High fuel prices have led Australians to curtail car use in favour of public transport
Melbourne, Australia (PRWEB) December 17, 2012
Bus and tram operators have benefited from a surge in investment and patronage in recent years. As services expanded and new buses were purchased, high petrol prices, CBD job growth and ongoing population growth resulted in many more commuters choosing to travel by bus. According to IBISWorld industry analyst Caroline Finch, “heightened awareness of environmental issues also encouraged commuters to leave the car at home”. The Short Distance Bus and Tramway Transport industry’s revenue rose steadily over the past five years, up by a compound annual rate of 4.4% to be worth $5.15 billion in 2012-13.
The industry has a medium level of concentration, with the top four players - State Transit Authority of New South Wales, Cabcharge Australia Limited, Ventura Motors Proprietary Limited and KDR Victoria Pty Ltd – accounting for a significant share of the industry. The level of industry concentration has fluctuated vastly in the past 20 years, with a period of strong consolidation followed by a period of privatisation from the early 1990s. “The influx of private operators servicing scheduled routes in the larger cities has contributed to the low concentration of the industry”, says Finch. Concentration is expected to increase in the next five years as the number of private contract regions are reduced in states such as New South Wales and Victoria.
The outlook for the Short Distance Bus and Tramway Transport industry remains upbeat. Australia's unemployment is expected to remain low by historical standards, while population growth is expected to remain strong. IBISWorld expects the price of fuel to remain high over the next five years as the cost of recovering the remaining reserves of mature oil fields increases. Investment in services is ongoing. The relative fuel efficiency of public transport and ongoing congestion issues will cause passenger numbers to continue growing to 2017-18.
For more information, visit IBISWorld’s Short Distance Bus and Tramway Transport report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in the Short Distance Bus and Tramway Transport industry operate urban buses and tramways for the transportation of passengers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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