Public Transportation Market Forecast Trends and Growth – GlobeNewswire

Global Public Transportation Market Report: 2025-2034

Executive Summary: Market Growth and Sustainable Development Goals

The global public transportation market, valued at USD 220.42 billion in 2024, is projected to reach USD 467.13 billion by 2034, expanding at a Compound Annual Growth Rate (CAGR) of 7.80%. This growth is intrinsically linked to the global pursuit of the United Nations Sustainable Development Goals (SDGs). Investments in public transit are critical for achieving SDG 11 (Sustainable Cities and Communities) by providing accessible and sustainable transport systems, advancing SDG 13 (Climate Action) through emission reductions, and fostering SDG 9 (Industry, Innovation, and Infrastructure) by modernizing urban infrastructure.

Market Drivers and Alignment with Sustainable Development Goals

Government Investment in Sustainable Infrastructure (SDG 9 & SDG 11)

Government-led investments are a primary catalyst for market growth, directly supporting SDG 9 by building resilient infrastructure. These initiatives aim to modernize and expand transit networks to create inclusive and sustainable urban environments, a core target of SDG 11.

• In 2024, the U.S. Department of Transportation Federal Transit Administration (FTA) allocated USD 20.5 billion for transit projects across the nation.
• The U.S. FY 2025 budget proposed nearly USD 4 billion for 14 major rail and Bus Rapid Transit (BRT) projects, enhancing access to sustainable transport.
• Public-private partnerships, such as Goa’s ‘Majhi Bus’ initiative, are expanding transport reach and improving service quality, contributing to safer and more accessible cities.

Rapid Urbanization and the Need for Inclusive Transit (SDG 11)

The global shift towards urban living, with the United Nations projecting that 68% of the world’s population will reside in urban areas by 2050, intensifies the need for efficient public transportation. This trend directly addresses SDG Target 11.2, which calls for providing access to safe, affordable, accessible, and sustainable transport systems for all. Expanding metro, bus, and rail networks is essential to manage congestion and meet the commuting demands of growing city populations sustainably.

Transition to Zero-Emission Mobility (SDG 7, SDG 11, & SDG 13)

The market is increasingly driven by a shift towards zero-emission solutions, a critical strategy for achieving multiple SDGs.

1. SDG 13 (Climate Action): Adopting electric and hydrogen-powered vehicles drastically reduces greenhouse gas emissions from the transport sector.
2. SDG 7 (Affordable and Clean Energy): The use of hydrogen fuel cells and electric batteries promotes the transition to cleaner energy sources.
3. SDG 11 (Sustainable Cities and Communities): Zero-emission transit reduces urban air pollution, improving public health and making cities more livable.

Policy support is accelerating this transition, with over 30 countries implementing hydrogen roadmaps backed by over USD 570 billion in planned investments. The partnership between Hexagon Purus and GILLIG to supply hydrogen fuel storage systems for transit buses exemplifies this trend.

Technological Innovation for Smart and Sustainable Mobility (SDG 9)

Technological advancements are transforming public transport, aligning with SDG 9’s focus on innovation. Smart mobility solutions enhance efficiency, accessibility, and the user experience.

• Automated fare collection and contactless ticketing improve accessibility.
• AI-powered route optimization and real-time tracking enhance operational efficiency.
• The emergence of autonomous solutions, such as the WeRide and Uber partnership to expand robo-taxi services, points toward a future of on-demand, sustainable urban mobility.

Market Forecast and Key Metrics

Financial Outlook: 2024-2034

• Market Value (2024): USD 220.42 Billion
• Projected Market Value (2034): USD 467.13 Billion
• CAGR (2025-2034): 7.80%

Regional and Segmental Projections

• Dominant Region: The Asia Pacific market led in 2024 and is forecast to grow at a CAGR of 8.7%.
• Fastest-Growing Country: India is expected to see a CAGR of 8.9%.
• Fastest-Growing Segment (Type): The rail segment is projected to grow at a CAGR of 8.9%.
• Fastest-Growing Segment (Booking): Online booking is anticipated to grow at a CAGR of 9.4%.

Competitive Landscape: Key Operators and SDG Contributions

Leading companies in the public transportation sector are actively contributing to sustainable urban development through innovation and infrastructure modernization.

Major Market Players

• East Japan Railway Company: A major passenger railway operator in Japan, advancing efficient and high-capacity transit solutions in the Tokyo metropolitan area.
• Mass Transit Railway (MTR): Operates integrated rail networks in Hong Kong and other global cities, blending transportation with sustainable urban planning.
• Deutsche Bahn: Germany’s national railway company, providing extensive passenger and freight services while investing in digital and smart mobility platforms.
• Metropolitan Transportation Authority (MTA): The largest public transit provider in the United States, focused on modernizing infrastructure to serve the New York metropolitan area.

Other Notable Companies

• BC Transit Corporation
• The Brussels Transport Company
• Transport International Holding Limited
• TOBU RAILWAY Co. LTD.
• Berliner Verkehrsbetriebe
• Southern California Regional Rail Authority

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the public transportation market highlights issues and initiatives that are directly connected to several Sustainable Development Goals (SDGs). The primary focus on infrastructure development, sustainable urban living, climate action, and innovation links the article’s content to the following SDGs:

• SDG 9: Industry, Innovation and Infrastructure: The article extensively discusses government and private investments in developing and modernizing public transportation infrastructure, including metro rail, electric buses, and BRT corridors. It also highlights technological advancements like smart mobility, AI-powered optimization, and autonomous vehicles.
• SDG 11: Sustainable Cities and Communities: The core theme of the article is improving public transportation to manage rapid urbanization, reduce traffic congestion, and enhance commuter convenience in densely populated urban areas. This directly supports the goal of making cities inclusive, safe, resilient, and sustainable.
• SDG 13: Climate Action: A significant driver for the market’s growth, as mentioned in the article, is the global concern for air pollution and climate change. The shift towards zero-emission mobility, hydrogen fuel cell technology, and electric buses are key strategies discussed to reduce emissions and achieve sustainable urban mobility.
• SDG 7: Affordable and Clean Energy: The article’s emphasis on the transition to hydrogen fuel cell technology and electric bus fleets connects to the goal of increasing the share of clean and renewable energy sources in the global energy mix, particularly within the transport sector.
• SDG 17: Partnerships for the Goals: The article mentions the role of public-private partnerships (PPPs) in upgrading fleets and expanding transport networks. It provides examples of governments incentivizing private operators and strategic partnerships between technology companies to advance mobility solutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s discussion of market drivers and trends, several specific SDG targets can be identified:

1. Target 11.2: By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons.
   • Explanation: The article directly addresses this target by describing the massive expansion of public transport systems like metro, light rail, and BRT to manage growing urban populations and improve accessibility and last-mile connectivity. The goal is to create an efficient, affordable alternative to private vehicles.
2. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
   • Explanation: The article highlights significant government investments, such as the USD 20.5 billion allocated by the US FTA, for large-scale transit projects. This funding is aimed at developing and modernizing infrastructure to be more sustainable and efficient, which is the core of this target.
3. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • Explanation: The article states that governments and organizations are actively implementing efforts to achieve low-emission mobility in response to climate concerns. The launch of initiatives like the European Union’s eBRT2030 and the implementation of hydrogen roadmaps in over 30 countries are examples of climate action being integrated into transport policy.
4. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • Explanation: The push towards “zero-emission mobility solutions” described in the article, particularly the adoption of hydrogen fuel cell technology and electric buses, directly contributes to increasing the share of clean energy in the transportation sector.
5. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.
   • Explanation: The article provides a clear example of this target with the “Majhi Bus” initiative in Goa, where the government incentivizes private bus operators to participate in a modernized public transport system. The partnership between WeRide and Uber to expand autonomous mobility is another instance of a private-private partnership contributing to shared transportation goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article contains several quantitative and qualitative indicators that can be used to measure progress towards the identified SDG targets:

• Financial Investment in Infrastructure (Indicator for Target 9.1): The article provides specific figures on investments, such as the “USD 20.5 billion in federal funding” from the US FTA and the “nearly USD 4 billion” proposed for 14 major projects. These figures serve as direct indicators of financial commitment to developing sustainable infrastructure.
• Market Growth and Size (Indicator for Target 9.1): The projected growth of the public transportation market from “USD 220.42 Billion in 2024” to “USD 467.13 Billion by 2034” indicates the scale of development and expansion in the sector.
• Adoption of Clean Energy Technologies (Indicator for Targets 7.2 and 13.2): The article points to the implementation of “hydrogen roadmaps” in “over 30 countries” with planned investments of “over USD 570 billion.” The mention of partnerships to supply hydrogen fuel storage systems and the launch of initiatives like “eBRT2030” for electric buses are qualitative indicators of the shift towards cleaner energy and climate action.
• Expansion of Public Transit Networks (Indicator for Target 11.2): The article describes the “expansion of metro, light rail, and BRT systems” as a major market driver. While it doesn’t quantify the miles of track laid or the number of new bus routes, it clearly indicates that progress is measured by the physical expansion of these networks to improve connectivity.
• Formation of Public-Private Partnerships (Indicator for Target 17.17): The article cites specific examples of partnerships, such as the “Majhi Bus” initiative and the collaboration between “WeRide and Uber.” The existence and success of such programs serve as a qualitative indicator of progress in fostering multi-stakeholder partnerships.

4. Summary Table of SDGs, Targets, and Indicators

Source: globenewswire.com