The Public Transportation Market Looks to Whole Network Solutions

Over the past five years, cities and public transit authorities/agencies (“PTOs/PTAs”) have increasingly invested in transportation infrastructure projects, including investment in digital technologies to modernize public transportation. PTOs/PTAs have prioritized investment in projects that enable them to adapt to newfound unpredictability of demand post COVID-19 with a focus on ridership recovery and boosting network efficiency. A key innovation was microtransit, which uses AI to dynamically match riders and vehicles—especially 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, boosting ridership.

However, implementation often requires significant operational expertise. As a result, agencies increasingly look for “Software & Services” providers—vendors offering 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 include smart city planning tools and integration of autonomous vehicles into public transit.

Beyond existing solutions, emerging trends such as smart cities and autonomous vehicles will open new opportunities for public transportation tech providers to expand their offerings.

As transit agencies and cities seek to modernize, public transportation tech providers have a unique opportunity to redefine urban mobility, making public transportation more efficient, accessible, and sustainable.