, Growth Analysis, By Distribution Channel(Online and Offline), By Model Type(Road, Rail, Water, and Cab Car), By Region - Industry Forecast 2024-2031

Global Public Transportation Market size was valued at USD 218.19 billion in 2022 and is poised to grow from USD 247.14 billion in 2023 to USD 652.37 billion by 2031, growing at a CAGR of 12.90% during the forecast period (2024-2031).

Increasing congestion in urban areas is the prime factor boosting demand for public transportation all over the world. Growing focus on reducing emissions and improving the overall mobility of people are also estimated to favor public transportation market growth over the coming years. Public transportation includes buses, trams, subways, trains, etc. that provide affordable transport for people.

Sustainable urban development plans and efforts to reduce traffic congestion in populated parts of the world are also slated to boost the public transportation demand outlook. Prioritization of public transportation by governments around the world will also play a crucial role in the future public transportation market development. Efforts to reduce reliance on private vehicles will also uplift public transportation demand.

The development of advanced electric buses and trains, the integration of smart ticketing systems, and the high availability of convenient public transport solutions are other factors that could create new opportunities for public transportation providers. Reduced public transportation costs could also attract commuters toward public transportation.

Contrastingly, budgetary constraints and maintenance issues act as major restraints for the overall market growth in the long term. Moreover, unforeseen and unpredicted events such as the COVID-19 pandemic also hinder public transportation market potential. The evolving needs of public transportation in urban as well as rural settings coupled with increased focus on sustainability is estimated to boost public transportation demand in the future.