En route: Government stimulus programs will fuel industry revenue and profit growth

Participants in the Public Transportation industry in Canada operate passenger transit systems over fixed routes and regular schedules within a metropolitan area. Transportation systems involve multiple modes of transportation, including subways, streetcars and buses. Most routes transport individuals over short distances for relatively inexpensive fares. Due to the high capital costs associated with running a large public transportation system, most industry operators rely on government subsidies. As a result, government funding is a key driver of industry revenue. In addition to government funding, ridership rates fuel industry revenue. Over the five years to 2024, IBISWorld expects government funding and ridership rates to continue increasing, positively affecting industry revenue...read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 14-19
1.7%
Forecast Growth 19-24
Profit
Employment
63,959
Businesses
98

Industry Threats & Opportunities

  • Expanding urban populations and low levels of unemployment have supported industry revenue growth
  • The majority of industry operators are municipalities
  • Government funding for public transportation will rise
  • Industry Report - Industry Investment Chapter

    The industry exhibits a high level of capital intensity, as industry operators must invest in trains, buses, railroads, ticketing terminals and other capital equipment on an annual basis. Moreover, operators must continually replace aging rail cars and buses, in addition to expanding existing railways. Consequently, the typical company in this industry is estimated to spend $0.40 on capital investments for every dollar spent on labour inputs in 2019. Over the past five years, capital investments have remained stable as a share of the industry's total revenue as companies have continued to make large capital investments in equipment and software amid rising ridership.Labour inputs have continued to represent an essential component of industry growth during this period. Thi...purchase to read more.

    Additional Insights for the Public Transportation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Public Transportation Industry are

  • Ability to take advantage of government subsidies and other grants
  • Maintenance of excellent customer relations
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Government expenditure and investment and Urban population in the Public Transportation industry impact industry performance..

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    What's in this report

    What is the Public Transportation Industry?

    This industry operates local and suburban passenger transit systems. This includes light rail, subways, streetcars and buses. These establishments operate with fixed routes and schedules and enable passengers to pay on a per-trip basis, whether or not they also accept payment methods such as monthly passes.

    Industry Products
  • Buses
  • Heavy rail
  • Streetcars
  • Industry Activities
  • Operating heavy rail systems such as metro and subway systems
  • Operating light rail systems such as streetcar, tramway or trolley
  • Operating commuter transit systems
  • Operating mixed mode transit systems such as bus, commuter rail and subway combinations
  • Operating commuter and local bus operations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government expenditure and investment
  • Urban population
  • National unemployment rate
  • World price of crude oil

  • Current Performance
  • Ridership increases despite low fuel prices
  • Government funding fuels growth
  • Heightened competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Government subsidizes growth
  • Demographic outlook
  • Green technology
  • More riders, new capital
  • Table: Public Transportation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Public Transportation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Fuel Dealers in Canada
  • Train, Subway & Transit Car Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada

  • Products & Services
  • Buses
  • Heavy rail
  • Streetcars
  • Chart: Public Transportation Industry Products and Services Segmentation

  • Demand Determinants
  • Population density
  • Income distribution and economic growth
  • Government funding

  • Major Markets
  • Passengers aged 25 to 34
  • Passengers aged 35 to 44
  • Passengers aged 45 to 54
  • Passengers aged 20 to 24
  • Passengers aged 55 to 64
  • Passengers aged 65 and older
  • Passengers aged 15 to 19
  • Passengers aged 14 and under
  • Chart: Major Market Segmentation for the Public Transportation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Public Transportation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Public Transportation Industry

  • Industry Globalization
    Toronto Transit Commission, Montreal Transit Corporation, TransLink,
  • Table: Toronto Transit Commission - financial performance
  • Table: Montreal Transit Corporation - financial performance
  • Table: TransLink - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Public Transportation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Public Transportation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Government Expenditure and Investment (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Heavy Rail
  • A mode of transit service often referred to as a metro, subway, rapid transit or rapid rail system.
  • Light Rail
  • A streetcar, tramway or trolley that travels on fixed rails and is often separated from other traffic for part or much of the way.
  • Paratransit
  • A door-to-door transportation service for people who are unable to take fixed-route public transportation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Public Transportation market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Public Transportation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Public Transportation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Public Transportation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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