Public Transport ITS in Europe and North America – 8th Edition

Public Transport ITS in Europe and North America 8th Edition

Public Transport ITS in Europe and North America is theeighth consecutive report from Berg Insight analysing the latestdevelopments on the intelligent transportation systems market forpublic transport in these two regions. This strategic research reportfrom Berg Insight provides you with 320 pages of unique businessintelligence, including 5-year industry forecasts, expert commentaryand real-life case studies on which to base your business decisions.

Public Transport ITS in Europe and North America – 8th Edition

The term Intelligent Transport Systems (ITS) refers to information and communicationstechnology applied to transport infrastructure and vehicles. Berg Insight’s definition of ITS forpublic transport includes systems installed in public transport vehicles as well as at terminals,stops, depots and similar. Included are also back-office IT systems which ensure that publictransport services can be planned, scheduled and managed to achieve efficient operations. Animportant part of ITS for public transport is further solutions providing travellers with updatedinformation about routes, departure times, possible disturbances and connecting services. Thehistory of these different types of solutions dates back several decades and currentstate-of-the-art solutions include for example real-time intermodal and multi-operator journeyplanners, automated fare collection systems using contactless cards or NFC-enabled handsetsfor account-based ticketing, and advanced mobility analytics software.

Public transport plays an increasingly important role in societies as a result of continuingpopulation growth in cities and shifting consumer preferences. Approximately 60 billion and 12billion public transport passenger journeys were carried out in Europe and North Americarespectively each year before the COVID-19 pandemic. During the pandemic, the numbersdropped significantly and had not recovered entirely by H1-2022. Available transport modesinclude for example local and regional buses and trolleybuses, regional and suburban railtransport, metros and trams, and local waterborne passenger transport services. In 2020, thenumber of registered buses and coaches in Europe and North America reached 0.82 millionvehicles and 1.1 million vehicles respectively. The economic value of public transport servicesin Europe is estimated to around €_135–145 billion per year, while the corresponding numberin North America is around €_70–80 billion.

Berg Insight is of the opinion that the market for ITS in public transport will continue to grow inthe coming years. Challenges such as urbanisation, climate change and traffic congestioncontinue to spur investments in public transport ITS, contributing to a positive market situation.Individual markets may however experience temporary fluctuations depending on the politicalclimate, austerity measures and local developments. The total market value of public transportITS for buses and trams in Europe is forecasted to grow at a compound annual growth rate(CAGR) of 5.8 percent from €_2.12 billion in 2021 to reach €_2.81 billion by 2026. Thepenetration of on-board computers with GPS location functionality and wirelesscommunications in buses and trams in Europe is estimated to increase from 91.5 percent in2021 to 95.1 percent in 2026, however varying considerably between regional markets. InNorth America, the total market value of public transport ITS is forecasted to grow at a CAGR of8.1 percent from €_0.76 billion in 2021 to reach € 1.12 billion in 2026 and the penetration rate isestimated to increase from 91.4 percent in 2021 to 95.9 percent in 2026.

A group of international aftermarket solution providers have emerged as leaders on the marketfor public transport ITS. Major providers across Europe and North America includeCanada-based Trapeze Group and Germany-based INIT with significant installed bases in bothregions. Clever Devices and Conduent hold leading positions on the North American publictransport ITS market, and the latter is also an international provider of fare collection systems.Additional companies with major market shares in North America include Cubic TransportationSystems and Avail Technologies. Examples of companies with major market shares onnational markets in Europe include EQUANS and RATP Smart Systems which hold leadingpositions in France. Vix Technology, Flowbird and Ticketer are moreover major providers onthe UK market, while IVU is a dominant player in the German-speaking part of Europe. Othersignificant players include the Spanish groups GMV, Indra and Grupo ETRA; French Thales;Atron in Germany; Scandinavian FARA and Consat Telematics; and the Austria-basedcompanies Swarco and Kontron Transportation. Volvo Group and Daimler are moreovernotable players from the vehicle OEM segment, while companies such as Scania, Iveco, Gilligand New Flyer also offer some conventional OEM telematics features for their buses.The outlook for the public transport ITS market is positive, as several major developmentsencourage increased investments in such technologies. The ITS market is likely positivelyaffected by international public transport-related initiatives such as the ITxPT Association aswell as APTA’s standards programs for public transport vehicles and ITS. The development ofITS has in recent years focused on increasing the level of integration and utilising technologyadvancements for fare collection purposes. Another major driver is the ongoing globaldevelopments related to the concept of smart cities, where ITS in general and public transportITS in particular constitute key elements to enable sustainable smart mobility.