Advanced Public Transportation System APTS Market

Advanced Public Transportation System Market Size

The global advanced public transportation system market size was valued at USD 6.4 billion in 2024 and is projected to grow at a CAGR of 8.3% between 2025 and 2034. The vision for smart cities fuels the global trend of lowering carbon emissions, enhancing the efficiency of public transportation systems, alongside increased spending on smart transportation developments and urban mobility investments.

For instance, in July 2024, the FTA, which is part of the U.S. Department of Transportation, announced a USD 1.5 billion support for 117 public transportation projects in 49 states. Over the past three years, nearly USD 5 billion has been allocated under the Bipartisan Infrastructure Law with the aim to modernize and substitute transit buses across the country. Granting schemes, subsidies, and other funding initiatives provide efficient services and infrastructure integration, automation of transport systems, and integrated ticketing facilities. Transforming traffic congestion, as well as enhancing safety and accessibility, is boosting the deployment of APTS specialists.

Rapid urbanization is intensifying pressure on transportation infrastructure, with projections indicating over 68% of the global population will live in urban areas by 2050. This shift demands scalable public transportation solutions to manage congestion and environmental impact. Advanced transportation systems are becoming essential for addressing urban mobility challenges, optimizing space, and delivering sustainable, adaptable solutions for dynamic urban environments.

Advanced Public Transportation System Market Trends

Transportation systems are being transformed into mobility systems through utilizing platforms sophisticatedly designed to improve the service delivery process and client experience. These systems seamlessly integrate public transport, shared, micro-mobility, and individual transportation modes with the use of state-of-the-art technology. It encompasses a set of components such as multi-modal ticketing, route-traffic intelligent systems, payment systems, and smart-mobility menus. The goal is to provide these sorts of outstanding services that ease mobility and improve the current mode of doing things.

In the example that follows, a Portugal-based developer of the MaaS platform “Pick,” Ubirider, partnered with Mastercard in January 2023 to help deliver seamless digital solutions for the transport sector. The goal of this partnership is envisaged to provide integrated operational and payment systems alongside ticketing systems to Portugal transport agencies. The purpose of this collaboration is to facilitate the growth Pick has been able to attain in Portugal by assisting users in accessing different mobility services and the use of payment methods. These new economic instruments will improve the utility and working of “Pick” as it integrates mobile apps and cloud software with web portals fostering efficient payment technologies.

Modern public transport systems require huge initial expenditures that usually exceed local government budgets. This includes technologies, upgrades, and replacement of physical plants like rolling stocks and systems development, which all require money. The issue of attracting stable resources from the combination of both public and private is very important. Besides, due to the nature of such constructions, it is usually complicated to assess the long-term growth of investments, which adds to the difficulties associated with planning, financing, and working with various people.

Advanced Public Transportation System Market Analysis

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Based on the technology, the market is segmented into real-time passenger information systems, Automated Vehicle Location (AVL), Computer-aided dispatch, Electronic Payment systems (EPS), and Passenger Information Systems (PIS). In 2024, the real-time passenger information system segment accounted for over 30% of the advanced public transportation system market share and is expected to exceed USD 4 billion by 2034.

• Modern real-time information systems predict request trends using analytics predicated on the application of artificial intelligence algorithms and computer learning.
  
• These systems are capable of real-time forecasting demand, optimizing routes, and determining congestion points. Combining information concerning the weather, calendar of events, seasonality, and urban movement allows transport agencies to modify services, make optimal resource allocation, or better accuracy of arriving time.
  
• It optimizes network management, minimizes waiting time and passengers’ complaints while also decreasing the operational inefficiencies through multi-criteria decision analytics.
  
• The integration of commuting options is being streamlined through the use of platforms-on-vehicles integration interfaces that are constantly updated for of buses, trains, metros, and even bike and regular vehicle shares.
  
• Advanced algorithms optimized for effective routing have been developed in such a way that they recommend the user personalized recommendations which are time-sensitive. These multilayered amenities extend to pricing models and accessibility tools as well.
  
• In a bid to facilitate the deployment of autonomous buses and shuttles, major cities are constructing purpose-built and secure lanes equipped with cutting-edge paving systems, intelligent traffic control solutions, and sensor networks.
  

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Based on the mode of transportation, the advanced public transportation system market is divided into roadways, railways, airways, and waterways. By 2034, the roadways segment is expected to exceed USD 6.5 billion due to several key factors.

• Major cities are investing in dedicated and secured roadways for autonomous buses and shuttles, outfitting the lanes with advanced paving technologies, smart traffic systems, and networked sensors. The idea behind these transport corridors is to ease up congestion while maintaining safe streets and predictable travel durations by reducing the number of unused vehicles on the road, which is already an extreme technological advancement paired with intelligent city design principles for efficient mobility.
  
• Cities are installing electric buses and hydrogen-powered shuttles with solar panels for almost emission-free local public transportation with the aid of separate lanes parallel to other vehicles. These lanes supplement important robust signals and charging/refueling infrastructure which aids in green transit selling.
  
• This scheme will further hasten the deployment of green transit and lower the carbon footprint, thereby improving the reliability of transit with the larger picture of urban mobility and climate goals in mind.
  

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In 2024, the U.S. advanced public transportation system market accounted for 45% revenue share.

• Electric self-driving shuttle vehicles are gaining traction with California cities as they are experimenting with them in campuses, business districts, and airports. These AI vehicles are cost-efficient, greatly reduce expenses related to human labor, and increase safety, which makes them effective in the current workforce-constrained environment.
  
• This trend is led by Silicon Valley with companies such as Waymo and GM’s Cruise with artificial intelligence at the helm. It indicates that the U.S. market is focusing on intelligent infrastructure for urban mobility, further minimizing human intervention.
  
• In the Asia Pacific region, particularly in Singapore, South Korea, and Japan, the markets are rapidly adopting new technologies such as 5G, IoT, and AI to build modern connected mass transit systems. They are combining buses, trains, and even micro-mobility into a single network that can communicate with each other.
  
• Forgetting about public transport timetables, improving boarding and deboarding timings, and allowing people to customize their trip demonstrate how Singapore and its neighbors are the foremost developing regions in data-driven mass transit systems.
  
• Cities across Europe are building active mobility platforms where transport users have a digital interface for all public transport, bike rental, car sharing, or micro-mobility services.
  
• Among EU cities, Helsinki, Copenhagen, and Amsterdam are rapidly advancing flexible mobility practices focusing on convenience for people, shifting from a car-based to a more sustainable public transport and active travel-dominated approach.
  

Advanced Public Transportation System Market Share

Cubic Corporation, Siemens Mobility, and Hitachi Rail collectively held a substantial market share of over 16% in the advanced public transportation system (APTS) industry in 2024.

• Cubic advances the use of a contactless payment system, which allows for the integration of buses, metros, and trains. This, on its own, enhances operational efficiency and ultimately increases inclusiveness. Such solutions not only enable passengers to pay securely and with ease via smart cards and mobile applications, but they also save the agency time and money in the process of transacting through these payment methods.
  
• By providing a single payment system, Cubic was able to relieve the need for people to carry cash, thereby increasing customer satisfaction.
  
• To enhance the reliability of transportation networks, Siemens has designed tools that help with the safe automation of rail systems while also helping them in being operationally more efficient.
• Furthermore, these tools help in the optimization of signal timings during peak hours with the goal of improving travel time, helping in improving both capacity and efficiency.
  

Advanced Public Transportation System Market Companies

Major players operating in the advanced public transportation system (APTS) industry are:

• Alstom
• Cubic
• EasyMile
• Garmin
• Hitachi Rail
• Indra
• Kapsch
• Siemens Mobility
• Thales Group
  

The advanced public transportation system market is highly competitive in nature as enterprises struggle to grow their customer base using technological improvements and innovation. The market is growing largely due to the rising need for effective, dependable, and sustainable public transport solutions, which makes the use of modern transport systems plausible as it makes operations more effective, less complicated, and enriches the experiences of customers.

Regional as well as local players are further penetrating the market by providing bespoke solutions to specific issues such as last-mile connectivity, infrastructure inefficiencies, or even policy frameworks. These kinds of players typically focus on low-cost solutions and slight variations of their products in order to appeal to smaller demographic cities and municipalities that have limited budgets.

Advanced Public Transportation System Industry News

• In December 2024, the Spanish multinational technology company Indra was awarded the contract to roll out advanced traffic and tolling systems for the SR 400 express lanes in Atlanta. The project is executed by the SR 400 Peach Partners consortium, which includes ACS Infrastructure Development, Acciona, and Meridiam. Under a contractual agreement with the Georgia Department of Transportation and the Georgia State Road and Tollway Authority, the subsidiary operates for a period of 55 years.
  
• In February 2024, Huawei organized the discussion ‘Building the Infrastructure for Digital and Intelligent Transport’ that gathers clients, partners, and industry leaders together. The company launched four ICT solutions, including the Intelligent Transportation System 2.0 for the road sector. Software Defined Cameras (SDC), Radar Integrated Cameras (RIC), Edge Computing, and Big Data technologies have been used to develop this system, whose key functions include traffic incident detection, signal control, traffic efficiency analysis, and overall improvement by 15%.
  

The advanced public transportation system (APTS) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2034, for the following segments:

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Market, By Component

• Hardware
  • Sensors
  • Display panels
  • Communication devices
  • Onboard computers
  • Others
• Software
• Services
  • Professional services
  • Managed services

Market, By Technology

• Real-time passenger information system
• Automated Vehicle Location (AVL)
• Computer-aided dispatch (CAD)
• Electronic Payment Systems (EPS)
• Passenger Information Systems (PIS)

Market, By Application

• Traffic management
• Fleet management
• Passenger safety & security
• Ticketing solutions
• Public information dissemination

Market, By Mode of Transportation

• Roadways
• Railways
• Airways
• Waterways

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa