Market analysis of bus transport services in India
The relevance of research
In the context of a difficult economic situation and a decrease in real incomes of the population, bus transport services remain relevant. Bus transportation in India accounts for 61% of the total number of passengers carried by all modes of transport and up to a quarter of passenger traffic.
Purpose of the study
Analysis of the state of the market for bus transport services, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market for bus transport services.
Content
Part 1. Overview of the Indian bus market
1.1. Definition and Characteristics of the Indian Bus Transport Market
1.2. Dynamics of the volume of the Indian bus transport market, 2014-2018
1.3. Market structure by type of service provided in India
1.4. Market Structure of Bus Transport Services by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis in the Indian Bus Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of bus transport services
3.1. Estimation of per capita consumption of bus transport services
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for bus transport services until 2023
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian bus market
1.1. Definition and Characteristics of the Indian Bus Transport Market
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Bus transportation in India accounts for …% of the total number of passengers carried by all modes of transport and up to … passenger turnover.
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According to …, at the end of 2018, there were … thousand units in India. bus transport. The increase in the bus fleet compared to the indicator of 2014 amounted to …%.
...
The performance indicators characterizing the Indian fleet of buses are presented in Table 1. Thus, according to the data ..., during 2014-2018. the share of buses in operation for more than … years increased. The increase in the indicator over the past 5 years amounted to …% (…% in 2018 against …% in 2014).
It can also be canceled that, starting from 2016, the share of buses using … . At the end of 2018, the share of gasoline-powered buses amounted to only …% against …% in 2014. The most popular type of bus fuel in 2018 was diesel fuel, which is used by …% of the Indian bus fleet.
The key performance indicators of bus transport are the volume of passenger traffic and passenger turnover.
...
According to the data of ... , the total number of passenger transportation by bus in 2018 amounted to … million people, which is …% more than the same indicator in 2014.
Passenger traffic of bus transport also grew during the period under review and amounted to … billion passenger-km (…% of 2014).
Among the passengers, the most in demand is ... transportation - they accounted for ...% of the total number of bus passengers in 2018.
...
1.2. Dynamics of the volume of the Indian bus transport market, 2014-2018
During 2014-2018 The Indian market for bus transport services is characterized by positive dynamics. The average annual increase of the indicator for the period under review amounted to …%.
According to preliminary data, the volume of the Indian market of bus transport services in 2018 amounted to … billion Rs., having exceeded the level of 2014 by …%.
Diagram 5. Dynamics of the volume of the Indian market of bus transport services, 2014-2018, billion Rs.
1.3. Market structure by type of services provided in India
In accordance with the Federal Law ... transportation of passengers in buses is accounted for by type of message: ...
According to ..., at the end of 2018, the largest volume in the structure of bus transport services accounted for urban and suburban traffic - ...%.
Diagram 6. Structure of the Indian market of bus transport services by types (in value terms), 2018, %
The share of intercity traffic amounted to …% in the total volume of bus transport services. International traffic accounted for only …% of the industry's total revenue.
1.4. Market Structure of Bus Transport Services by Union Territories
In 2018, almost ... of the Indian market of bus transport services fell on the Central Union Territories (…%). Also, the largest territories include the North-Western Union Territories (…%), the Volga Union Territories (…%), the Siberian Union Territories (…%), the Urals Union Territories (….%) and the Southern Union Territories (…%). The shares of the Far Eastern Union Territories and the North Caucasian Union Territories turned out to be less significant – …% and …%, respectively.
...
1.5. Assessment of current trends and development prospects of the studied market
According to the results of the analysis of the Indian market of bus transport services, the following trends in the development of the industry can be identified:
... the share of expenditures on transport services in the overall structure of household expenditures. Since 2018, transport services have occupied …% in the structure of household expenses, having decreased by …% compared to 2014.
Diagram 9. The share of expenditures on transport services in the structure of household expenditures, 2014-2018, %
1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand for bus transport services in India.
Economic
Data on the dynamics of GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation.
Diagram 12. Dynamics of India's GDP, 2014-2018, in % to the previous year
GDP growth by …% in 2017 and …% in 2018 points to the recovery of the Indian economy after the 2014 crisis and its further development, which may have a positive impact on the bus transport market.
...
Socio-demographic ...
Technological ...
Political and legal ...
1.7. Analysis of sectoral indicators of financial and economic activity
Analysts ... carried out an analysis of the indicators of the bus transport services market for the following types of activities, ...
Table 3. Profit (loss) from the sale of bus transport services in the Union Territories of India, 2014-2018, million Rs.
Gross margin reflects the share of revenue that is left in the enterprise as gross profit. During 2014-2018 the gross margin of the bus service industry was ... at the level of the entire Indian economy and was of ... importance.
...
Part 2: Competitive Analysis in the Indian Bus Market
2.1. Major players in the market
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The market of bus transport services in India is not concentrated: TOP-5 companies account for …% of the market, and TOP-10 companies for …%. Moreover, it should be noted that all the TOP-10 representatives of the market under consideration provide services for regular intracity and suburban passenger transportation.
2.2. Market shares of the largest competitors
...
2.3. Profiles of major players
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Diagram 21. Dynamics of the total revenue of the largest bus transport market operators (TOP-5) in India, 2014-2018
At the end of 2018, the total revenue amounted to … billion Rs., having increased by …% compared to 2017.
Part 3. Analysis of the consumption of bus transport services
3.1. Estimation of per capita consumption of bus transport services
Consumption of bus transport services during 2014-2018 had multidirectional dynamics. Thus, at the end of 2017, per capita consumption amounted to … Rs./person, having decreased by …% compared to the indicator of 2016 due to the decline in the market volume during this period.
...
In 2018, the market for bus transport services increased slightly, which led to an increase in per capita consumption (…% compared to 2017). The indicator under consideration was … Rs./pers. at the end of 2018
3.2. Market Saturation and Estimated Market Potential in India
The scale and nature of the use of transport services in India is generally consistent with a country with a medium level of development, high inequality, long distances and significant commuting between work and living outside the city.
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3.3. Description of consumer preferences
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When analyzing the criteria for selecting fixed-route taxis by respondents, the decisive factor in choosing was the speed of the trip - ...%. The criterion ""Safety of the trip"" was determined to be the main one when choosing large buses, it was indicated by ...% of respondents. Passengers expressed the opinion that the fixed-route taxi is the most emergency type of transport. In addition, for ...% of respondents, it does not matter what to leave on (the category ""what will suit you first""). This shows that ... .
...
3.4. Price analysis
Consumer prices for bus transport services in India were growing during 2014-2018, and in 2015 the sharpest surge was observed - on average by …% compared to 2014. Starting from 2017, the index began to slow down and reached by the end of 2018 g. values in …% compared to the previous year.
...
Part 4. Assessment of factors of investment attractiveness of the market
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Part 5. Forecast for the development of the market for bus transport services until 2023
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Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
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Diagrams
Diagram 1. Share of bus transport in passenger traffic, 2018, %
Diagram 2. Dynamics of the number of bus transport in India, 2014-2018, thousand units
Diagram 3. Passenger and bus passenger traffic dynamics in India, 2014-2018
Diagram 4. Structure of passenger transportation by bus transport by types of communication (by the number of passengers carried), 2018, %
Diagram 5. Dynamics of the volume of the Indian market of bus transport services, 2014-2018, billion Rs.
Diagram 6. Structure of the Indian market of bus transport services by type (in value terms), 2018, %
Diagram 7. Structure of the Indian market of bus transport services by union territories, 2018, %
Diagram 8. Structure of the Indian market of bus transport services by regions, 2018, %
Diagram 9. Share of expenditures on transport services in the structure of household expenditures, 2014-2018, %
Diagram 10. Comparison of tariff indices for bus transport services and official inflation, 2014-2018, %
Diagram 11. Structure of the Indian bus fleet by type of fuel consumed, 2014-2018, %
Diagram 12. Dynamics of India's GDP, 2014-2018, in % to the previous year
Diagram 13. Dynamics of real incomes of the population of India, 2014-2018, in % to the previous period
Diagram 14. Population dynamics in India, 2014-2018, million people
Diagram 15. Number of own cars, 2014-2018, units per 1000 population
Diagram 16. Profitability before tax (profit of the reporting period) in the field of bus transport services in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 17. Current liquidity (total coverage) in the field of bus transport services for 2014-2018, times21
Diagram 18. Business activity (average term of receivables turnover) in the field of bus transport services, for 2014-2018, days days
Diagram 19. Financial stability (security of own working capital) in the field of bus transport services, in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 20. Shares of the largest competitors in the Indian bus market in 2018
Diagram 21. Dynamics of the total revenue of the largest bus transport market operators (TOP-5) in India, 2014-2018
Diagram 22. Consumption of bus transport services per capita, 2014-2018, Rs./person
Diagram 23. Distribution of respondents by occupation, %
Diagram 24. Share of respondents using buses and fixed-route taxis, %
Diagram 25. Criteria for choosing a vehicle, in % of the total number of respondents
Diagram 26. Choice of vehicle by travel distance, % of respondents
Diagram 27. Forecast of the volume of the Indian market of bus transport services in 2019-2023, billion Rs.
Tables
Table 1. Operating characteristics of bus transport in India, 2014-2018, in % of the total
Table 2. STEP-analysis of factors influencing the market of bus transport services
Table 3. Profit (loss) from the sale of bus transport services in the Union Territories of India, 2014-2018, million Rs.
Table 4. Gross profit margin of the bus transport industry in comparison with all sectors of the Indian economy, 2014-2018, %
Table 5. Absolute liquidity in the bus transport services sector in comparison with all sectors of the Indian economy, 2014-2018, times
Table 6. Key companies participating in the Indian bus market in 2018
Table 7. Basic information about the participant of the State Unitary Enterprise ""ХХХХХ"" in the market of bus transport services
Table 8. Basic information about the participant of SpB GUP ""ХХХХХ"" in the market of bus transport services
Table 9. Basic information about the participant of LLC ""ХХХХХ"" in the market of bus transport services
Table 10. Basic information about the participant of the State Unitary Enterprise ""ХХХХХ"" in the market of bus transport services
Table 11. Basic information about the participant of JSC ""ХХХХХ"" in the market of bus transport services
Table 12. Consumer price indices for bus transport services in India, 2014-2018, %
Table 13. Average prices for bus transport services in the Union Territories, 2018
Table 14. Assessment of factors of investment attractiveness of the Indian market of bus transport services
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