Industry Analysis & Industry Trends
Participants in the Public Transportation industry operate passenger transit systems over fixed-routes and regular schedules within a metropolitan area. Due to the high capital cost associated with running a large public transportation system, industry operators rely heavily on government subsidies, and over the past five years government stimulus programs have fuelled industry revenue growth. In addition, ridership rates have been positively affected over the past five years by several key trends, including a rise in the price of oil and a lower unemployment rate. In the next five years, IBISWorld expects both government funding and ridership rates to continue to increase... purchase to read more
Industry Report - Industry Analysis Chapter
The Public Transportation industry is composed almost entirely of government-operated transit systems. This industry provides a public service by transporting individuals around cities in a safe and efficient manner. Providing this service requires massive outlays on infrastructure and vehicles, such as subway cars and buses. Due to the high cost of providing these services, the majority of industry participants rely on government subsidies to maintain daily operations. The average public transit system in Canada is only able to cover barely half of its operating expenses through revenue generated from transit fares.
Due to the heavily subsidized nature of this industry, revenue is largely driven by government expenditure and investment on capital projects... purchase to read more