Public transport ITS market in Europe and US to reach €4.3bn

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Electrification of public transport fleets will require more sophisticated intelligent transport solutions to operate smoothly

The public transport intelligent transport systems (ITS) market in Europe and North America is forecast to reach €4.3bn by 2027.

According to IoT market research provider Berg, the estimated market value for ITS deployed in public transport operations in Europe was €2.15bn in 2022.

Growing at a compound annual growth rate (CAGR) of 6.3 per cent, this number is expected to reach €2.92bn by 2027. The North American market for public transport ITS is similarly forecasted to grow at a CAGR of 8.8 per cent from € 0.88bn in 2022 to reach €1.34bn in 2027.

Public transport ITS

Berg Insight reports the market for ITS in public transport is in a growth phase which will continue throughout the forecast period. Considerable investment is going toward electrification of the public transport fleet, which will require more sophisticated ITS solutions to operate smoothly.

In addition, the increasing demands from travellers for convenience and accessible real-time information contribute to a positive market situation. Governments in both Europe and North America view public transport as a prioritised area for investment. The Canadian government has for example announced a $2.75bn (€2bn) investment toward electric buses, school buses and related charging infrastructure between 2021-2026.

“We are increasingly seeing that solutions are developed with standardisation and interoperability in mind. ITS solution providers are now for example commonly requesting labels of compliance from standard organisations”

Berg notes that a group of international aftermarket solution providers has emerged as leaders on the market for public transport ITS. Major providers across Europe and North America include Canada-based Trapeze Group and Germany-based INIT, which have significant installed bases in both regions.

Clever Devices and Conduent hold leading positions on the North American public transport ITS market. The former has expanded into Europe with an acquisition and the latter is an international provider of fare collection systems.

ITS ecosystem

Interoperability opens up many new possibilities for various stakeholders in the ITS ecosystem. Jansson added: “The standardisation efforts enable public transport agencies to combine competitive solutions from multiple vendors in their networks. The first tenders explicitly requiring equipment to be compliant with the ITxPT standard have now been issued.”

Berg Insight is a dedicated M2M/IoT market research firm based in Sweden. It specialises in all major M2M/IoT verticals such as fleet management, car telematics, smart metering, smart homes, mHealth and industrial M2M since 2004.

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