Public Transport ITS in Europe and North America 9th Edition

Public Transport ITS in Europe and North America 9th Edition

Public Transport ITS in Europe and North America is the ninth consecutive report from Berg Insight analysing the latest developments on the intelligent transportation systems market for public transport in these two regions. This strategic research report from Berg Insight provides you with 290 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

Public Transport ITS in Europe and North America 9th Edition

The term Intelligent Transport Systems (ITS) refers to information and communications technology applied to transport infrastructure and vehicles. Berg Insight’s definition of ITS for public 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 public transport services can be planned, scheduled and managed to achieve efficient operations. An important part of ITS for public transport is further solutions providing travellers with updated information about routes, departure times, possible disturbances and connecting services. The history of these different types of solutions dates back several decades and current state-of-the-art solutions include for example real-time intermodal and multi-operator journey planners, automated fare collection systems using contactless cards or NFC-enabled handsets for account-based ticketing, and advanced mobility analytics software.

Public transport plays an increasingly important role in societies as a result of continuing population growth in cities and shifting consumer preferences. Approximately 60 billion and 12 billion public transport passenger journeys were carried out in Europe and North America respectively each year before the COVID-19 pandemic. During the pandemic, the numbers dropped significantly and had not recovered entirely by H2-2023. Available transport modes include for example local and regional buses and trolleybuses, regional and suburban rail transport, metros and trams, and local waterborne passenger transport services. In 2021, the number of registered buses and coaches in Europe and North America reached 0.86 million vehicles and 1.0 million vehicles respectively. The economic value of public transport services in Europe is estimated to around € 145–155 billion per year, while the corresponding number in North America is around € 80–90 billion.

Berg Insight is of the opinion that the market for ITS in public transport will continue to grow in the coming years. Challenges such as urbanisation, climate change and traffic congestion continue to spur investments in public transport ITS, contributing to a positive market situation. Individual markets may however experience temporary fluctuations depending on the political climate, austerity measures and local developments. The total market value of public transport ITS for buses and trams in Europe is forecasted to grow at a compound annual growth rate (CAGR) of 6.3 percent from € 2.15 billion in 2022 to reach € 2.92 billion by 2027. The penetration of on-board computers with GPS location functionality and wireless communications in buses and trams in Europe is estimated to increase from 91.0 percent in 2022 to 94.1 percent in 2027, however varying considerably between regional markets. In North America, the total market value of public transport ITS is forecasted to grow at a CAGR of 8.8 percent from € 0.88 billion in 2022 to reach € 1.34 billion in 2027 and the penetration rate is estimated to increase from 92.5percent in 2022 to 97.7 percent in 2027.

A group of international aftermarket solution providers have emerged as leaders on the marketfor public transport ITS. Major providers across Europe and North America include CanadabasedTrapeze Group and Germany-based INIT with significant installed bases in both regions.Clever Devices and Conduent hold leading positions on the North American public transport ITSmarket, and the latter is also an international provider of fare collection systems. Additionalcompanies with major market shares in North America include Cubic Transportation Systemsand Avail Technologies. Siemens Mobility is also a prominent vendor of software in both Europeand North America. Examples of companies with major market shares on national markets inEurope include Equans and RATP Smart Systems which hold leading positions in France. VixTechnology, Flowbird and Ticketer are moreover major providers on the UK market, while IVU isa dominant player in the German-speaking part of Europe. Other significant players include theSpanish groups GMV, Indra and Grupo ETRA; French Thales; Atron in Germany; ScandinavianFARA, Pilotfish and Consat Telematics; and the Austria-based companies Swarco and KontronTransportation. Volvo Group and Daimler are moreover notable players from the vehicle OEMsegment, while companies such as Scania, Iveco, Gillig and New Flyer also offer someconventional OEM telematics features for their buses.

The outlook for the public transport ITS market is positive, as several major developments encourage increased investments in such technologies. The ITS market is likely positively affected by international public transport-related initiatives such as the ITxPT Association as well as APTA’s standards programs for public transport vehicles and ITS. The development of ITS has in recent years focused on increasing the level of integration and utilising technology advancements for fare collection purposes. Standardisation efforts are beginning to yield results as an increasing number of market players choose to comply with them and procuring organisations see the benefits in the form of lower costs. Another major driver is the ongoing global developments related to the concept of smart cities, where ITS in general and public transport ITS in particular constitute key elements to enable sustainable smart mobility.