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Demand-responsive Transit (DRT) service is used for public transport in order to cater to the demand for transport in urban areas or a particular area. Generally, the Demand-responsive Transit (DRT) service provides flexible and more cost-effective transport than conventional bus transport service. DRT service is a combination of traditional public transport service and privately operated taxi services. It is a user-friendly and user-oriented service, which can be characterized by flexible routes and small vehicles operating in shared ride according to passenger needs.

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Sustainability can be increased by using an appropriate sized vehicle according to requirements owing to the flexibility of DRT. DRT service can be used to minimize the demand-supply gap between traditional public transport service and the public. Moreover, accessibility in rural areas, cost-effective public transport, positive response from public, easy access of service, and increase in the number of mobility impaired people are likely to affect the demand of DRT directly during the forecast period. However, over flexibility, complex routing model and optimization and public transport companies with insufficient experience with lack of marketing strategies are some challenges for DRT service.

The global Demand-responsive Transit (DRT) market can be segmented based on transport service, transit service type, booking type, and region. In terms of transit service, the Demand-responsive Transit (DRT) market can be segregated into bus and taxi. DRT service is usually served by buses. Demand for DRT service for several application such as school busses, para-transit, medical trips and more. Therefore, the bus segment expansion is likely to boost the market during the forecast period.

Based on booking type, the Demand-responsive Transit (DRT) market can be classified into online booking and offline booking. DRT service offers multiple modes of booking such offline booking and online booking. A majority of consumers used online booking as it offers higher level of flexibility and real-time information. This, in turn, is expected to boost the online segment at a rapid pace during the forecast period.

In terms of region, the global automotive demand-responsive transit (DRT) market can be segmented into North America, Europe, Asia Pacific, and Middle East & Africa. The demand-responsive transit service in the U.K. and Europe has been largely focused on catering to the needs of mobility impaired passengers since 1997. Europe is likely to dominate the global Demand-responsive Transit (DRT) market during forecast period.

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The success of local authorities in the U.K. in obtaining substantial funding under the Rural and Urban Bus Challenge programs for the implementation of DRT and local government support for DRT service in different cities of Europe are anticipated to drive the market in Europe during the forecast period. The global market is in the nascent stage; however, the number of service providers entering the market in North America and Asia Pacific is increasing, which is projected to boost the market in these regions during the forecast period.

Key service providers operating in the global automotive demand-responsive transit (DRT) market include Suffolk County Council, CallConnect, TfL, and Nippy Bus.