Melbourne, Australia (PRWEB) January 21, 2014
The Urban Bus and Tramway Transport industry is comprised of companies that provide bus and light rail transport services. The industry is dominated by commuter transport services, with charter services only a minor area of industry activity. Over the past five years, growth in demand for commuter transport and investment in new services has underpinned industry performance. Industry revenue is forecast to rise steadily over the five years through 2013-14, growing by a compound annual rate of 5.3% to be worth $5.5 billion. Revenue is expected to increase 4.7% in 2013-14.
In commuter bus and tram markets, industry participants run services under operating contracts funded and overseen by state governments. IBISWorld industry analyst Caroline Finch states, “despite privatisation, the role of government in funding infrastructure and managing operating contracts remains significant.” Over the past five years, the industry has grown substantially as demand from passengers has lifted and governments have invested in expansion. Bus infrastructure expansion has been an attractive choice for state governments looking to develop public transport network coverage, as has light rail, although to a lesser extent. When bus networks are expanded, the industry directly benefits as new contracts for operation are tendered for new routes. A number of push-and-pull factors have drawn more commuters onto bus and tram networks and these are expected to continue to drive commuter numbers up in the next five years. According to Finch, “new vehicles and routes have increased the appeal of industry offerings. Services have been expanded and rebranded in major capital city markets in the past five years.” These factors have drawn more commuters onto public transport over the period. Factors pushing travellers onto public transport have also strengthened. Population and employment growth have increased the number of people using industry services, as increasingly congested capital cities and restricted parking spaces have made it less attractive to travel by car.
The Urban Bus and Tramway Transport industry has a low level of market share concentration. Concentration is expected to increase in the next five years as the size of contracts for public transport services increases in states such as New South Wales and Victoria. Further acquisitions are also expected to increase concentration. This follows a series of acquisitions by major players such as Cabcharge Australia Limited and Ventura Motors Proprietary Limited in the past five years. The importance of government contracts to industry operators acts as a counterweight to the power that large providers wield within specific geographic areas. The industry major players include Cabcharge Australia, Ventura Motors, Transdev Australasia, KDR Victoria 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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