The bus market size valued at around USD 52.37 billion in 2023, is set to experience significant growth in the coming years. With an estimated CAGR of 7.9%, the market is projected to reach nearly USD 103.29 billion by 2032. This expansion can be attributed to factors such as increasing urbanisation, the growing demand for sustainable transport solutions, and advancements in electric buses. In this blog, we’ll explore the bus market’s key aspects, including market size, growth, trends, analysis, forecast, and competitive landscape.
Bus Market Overview
The bus market encompasses a broad range of vehicles designed for transporting passengers, including city buses, intercity buses, electric buses, and school buses. The industry is crucial for public transport systems, with buses serving as one of the most cost-effective and environmentally friendly modes of transport globally. Buses are used for daily commuting, long-distance travel, and tourism, making them essential to both urban and rural transportation networks.
Bus Market Size
In 2023, the bus market was valued at approximately USD 52.37 billion. This figure includes revenue from various segments such as city buses, intercity buses, and electric buses. The market is expected to grow at a compound annual growth rate (CAGR) of 7.9% between 2024 and 2032, reaching a value of USD 103.29 billion by the end of the forecast period.
Bus Market Trends
Several key trends are currently shaping the bus market:
Shift Towards Electric and Hybrid Buses: One of the most significant trends in the bus market is the transition from traditional diesel-powered buses to electric and hybrid buses. With increasing environmental concerns and stricter emissions regulations, governments and transport operators are investing heavily in electric bus fleets. These buses offer reduced emissions, lower fuel costs, and improved energy efficiency.
Growing Investment in Smart Bus Technologies: Buses are becoming smarter, with advanced technologies such as GPS tracking, automated ticketing systems, Wi-Fi connectivity, and real-time passenger information. These innovations not only enhance the passenger experience but also improve the operational efficiency of bus operators.
Public-Private Partnerships (PPP): Governments and private companies are increasingly forming partnerships to improve public transportation infrastructure. These collaborations focus on upgrading bus fleets, expanding bus networks, and providing better services to commuters.
Increased Demand for Sustainable Public Transport: As cities and countries focus on achieving sustainability goals, the demand for eco-friendly transportation options like electric and hybrid buses is rising. Public awareness of environmental issues, coupled with government subsidies and incentives, is accelerating the adoption of these greener solutions.
Rise of Autonomous Buses: While still in the early stages, autonomous buses are gaining attention as a future transportation solution. These buses are equipped with advanced sensors and AI systems to drive without human intervention, potentially reducing accidents and improving overall traffic management.
Bus Market Segmentation
Type
- Single Deck: Buses with a single level of seating, commonly used in city transport and short-distance travel.
- Double Deck: Buses with two levels of seating, often used in intercity or tourist services to maximise passenger capacity.
Application
- Transit Bus: Buses used for urban transportation, typically in city or suburban areas for public commuting.
- Intercity/Coaches: Buses designed for long-distance travel, often used for intercity connections or as tourist coaches.
- Others: Includes niche applications like school buses, shuttle services, and chartered buses.
Fuel Type
- Diesel: Traditional buses powered by diesel engines, widely used due to their lower upfront costs.
- Electric and Hybrid: Buses powered by electric motors or a combination of electric and combustion engines, gaining popularity due to environmental benefits.
- Others: Includes alternative fuel buses such as compressed natural gas (CNG) and hydrogen fuel cell buses.
Seat Capacity
- 15-30 Seats: Smaller buses, ideal for short routes or lower passenger demand.
- 31-50 Seats: Medium-sized buses, commonly used in both urban and intercity applications.
- More than 50 Seats: Large buses, typically used for long-distance travel or high-capacity routes like city transit or intercity coaches.
Region
Bus Market Growth
The growth of the bus market is propelled by several factors:
Urbanisation: As the global population continues to grow, especially in urban areas, the demand for efficient and sustainable public transportation is increasing. Buses provide an affordable, scalable, and flexible solution for urban mobility, which is driving market growth.
Government Support for Public Transport: Governments around the world are increasingly investing in public transport infrastructure as a way to reduce traffic congestion, improve air quality, and reduce dependence on private cars. This is creating opportunities for bus manufacturers to supply buses for city and intercity transport networks.
Technological Advancements: The integration of technologies such as telematics, autonomous driving, and electric powertrains is driving innovation in the bus market. These technologies are not only improving operational efficiency but also enhancing the passenger experience.
Rising Fuel Prices: The increasing cost of fuel, particularly for diesel buses, is encouraging transport operators to shift to electric and hybrid models, which are more cost-effective in the long term due to lower operating costs.
Growing Tourism Industry: Intercity and tourist buses continue to be in demand, especially in regions with booming tourism industries. Long-distance travel, sightseeing tours, and private charters are key revenue streams for bus manufacturers.
Bus Market Forecast
The bus market is projected to grow at a robust pace between 2024 and 2032, reaching a value of USD 103.29 billion by 2032. This growth is supported by:
- Rising urbanisation and increasing need for public transportation
- Technological advancements in electric and autonomous buses
- Government incentives and subsidies for cleaner transportation solutions
- Increasing investments in smart bus systems and infrastructure
- Growing adoption of buses for tourism and intercity travel
Competitor Analysis
Key players in the global bus market include:
Anhui Ankai Automobile Company: Anhui Ankai is a prominent Chinese bus manufacturer known for its wide range of buses, including city buses, luxury buses, and electric buses. The company is committed to innovation and sustainable transport solutions.
Daimler Truck Holding AG: Daimler is a global leader in the automotive industry and one of the largest manufacturers of buses worldwide. The company is focusing on electric and autonomous bus technologies and is also heavily invested in the development of connected bus systems.
NFI Group Inc.: NFI Group, based in North America, is a leading bus manufacturer with a portfolio that includes New Flyer, MCI, and other brands. The company offers electric, hybrid, and diesel buses, serving both public and private transportation sectors.
Solaris Bus & Coach sp. z o.o.: Solaris, a Polish bus manufacturer, is known for its innovative electric and hybrid buses. The company has made a strong impact in Europe and is expanding its presence in international markets with a focus on sustainability.
Others: Other notable players in the market include Volvo Group, MAN Truck & Bus AG, and BYD Company Ltd, all of which are developing advanced bus technologies and expanding their electric bus portfolios.
