Public Transportation in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 48511Revenue
$83.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
383k
Businesses
4,217
Wages
$XX.Xbn
Public Transportation in the US industry analysis
Over the past five years, public transportation services have faced significant fluctuations. The COVID-19 pandemic brought unprecedented challenges, severely reducing ridership as lockdowns and business closures curtailed daily commuting. Government intervention played a critical role in maintaining and revitalizing public transit. The Biden administration's Infrastructure Investment and Jobs Act, signed in 2021, earmarked $1.0 trillion for infrastructure and transportation initiatives over the next decade. Increased federal funding in 2023 helped offset previous declines in economic performance, which cut state budgets and pressured public transport. As the economy recovered, higher disposable income led some commuters to choose premium transport options like Uber and Lyft, particularly in cities with ride-sharing restrictions. Revenue has been declining by a CAGR of 2.5% over the past five years, and is expected to decrease by 2.0%, reaching $83.3 billion in 2024.
Trends and Insights
- COVID-19 caused public transport revenue to cascade. The economic and health crisis required extensive federal aid to prop up the industry, which is an integral part of the overall economy.
- Bus services are widely used and easy to implement. Buses require very little infrastructure and generally run on shared roads with other vehicles.
- Densely populated cities have a greater need for public transportation. High congestion on roads and limited parking space are top reasons for investment in public transportation.
- The public transportation industry has a low level of competition. Government subsidies incentivize public transport operators and prevent competition between service providers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $83.3bn in 2024.
Trends and Insights
Federal funding and expansion programs help offset low economic performance
- Governments help subsidize large-scale public transportation because transit companies provide affordable transportation for the masses, which benefits the general economy and improves living standards for low- to middle-class households. Expansion programs also coincide with revenue increases, as tax initiatives or government grants directly fund the public transportation industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Contractionary monetary policy will threaten public transportation
- Elevated interest rates amid stubborn inflation will pressure the expansion of public transportation. Tighter credit conditions and the US government's skyrocketing treasury yields imply that funding will likely have to moderate because of elevated borrowing costs and the US's sky-high debt level. Consequently, federal funding for transportation is expected to stagnate through the end of 2029.
Biggest companies in the Public Transportation in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Los Angeles County Metropolitan Transportation Authority | 4,002.8 | -5,063.2 | -126.5 | |
Metropolitan Transportation Authority | 2,973.0 | -4,246.8 | -142.8 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Bus, Commuter rail and Heavy rail. Bus is the largest segment of the Public Transportation in the US.
Trends and Insights
Ease of use and low infrastructure requirements boosts bus services
- Buses require limited infrastructure and generally run on shared roads with other vehicles. Cities continue to seek ways to improve bus transportation, primarily related to how buses operate during high-peak hours. New York City has added dedicated bus lanes to make travel faster and more efficient, particularly during high congestion.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Ocean & Coastal Transportation in the US
- Scheduled and Charter Bus Services in the US
- Sightseeing Transportation in the US
Complementors
- Public School Bus Services in the US
International industries
- Public Transportation in Canada
- Urban Bus and Tramway Transport in Australia
- Rail Passenger Transport in Australia
- Rail Transport in New Zealand
- Bus Transport in New Zealand
Table of Contents
About this industry
Industry definition
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) or school and employee buses (48541).
What's included in this industry?
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 systemsOperating monorail transit systems Operating tramway systemsOperating commuter transit systemsOperating suburban and urban bus servicesOperating commuter and local bus operationsOperating suburban and urban transit systemsOperating mixed mode transit systems (e.g. bus, commuter rail and subway combinations)Companies
Los Angeles County Metropolitan Transportation AuthorityMetropolitan Transportation AuthorityPurchase this report to view all 2 major companies in this industry.
Related Terms
UNLINKED PASSENGER TRIPSLIGHT-RAILHEAVY RAILVANPOOLTROLLEY BUSIndustry Code
NAICS 48511 - Public Transportation in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 caused public transport revenue to cascade. The economic and health crisis required extensive federal aid to prop up the industry, which is an integral part of the o...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Bus services are widely used and easy to implement. Buses require very little infrastructure and generally run on shared roads with other vehicles.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Densely populated cities have a greater need for public transportation. High congestion on roads and limited parking space are top reasons for investment in public transporta...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The public transportation industry has a low level of competition. Government subsidies incentivize public transport operators and prevent competition between service provide...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Small companies dominate public transportation, accounting for more than 90.0% of the market share. Government subsidies make public transport primarily dependent on assistan...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Los Angeles County Metropolitan Transportation Authority's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Metropolitan Transportation Authority's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Los Angeles County Metropolitan Transportation Authority, and factors influencing its performance in the industry
- Description and key data for Metropolitan Transportation Authority, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Federal Transit Administration (FTA) is a major regulator in the public transport industry. The FTA regulates the handling of accidents and hazardous conditions while als...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Government assistance boosts profit. Public transportation would not be profitable without government grants, which account for more than half of total operating expenses.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Public Transportation in the US industry in United States in 2024?
The market size of the Public Transportation in the US industry in United States is $83.3bn in 2024.
How many businesses are there in the Public Transportation in the US industry in 2024?
There are 4,217 businesses in the Public Transportation in the US industry in United States, which has grown at a CAGR of 0.2 % between 2019 and 2024.
Has the Public Transportation in the US industry in United States grown or declined over the past 5 years?
The market size of the Public Transportation in the US industry in United States has been declining at a CAGR of 2.5 % between 2019 and 2024.
What is the forecast growth of the Public Transportation in the US industry in United States over the next 5 years?
Over the next five years, the Public Transportation in the US industry in United States is expected to grow.
What are the biggest companies in the Public Transportation in the US market in United States?
The biggest companies operating in the Public Transportation market in United States are Los Angeles County Metropolitan Transportation Authority and Metropolitan Transportation Authority
What does the Public Transportation in the US in United States include?
Operating heavy rail systems (e.g. metro, subway, rapid transit or rapid rail) and Operating light rail systems (e.g. streetcar, tramway or trolley) are part of the Public Transportation in the US industry.
Which companies have the highest market share in the Public Transportation in the US in United States?
The company holding the most market share in United States is Los Angeles County Metropolitan Transportation Authority.
How competitive is the Public Transportation in the US industry in United States?
The level of competition is low and steady in the Public Transportation in the US industry in United States.
