Over the past five years, cities and public transit authorities/agencies (“PTOs/PTAs”) have increasingly invested in transportation infrastructure projects, including digital technologies to modernize public transportation. PTOs/PTAs have prioritized projects that help them adapt to the newfound unpredictability of demand post-COVID-19, with a focus on ridership recovery and boosting network efficiency.
A key innovation has been microtransit, which uses AI to dynamically match riders and vehicles—particularly effective in low-density areas.
Building on this, agencies now seek whole network solutions—integrated platforms that manage planning and operations across all transit modes. These systems improve efficiency, reduce costs, and enable reinvestment into the network, ultimately boosting ridership.
However, implementation often requires significant operational expertise. As a result, agencies increasingly turn to “Software & Services” providers—vendors that offer both technology and hands-on operational support.
The market for whole network software and services is large and growing, with an estimated $250B addressable market in North America and Europe, and $750B globally by 2030. Emerging opportunities—such as smart city planning tools and the integration of autonomous vehicles into public transit—will allow tech providers to expand their offerings beyond current solutions.
As transit agencies and cities continue to modernize, public transportation tech providers have a unique opportunity to redefine urban mobility, making public transportation more efficient, accessible, and sustainable.