The global public transportation market was valued at USD 220.42 Billion in 2024. The market is expected to grow at a CAGR of 7.80% during the forecast period of 2025-2034 to reach a value of USD 467.13 Billion by 2034. The market growth is primarily driven by the increasing efforts and investments by the government in the development of public transportation infrastructure.
One notable example is that in 2024, the US Department of Transportation Federal Transit Administration (FTA) allocated USD 20.5 billion in federal funding to carry out transit projects across the US. Another such instance is that from March 2024, when the U.S. proposed nearly USD 4 billion in federal funding under the FY 2025 budget for 14 major rail and BRT projects across 11 states.
Furthermore, governments are launching smart transportation initiatives to modernise infrastructure and are incentivising private participation to upgrade fleets. With the integration of privately operated buses, the government is expanding the reach of public transport while improving regulatory control over service quality and passenger safety. One prime example of this is the introduction of Majhi Bus, a digital public transport system initiative aimed at modernising public transportation across the state of Goa. Launched in June 2025, it offers Rs.3/- per km as a subsidy and technical upgrades to encourage private bus operators to participate.
Meanwhile, the road transport segment continues to demonstrate strong growth within the global public transportation market, driven by its wide geographic reach. Buses, minibuses, and BRT systems are essential for connecting both densely populated urban centres and remote rural areas, especially where rail infrastructure is limited. Governments and private players are increasingly investing in road-based transit through initiatives like cleaner fleets, dedicated bus corridors, and rural service enhancement. A notable example is the SR400 Express Lane project in Atlanta, Georgia, where in August 2024, ACS Group, Acciona, and Meridiam were selected to finance, build, and operate a 25+ km managed lane system. This initiative demonstrates the segment’s role in expanding capacity and easing congestion in high-growth urban corridors.
On the other hand, the offline booking channel segment is showcasing gradual growth as many commuters still prefer booking tickets from ticket counters or authorized agents due to lack of digital literacy and trust issues with online payment methods. Offline channels remain a suitable option for elderly and low-income public transport users. Additionally, in remote locations with limited access to the internet and smartphones, people entirely rely on offline booking methods as a dependable means of securing travel tickets, thereby ensuring steady growth within the segment.
Meanwhile, the MEA is the fastest growing region in the global public transportation market, demonstrating 8.1% CAGR through 2034, as the region is undergoing massive urban mobility transformation. The is a rising need for intelligent movement that leverages data analytics from GPS and dashboard systems to provide seamless passenger experience.
Additionally, the heightened focus on development of forward-thinking urban transport system aligning with modern infrastructure across the Middle Eastern countries further boosts industry growth. For instance, Jeddah Transport Company partnered with the Saudi Public Transport Company to launch the expansion of its public transport system which includes 91 new buses with three fully electric models, and six new bus routes.
Key strategies involve the deployment of real-time tracking systems, automated fare collection, contactless ticketing, and data-driven route optimization. Operators are also focusing on integrated mobility platforms that unify various transport modes under one digital interface. These technological advancements are improving system responsiveness, optimizing resource allocation, and ensuring public transit remains a competitive, accessible, and sustainable choice in fast-growing urban areas.
Other players in the global public transportation market include BC Transit Corporation, The Brussels Transport Company, Transport International Holding Limited, TOBU RAILWAY Co. LTD, Berliner Verkehrsbetriebe, and Southern California Regional Rail Authority, among others.
Key Market Trends and Insights:
- The Asia Pacific public transportation market dominated the market in 2024 and is projected to grow at a CAGR of 8.7% over the forecast period.
- By country, India is expected to grow at a CAGR of 8.9% over the forecast period.
- By type, the rail segment is projected to witness a CAGR of 8.9% over the forecast period.
- By booking, the online public transportation booking category is expected to register the fastest growth at 9.4% CAGR over the forecast period.
Market Size & Forecast:
- Market Size in 2024: USD 220.42 Billion
- Projected Market Size in 2034: USD 467.13 Billion
- CAGR from 2025 to 2034: 7.80%
- Fastest-Growing Regional Market: Asia Pacific
One notable example is that in 2024, the US Department of Transportation Federal Transit Administration (FTA) allocated USD 20.5 billion in federal funding to carry out transit projects across the US. Another such instance is that from March 2024, when the U.S. proposed nearly USD 4 billion in federal funding under the FY 2025 budget for 14 major rail and BRT projects across 11 states.
Furthermore, governments are launching smart transportation initiatives to modernise infrastructure and are incentivising private participation to upgrade fleets. With the integration of privately operated buses, the government is expanding the reach of public transport while improving regulatory control over service quality and passenger safety. One prime example of this is the introduction of Majhi Bus, a digital public transport system initiative aimed at modernising public transportation across the state of Goa. Launched in June 2025, it offers Rs.3/- per km as a subsidy and technical upgrades to encourage private bus operators to participate.
Key Trends and Recent Developments
April 2025
JBM Electric Vehicles, a prominent electric bus OEM serving across APAC, Middle east and Europe, and Hitachi ZeroCarbon partnered to integrate ZeroCarbon BatteryManager into electric buses in India. Through this collaboration, the firms combined their skills and expertise to provide cost-effective and resilient electrified transport suitable for the high-demand urban environment.September 2024
PhoenixEV, a commercial electric vehicle (EV) developer, became a member in the American Public Transportation Association (APTA), the largest public transportation association in North America, to advance sustainable transportation solutions. With this membership, the firm could access the industry leaders' network, advocacy resources, and collaboration opportunities in the global public transportation market.May 2025
Uber partnered with Pony AI, the China-based robotaxi developer, to deploy the latter's vehicles onto its ride-hailing platform. This partnership strengthened Uber’s presence in the trending robotaxi sector across key economies of the Middle East and gradually into more international markets.July 2024
FAIRTIQ, a Swiss based mobile ticketing app, collaborated with seven transport companies in Ticino, namely ABL, AMSA, ARL, FART, FLP, SNL, and TPL, to simplify and enhance travelling experience. With this collaboration the company aimed to innovative the public transport ticketing in southern Switzerland while improving connectivity with neighboring Italy.Rapid urbanization and population growth surging the need for efficient public transportation systems
Key economies are becoming densely populated due to the rapid shift of residence of the human population from rural to urban areas, driving the demand for affordable and efficient public transportation. According to the Untied Nation, around 68% of the world population will live in urban areas by 2050. These numbers indicate the growing need for public transport systems as a scalable alternative to private vehicles which can help reduce traffic congestion and commute times. Additionally, governments and urban planners are investing in the development of metro, bus, and rail networks to address the commuting needs of expanding city populations, thereby propelling the global public transportation market revenue.Shift towards zero-emission mobility solutions
The ongoing efforts to deploy zero-emissions mobility solutions are driving global public transportation market growth. Hydrogen fuel cell technology has become a key enabler due to its high energy density and long-range capacity for rapid refueling, favoring its application for heavy-duty transportation models. Over 30 countries implemented hydrogen roadmaps with planned investments of over USD 570 billion. Growing policy support is encouraging OEMs and transit agencies to adopt hydrogen-powered public vehicles, further boosting market growth. For instance, in August 2024, Hexagon Purus partnered with GILLIG, to supply hydrogen fuel storage systems for fuel cell transit buses, showcasing hydrogen’s growing role in sustainable public transport.Environmental concerns and emission reduction targets
Globally rising concerns related to air pollution and climatic changes have placed public transportation at the center of efforts to achieve low-emission and sustainable urban mobility. Private and public organizations are focused on drastically reducing emissions and congestion to support the shift towards sustainable transportation. These efforts are being actively implemented in the European countries, responding to which in February 2023, UITP launched eBRT2030, a European Union initiative to support sustainable urban transport by proposing modern solutions for electric Bus Rapid Transit. Such initiatives are fueling the global public transportation market revenue.Technological Advancements in Smart Mobility and Transit Systems
The emergence of smart mobility and transit systems has transformed public transportation by making it more accessible and sustainable. Innovations like automated fare collection, AI-powered route optimization, and real-time tracking enhance the overall passenger experience and operational efficiency. Moreover, unique technologies like robo-taxis are gaining significant traction for their on-demand, autonomous, transport solutions that align with smart city goals. For instance, in May 2025, WeRide and Uber expanded their strategic partnership with plans to include 15 additional cities within the next five years. With these partnerships, the companies advanced their shared goal of making autonomous mobility a global reality. Such initiatives are propelling global public transportation market growth forward.Expansion of metro, light rail, and BRT systems to improve last-mile connectivity
Ongoing projects for expansion of metro, light rail, and bus rapid transit (BRT) systems to improve last-mile connectivity are majorly driving global public transportation market growth. Urban centers are increasingly investing in high-capacity, rapid transit solutions to reduce road congestion, enhance commuter convenience, and support sustainable mobility. Additionally, these systems address environmental concerns by shifting reliance away from private vehicles. To cite an instance, Mumbai inaugurated Phase 1 of its first underground Metro Line 3 on October 5, 2024. Backed by JICA, the line will serve 1.5 million passengers daily and cut CO₂ emissions by over 260,000 tons a year.Global Public Transportation Industry Segmentation
The report titled “Global Public Transportation Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:Market Breakup by Type
- Rail
- Road
- Others
Market Breakup by Booking Channel
- Online
- Offline
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Global Public Transportation Market Share
By type, rail segment captures the largest market revenue
Based on type, the rail segment accounts for the highest share in the global public transportation industry. The segment is set to witness significant growth at 8.9% CAGR from 2025 to 2034, driven by the expansion of urban rail systems such as metro, suburban rail, and light rail in densely populated regions. To address traffic congestion and reduce carbon emissions, governments are investing heavily in rail infrastructure, supported by international funding, to create seamless and sustainable transit networks. For instance, in July 2025, Germany announced investment plans of €106.5 billion in railway infrastructure under its 5-year program accounting for 64% of its total national transport budget. Additionally, rails offer lower travel costs and integration with multimodal hubs, contributing to its increasing preference among commuters, especially in fast-growing economies.Meanwhile, the road transport segment continues to demonstrate strong growth within the global public transportation market, driven by its wide geographic reach. Buses, minibuses, and BRT systems are essential for connecting both densely populated urban centres and remote rural areas, especially where rail infrastructure is limited. Governments and private players are increasingly investing in road-based transit through initiatives like cleaner fleets, dedicated bus corridors, and rural service enhancement. A notable example is the SR400 Express Lane project in Atlanta, Georgia, where in August 2024, ACS Group, Acciona, and Meridiam were selected to finance, build, and operate a 25+ km managed lane system. This initiative demonstrates the segment’s role in expanding capacity and easing congestion in high-growth urban corridors.
Online booking channel accounts for the largest market share
The online booking channel has amassed the largest share in the global public transportation market and is set to expand at a 9.4% growth rate through 2034. The segment growth is attributed to the widespread internet penetration and adoption of smartphones which has made ticket booking convenient and affordable. This shift is further supported by the development and introduction of user-friendly applications and websites that provide real-time updates and suggest the best public transportation option to reach the destination. For instance, in January 2025, authorities implemented a unified ticket system in the Mumbai Metropolitan Region of India, enabling commuters to access trains, metros, buses, and taxis with a single app or card.On the other hand, the offline booking channel segment is showcasing gradual growth as many commuters still prefer booking tickets from ticket counters or authorized agents due to lack of digital literacy and trust issues with online payment methods. Offline channels remain a suitable option for elderly and low-income public transport users. Additionally, in remote locations with limited access to the internet and smartphones, people entirely rely on offline booking methods as a dependable means of securing travel tickets, thereby ensuring steady growth within the segment.
Global Public Transportation Market Regional Analysis
By region, Asia Pacific dominates the market growth
APAC has emerged as the dominant region in the global public transportation industry growth showcasing an 8.7% growth rate through 2025-2034, mainly due to the rapidly rising population in the urban areas spurring significant government investments in public transportation infrastructure. According to the Ministry of Transport, in 2023, China reported an average daily investment of USD 1.47 billion in transport infrastructure. These infrastructure projects are supported by sustainability goals and public-private partnerships, contributing to the increasing adoption of modern transit systems and urban mobility in the region.Meanwhile, the MEA is the fastest growing region in the global public transportation market, demonstrating 8.1% CAGR through 2034, as the region is undergoing massive urban mobility transformation. The is a rising need for intelligent movement that leverages data analytics from GPS and dashboard systems to provide seamless passenger experience.
Additionally, the heightened focus on development of forward-thinking urban transport system aligning with modern infrastructure across the Middle Eastern countries further boosts industry growth. For instance, Jeddah Transport Company partnered with the Saudi Public Transport Company to launch the expansion of its public transport system which includes 91 new buses with three fully electric models, and six new bus routes.
Competitive Landscape
The key companies in the public transportation sector include East Japan Railway Company, BC Transit Corporation, Mass Transit Railway (MTR), Metropolitan Transportation Authority, The Brussels Transport Company, Transport International Holding Limited, TOBU RAILWAY Co. LTD., Deutsche Bahn, Berliner Verkehrsbetriebe, Southern California Regional Rail Authority, and others. These market players are increasingly investing in digital transformation and smart mobility solutions to enhance passenger experience and operational efficiency.Key strategies involve the deployment of real-time tracking systems, automated fare collection, contactless ticketing, and data-driven route optimization. Operators are also focusing on integrated mobility platforms that unify various transport modes under one digital interface. These technological advancements are improving system responsiveness, optimizing resource allocation, and ensuring public transit remains a competitive, accessible, and sustainable choice in fast-growing urban areas.
East Japan Railway Company
East Japan Railway Company, established in 1987 and headquartered in Tokyo, Japan, is one of the world’s largest passenger railway operators, serving the eastern Honshu region, including the Tokyo metropolitan area. It operates regional rail services, high-speed Shinkansen, and commuter trains. JR East also provides station retail, lifestyle services, and smart transit solutions through its IC card system.Mass Transit Railway (MTR)
Mass Transit Railway (MTR), established in 1975 and headquartered in Hong Kong, operates Hong Kong’s integrated rail network, including heavy rail, light rail, and airport express services. It also manages metro systems in cities like London, Stockholm, and Sydney. MTR offers real estate development around stations and smart mobility solutions, blending transportation with urban planning.Deutsche Bahn
Deutsche Bahn, established in 1994 and headquartered in Berlin, Germany, is the country’s national railway company and one of the largest logistics providers in Europe. It offers long-distance, regional, and urban passenger transport through services like ICE and DB Regio, as well as freight solutions via DB Cargo. DB also provides digital ticketing, smart mobility platforms, and infrastructure management.Metropolitan Transportation Authority
The Metropolitan Transportation Authority (MTA), established in 1965 and headquartered in New York City, USA, is the largest public transit provider in the United States, serving New York City and surrounding areas. It operates subways, buses, commuter rails (Metro-North and LIRR), and paratransit services. MTA also offers contactless payment options and is focused on infrastructure modernization and accessibility.Other players in the global public transportation market include BC Transit Corporation, The Brussels Transport Company, Transport International Holding Limited, TOBU RAILWAY Co. LTD, Berliner Verkehrsbetriebe, and Southern California Regional Rail Authority, among others.
Key Highlights of the global public transportation market report:
- Historical performance and accurate forecasts through 2034, providing data-backed insights into market shifts and long-term trends.
- Insights into product innovations such as electric buses, hydrogen fuel technologies, and autonomous transit solutions reshaping the mobility landscape.
- In-depth competitive landscape, profiling leading domestic and international public transit operators and technology enablers.
- Regional analysis identifying emerging opportunities, urbanization trends, and investment hotspots across APAC, Europe, North America, and MEA.
- Investment-focused outlook, supported by market data, funding developments, and public-private partnership strategies to drive growth.
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Global Public Transportation Market Analysis
6 North America Public Transportation Market Analysis
7 Europe Public Transportation Market Analysis
8 Asia Pacific Public Transportation Market Analysis
9 Latin America Public Transportation Market Analysis
10 Middle East and Africa Public Transportation Market Analysis
11 Market Dynamics
12 Competitive Landscape
Companies Mentioned
- East Japan Railway Company
- BC Transit Corporation
- Mass Transit Railway (MTR)
- Metropolitan Transportation Authority
- The Brussels Transport Company
- Transport International Holding Limited
- TOBU RAILWAY Co. LTD.
- Deutsche Bahn
- Berliner Verkehrsbetriebe
- Southern California Regional Rail Authority
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 166 |
| Published | October 2025 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value ( USD | $ 220.42 Billion |
| Forecasted Market Value ( USD | $ 467.13 Billion |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
