Intercity Market Ananlysis of India
The intercity travel business in India is a vibrant and fast increasing sector that connects the country’s large and diverse regions. With over 1.4 billion people in India and the rate of urbanization rising, there is a greater demand than ever for efficient and competitively priced intercity transportation options. According to studies, buses and trains make up the majority of the modes of transportation in India’s intercity travel sector, which was projected to be valued at $66 billion in 2020. And, in the next few it is only going to grow tremendously. Let’s examine intercity travel in India in depth, paying particular attention to buses, rails, and cabs.
Intercity Bus Market
As per reports by Statista, ‘’The Indian intercity bus market size was around US$ 9 billion in FY2020 and is estimated to grow over US$ 13 billion by FY2027’’. Although due to Covid-19, a 50% decline was expected by the year 2021, since then there has been a steady rise in the market. In fact, as per a report by Financial Express, “Intercity travel demand in India increased by 180-200% from 2021, to surpass pre-covid levels by 2022 end”.
The experience of boarding an intercity bus has significantly improved with the development and modernization of Indian roadways. So, it is only fair to say that it led to an increasing demand for intercity travel for either work or leisure. Buses these days not only have Wi-Fi but also washrooms, so why not? Comfort comes first!
Trains Market Analysis
Well, since the 19th century, trains have been a crucial component of India’s transportation system. In 2022, Indian Railways, one of the biggest railway networks globally, transported more than 23 million passengers. Nearly every region of the nation is connected by the network, which has more than 67,000 km of track. Given the fact that it is super cheap and significantly reduces travel times, it grew its GBV from 617 billion INR in 2023 to 378 billion INR in 2022.
Flight Market
Flights are essential for long-distance travel between cities, offering time savings of over 200 miles despite higher costs than cabs, trains and buses. The integration of the aviation sector with digital platforms increased customer experience with easy booking, real-time updates and loyalty programs. Forecasts place the market revenue at $48.31 billion by 2024, with a compound annual growth rate (CAGR) of 3.50% from 2024 to 2028, when it is predicted to reach $55.43 billion. Additionally, it is anticipated that by 2028, there will be 224.40 million customers in the Indian flying market. (source: Statista)
Intercity Cabs
Cabs like Ola and Uber are flexible and affordable for short to medium distances and are a great alternative to conventional intercity taxi booking. However, the fares are often influenced by factors like time, location, and demand. A door-to-door service overall enhances the passenger experience. The market size for intercity cabs was around 2.3 billion US dollars in 2020 and is expected to grow to over 4 billion US dollars by 2027. (source: Statista)
Carpooling
Now, to make intercity travel much cheaper and sustainable, carpooling is gaining traction in India, which in a way you can say is an upgraded version of cabs.
This is exactly when platforms like Cozycab pitch in and connect drivers with empty seats to passengers travelling similar routes so that you can opt for intercity rides at lowest prices. “97% of commuters opted for carpooling as their preferred mode of commuting with only 3% opting for cabs”, says recent studies by Togopol. Again, as per Statista, “By, 2024, the project revenue in car sharing is expected to reach 76.96 million US dollars which is anticipated to demonstrate an annual growth rate of 5.04% from 2024-2028. Also, the number of users in this market is estimated to reach 2.15 million users by 2018.”
Conclusion
Carpooling, on the other hand, is about to change intercity transportation by providing an affordable and sustainable substitute which is exactly what CozyCabs do. Our mission is to make travel enjoyable and stress-free by embracing innovation. The 3 things that top our priority list are- safety, reliability and customer service. As India’s Leading Inter-City Cab Service Provider, we rigorously screen our drivers and improve based on feedback. So, check out our services now!