A dynamic approach employing the interfacial area transport equation is presented to replace the static flow regime dependent correlations for the interfacial area concentration. The current study derives the transport equations for the bubble number, volume, and interfacial area concentration. Accounting for the substantial differences in the transport phenomena of various sizes of bubbles, both one-group and two-group interfacial area transport equations are developed along with the necessary constitutive relations. The framework for the complicated source and sink terms in the two-group transport equation is also presented by identifying the major intragroup and intergroup bubble interaction mechanisms. In view of evaluating the theoretical model, the one-group interfacial area transport equation is benchmarked based on the available data obtained in a wide range of air-water bubbly flow in round tubes of various diameters. In general, the results show good agreement within the measurement error of ±10%.