Advanced Public Transportation System (APTS) Market Size - By Component, By Technology, By Application, By Mode of Transportation, By End Use Analysis, Share, Growth Forecast, 2025 – 2034

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. Governments globally are increasing investments in smart transportation and sustainable urban mobility, driven by the push for smart cities, reduced carbon emissions, and improved public transport efficiency.
 

For instance, in July 2024, the U.S. Department of Transportation's Federal Transit Administration (FTA) announced USD 1.5 billion in funding for 117 public transportation projects across 47 states. Over the past three years, nearly $5 billion has been allocated under the Bipartisan Infrastructure Law to modernize and replace transit buses nationwide. Funding initiatives, including grants and subsidies, support infrastructure modernization, automated transit systems, and integrated ticketing solutions. Efforts to reduce traffic congestion, enhance safety, and improve accessibility are accelerating the adoption of Advanced Public Transportation Systems (APTS).
 

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 transitioning toward integrated mobility platforms designed to streamline operations and enhance user experiences. These platforms unify public transportation, shared mobility services, micro-mobility solutions, and personal transportation modes through advanced technologies. Key features include consolidated ticketing systems, real-time route optimization, integrated payment mechanisms, and personalized mobility recommendations. The objective is to deliver efficient, user-centric mobility solutions that maximize flexibility and convenience.
 

For instance, in January 2023, Mastercard partnered with Ubirider, a Portugal-based developer of the MaaS platform "Pick," to provide advanced digital solutions integrating operational, payment, and ticketing systems for public transport agencies. This collaboration aims to expand the platform's success in Portugal by simplifying mobility service access and payments. "Pick" combines mobile apps, cloud software, and web portals with advanced payment technologies, enhancing user convenience and operational efficiency.
 

Advanced public transportation systems require significant upfront capital investments, often surpassing municipal budgetary limits. These investments encompass technological integrations, infrastructure upgrades, rolling stock replacements, and digital system development, all of which demand substantial financial resources. Securing consistent funding from a mix of governmental and private stakeholders remains a critical challenge. Additionally, the complexity of calculating long-term returns on investment complicates financial planning and hinders stakeholder alignment in developing comprehensive transportation ecosystems.
 

Advanced Public Transportation System Market Analysis

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 APTS market share and is expected to exceed USD 4 billion by 2034. Advanced real-time information systems utilize machine learning and artificial intelligence to deliver predictive passenger analytics. These systems analyze historical and real-time data to forecast demand, optimize routes, and identify congestion points.
 

By integrating data from weather, events, seasonal trends, and urban mobility, transportation agencies can adjust services, allocate resources efficiently, and improve arrival accuracy. This technology enhances network management, reduces wait times, improves passenger satisfaction, and minimizes operational inefficiencies through data-driven decisions.
 

Real-time systems are evolving into multimodal integration platforms that connect various transportation modes. These platforms provide unified interfaces with real-time updates for buses, trains, metros, ride-sharing, and bike-sharing. Advanced algorithms calculate optimal multimodal routes, offering personalized, real-time recommendations. Features include dynamic pricing, accessibility options, and live occupancy data, enabling seamless and efficient travel experiences.
 

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. Cities are developing specialized roadways for autonomous public transportation, featuring advanced sensor networks, dedicated lanes, and intelligent traffic systems to prioritize autonomous buses and shuttles. These corridors integrate vehicle-to-infrastructure (V2I) communication, reducing congestion, enhancing safety, and ensuring predictable travel times. This approach combines cutting-edge technology with strategic design to optimize urban mobility and improve transportation efficiency.
 

Municipalities are implementing exclusive lanes for zero-emission public transportation, prioritizing electric buses and hydrogen-powered shuttles. These lanes include charging/refueling stations, strategic positioning, and priority signaling to promote sustainable transit. This initiative accelerates the shift to green transportation, reduces carbon emissions, and enhances transit reliability, aligning with urban mobility and climate action objectives.
 

The U.S. advanced public transportation system market accounted for 45% of the revenue share in 2024. U.S. cities are advancing autonomous electric shuttle services in controlled environments like campuses, business districts, and airports. These AI-driven vehicles enhance safety, efficiency, and cost-effectiveness while addressing labor shortages and operational costs. Tech hubs like Silicon Valley, with companies such as Waymo and GM's Cruise, are leading this innovation, reflecting the U.S. market's focus on reducing human error and building smart urban mobility infrastructure.
 

Asia Pacific markets are leveraging 5G, IoT, and AI to develop highly connected public transportation systems. Countries like Singapore, South Korea, and Japan are implementing integrated networks where buses, trains, and micro-mobility options communicate seamlessly. These systems improve scheduling, reduce wait times, and offer personalized travel, showcasing the region's leadership in data-driven transit solutions.
 

European cities are creating integrated mobility platforms that connect public transit, bike-sharing, car-sharing, and micro-mobility services through unified digital interfaces. Cities like Helsinki, Copenhagen, and Amsterdam prioritize user convenience and sustainability, reducing car dependency and promoting efficient, eco-friendly transportation strategies.
 

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 delivers integrated ticketing systems that unify public transport modes, including buses, trains, and metros. By offering a single payment platform, Cubic enhances operational efficiency, increases ridership, and simplifies passenger travel. Its cashless payment solutions, such as smart cards and mobile apps, reduce transaction costs and times for transit agencies while providing passengers with secure and convenient payment options.
 

Siemens provides advanced traffic management systems that optimize signal timings to reduce congestion and prioritize public transit, improving commuter travel times. Its rail automation systems enhance safety, schedule reliability, and network capacity while minimizing human error and improving operational efficiency.
 

Hitachi Rail utilizes its Lumada IoT platform to integrate public transit modes into a unified ecosystem, leveraging data to improve connectivity, reduce delays, and streamline passenger experiences. Its smart ticketing, mobile apps, and real-time updates enhance convenience and reduce wait times. Hitachi’s advanced signalling technologies ensure safe, efficient rail operations by automating and optimizing train schedules.
 

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
   

Advanced Public Transportation System Industry News

• In December 2024, Indra, a Spanish multinational technology company, was awarded a contract to implement advanced traffic and tolling systems on Atlanta's SR 400 express lanes. The project, managed by the SR 400 Peach Partners consortium (comprising ACS Infrastructure Development, Acciona, and Meridiam), operates under a 55-year agreement with the Georgia Department of Transportation and the Georgia State Road and Tollway Authority. Indra will deliver a cloud-based traffic management platform, intelligent traffic systems, communications infrastructure, a dynamic operational back-office, and an open road tolling system.
   
• In February 2024, Huawei hosted a session titled "Leading Infrastructure to Empower Digital and Intelligent Transportation," bringing together customers, partners, and industry experts. Huawei unveiled four ICT solutions, including the Intelligent Transportation System 2.0 for the road sector. This solution integrates technologies such as software-defined cameras, radar-integrated cameras, edge computing, and big data to enhance traffic incident detection, signal control, and traffic analysis, improving overall efficiency 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