Berg Insight, the world’s leading IoT market research provider, released new findings about the market for public transport and shared mobility services. Berg Insight is of the opinion that the market for Intelligent Transport Systems (ITS) for public transport is in a growth phase which will continue in the years to come.
The public transport market is impacted by a number of trends, including several ITS-related developments that can alter the playing field for the solution providers on this market. Several parallel technology developments are currently transforming the public transport market, resulting in improved competitiveness as well as integration with alternative modes of transportation.
Shared modes of transportation such as carsharing, bikesharing, scootersharing and the use of ridehailing services enhance mobility and often mitigate the so-called first and last mile commute problem, referring to the beginning and end of public transport journeys being the most challenging parts.
“This first mile/last mile problem causes many people to choose the car for the entire journey”, said Levi Östling, IoT Analyst, Berg Insight.
Passengers using shared modes are less inclined to own a car and spend less on transportation. The underlying shift in consumer preferences driving this trend is largely attributed to economic factors as well as the emergence of the mobile Internet.
“Younger generations tend to spend more on technology and digital products and are less interested in car ownership”, continued Mr Östling.
Shared modes are expected to continue to grow in significance and the ecosystems of shared mobility and public transport are likely to converge as a consequence. Closer collaboration between public transport authorities and private transportation actors will result in services which are better tailored to individual needs and empower travellers. Journey planning tools represent an application area with much room for improvement. ITS technology is expected to deliver increasingly advanced journey planning and reservation tools.
“Simple fare collection and automated billing systems are also needed to ensure user-friendly payment structures, removing the need to pay for different journey sections separately”, concluded Mr Östling.