Mind the gap: Strong government spending will continue to offset operating losses

Participants in the Public Transportation industry in Canada operate passenger transit systems over fixed routes and regular schedules within a metropolitan area. Due to the high capital cost associated with running a large public transportation system, industry operators rely heavily on government subsidies, and over the past five years, government stimulus programs have fuelled industry revenue growth. In addition, ridership rates have been positively affected over the past five years by several key trends, including a rise in the price of oil and a lower unemployment rate. Over the next five years, IBISWorld expects both government funding and ridership rates to continue to increase...read more.

Industry Statistics & Market Size
Revenue
$15bn
Annual Growth 12-17
2.7%
Forecast Growth 17-22
Profit
Employment
66,714
Businesses
102
Market Share of Companies

Industry Threats & Opportunities

  • Government funding and ridership rates will continue increasing, positively affecting industry revenue
  • Falling unemployment has increased business travel, strengthening demand for the industry
  • Cities are becoming more crowded, presenting logistical problems for transportation
  • Industry Report - Industry Key Buyers Chapter

    The Public Transportation industry in Canada has a low-to-moderate level of market share concentration. This industry is heavily subsidized by federal, provincial and local governments, and revenue per establishment fluctuates with the overall level of public transportation spending. However, the municipalities with the highest ridership rates generally receive the largest subsidies, causing densely populated areas, such as Toronto and Montreal, to command a significant share of the industry's total market. In 2017 alone, transit systems in these two cities are estimated to account for 32.9% of total industry revenue. The...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 (e.g. metro and subway systems)
  • Operating light rail systems (e.g. streetcar, tramway or trolley)
  • Operating commuter transit systems
  • Operating mixed mode transit systems (e.g. 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
  • Chart: Revenue Growth

  • Industry Outlook
  • Government subsidizes growth
  • Demographic outlook
  • 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 years 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
    ProfitWagesPurchasesDepreciationRent and utilitiesOther
  • 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,
  • Table: Toronto Transit Commission - financial performance
  • Table: Montreal Transit Corporation - 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Government Expenditure and Investment (2008-2022)

  • 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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