Public Transport ITS in Europe and North America 10th 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 further comprises solutions providing travellers withupdated information about routes, departure times, possible disturbances and connectingservices. The history 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 recovery has been slow in North America. In Europe, some countriesare already back at pre-pandemic levels while others lag behind. Public transport modes includefor example local and regional buses and trolleybuses, regional and suburban rail transport,metros and trams, and local waterborne passenger transport services. In 2023, the number ofregistered buses and coaches in Europe and North America reached 0.85 million vehicles and1.1 million vehicles respectively. The economic value of public transport services in Europe isestimated to around € 160–175 billion per year, while the corresponding number in NorthAmerica is around € 100–115 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 5.3 percent from € 2.55 billion in 2025 to reach € 3.30 billion by 2030. The penetrationof on-board computers with GPS location functionality and wireless communications in busesand trams in Europe is estimated to increase from 90.3 percent in 2025 to 93.9 percent in 2030,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 5.0 percent from € 1.22 billion in2025 to reach € 1.56 billion in 2030 and the penetration rate is estimated to increase from 91.9percent in 2025 to 94.1 percent in 2030.

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 Canada-based Trapeze 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, Icomera and Consat Telematics; and the Austria-based companies Swarco andKontron Transportation. Volvo Group and Daimler are moreover notable players from the vehicleOEM segment, 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 developments encourageincreased investments in such technologies. The ITS market is positively affected by internationalpublic transport-related initiatives such as the ITxPT Association as well as APTA’s standardsprograms for public transport vehicles and ITS. The development of ITS has in recent yearsfocused on increasing the level of integration and utilising technology advancements in farecollection solutions. Standardisation efforts are beginning to yield results as an increasingnumber of market players choose to comply with them and procuring organisations see thebenefits in the form of lower costs. Another major driver is the ongoing global developmentsrelated to the concept of smart cities, where ITS in general and public transport ITS in particularconstitute key elements to enable sustainable smart mobility.