CLEVELAND, July 27, 2016 /PRNewswire/ -- It is no secret that Americans, given the choice, will often opt to drive themselves rather than take a bus or train. Despite a well-documented love of the car, however, US suppliers of public transport can look forward to modest, yet steady, spending growth on their services through 2020. These findings are featured in Public Transport: United States, a report recently released by Freedonia Focus Reports, a division of The Freedonia Group.
In the study, Focus Reports analyzes US personal consumption expenditures (PCE) on public transportation by segment for 2005-2015 with projections to 2020. Total spending is segmented by service in terms of:
intracity mass transit
taxicab (including transportation network companies such as Uber Technologies and Lyft)
other transport services such as employee bus transport, intercity bus, and limousine.
Overall, the report forecasts that US PCE on public transport will reach $116 billion by 2020, representing a 2.4% annual growth rate from a $103 billion base in 2015.
The large intracity mass transit segment will lead the way, Focus Reports found, with spending growth expected to average 4.2% per year to some $26 billion in 2020. Intracity mass transit serves customers traveling within metropolitan areas and adjacent nonurban locales via modes such as bus, light rail, and subway.
"Whether you are a company or individual selling to or serving intracity mass transit providers or a provider yourself, chances are good for opportunity and stability. Intracity mass transit represented the only discrete segment to enjoy sustained growth in spending throughout the 2007-2009 recession," said Michael Warner, Vice President, Freedonia Focus Reports. "These services rank among the most economical means of moving people, and city-dwellers commonly use them as their primary means of local transport, particularly in dense, congested cities. Consequently, during periods of economic upheaval, suppliers benefit from their standing as vendors of a non-discretionary service as well as from increased ridership, for example, as some travelers opt to take the bus or train and leave the car at home."
Public Transport: United States forecasts US PCE on public transport services in US dollars to 2020. To illustrate historical trends, total spending and the various segments are provided in annual series from 2005 to 2015 in chart form with supporting analysis. A Market Environment section provides pertinent background on historical trends, key economic indicators, environmental and regulatory factors, light vehicle trends, and oil and gas prices. A Segmentation and Forecasts section defines services, discusses market drivers and constraints, identifies substitute services when applicable, and assesses the impact of key drivers and constraints on each service segment over the forecast period.
Further analysis includes an Industry Structure section, which surveys the supply base and identifies the leading firms competing to serve US demand. A one-page, introductory Highlights section summarizes key findings from this 23-page report, and a Resources section lists contributing sources as well as resources available for further research.
About Freedonia Focus Reports Each month, The Freedonia Group publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
Total historical market size and industry output
Segmentation by products and markets
Identification of market drivers, constraints, and key indicators