The victim, aged in his 40s, remains in a critical but stable condition in hospital, police said this afternoon.
The shooting happened shortly after 8pm last night in a car park on the Rathfriland Road.
The victim, who was shot in the abdomen, is believed to have been targeted while sitting in a taxi.
Today police forensics officers in white clothing could be seen carrying out searches of the scene.
A grey-coloured car, with its passenger window shattered, remained at the scene.
Detectives are also probing a link between the shooting and a vehicle found on fire nearby.
Detective Inspector Foley from the PSNI’s Serious Crime Branch said: “A man, aged in his 40s, who was shot in his abdomen by a masked man while in the car park on Rathfriland Road around 8pm, remains in a critical, but stable condition in hospital.
“Due to new evidence, we now believe the suspect made off from the scene in a silver-coloured Peugeot vehicle, rather than a Citroen car, as previously reported.
“A silver Peugeot vehicle was found burnt out a short time later in the Drone Hill Road area of Corbet.
“A 46-year-old man arrested on suspicion of attempted murder and conspiracy to murder remains in custody at this time, assisting detectives with their enquiries.”
Ulster Unionist leader Doug Beattie urged anyone with information to come forward, saying the shooting was “a shocking incident”.
“Guns do not belong on our streets. If you have any information regarding this incident please get in touch with the PSNI,” he added.
DUP MP Carla Lockhart said: “Please allow the PSNI time and space to investigate this serious incident.”
Local Alliance MLA Eoin Tennyson said those behind the shooting do not represent the wider community in Upper Bann.
“I utterly condemn this sickening attack, as will any right-thinking individual,” he said.
“My thoughts are with the victim of this terrible incident, who I hope makes a full recovery from his injuries.
“The local community in Banbridge has been left shocked by this shooting. Those behind it certainly do not represent anyone in the town or indeed further afield. There is no place for guns on our streets and the culprits need taken off our streets.
“I appeal to anyone with information on this incident to contact police with it immediately.”
Sinn Fein councillor Kevin Savage said: “There is no place for guns on our streets, those responsible need to desist.
“Anyone with information on this attack should bring it forward to the PSNI.”
A spokesperson for the Northern Ireland Ambulance confirmed one person was taken to the Royal Victoria Hospital in Belfast.
“The Northern Ireland Ambulance Service received a 999 call at 8.06pm following reports of an incident in the Tullyear Close area of Banbridge,” they said.
“NIAS despatched a Rapid Response Paramedic and an emergency crew to the incident.
“Following assessment and initial treatment at the scene, one patient was taken by ambulance to RVH in Belfast.”
Police said the Drone Hill Road and Rathfriland Road, including its off-slip and on-slip to the A1 dual carriageway, remain closed on Saturday afternoon.
DI Foley added: “Cordons are also in place as enquiries continue and we would advise road users to avoid these areas at this time. Local diversions are currently signposted.”
The detective added: “We are keen to hear from anyone who witnessed what happened or noticed anything suspicious, to make contact with police on 101, quoting reference number 1683 12/04/24.
“We would especially like to hear from anyone who may have any CCTV, dash-cam or mobile footage of what happened. This information could greatly help with our enquiries.”
Information can also be given anonymously through Crimestoppers on 0800 555 111.
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.