The public transport ITS market in Europe and North America is set to reach €4.3bn by 2027, according to Berg Insight.

The estimated market value for intelligent transport systems (ITS) deployed in public transport operations in Europe was €2.15bn in 2022. At a 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 see a CAGR of 8.8 per cent from €0.88bn in 2022 to €1.34bn in 2027.

Berg believes the market for ITS in public transport is in a growth phase that will continue throughout the forecast period. Considerable investment is going towards electrification of the public transport fleet, which will require more sophisticated ITS 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 priority for investment. The Canadian government has for example announced a C$2.75bn investment towards electric buses, school buses and related charging infrastructure between 2021 and 2026.

A group of international aftermarket 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.

Additional companies with notable market shares in North America include Cubic Transportation and Avail Technologies. Siemens Mobility is a prominent vendor of software in both Europe and North America.

Examples of major vendors on national markets in Europe include Equans and RATP Smart Systems, which hold leading positions in France. IVU is an important player primarily in the German-speaking part of Europe. Vix Technology, Flowbird and Ticketer are major providers on the UK market. Other significant players include the Spanish groups GMV, Indra and Grupo Etra; French Thales; Atron in Germany; Scandinavian Fara, Pilotfish and Consat Telematics; and Austria-based Swarco and Kontron Transportation.

Volvo and Daimler are notable players from the vehicle OEM segment, while companies such as Scania, Iveco, Gillig and New Flyer also offer some conventional OEM telematics features for their buses.

“We are increasingly seeing developments with standardisation and interoperability in mind,” said Caspar Jansson, IoT analyst at Berg Insight. “ITS providers are now for example commonly requesting labels of compliance from standard organisations.”

Interoperability opens up possibilities for various stakeholders in the ITS ecosystem, he said.

“The standardisation efforts enable public transport agencies to combine multiple vendors in their networks,” said Jansson. “The first tenders explicitly requiring equipment to be compliant with the ITxPT standard have now been issued.”

More details of the report can be found at: media.berginsight.com/2024/03/15160825/bi-its9-ps.pdf.