The interfacial area transport equation dynamically models two-phase flow regime transitions and predicts continuous changes of the interfacial area concentration along the flow field. It replaces the flow regime-dependent correlations for the interfacial area concentration in thermal-hydraulic system analysis. In the present study, detailed formulation of the interfacial area transport equation is presented along with its evaluation results based on the detailed benchmark experiments. In view of model evaluation, the equation is simplified into one-dimensional steady state one-group interfacial area transport equation. The prediction made by model agrees well with the experimental data obtained in round pipes of various diameters. The framework for the two-group transport equation and the necessary constitutive relations are also presented in view of bubble transport of various sizes and shapes.