- High technical debt, inefficient processes like manual paper-based tracking and storing, duplicated data entry with partners, and difficulty tracking across services can hamper your organization’s ability to improve or add services.
- The effects of the pandemic are still apparent within the transportation industry, including service disruptions and shortages of skilled labor.
- Driver and customer safety and environmental, social, and governance factors are becoming more and more critical. Without an effective TMS that addresses those areas and enables adaptability, transparency, analytics, and integration with suppliers and partners, you risk being left behind as the industry progresses.
Gain real insight into the features and market for transit management systems (TMS) and how different solutions are designed to address the needs of a particular type of business, whether that be a single or multimodal transportation business. Transform your business processes to future-proof your business by selecting a holistically integrated and automated solution. Delight your operators and customers with real-time insights.
Impact and Result
- Identify the kinds of tools and activities that are most important to customers right now.
- Prioritize tools and technology that will meet your needs based on critical features and functions that can be leveraged to increase efficiency and profitability, lower cost, and enhance collaboration.
- Align the team: After establishing what technologies are needed for your TMS solution, form the team that will be needed for the selection and implementation.
Enable the Next-Generation Passenger Transit Management System
The time for transit companies to modernize their TMS solutions is now.
The next-generation transit management system (TMS) solutions are here.
“The reality about transportation is that it's future-oriented. If we're planning for what we have, we're behind the curve.”
– Anthony Foxx (BrainyQuote)
Many passenger transportation businesses have built their success with good business principles that were tremendously successful for more than 40 years.
Now they find themselves stuck at the crossroads where the amount of change that is necessary has become overwhelming.
The new reality: Those companies that fail to modernize their operations will be faced with rapidly eroding profit margins as the competition becomes much faster, more accurate, more cost effective, and less burdened by technical debt.
Info-Tech's approach focuses on investigating the challenges in the market and assessing the solutions that can accelerate your transition to a modern TMS.
Principal Research Director, Manufacturing Research
Info-Tech Research Group
Understand how the TMS will integrate across the business. The CIO must work closely with the operations leaders in the business to drive success.
Effectively manage the changes needed for goods transportation processes within the business.
Design processes that cater to unique customer demographics but have similar capabilities.
Identify the most cost-effective leapfrog strategy for conducting a TMS transformation initiative.
A wide array of homegrown legacy applications: Whether public or private, legacy applications that are either standalone or include proprietary integrations add complexity.
Reluctance to change: Staff and operators have been conducting their daily tasks the same way for many years and have become accustomed to the perceived predictability and simplicity of their jobs.
Legacy processes: Hiring and retention are critical for replacing proprietary, old, and complex systems.
Network reliability: Reliability is necessary for seamless live information sharing with customers and employees.
Improve your TMS capabilities by using this report to understand the needs of the business and the top tools in the market.
Use our tools to structure your evaluation and demonstration process for selecting the best tools for your business needs.
Adopt a capability-based approach that considers standalone and platform solutions that leverage cloud and edge services.
Identify the most cost-effective leapfrog strategy for conducting a TMS transformation initiative.
Leverage Info-Tech’s strategic and tactical decision-making advisory services.
Passenger transportation is one of the hottest sectors for digital transformation due to the volatility brought about from the pandemic, which caused a radical change in the mindset of the world both environmentally and technologically.
Source: “Understanding COVID-19’s Impact...” Deloitte, 2020
What is a TMS?
A transit management system (TMS)* is a software solution that helps with the operations and management of the public infrastructure for the movement of people. This solution is designed to focus on routing, scheduling, ticketing, payments, and the safety of passengers by rail, car, shuttle, air, and sea. TMS solutions are increasingly focusing on real-time mobility capabilities for operators and customers.
Sources: AltexSoft, 2022; Research.com, 2022
Common challenges for people transportation
Companies need to invest in advanced transportation management systems to meet customer, regulator, and business requirements.
- REAL-TIME INFORMATION
- COST MANAGEMENT
Top Challenges for Transportation Companies
The transportation sector is being transformed globally as lobbyists and governments push for rapid changes that will improve the health and wellbeing of all citizens. The challenge for the transportation industry is to find cost-effective tools and to amplify transformation activities to smooth out the bumps in the transition process.
There is high demand for public transit
Transportation needs to be flexible and responsive to the market. It must be robust enough to handle the fluctuations in usage by adopting solutions that incorporate flexibility through tools such as artificial intelligence for schedules, capacity management, and route optimization.
72% of the population plan to use public transit at least once a month
Source: Accenture, 2021
Transit Management System (TMS)
Also known as mass transit or public transportation software, a TMS is a system for the movement of passengers between destinations.
Passenger transportation needs to be prepared for a rebound in growth
- Commuters want consistency. Approximately 90% of daily commuters follow a strict routine that has minimal fluctuations of about 30 minutes for arrival and departure times.
- The pandemic brought about new concerns for commuters and operators. Beyond air circulation and filtering increasing risk, studies showed that the risk of exposure increases greatly when services are overcrowded. The average risk increases 11.91% through close contact during transportation.
- Advanced analytics are needed. Software is a vital tool for conducting calculations based upon numbers of passengers by day and class, climate factors, capacity, calendar variables such as school days and paydays, and regional populations.
Public transit needs to refocus for the rebound.
- Increasing efficiency and reducing costs are the top priority for 63% of public transportation providers.
- Client expectations must be met. Approximately 61% of providers determined that understanding their passengers’ needs and demand is the second most important factor for service improvement.
Focus on efficiency.
|51%||of passenger transportation owners are shifting to electric/zero-emissions vehicle fleets.|
|64%||of passenger transportation owners are focusing their attention on service predictability and improved passenger experience.|
Source: Journal of Urban Management, 2021; Optibus, 2023
Public transportation offers tangible benefits
- Investments bring returns. In the US, every $1 invested into public transportation generates $5 in economic returns.
- The private sector benefits from public investment. Around $39 billion of public transit expenditures flows into the private sector.
- The public transit network has limitations. While 6,800 organizations provide transportation across the US, only about 55% of the population has access to public transportation.
Public transit needs more investments.
- Transportation impacts the local economy: 87% of trips directly impact the local economy.
- Transportation moves people to work and school: 71% of all riders are employed and 7% are students.
- Transportation helps the environment: Public transportation saves 6 billion gallons of gasoline and reduces carbon output by 63 metric tons annually.
Public transportation reduces carbon and creates opportunities for the local economy.
|$10k||Annual household savings by using public transit and using one less car.|
increase in home value
increase in hotel revenue per room
|Increase in home value and hotel revenue per room in cities with direct rail and airport access.|
Source: American Public Transportation Association
The mass transit industry continues to seek out new and innovative solutions
Like in goods transportation, TMS advancements are driving efficiencies in passenger transportation.
ARTIFICIAL INTELLIGENCE (AI)
The growth of artificial intelligence and machine learning, combined with the Internet of Things (IoT), is opening a new world of dynamic route planning, predictive maintenance, and depot management. AI can track incidents in real time and provide prescriptive instructions for operators.
ACCESS ANYTIME AND ANYWHERE
The modern traveler wants a system that is always on. They need to be able to receive information and alerts across all devices in the context of their current situation. They don’t want to be forced to suffer long waits that can be avoided by capacity management and notifications of overflows.
HEADS-UP AND DIGITAL SIGNAGE
Heads-up displays have become standard for most vehicles, but commercial vehicles need real-time status and capacity information. Digital displays need to provide useful information for passengers. This is also an opportunity to reduce costs via digital ad revenue.
Top Three Game Changers: The leading TMS systems are real-time and global.
Source: Forbes, 2022
Multimodal integration is important for mass public transportation
Having the ability to transition resources across services is becoming vital for transit integration services.
Source: Mallikarjun, 2019
Passenger transit feature trends: New tech features improve capabilitiesNOTE: SOME FEATURES DIDN’T EXIST OR WEREN’T BEING USED IN 2013
Source: Remix, 2021; CODICE Technologies
Top mass transit vendors: Market leaders are differentiating
Comprehensive software that improves transportation services for agencies, operators, drivers, and passengers. Allows agencies using the platform to design routes, timetables, and schedules. Users can schedule operator crews and vehicles, create rosters, and manage shuttle operations.
A fully integrated multimodal platform for buses, coaches, vehicle rentals, shuttles, transfers, and tours on a cloud-based platform. Manage your operations and sales through an intuitive reservations and ticketing system with revenue management and dynamic pricing.
Web-based paratransit ride scheduling software for scheduling, mapping, reporting, and managing rides, clients, and drivers. Can use for volunteer or paid drivers, with statistics and notifications for helping drivers and eliminating errors such as missed rides.
All the tools needed to run a transit operation. Contains scheduling, billing, and reporting, with advanced features such as mapping, auto-scheduling, mobile data interface, broker imports, and an online rider portal to save time and money. Strong tech support.
Interagency ride coordination system that provides street-by-street capacity planning and slack optimization. QRyde is a transportation network for offering low-cost, on-demand, rider-funded services, and it offers cost allocation AI, meets FTA criteria for ADA, and is a HIPAA-compliant cloud solution.
Paratransit software built for transit agencies of 10+ vehicles. Increase completed rides, reduce expenses, reduce manual data entry, and use resources efficiently. Make better decisions for the agency, community, and riders. Provides platform-independent tools to manage and monitor services and performance in real time.
Source: Research.com, 2022
Los Angeles Department of Transportation (LADOT) and MV Transportation
Public and Private Transportation
LADOT launched a large-scale implementation that demonstrated the power of intelligent transportation systems for securely sharing information across agencies.
MV is the largest transportation contracting firm in the US. The 200+ transit agencies, school districts, and universities it works with serve over 110 million customers per year. LADOT, which is collaborating with MV, has over 19 million annual trips.
It has become increasingly important for private transportation operators to integrate more seamlessly with public transportation agencies, from the initiation of request-for-proposal processes needing a set of detailed requirements through to the delivery of the services.
Legacy environments create barriers to effective planning, scheduling, collaboration, service quality, and communication expected by employees and customers in the modern era.
LADOT conducted a detailed discovery as to how its current data was being used for the services currently in place.
If the agency were using another General Transit Feed Specification (GTFS) data feed with a third party, it would become more complicated because it would require multiple days of review across services to ensure that the data validation is conducted for each feed.
The key actions were to put the plan in place to implement a system where all data is pulled into the Optibus end-to-end platform as a direct integration that could then be shared by MV and LADOT.
MV and LADOT using the same scheduling platform has improved communications, improved data validation, and shaved days off the planning process.
The system doesn’t allow multiple trips to be scheduled at the same time, and both sides can see all trips from a single pane of glass without any need for double data entry into different systems.
We have never had anything like Optibus before. For sure there were huge time savings.”
– Jacob Brothers,
A telematics systems is a solution that is either embedded in or complementary to a TMS. It can be used with all types of vehicles, and components such as cameras may be used for monitoring static assets such as a warehouse.
Safety has become increasingly important
System & Cargo
Live connectivity enables businesses to extend capabilities throughout all assets.
System monitoring tracks all the vehicles’ core functions and sends notifications of problems.
Cameras are installed to capture and record the internal activity in proximity of the vehicle while sensors detect any foul play such as attempts to open parts of the vehicle or steal goods.Cargo theft increased by 5.9% in 2021 and 10.3% in 2022.
Driver & Roadways
Enhancing safety has become a major concern as distracted driving, extreme weather, increased violence in some areas, and increased populations create higher levels of risk.
A combination of cameras and sensors are used to keep drivers safe and monitor their driving patterns.
The goal of safety systems is to protect the driver and others on the road to keep humans safe, keep costs down, and protect the brand.Driver monitoring and safety decreased intentional hours-of-service violations from 6% in 2021 down to 2.9% in 2022.*
*Percentage of inspections where intentional hours-of-service violations were found.
Sources: BSI Group, 2023; Mother Jones, 2022; Descartes & ChainLink Research, 2019
Transportation telematics improve safety
- Traffic fatalities are on the rise. The growing number of fatalities on the highways involving commercial vehicles, as well as the need to curb transportation delays, are driving the need for connected vehicles.
- Fatalities are driving the need for safety measures. Every year over 1.35 million fatalities occur worldwide in road accidents, increasing demand for safety solutions.
- Technology innovation is driving solutions for safety. The increased expansion of 5G capabilities and usage of smart and IoT devices, coupled with the reduced cost of automotive sensors and the potential for insurance premium cost reduction, is driving up the demand for telematics devices for data collection.
Consider telematics as public safety concerns continue to rise.
The United States is aggressively looking for ways to reduce the number of fatalities involving commercial vehicles
A study was conducted by the National Safety Council to measure the number of fatal crashes involving trucks in the US. In 2019, there were 5,005 fatal crashes involving trucks – a disturbing 2% increase from 2018.
Source: Fortune Business Insights, 2022
|21.6% CAGR||The commercial telematics market is expected to grow from $34.8 billion in 2020 to $158.3 billion in 2028.|
“Insurers need to work more closely with businesses to capture more value from their automated data capture that can then enable significant benefits for both businesses and insurance companies.” Kevin Tucker Info-Tech Research Group
Top telematics vendors: The market is expanding rapidly
Geotab supplies telematics, vehicle, and asset tracking to over forty thousand customers in 150 countries. The company has been operating for more than 20 years, connects to over 3.2 million vehicles, and processes more than 55 billion data points a day. Customers use data for better decisions, increased productivity, and safer fleets.
Founded by cofounders who previously cofounded Meraki (now part of Cisco Systems), Samsara’s mission is to increase the safety, efficiency, and sustainability of the operations that power the economy. Samsara uses a Connected Operations Cloud to harness IoT data for business insights.
Track vehicles, improve worker productivity, and encourage safer driving with dashboards, reports, and alerts. See the vehicle and driver location on a live map to improve dispatch, routing, visibility, and driver speed and to reduce idling and harsh driving to reduce costs for vehicle maintenance and fuel use.
FIPS 140-2validation for the cryptographic module of the product.
4+ trilliondata points collected annually and
200+new features annually.
End-to-endplatform solution for assets, planning, and dispatching.
Sources: Geotab; Samsara; Verizon Connect; With Vector, 2021
Develop an application selection process that is easy to perform but also thorough.
Design a digital business strategy to serve your clients. Focus on automating business processes and driving business resilience for growth.
Launch digital solutions that elevate marketing, sales, operations, collaboration, engagement, service, and production capabilities.
It is imperative to focus on the digital risks associated with digital transformation initiatives at the level of structural and operational changes in the organization.
- Rapid Application Selection Framework
- Define Your Digital Business Strategy
- Build a Digital Workspace Strategy
- Empower Members Through Digital Engagement
- Achieve Digital Resilience by Managing Digital Risk
- Double Your Organization’s Effectiveness With a Digital Twin
The transit industry is evolving rapidly as customers and operators look for ways to use digital solutions to increase transparency, efficiency, and passenger/operator safety.
Research Contributors and Experts
Chief Information Officer
Executive Officer, ITS
Los Angeles County Metropolitan Transportation Authority
Chief Technology Officer
MVT Services Inc.
Managing Partner, Durable Goods
Info-Tech Research Group
Managing Partner, Non-Durable Goods
Info-Tech Research Group
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