Urban Bus and Tramway Transport in Australia Industry Market Research Report Now Updated by IBISWorld

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Low unemployment, strong population growth and rising fuel prices are driving demand for urban bus and tramway services and leading to increased government and private investment. For these reasons, industry research firm IBISWorld has updated its report on the Urban Bus and Tramway Transport industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Population growth and road congestion have led to increased demand for industry services

The Urban Bus and Tramway Transport Industry in Australia has grown over the five years. Bus and tram operators have benefited from a surge in investment. Services have been expanded and rebranded in major capital city markets and new vehicles and routes have increased the appeal of industry offerings. IBISWorld industry analyst Caroline Finch states that “population and employment growth have increased the number of people using industry services”. Caps have been put on the development of new car parking spaces in dense business areas, such as the Melbourne and Sydney CBDs, due to dramatic increases in the cost of inner-city property. Environmental awareness has also encouraged commuters to leave the car at home.

According to Finch, “industry revenue rose steadily over the past five years, up by a compound annual rate of 4.4% to be worth $5.2 billion in 2012-13. Revenue is expected to increase 6.5% in 2012-13. As such, the outlook for the industry remains positive. Australia's unemployment is expected to remain low, while population growth is expected to remain strong. These factors indicate that transport demand is likely to grow in major markets and new capacity may be needed to meet it. IBISWorld expects the costs of car usage such as fuel, time spent in congestion and parking to increase. The relative fuel efficiency of public transport and ongoing congestion issues are projected to cause passenger numbers to continue growing through 2017-18.

The Urban Bus and Tramway industry has a medium level of concentration. The level of industry concentration has greatly fluctuated over the past 20 years, with a period of strong consolidation followed by a period of privatisation through the early 1990s. The influx of private operators servicing scheduled routes in the larger cities has contributed to the moderate concentration of the industry. Concentration is expected to increase in the next five years as the number of regions using private contracts is reduced in states such as New South Wales and Victoria. Further acquisitions are also expected to increase concentration. Concentration is much higher in the Tram segment with just three different tram networks currently operating across Australia. Yarra Trams (Melbourne) operates the largest network. Major industry players include the State Transit Authority of New South Wales, KDR Victoria, Cabcharge Australia, Ventura Motors, Veolia Transport and the Brisbane City Council. For more information, visit IBISWorld’s Urban Bus and Tramway Transport report in Australia industry page.

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IBISWorld industry Report Key Topics

Companies in the Urban Bus and Tramway Transport industry operate urban buses and tramways for the transportation of passengers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
310-490-5973
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