Population growth and road congestion have led to increased demand for industry services
Melbourne, Australia (PRWEB) June 09, 2013
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.
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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