Urban Passenger Land Transport in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Urban Passenger Land Transport in the UK industry analysis

Over the five years through 2025, industry revenue is projected to mount at a compound annual rate of 0.4% to €113.5 billion. Supported by the EU Commission and European Investment Bank, urban public transport is becoming more sustainable, rolling out electric buses and low-emission trains. Bus Rapid Transit (BRT) systems have gained popularity as a cost-effective alternative to far more expensive urban rail investments. Similarly, European metro services remain major cities' primary public transport service, driven by convenience and accelerating urbanisation across Europe. Ridership levels play a crucial role in driving industry revenue growth and profitability. High ridership is essential for covering operational costs and informs decisions on reinvestment in infrastructure upgrades. Additionally, investments in these urban networks are significantly influenced by government policies, since many of them are publicly owned.

Trends and Insights

• Urban public transport struggles to recover. While some cities have seen passenger numbers recover strongly, others are lagging behind amid shifting working patterns and cost-of-living pressures.
• Contactless tickets are becoming increasingly popular. Revenue attributed to journeys made using contactless payment methods has increased as technological advances like Apple Pay have made this payment method increasingly convenient, while season ticket sales tank following the pandemic.
• Competition in individual regions is low. Once urban transport companies win a contract, they have monopoly power in the area they serve, reducing competition. Nonetheless, Turkey has a substantial share of industry establishments, suggesting regional monopolies are less prevalent.