Global Bus Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

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Global Bus Market Growth

Buses offer cost-effective, eco-friendly, and accessible transportation, which drives the bus demand growth. As a low-cost option, buses reduce individual expenses on fuel, maintenance, and parking, making them attractive to budget-conscious commuters. Their lower emissions per passenger compared to cars support environmental goals, aligning with the increasing demand for sustainable travel options. Buses also help alleviate urban traffic congestion by transporting large groups simultaneously, improving commute times. Additionally, they provide essential access to transportation for individuals without private vehicles, promoting social inclusivity. Flexible route options allow buses to serve a wider range of areas, boosting market growth by meeting diverse transit needs efficiently.

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Global Bus Market Analysis

The swift increase in population density in cities has created a demand for efficient and effective public transport systems that will help curb congestion. Commuter tendencies resulting from shifting urban populations have prompted both governments and the private sector to put up significant resources towards the construction and improvement of bus transit systems in cities. More specifically, these investments cover features such as the construction of exclusive bus corridors, the building of advanced bus stations and the installation of the bus system's global positioning system, all of which improve the efficiency and dependability of the bus transport service. These trends in urbanisation generate additional needs in transportation and hence, create more demand for buses promoting growth of the bus market as cities look for better, operational transport solutions.

Rising fuel prices are making public transit especially buses, more appealing to the cost-conscious patrons. As the prices of fuel escalate, the cost of running one’s vehicle also increases which gives people a reason to look for cheaper means of transport. This leads to increased demand for buses because they offer a cheaper means of transport and reduce the cost incurred individually when travelling. More bus passengers call for the development and procurement of more bus fittings and facilities hence driving the bus industry growth. The increased dependence on buses Cycled Economically due to fuel savings keeps the bus market in Growth as commuters aim for low transport prices.

Smart transportation features such as GPS tracking, Wi-Fi, and real-time updates on the bus schedule, have impacted positively the bus market dynamics and trends. These features, make bus transport very attractive and comfortable to users. Passengers begin to obtain reliable information about the travel progression, hence enhancing the quality of service. The attributes of enhanced planning and consistent connections help in bringing more people to bus travel as they raise the bus ridership. In such instances, there is an increase in the demand for modern buses and improvements drive into investments in bus technology to meet the modern expectations of transit systems which is further nurturing the growth of the bus industry.

Bus Industry Outlook

As of 03 April 2023, India’s bus fleet data shows considerable differences in public transportation resources across states. Karnataka leads with a robust fleet of 244,864 buses, positioning it as the top state in bus availability. Tamil Nadu follows with 221,705 buses, and Madhya Pradesh operates 213,643 buses. Andhra Pradesh, including Telangana, has a fleet of 199,800 buses. This distribution underscores Karnataka’s strong investment in public transit, while other states also maintain substantial fleets to enhance accessibility and meet the demands of commuters. These figures reflect regional commitments to expanding and supporting efficient public transport systems across India which drives the bus market revenue.

According to the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, China saw battery-electric bus sales reach 96,857 units in 2020. During the same period, plug-in hybrid bus sales rose from 7,923 units in 2020 to 10,674 units in 2022. Sales of fuel-cell electric buses also showed significant growth, increasing from 646 units in 2020 to 2,135 units in 2022.

According to the Israeli Ministry of Tourism, Jerusalem saw an increase in tourism, with 74% of tourists visiting in 2017 and 77.5% in 2018. Tel Aviv-Jaffa also experienced growth, from 65.3% in 2017 to 67.4% in 2018. The Dead Sea and Tiberias both recorded growth in visitor percentages, moving from 45.7% to 48.0% in 2018 and 30.6% to 36.2% in 2018, respectively. Smaller cities like Bethlehem, Nazareth, and Jericho displayed modest increases in tourism. Bethlehem's tourist visits inched from 28.2% to 30.9%, Nazareth from 25.2% to 29.3%, and Jericho from 16.9% to 20.4% in 2018. The increase in tourist visits to Israel's cities has led to a growing demand for convenient and affordable travel options, particularly for city tours and sightseeing, driving the expansion of bus industry revenue.

Buses offer an economical mode of transportation, appealing to cost-conscious commuters and supporting public transit budgets which boost the bus market demand.

• Compared to private vehicles, buses reduce emissions per passenger, aligning with sustainability goals and air quality standards.
• Buses serve urban, suburban, and rural areas, offering extensive coverage that rail networks often can’t provide.

Traffic delays and maintenance problems can make bus services less reliable, impacting commuter satisfaction.

• Rising fuel and maintenance costs can challenge the operational budgets of transit authorities, especially in regions without subsidies.
• Fixed routes and schedules may limit convenience, as buses cannot offer the door-to-door service of taxis or private cars.

Integrating GPS, Wi-Fi, and real-time tracking improves convenience, and attracting more passengers can boost bus industry growth.

• With an increased focus on eco-friendly transit, electric buses present a growth area as cities adopt low-emission options.
• Rising urban populations drive demand for public transport, creating opportunities for expanding bus services.

Ride-sharing and micro-mobility options can divert potential bus riders, impacting ridership numbers.

• Overcrowded urban roads and limited infrastructure can hinder bus operations, reducing efficiency.
• Economic challenges may lead to cuts in public transit funding, affecting fleet upgrades and service expansion.

Top Bus Companies and Their Key Initiatives

Anhui Ankai Automobile Company

• Introduced a high-end E9 electric bus model, featuring advanced safety and comfort elements to meet the growing demand for sustainable urban transport.
• Partnered with JAC Group to invest in power battery production for electric buses, enhancing its supply chain capabilities and meeting the growing demand of the bus market.

Daimler Truck Holding AG

• Partnered with H2 MOBILITY Germany to establish hydrogen refuelling networks to facilitate fleet electrification for public transport operators.
• Aim to offer only CO2-neutral city buses in Europe by 2030, focusing on battery-electric and hydrogen-powered options to meet environmental targets.

NFI Group Inc.

• Received new firm orders from Omnitrans of San Bernardino Valley (“Omnitrans”) for 18 battery-electric Xcelsior CHARGE NG™ 40-foot transit buses.
• Launched a refinancing strategy, including a C$88 million public offering, aimed at improving financial flexibility supporting growth and capturing the bus market opportunities.

AB Volvo

• Launched the Volvo BZL Electric, a flexible electric bus platform designed for urban, intercity, and commuter transit, supporting sustainable public transport with modular battery configurations.
• Shifted its European model to focus on chassis production, partnering with external bodybuilders to enhance flexibility and improve profitability.

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Bus Market Segmentation

Type Insights

Single-deck buses offer a compact design ideal for urban environments with narrow streets and limited space. They are cost-effective, fuel-efficient, and easy to maintain, making them an excellent choice for shorter routes. Their flexibility and ability to operate in dense traffic contribute to smoother public transport services. In June 2024, Stagecoach placed the largest single order for Alexander Dennis e-buses, comprising 244 units, following the UK Government’s ZEBRA 2 scheme. The order includes 180 double-deckers, 54 single-deckers, and 10 small buses, set for delivery in 2025 and 2026, supporting Stagecoach's zero-emission goals.

Double-deck buses provide increased passenger capacity, making them ideal for high-demand routes, particularly in busy cities. They optimise space by offering two levels of seating, improving overall efficiency. Their height advantage ensures a superior view, often appealing to tourists. Additionally, they help reduce the number of buses needed on the road, which contributes to reducing congestion and operational costs while maintaining a comfortable ride for passengers on longer routes.

Application Insights

Transit buses are designed for urban and suburban travel, offering efficient and reliable transportation for passengers. They provide frequent service with shorter routes, helping to reduce congestion and lower carbon emissions. Cost-effective and easy to maintain, transit buses are essential for improving mobility in densely populated areas. In March 2025, the Delhi government launched direct electric bus services to Noida International Airport, offering seamless travel from Anand Vihar, Sarai Rohilla, and Kamla Market. Women and specially-abled passengers travel free, and the service, equipped with modern technology, is currently in a trial phase.

Intercity/coaches offer long-distance travel solutions, connecting cities efficiently and comfortably. They provide higher capacity compared to other transport options, making them ideal for large volumes of passengers. With enhanced comfort features, such as spacious seating and onboard amenities, they cater to both business and leisure travellers. Coaches reduce road congestion by offering a single mode of transport for many people. Additionally, they play a key role in sustainability by offering a greener alternative to cars and trains for intercity travel.

Fuel Type Insights

Diesel buses have long been the backbone of public transport, offering robust performance and reliability. They are widely available, cost-effective, and suitable for both urban and long-distance routes. Diesel buses can operate continuously without the need for frequent charging or downtime, making them ideal for high-demand services. They also offer powerful engines capable of handling heavy loads and challenging terrains. With well-established infrastructure and a long history of usage, diesel buses remain a practical choice for many operators globally.

Electric and hybrid buses provide environmentally friendly alternatives to traditional diesel-powered vehicles, reducing carbon emissions and improving air quality. Electric buses offer lower operating costs and energy efficiency, while hybrid buses combine the benefits of electric power with the reliability of a diesel engine, providing flexibility and sustainability. In March 2025, Volvo launched its 7800 electric buses in Mexican cities, marking the first electric articulated and bi-articulated buses manufactured in Mexico. Built on Volvo's global BZR platform, these buses aim to enhance bus rapid transit systems across the country.

Seat Capacity Insights

Buses with 15-30 seats offer flexibility for smaller groups and short-distance travel, making them ideal for urban shuttle services, schools, and private hire. These compact vehicles are more fuel-efficient, easier to navigate through tight spaces, and require lower maintenance costs than larger buses. Their size allows for quicker boarding and disembarking, improving overall service efficiency. Additionally, these buses contribute to reducing road congestion while still offering a comfortable and cost-effective transport solution for both operators and passengers.

Buses with 31-50 seats strike an ideal balance between capacity and manoeuvrability. They are well-suited for medium-distance routes, providing ample space for passengers while remaining manageable in terms of fuel efficiency and maintenance. These buses can serve various markets, including commuter services, intercity routes, and private hire. Their larger capacity reduces the frequency of bus schedules, improving service availability. With added comfort features, they offer a cost-effective, versatile solution for transport operators looking to meet demand without excessive operational costs.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Regional Insights

North America Bus Market Trends

The North American bus market has seen significant growth in recent years, driven by increased urbanisation and a shift towards sustainable transportation solutions. Governments and public transport authorities are investing in electric and hybrid buses to reduce carbon emissions and improve air quality. The rise in environmental consciousness, coupled with government incentives, has made electric buses an attractive option for fleet operators. Solaris entered the U.S. market by signing its first contract for electric buses with King County Metro in December 2024. This contract marked a significant step in Solaris’ North American expansion, providing zero-emission buses built for U.S. regulations.

Europe Bus Market Trends

Europe's bus market is evolving with a focus on decarbonisation and innovation. Stringent environmental regulations and a growing demand for green transport options have spurred the adoption of electric and hybrid buses. This shift aligns with the EU's sustainability targets and cities' efforts to reduce urban pollution.

UK Bus Market Trends

In the UK, the bus market is undergoing a significant transformation, with a major push towards zero-emission vehicles. The government’s funding initiatives, such as the ZEBRA scheme, have accelerated the adoption of electric buses. In November 2023, Alexander Dennis launched its next-generation electric buses, the Enviro100EV and Enviro400EV, for the UK and Ireland. These buses offer enhanced performance, flexibility, and value, with advanced technology, long ranges, and industry-leading warranties, marking a significant step in zero-emission transport.

Asia Pacific Bus Market Trends

The Asia Pacific bus market is experiencing rapid growth, driven by rising urban populations and increasing demand for public transport solutions. Electric buses are gaining popularity in the region, particularly in countries like China and India, where air pollution and traffic congestion remain significant challenges.

Australia

Australia is embracing electric and hybrid buses as part of its strategy to reduce carbon emissions and modernise its public transport system. With a growing focus on sustainability, Australian cities are implementing green transportation initiatives that include the introduction of electric buses in urban fleets. In March 2025, South Australia ordered 60 electric buses from Scania, to be built by Volgren. This marks the state's first large-scale rollout of fully electric buses, with deliveries set for late 2025 and early 2026, supporting its green energy transition.

Latin America Bus Market Trends

Latin America’s bus market is evolving, with a focus on reducing environmental impact and improving urban mobility. Many cities are embracing electric buses to combat pollution and enhance public transport systems. In countries like Brazil and Mexico, the shift towards sustainable transport is gaining momentum, driven by both government policies and public demand.

Middle East and Africa Bus Market Trends

The Middle East and Africa bus market is evolving with a growing focus on modernising public transport systems. As urbanisation accelerates, cities are increasingly investing in advanced bus technologies, including electric and hybrid buses, to meet sustainability goals. Government-backed initiatives and foreign investments are driving the adoption of cleaner and more efficient transport solutions, aimed at reducing congestion and emissions in rapidly developing urban centres. These trends are shaping the future of bus services across the region, particularly in major cities.

Leading Companies in the Bus Market

The companies specialise in producing a wide range of commercial vehicles, including trucks and buses, designed for applications across various industries. They are actively advancing in electric and autonomous vehicle technologies, aiming to create sustainable transport solutions.

• Anhui Ankai Automobile Company
• Daimler Truck Holding AG
• NFI Group Inc.
• AB Volvo
• Solaris Bus & Coach sp. z o.o.
• Others

Global Bus Industry Segmentation

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