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

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Population growth, road congestion and rising fuel costs are leading to increased demand for industry services, which is increasing investment into bus and tram infrastructure. 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

Increasing road congestion and the rising cost of CBD parking are drawing commuters to industry services.

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.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau.

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
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