In July 2015, the M2M/IoT research firm Berg Insight will publish its latest market research report on Intelligent Transport Systems (ITS) in public transport, which provides a detailed view of the market for connected systems deployed for public transportation operations in Europe. As the firm says today in a sneak preview for M2M Now readers, this billion-euro sector is enjoying healthy growth underpinned by a number of driving forces.
ITS refers to information and communication technology applied to transport infrastructure and vehicles. Berg Insight’s definition of ITS for public transport includes systems installed in public transport vehicles as well as at terminals, stops, depots and similar. Included are also backoffice IT systems which ensure that public transport services can be planned, scheduled and managed to achieve efficient operations. An important part of ITS for public transport is furthermore solutions providing travellers with updated information about routes, departure times, possible disturbances and connecting services. The history of these different types of solutions dates back several decades and current state-of-the-art solutions include for example real-time intermodal journey planners, automated fare collection systems using contactless cards or NFC-enabled handsets, and on-board infotainment solutions with information about nearby points of interest.
Public transport plays an essential role in the European society. A total of 56.8 billion public transport passenger journeys were carried out in the EU28 in 2014. Available modes include for example local and regional buses and trolleybuses, regional and suburban rail transport, metros and trams, and local waterborne passenger transport services. A total of 757,000 buses and coaches account for 9.0 percent of the yearly passenger kilometres on land in Europe. The economic value of public transport services in Europe is estimated to around €150–200 billion per year, which represents approximately 1–1.5 percent of the GDP. The public transport sector furthermore creates about 1.2 million direct employments in Europe, and an average of 2.0–2.5 indirect employments per direct job.
Berg Insight is of the opinion that the European market for ITS in public transport is in a growth phase which will last for several years to come. The total market value of public transport ITS for buses and trams is forecasted to grow at a compound annual growth rate of 7.2 percent from €1.03 billion in 2014 to reach €1.46 billion by 2019. The penetration of on-board computers with GPS location functionality and wireless communication in buses and trams is estimated to increase from 45.6 percent in 2014 to 58.2 percent in 2019, however varying considerably between regional markets.
A group of international solution providers have emerged as the leaders on the European market for public transport ITS. Trapeze Group, INIT and IVU are major players, all having European headquarters in the German-speaking region and substantial installed bases across a multitude of countries in Europe and beyond. Examples of companies with large market shares on national markets in Europe include Ineo Systrans which holds a leading position in France, and Vix which is a major provider on the UK market. Other significant players include the Spanish groups GMV, Indra and Grupo Etra, Swarco’s subsidiary Swarco Mizar in Italy, the Norwegian provider FARA, and the Belgium-based company Prodata Mobility Systems which was acquired by Kapsch CarrierCom in July 2014. Volvo Group is a notable player from the vehicle OEM segment, offering the ITS4mobility system in partnership with Consat Telematics in Europe and North America.
The outlook for the European public transport ITS market is positive, as several major developments encourage increased investments in these technologies. ITS adoption is likely to increase following international public transport related initiatives such as the EU project European Bus System of the Future (EBSF) and associated efforts such as 3iBS and ITxPT, as well as the next generation EBSF_2 project launched in June 2015 at the UITP World Congress & Exhibition in Milan as part of Horizon 2020. Contributing developments further include the ever-increasing environmental awareness, the traffic congestion plaguing metropolitan areas and UITP’s sought-after doubling of the public transport ridership (PTx2) by 2025. Another major driver is on-going global developments related to the concept of smart cities, where ITS in general and public transport ITS in particular constitute key elements to enable sustainable smart mobility.
