Global Bus Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

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.

Key Players in the Global Bus Market 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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Global Bus Industry Segmentation

“Global Bus Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Single Deck
• Double Deck

Market Breakup by Application

• Transit Bus
• Intercity/Coaches
• Others

Market Breakup by Fuel Type

• Diesel
• Electric and Hybrid
• Others

Market Breakup by Seat Capacity

• 15-30 Seats
• 31-50 Seats
• More than 50 Seats

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

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Bus Market Share

Transit buses have driven the growth of the bus market in recent years, fuelled by rising urbanisation, environmental priorities, and expanded public transport infrastructure. Cities are investing in transit bus fleets, especially electric and low-emission models, to manage increasing commuter numbers while addressing urban congestion and pollution reduction goals. Electric transit buses help cities cut emissions and enhance air quality, aligning with sustainability initiatives. The shift towards efficient, eco-friendly urban transport solutions positions transit buses as pivotal in supporting the evolving demands of urban mobility and reducing environmental impact in densely populated areas.

Diesel continues to be the dominant fuel type for buses worldwide, thus driving the bus industry growth primarily because of its established infrastructure and proven reliability in handling heavy-duty requirements. Diesel engines are renowned for their fuel efficiency, especially over long distances, making them suitable for intercity and regional transport. Additionally, diesel buses are more affordable to operate in many regions due to the widespread availability of diesel fuel and servicing facilities.

The rising emphasis on reducing emissions and environmental sustainability is accelerating the adoption of electric and hybrid buses, particularly in urban areas with zero-emission zones and strict environmental regulations. These alternative fuel buses support cities’ sustainability goals, as they produce fewer pollutants and contribute to cleaner air. This shift is driving the bus market demand towards innovation, with manufacturers investing in electric and hybrid technology to meet growing demand. The trend not only aligns with global sustainability initiatives but also stimulates market growth by encouraging fleet upgrades and infrastructure expansion, such as charging stations, tailored for these greener vehicles.

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

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