Urban water transit is the use of waterborne vessels for passenger transport within and around cities, providing sustainable, efficient alternatives to road-based transport in coastal and riverside urban areas. Urban water transit is essential for sustainable city connectivity, providing the waterborne mobility solutions that reduce congestion and emissions. These water taxi services are key components of urban water transit systems. Passenger water transport includes scheduled ferry services. Marine passenger transport provides connectivity in waterfront cities.

The global urban water transit market is characterized by increasing demand for sustainable mobility solutions and growing investment in waterborne transport infrastructure. The global Water Taxi Market was valued at USD 24.6 billion in 2025 and is estimated to grow at a CAGR of 3.6% to reach USD 34.7 billion by 2035. By application, the market includes Commuter Transport, Tourist Transport, and Event Transport. Commuter transport is the largest segment, serving daily urban mobility needs. By city type, the market includes Coastal Cities, Riverside Cities, and Island Cities. Coastal cities are the largest segment, benefiting from extensive waterfront access. The market is driven by increasing urban congestion, growing environmental awareness, and investment in waterfront infrastructure. The future of urban water transit lies in continued innovation in electric vessel technology, smart mobility integration, and waterfront infrastructure development that enables more sustainable, efficient, and connected urban transportation.

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