Global Bus Market Synopsis

Bus Market Size Was Valued at USD 104.86 Billion in 2023 and is Projected to Reach USD 171.67 Billion by 2032, Growing at a CAGR of 5.63% From 2024-2032.

Bus is a vehicle that facilitates movement of people, goods or even information. City buses, double-deckers, minibuses and articulated buses are some of the many forms and sizes they can take; each is designed to carry a different number of passengers and payloads. To enhance the safety, performance and satisfaction of passengers, it is often integrated with advanced technologies such as global positioning system (GPS) navigation, hybrid or electric propulsion systems and passenger networking options. It reduces the time that people waste in traffic jams and the negative impacts on the environment.

• The increase in demand for school buses to be used as a means of transporting children back and forth from educational facilities safely under very strict safety guidelines to ensure young passengers’ safety, there is currently expansion in the market. Moreover, the industry is developing due to increased use of tour busses to provide guided visits that show historical, cultural and ecological aspects of a destination to tourists.
• Aditionally, the growing prevalence of freight buses or cargo buses to facilitate the speedy movement of parcels, mail, and supplies is offering a promising market perspective. In addition to this, the market is growing because of increasing focus on ecofriendly and sustainable transportation choices fuelled by rising environmental concerns and stringent emissions legislations by various national government agencies. In addition, the sector is growing due to increasing confidence in buses by people as a cheaper way of traveling even long distances.

Global Bus Market Trend Analysis

Urbanization and Population Growth

• The demand for efficient and sustainable transportation solutions intensifies. Urbanization leads to increased congestion and challenges in mobility, prompting a greater need for mass transit systems, where buses play a pivotal role.
• The rising population in urban centers directly correlates with heightened transportation requirements. Buses provide a cost-effective and environmentally friendly solution to address the increasing demand for public transportation. As cities grow, so does the need for an organized and accessible public transit system, and buses become a vital component in catering to diverse commuting needs.
• Additionally, governments worldwide are recognizing the importance of sustainable urban mobility to combat traffic congestion, reduce emissions, and enhance overall transportation efficiency. This has led to the implementation of policies and investments favoring the development of modern and eco-friendly bus fleets. Urbanization often results in the expansion of suburban areas, creating a broader geographical coverage for public transportation. Buses become instrumental in connecting various neighborhoods, serving as a flexible and adaptable mode of transport to accommodate the dynamic urban landscape.

Electric and Sustainable Solutions Creates an Opportunity for the Global Bus Market

• The global bus market is undergoing a transformative shift as electric and sustainable solutions gain prominence, presenting a significant opportunity for growth and innovation. With a growing emphasis on environmental sustainability and the need to reduce carbon emissions, the transportation sector, particularly the bus industry, is increasingly turning towards electric and sustainable alternatives.
• Electric buses are at the forefront of this transformation, driven by advancements in battery technology and a global push towards clean energy. Governments and transit authorities worldwide are recognizing the environmental benefits of electric buses, which produce zero tailpipe emissions and contribute to improved air quality in urban areas. The reduction of noise pollution is an additional advantage, making electric buses an attractive option for densely populated areas.
• The rising awareness of climate change and the need for sustainable urban mobility solutions have prompted governments to implement policies and incentives that support the adoption of electric buses. Financial incentives, subsidies, and regulations favoring electric vehicles are driving the demand for eco-friendly buses, further propelling market growth.

Global Bus Market Segment Analysis:

Global Bus Market is Segmented into the Type, Fuel Type, Seat Capacity, and Application.

By Type, Electric and Hybrid Segment Is Expected to Dominate the Market During the Forecast Period.

• The global bus market is experiencing a significant transformation, with a notable shift towards electric and hybrid propulsion systems. This evolution is primarily driven by the growing emphasis on sustainable and environmentally friendly transportation solutions. Electric and hybrid buses have gained momentum due to their ability to reduce emissions, lower operating costs, and contribute to the overall green initiatives in the transportation sector.
• In the electric bus segment, there has been a surge in adoption, with advancements in battery technology and charging infrastructure. Electric buses are powered by rechargeable batteries, offering zero-emission operations and contributing to the reduction of air pollution in urban areas. Many cities around the world are investing in electric bus fleets to address environmental concerns and comply with stringent emission standards.
• The hybrid bus segment combines traditional internal combustion engines with electric propulsion, providing improved fuel efficiency and reduced environmental impact. Hybrid buses typically utilize a combination of an internal combustion engine and an electric motor, allowing for flexibility in various driving conditions.

By Application, Transit Bus Segment Held the Largest Share Of 56.8% in 2022.

• The transit bus segment refers to buses primarily designed for public transportation within urban and suburban areas. These buses play a crucial role in addressing the increasing demand for sustainable and efficient transit solutions.
• The adoption of electric and hybrid technologies has been a key driver in the transit bus segment. Governments and transit authorities worldwide are increasingly focused on reducing carbon emissions and promoting eco-friendly transportation options. As a result, there has been a notable shift towards electric and hybrid transit buses, contributing to the overall market growth. The integration of advanced technologies, such as telematics and intelligent transportation systems, has further enhanced the efficiency and performance of transit buses.
• Urbanization and population growth have led to rising congestion in cities, prompting the need for efficient public transportation systems. Transit buses offer a cost-effective and environmentally friendly solution to address these challenges. Additionally, initiatives to modernize public transportation infrastructure and enhance passenger comfort have fueled the demand for innovative transit bus designs.

Global Bus Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• The Asia Pacific region is poised to dominate the bus market in the coming years, driven by a confluence of factors that position the region as a key player in the global transportation industry. This dominance can be attributed to a combination of rapid urbanization, population growth, increasing disposable income, and governmental initiatives promoting sustainable and efficient public transportation systems.
• As urban centers in the Asia Pacific continue to expand, there is a growing demand for reliable and efficient public transportation solutions. Buses, being a cost-effective and environmentally friendly mode of transport, are increasingly becoming the preferred choice for both governments and commuters alike. The region's commitment to addressing environmental concerns and reducing carbon emissions further bolsters the demand for electric and hybrid buses, leading to a technological shift in the market.
• Moreover, many countries in the Asia Pacific region are investing heavily in infrastructure development, including the expansion and modernization of public transportation networks. These investments are aimed at easing congestion, improving connectivity, and enhancing overall mobility. The bus market in the region is expected to experience significant growth, with both urban and rural areas witnessing a surge in bus procurement and deployment.

Global Bus Market Top Key Players:

• Daimler AG (Germany)
• Volvo Group (Sweden)
• Scania AB (Sweden)
• MAN Truck & Bus AG (Germany)
• Iveco Bus (Italy)
• BYD Auto Co., Ltd. (China)
• Yutong Group Co., Ltd. (China)
• Zhengzhou Yutong Bus Co., Ltd. (China)
• Ashok Leyland (India)
• Tata Motors Limited (India)
• Solaris Bus & Coach S.A. (Poland)
• Marcopolo S.A. (Brazil)
• New Flyer Industries (Canada)
• Alexander Dennis Limited (United Kingdom)
• Irizar S. Coop. (Spain)
• Higer Bus Co., Ltd. (China)
• King Long United Automotive Industry Co., Ltd. (China)
• Anhui Ankai Automobile Co., Ltd. (China)
• TEMSA Global Sanayi ve Ticaret A.S. (Turkey)
• Gillig Corporation (United States), and Other Major Players

 Key Industry Developments in the Global Bus Market:

• In June 2023, Volvo Group introduced the Volvo BZL Electric, a fully electric articulated bus designed specifically for urban operations. With zero emissions, the BZL Electric represents Volvo's commitment to sustainable transportation solutions, aiming to address environmental concerns in cities while providing efficient public transit services.
• In July 2023, Volvo Group successfully completed the acquisition of NFI Group, an electric bus manufacturer based in Jönköping, Sweden. This strategic move enhances Volvo's position in the electric bus market, allowing for expanded offerings of eco-friendly transportation solutions. The acquisition underscores Volvo's dedication to advancing electrification in the public transit sector, supporting the transition towards greener mobility options.
• In December 2023, Tata Motors, the largest commercial vehicle manufacturer in India, has enhanced Bengaluru's electrified public transport system by delivering advanced Starbus EVs to the Bengaluru Metropolitan Transport Corporation (BMTC). This delivery is part of a larger agreement between TML Smart City Mobility Solutions Ltd., a subsidiary of Tata Motors, and BMTC, which includes the supply, operation, and maintenance of 921 state-of-the-art 12-metre low-floor electric buses over 12 years. The Tata Starbus EV, a locally developed innovation, joins BMTC’s fleet and features superior design and top-tier amenities for a sustainable and comfortable commuting experience. These zero-emission electric buses, created in line with the Make in India and Atmanirbhar Bharat initiatives, utilize next-generation architecture and advanced battery systems to ensure safe, comfortable, and convenient travel within Bengaluru.