The Promotion Of Public Transport To Cut Carbon Emissions Will Drive The Global Transport Services Market
Governments globally are emphasizing on cutting carbon emissions to reduce pollution. Eco-friendly public transportation can play a significant role in controlling carbon emissions. For every kilometer travelled, private motorized transport modes such as cars and bikes emit 3.5 times more greenhouse gas per passenger than public transport. Governments are also encouraging their citizens to use public transportation and investing in energy efficient mass transportation systems to reduce carbon emissions in their regions. For example, in the EU, doubling the share of public transportation will decrease greenhouse emissions by 20%. Government initiatives promoting public transport to cut carbon emissions are expected to drive the transport services market going forward. The global transport services market is expected to grow from $6,630 billion in 2018 to $9,540 billion in 2022 at an annual growth rate of 9.5%.
The transportation services industry is making continuous and increasing use of various government initiatives towards green transportation by promoting and investing in electric or hybrid buses for public transport. An electric bus is motor vehicle that operates on electricity fueled either by storing it on board, internally or through an external source. Hybrid buses generally use a diesel-electric powertrain and combine electric propulsion systems with the conventional engine propulsion using fuels such as petrol or diesel for locomotion. The battery powered electric buses are characterized by greater fuel economy, which is five times higher than that of conventional diesel buses. These buses result in minimal carbon emissions and have 2.5 times inexpensive powering or refueling process leading to low operating costs. Countries are addressing the benefits of electric and hybrid buses to tackle the issues related to growing pollution and climate change around the world. Shenzhen in China, for instance, has achieved full electrification of public transport by transforming the city’s entire fleet of 16,359 buses into electric buses. This resulted in reduction of fuel consumption in the public transport market by over 90%, and environmental benefits pertaining to the major fall in carbon emissions. Further, the global players in the transport services market are expanding the use of electric or hybrid buses to reap the advantages of electrification in transportation. Consequently, there are currently over 386,000 electric buses deployed around the world and it is estimated that 50% of the global municipal bus fleet will be electric by 2025.
Electric vehicles are also being used by transportation service providers for package and parcel delivery, with an aim for moving towards last-mile fleet electrification. Delivery companies such as UPS, FedEx, and DHL are beginning to acquire electric delivery vans in an attempt to meet sustainability goals, reduce fuel costs and continue service in areas that have banned fossil-fuel-powered vehicles — such as some cities in Europe. Amazon, for instance, is also investing in electric vehicle technology. In February 2019, the company announced plans to lead a $700 million investment into Rivian, an electric pickup truck maker. The company has also planned to eventually have all of its shipments to customers become net zero carbon, with 50% of all shipments net zero by 2030. The couriers and messengers’ market will benefit from the increasing adoption of electric vehicles by food delivery and e-commerce businesses.