Indian bus industry projected to hit Rs 104,000 crore by 2026

The bus industry in India is expected to reach a value of Rs 104,000 crore by 2026, with a projected compound annual growth rate of 6.64 percent. This information comes from a report titled ‘Traveltech 2.0: The Next Phase of Digitally Empowering the Indian Traveler,’ a joint effort by the Internet and Mobile Association of India and Grant Thornton Bharat. The report was unveiled at the India Digital Summit 2024 in Mumbai.

The findings of the report highlight substantial opportunities for online travel agencies in surface transportation services like buses and trains. This pertains particularly to providing additional services beyond basic online ticketing. Geographically, states such as Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana, and Uttar Pradesh are identified as key markets for State Transport Undertakings, accounting for nearly 70 percent of the market share.

While online ticketing for bus travel is increasing, especially for inter-city journeys, intra-city bus ticketing is still largely offline. Nevertheless, there is a growing interest among commuters in value-added services such as live bus tracking and digital ticketing for city buses.

In the rail sector, Indian Railways generates 70 percent of its revenue from reserved passengers, even though they constitute only 12 percent of the total passenger volume.

Prominent figures in the industry, including Dhruv Chopra of Chalo, Aloke Bajpai of ixigo, Prakash Sangam of Redbus, and Vikash Jalan of PayTM Travel, underscored the pivotal role of technology in transforming ground transportation.

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