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Public Transportation - Bangladesh

Bangladesh

Bangladesh is expected to experience significant growth in the Public Transportation market.
It is projected that by 2024, the revenue will reach US$0.76bn, with an annual growth rate of 1.61% resulting in a market volume of US$0.81bn in 2028.
In terms of user penetration, it is expected to be 75.9% in 2024 and 77.0% by 2028, with the number of users reaching 139.70m users by 2028.
The projected ARPU is US$5.70.
Furthermore, online sales are expected to generate 23% of total revenue in the Public Transportation market by 2028.
It is worth noting that in global comparison, United States is expected to generate the most revenue, with US$50,310m in 2024.
Bangladesh's public transportation sector is facing challenges due to inadequate infrastructure, poor quality vehicles, and insufficient government investment.

Key regions: United States, Indonesia, China, Saudi Arabia, Europe

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Analyst Opinion

The Public Transportation market in Bangladesh is experiencing significant growth and development in recent years.

Customer preferences: In Bangladesh, there is a growing preference for public transportation due to several factors. Firstly, the population in Bangladesh is rapidly increasing, leading to congestion on the roads. As a result, many people are opting for public transportation as a more convenient and efficient mode of travel. Secondly, public transportation is often more affordable compared to private vehicles, making it a popular choice for individuals with limited financial resources. Lastly, the government has been actively promoting the use of public transportation through various initiatives and incentives, further driving the demand for these services.

Trends in the market: One of the key trends in the public transportation market in Bangladesh is the expansion and modernization of the existing infrastructure. The government has been investing heavily in the development of new roads, bridges, and transportation hubs to improve connectivity and accessibility. This has led to the introduction of new bus routes and the expansion of existing ones, providing more options for commuters. Additionally, there has been a shift towards the use of cleaner and more environmentally-friendly vehicles, such as electric buses, to reduce pollution and promote sustainable transportation. Another trend in the market is the integration of technology in public transportation services. Mobile apps and online platforms are being introduced to facilitate ticket booking, real-time tracking of buses, and the provision of information on routes and schedules. This has made it easier for commuters to plan their journeys and has improved the overall efficiency of the public transportation system.

Local special circumstances: Bangladesh is a densely populated country with limited land resources, which poses unique challenges for the public transportation sector. The high population density and limited road infrastructure result in congestion and traffic jams, especially in urban areas. To address this issue, the government has been exploring alternative modes of transportation, such as waterways and railways, to reduce the burden on roads. Additionally, the country's vulnerability to natural disasters, such as floods, also necessitates the development of resilient and adaptable transportation systems.

Underlying macroeconomic factors: The development of the public transportation market in Bangladesh is closely linked to the country's economic growth and urbanization. As the economy continues to expand, more people are moving to urban areas in search of better job opportunities, leading to an increased demand for public transportation. Furthermore, the government's focus on infrastructure development and improving connectivity is attracting foreign investment and driving economic growth. This, in turn, is fueling the demand for public transportation services. In conclusion, the Public Transportation market in Bangladesh is experiencing growth and development due to customer preferences for convenience and affordability, the expansion and modernization of infrastructure, the integration of technology, local special circumstances such as population density and vulnerability to natural disasters, and underlying macroeconomic factors such as economic growth and urbanization.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of public transportation.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.