|Last Quarterly Update:||3/11/2013|
|SIC Codes:||4119, 4151|
|NAICS Codes:||4852, 4854, 4855, 485113, 485991|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry provide transportation of passengers by bus. Major companies include FirstGroup America (owner of First Student, First Transit, and Greyhound), Andhra Pradesh State Road Transport (India), ComfortDelGro (Singapore), FirstGroup and National Express (UK), Transport International Holdings (Hong Kong), and Veolia Transdev (France).
Worldwide demand for bus transportation is driven by population growth. Currently estimated at 7 billion, the global population is expected to exceed 9 billion by 2050. Most of the growth is expected to occur in urban areas in developing economies.
The US bus transportation industry includes about 7,000 companies with combined annual revenue of about $20 billion and is expected to grow at a low rate in the next two years. Key growth drivers include increases in population density and employment levels.
Demand depends mainly on the demographic makeup and growth of the local population. The profitability of individual companies depends on efficient operations. Large companies can have advantages in buying fuel and in maintaining fleets. Small companies can compete by providing specialized services. The industry is labor-intensive: average annual revenue per worker ranges from $50,000 to $90,000, depending on the sector.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major types of bus service include school, urban, interurban and rural, charter, and paratransit (transportation of people with disabilities).
Companies in all sectors of the industry acquire buses, hire and train drivers, and operate maintenance facilities. School and urban bus companies pick up and discharge passengers ...
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