Bus Market : Global Industry Analysis and Forecast 2023-2029

Global Bus Market size was valued at USD 16.2 Billion in 2022 and is expected to grow at a CAGR of 7.1 percent from 2023 to 2029 to reach USD 26.18 Billion.
Bus Market Overview
The global market has been experiencing rapid growth over the years. The growing urbanization, growing population and the need for sustainable transportation solutions are majorly increasing the demand for buses. Factors such as government initiatives, infrastructure development and economic conditions in different regions influence the market size. The bus market report includes a detailed analysis of the market size and share with segment-wise and region-wise market dynamics including growth drivers, major restraints, future opportunities and upcoming challenges.
Bus Market Snapshot
To know about the Research Methodology :- Request Free Sample Report
Bus Market Dynamics
Increasing Investments in the Bus Market

Compared to rail investment, the improvement of bus-based public transport has been considered a more cost-effective option. There have been many investment programs that targeted urban bus service development. The governments, public transportation agencies and private companies are highly investing in the development of electric buses and charging infrastructure. For example – Recently Proterra secured USD 200 million investment from Cowen Sustainable Advisors along with supporting investments from Soros Fund Management, Generation Investment Management, and Broadscale Group. The investments in the bus infrastructure such as bus depots, terminals and charging stations are increasing, which is driving the growth of the market. As the demand for buses is increasing, the need for adequate infrastructure to support their operations is also increasing.

Rising Trend of Electric Buses

As per the research, the Electric Bus Market is expected to grow at a CAGR of 43.2 percent during the forecast period. The increasing emphasis on reducing greenhouse gas emissions and improving air quality is resulting in an increase in demand for electric buses. Governments are also implementing favorable policies and regulations including financial incentives, subsidies, tax credits and grants to accelerate the adoption of electric buses. Compared to diesel or gasoline buses, electric buses offer lower operating costs.

They require less maintenance and have fewer moving parts, which results in reduced servicing expenses. By eliminating tailpipe emissions, they reduce air pollution and contribute to improved public health and well-being. Electric Buses provide a more comfortable and pleasant commuting experience for passengers by operating quietly, which results in a reduction in noise pollution in urban environments. Hence all these benefits associated with the use of electric buses are increasing the demand for them across the world.
Future Development of market share of bus technologies (in %)

Private Demand for Bus Slowly Increasing

The private demand for buses is increasing slowly in various contexts. Many companies and organizations demand buses to provide transportation services to their employees. Buses are also often demanded for event transportation such as sports events, corporate events, weddings and concerts because they transport large groups of people comfortably by eliminating the need for multiple vehicles. The demand for luxury and specialty buses has also increased for private use.

Buses are commonly used for airport transfer for majorly shuttling passengers between airports and hotels. These are the main factors contributing to the growth of the private bus market.

An increase in orders for zero-emission vehicles, especially electric buses, contributes to the high demand for transit buses. At the end of April 2022, NFI Group Inc had a backlog of 8908 vehicles that had been ordered but not produced, valued at USD 4.9 billion. That includes zero-emission buses or 17% of the orders. The active bids are up 21% y-o-y while zero-emission buses represent 43% of total bids.

Restraining Factors

Traffic congestion in urban areas is significantly affecting the efficiency and reliability of bus services. Delays caused due to heavy traffic is discouraging people from using buses, which is expected to lead to a decreased demand for buses in the future. Insufficient or poorly maintained bus terminals, stops and depots are affecting the attractiveness of bus services. This is expected to hamper the growth of the bus market. Fluctuations in fuel prices impact the operational expenses of bus operators. Higher fuel costs strain profit margins, making it difficult to maintain affordable fares and invest in technologies.
Bus Market Regional Insights
Asia Pacific Bus Market dominated the global market in 2022. The regional market is mainly driven by the growing population, rapid urbanization, increasing demand for public transportation and government initiatives to improve mobility and reduce emissions. In the region, China is the largest market majorly driven by its large population and big population. The presence of companies such as Yutong, BYD, and King Long in the country holds significant market shares. India is another country holding a major share of the market, which is dominated by domestic manufacturers such as Tata Motors, Ashok Leyland, and Mahindra & Mahindra. The market in the country is driven by public transportation, school buses and intercity travel. South Korean bus manufacturers are majorly focusing on developing advanced buses with improved fuel efficiency and reduced emissions.

The European Bus Market also held the major share in 2022 and is expected to grow rapidly during the forecast period. The region has a well-developed public transportation infrastructure and buses play a major role in providing efficient and sustainable mobility solutions. The European Union has set stringent emission standards and regulations for buses, which aim to reduce greenhouse gas emissions and improve air quality. These regulations such as the Euro emission standards have pushed bus manufacturers to develop clean and fuel-efficient vehicles. The demand for electric and hybrid buses increasing in Europe due to environmental regulations and a major focus on sustainable transportation. Germany held the major share of the regional market and is well-known for its high-quality buses including city buses, intercity buses and coaches.
New Buses By Fuel Type in the European Union in 2022 (%)

Sales Share of City Buses by Country in Europe in 2023 Q1 (Only Top countries)

The Bus Market in North America is also expected to grow rapidly because buses serve as the backbone of public transportation systems in many cities. Electric buses are gaining popularity in the region as cities and transit agencies aim to reduce carbon emissions. In the United States, school districts have started the transition to electric school buses (ESBs). In March 2022, 415 districts committed to the use of 12,275 ESBs across 38 states and a range of operating conditions. Electrification goals are being set by states and municipalities while manufacturers scale production. Compressed Natural Gas (CNG) and propane-powered buses are popular choices because they offer clean and quiet transportation options.
Bus Market Segment Analysis
Based on Seating Capacity: The market is divided into Small Bus (Up to 15 passengers), Medium Bus (16 to 35 passengers) and Large Bus (36 + passengers). The Medium Bus segment held the largest Bus Market share in 2022. In 2021, most of the buses sold across the globe were medium-duty buses with around 553,000 sales and this volume is forecast to climb to nearly 800,000 units in 2029.

Based on Distribution Channel: The market is divided into Domestic Market and International Market. The domestic market segment dominated the global market with the largest bus market share in 2022. The domestic market includes the sales and operation of buses within a specific country. It is influenced by the factors such as urbanization rates, population size, infrastructure development and government policies related to public transportation. The international market segment is expected to grow during the forecast period. The international market includes the export, import and sale of buses across national borders. It is influenced by factors such as cross-border transportation agreements, global economic conditions, infrastructural development and regional preferences for specific bus type and features.

Based on Sales Channel: The market is divided into Online and Offline. The Online segment dominated the global market by holding the largest bus market share in 2022 and is expected to retain its dominance during the forecast period. Along with the growing e-commerce, online sales platforms are becoming increasingly relevant in the market. Bus manufacturers or dealerships are increasingly offering online platforms where customers browse and purchase buses. The online demand for buses is resulting in a reduction in offline demand for buses. Thus, the offline segment is expected to keep declining during the forecast period.
Bus Market, By Sales Channel (in %)

Bus Market Competitive Landscape
This section of the report includes strengths, weaknesses, opportunities and threats of the Bus key competitors with a detailed analysis of joint ventures, collaborations, mergers, acquisitions and new product launches.
Shares of Bus Brands in 2022 (%)

Mostly bus manufacturers collaborate with suppliers to ensure the availability of high-quality components. These collaborations involve supply chain partnerships, joint development efforts to optimize the manufacturing process and enhance product offerings. For example – In March 2021, Proterra who is an electric bus manufacturer collaborated with LG Energy Solutions, a major supplier of lithium-ion batteries. Manufacturers also collaborate with technology companies to integrate advanced technology into buses such as autonomous driving capabilities, electric propulsion bus systems and connectivity solutions. For example – To develop electric and autonomous buses, Volvo Buses collaborated with many technology partners. Public transportation agencies also collaborate with bus manufacturers frequently to improve transportation services. For example – In June 2021, Proterra collaborated with Miami-Dade County’s Department of Transportation and Public Works.

In February 2023, FirstGroup showed its interest in purchasing both the bus services and bus dealer operations of Purfleet-based Ensignbus. On 29 May 2023, the BYD and Castrosua launched their first jointly manufactured eBus in an official ceremony held in Santiago de Compostela.
Bus Market Scope: Inquire Before Buying



Global Bus Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 16.2 Bn.


Forecast Period 2023 to 2029 CAGR:
7.1%
Market Size in 2029:
US $ 26.18 Bn.


 Segments Covered:
by Type
Transit Bus
School Bus
Coach/Intercity Bus
Shuttle Bus
Mini Bus


by Seating Capacity
Small Bus (Up to 15 passengers)
Medium Bus (16 to 35 passengers)
Large Bus (36 + passengers)


by Fuel Type
Petrol
Diesel
Natural Cas
Electric
Hybrid


by Application
Urban Transit
School Transportation
Tourism and Charter
Employee Transportation
Airport
Hotel Shuttle


by Distribution Channel
Domestic Market
International Market


by Sales Channel
Online
Offline



Bus Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Bus Market, Key Players are
1. Anhui Ankai Automobile Co. Ltd
2. BYD Company Limited
3. Alexander Dennis Limited (ADL)
4. King Long United Automotive Industry Co. Ltd.
5. Zhengzhou Yutong Group Co. Ltd
6. Zhongtong Bus Holding Co. Ltd
7. NFI Group Inc.
8. AB Volvo
9. Solaris Bus & Coach sp. z o.o.
10. Daimler Truck Holding AG
11. Mobico Group
12. Suzhou Eagle Electric Vehicle Manufacturing Co. Ltd
13. Tata Motors Limited
14. Mercedes-Benz Group AG
15. Marcopolo S.A.
16. New Flyer Industries
17. Ashok Leyland
18. Mahindra & Mahindra
19. Proterra
Frequently Asked Questions
1] What is the expected CAGR of the Global Bus Market during the forecast period?
Ans. During the forecast period, the Global Bus Market is expected to grow at a CAGR of 7.1 percent.

2] What was the Bus Market size in 2022?
Ans. USD 16.2 Bn was the Bus Chassis Market size in 2022.

3] What is the expected Bus Market size by 2029?
Ans. USD 26.18 Bn is the expected Bus Market size by 2029.

4] What are the Bus Market segments?
Ans. The market is divided by Type, Seating Capacity, Fuel Type, Application, Distribution Channel and Sales Channel.

5] Which regional Bus Market is expected to grow at a high rate during the forecast period?
Ans. The Bus Market of Asia Pacific is expected to grow at a high rate during the forecast period.