On schedule: Falling unemployment rates and continued government support will benefit industry operators

The Public Transportation industry performed well over the five years to 2017. Fare increases across major lines have helped spur an increase in fare-generated revenue. However, ridership slightly decreased since 2012 as cheap gas prices, a strong economy and new alternatives have made private transportation more affordable. Over the next five years, the industry is anticipated to perform admirably. Positive trends that benefited industry operators over the previous five years are projected to continue helping public transportation operators. Continued government support, indicated by increasing federal funds for transportation, will help keep revenue growth stable...purchase to read more.

Industry Statistics & Market Size
Revenue
$72bn
Annual Growth 12-17
2.6%
Forecast Growth 17-22
Profit
Employment
419,973
Businesses
6,970

Industry Threats & Opportunities

  • Government subsidies and rising commuter activity will lead to stable revenue growth
  • Government subsidies and funding for transportation remained strong
  • Public transportation is a driver of economic growth
  • Industry Report - Industry Investment Chapter

    The Public Transportation industry has a high level of capital intensity. Companies in the industry must invest in trains, buses, railways and power supplies, among other capital equipment. Industry operators typically allocate $0.34 of capital for every dollar of labor. Over the past five years, capital intensity has increased slightly as capital investment has increased at a faster rate than revenue. Industry operators are continually updating and replacing fleets to keep operations running smoothly. Wages also remain an important cost as employees are needed to operate vehicles for public transportation.Labor expenses include wages, salaries and benefits paid to drivers, mechanics, cleaners and administrative staff. In ...purchase to read more.

    Additional Insights for the Public Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Public Transportation Industry are

  • Maintenance of excellent customer relations
  • Must comply with government regulations
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Urban population in the Public Transportation industry impact industry performance..

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    What's in this report

    What is the Public Transportation Industry?

    Public transportation agencies primarily operate regional passenger transportation systems with regular routes and fixed schedules. The industry does not include taxis and limousines (IBISWorld report 48533), charter buses (48522), ferry boats (48311) or school and employee buses (48541).

    Industry Products
  • Bus
  • Commuter Rail
  • Heavy Rail
  • Light-rail
  • Industry Activities
  • Operating heavy rail systems (e.g. metro, subway, rapid transit or rapid rail)
  • Operating light rail systems (e.g. streetcar, tramway or trolley)
  • Operating cable car systems
  • Operating monorail transit systems
  • Operating tramway systems
  • Operating commuter transit systems
  • Operating suburban and urban bus services
  • Operating commuter and local bus operations
  • Operating suburban and urban transit systems
  • Operating mixed mode transit systems (e.g. bus, commuter rail and subway combinations)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for transportation
  • Urban population
  • National unemployment rate
  • World price of crude oil
  • Domestic trips by US residents

  • Current Performance
  • Federal funding
  • Ridership trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Broad economic impact
  • Urban growth
  • Green technology
  • Travel time
  • Table: Public Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Public Transportation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Fuel Dealers
  • Rail Maintenance Services
  • Train, Subway & Transit Car Manufacturing
  • Truck & Bus Manufacturing
  • Truck, Trailer & Motor Home Manufacturing

  • Products & Services
  • Bus
  • Heavy Rail
  • Commuter Rail
  • Light-rail
  • Other
  • Chart: Public Transportation Industry Products and Services Segmentation

  • Demand Determinants
  • Population change
  • Income distribution and economic growth
  • Consumer preferences
  • Federal funding

  • Major Markets
  • Passengers aged 25 to 34
  • Passengers aged 35 to 44
  • Passengers aged under 25
  • Passengers aged 45 to 54
  • Passengers aged 55 to 64
  • Passengers aged 65 and older
  • Chart: Major Market Segmentation for the Public Transportation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Public Transportation

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Public Transportation Industry

  • Industry Globalization
    The Metropolitan Transportation Authority, Los Angeles County Metropolitan Transportation Authority,
  • Table: The Metropolitan Transportation Authority - financial performance
  • Table: Los Angeles County Metropolitan Transportation Authority - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Public Transportation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Public Transportation Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal Funding for Transportation (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Heavy Rail
  • A mode of transit service often referred to as a metro, subway, rapid transit or rapid rail system.
  • Light-Rail
  • A streetcar, tramway or trolley that travels on fixed rails and is often separated from other traffic for part or much of the way.
  • Trolley Bus
  • A mode of transit service that uses vehicles propelled by a motor that is powered by overhead electrical wires.
  • Unlinked Passenger Trips
  • The number of times passengers board public transit vehicles. Passengers are counted each time they board a vehicle, regardless of the number of vehicles that are used for each trip.
  • Vanpool
  • A prearranged ridesharing program that uses vans and small buses to provide round trip transportation service between prearranged boarding points and a common destination.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Public Transportation contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Public Transportation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Public Transportation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Public Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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