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

Israel Bus Transportation Market Growth

Bus transportation involves public transit designed to carry passengers along designated routes. It's a widely used and cost-effective alternative to personal vehicles. Additionally, it is a safe and energy-efficient option, which contributes to the growing Israel bus transportation market demand.

The introduction of various favourable government initiatives to boost the use of sustainable transportation is bolstering the market for bus transportation in Israel. The surging development of public transport initiatives and transport infrastructure development is also bolstering the use of bus transportation in Israel. Moreover, the expansion of the fleet of zero-emission buses owing to the trend of sustainability is propelling the Israel bus transportation industry growth.

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Israel Bus Transportation Market Analysis

The Israel bus transportation market dynamics and trends are being driven by the country's shift towards emission-free transit, leading to growth in the sector as it aims for a quieter and cleaner environment. As electric buses provide passengers with safe, reliable, and comfortable transportation, the market is witnessing healthy growth. Furthermore, the market is predicted to observe the growing trend of smart transportation and the transition to driverless and autonomous buses, which is expected to streamline bus transportation while enhancing safety levels.

Israel Bus Transportation Industry Outlook

According to UNECE, Israel's population was 8.456 million in 2018 and increased to 8.608 million in 2019, a growth of 1.8%. By 2020, the population rose to 8.757 million, indicating a further 1.7% increase from the previous year.  As reported by Our World in Data, Israel's urban population was approximately 8.21 million in 2018, rising to 8.38 million in 2019. By 2020, Israel's urban population had risen to approximately 8.53 million, and it reached 8.68 million in 2021. In 2022, it surged to 8.87 million, boosting the Israel bus transportation market revenue as the population continues to grow, the demand for bus services is also rising, making the expansion and enhancement of these services essential to accommodate the increasing number of residents.

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 routes.

As per the Israeli Ministry of Tourism, land-based tourist visits were 256.9 thousand in 2016. In 2017, this number saw a modest increase to 383.1 thousand. The upward trend continued in 2018, with land-based tourists increasing to 452.8 thousand. This trend peaked in 2019, with a significant rise to 539.3 thousand land-based tourists, boosting the Israel bus transportation industry revenue as efficient bus services facilitate easy access for visitors to popular destinations, historical sites, and cultural landmarks throughout the country.

Additionally, in Israel, there were 13 fast chargers for electric vehicles in 2018, marking the early stages of infrastructure development. This number grew to 42 by 2020, peaked at 71 in 2021, increased to 106 in 2022, reached 155 in 2023, rose to 225 in 2024, and is projected to hit 327 by 2025.

Israel has a well-developed bus network that connects major cities and regions, providing reliable transportation.

• Strong government initiatives and funding support public transportation improvements and expansions and growth of the Israel bus transportation industry. 
• Advanced ticketing systems and real-time tracking enhance the efficiency and convenience of bus services.

High levels of road congestion can lead to delays and affect the reliability of bus services.

• Some buses in the fleet are outdated, potentially impacting service quality and operational efficiency.
• Heavy reliance on government subsidies can create financial instability if funding is reduced.

Investing in electric buses could reduce emissions and operational costs, aligning with sustainability goals.

• Incorporating smart technology and data analytics can optimise routes and improve service delivery.
• Expanding routes and enhancing connectivity, particularly in underserved areas are creating opportunities in the Israel bus transportation market.

Economic downturns could lead to reduced public funding and lower ridership.

• The rise of ride-sharing services and other transportation modes may reduce bus ridership.
• Potential security threats and incidents could disrupt services and affect passenger safety.

Key Players in the Israel Bus Transportation Market and Their Key Initiatives

BYD Company Ltd.

• Supplied 100 new-generation 12-metre eBuses to Egged.
• Initiated Israel’s first full-size electric bus operation with Dan Bus Company.

Xiamen Golden Dragon Bus Co., LTD

• Launched clean energy buses campaign to promote sustainability in Israel. 
• Conducted road tests for autonomous driving buses.

Higer Bus Company Limited.

• Delivered 31 CNG buses to Tel Aviv for public transportation upgrades to meet the growing demand of the Israel bus transportation market.
• Launched new battery electric buses with advanced lithium iron phosphate batteries.

Daimler AG

• Supplied 415 city and inter-city buses to Israel's Egged to capture the Israel bus transportation market opportunities. 
• Partnered with Via to implement advanced ride-sharing technology.

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Israel Bus Transportation Industry Segmentation

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

Market Breakup by Bus Size

• Minibuses
• Mid Buses
• Large Buses

Market Breakup by Type

• Single Deck
• Double Deck

Market Breakup by Fuel Type

• Diesel
• Electric and Hybrid

Market Breakup by Application

• Public Bus
• Tourism Bus
• Service Bus
• School Bus
• Others

Market Breakup by End Use

• Transit Bus
• Intercity/Coaches

Israel Bus Transportation Market Share

The modernisation of transportation networks and the increasing use of innovative technologies to offer convenient, faster, and cleaner ways to travel are driving the Israel bus transportation market. The increasing utilisation of intercity and interurban electric buses that are powered by natural gases is also fuelling the Israel bus transportation demand growth.

With rapid urbanisation and industrialisation in the region, improvements in public transportation are likely to provide further impetus to the market for bus transportation in Israel. The Israeli government is also attempting to encourage public transportation to reduce carbon emissions, which is expected to augment the Israel bus transportation market growth.

The growth of the Israel bus transportation industry can be linked to rising investments in road infrastructure, the adoption of smartphone-based technologies for daily commuting, the trend towards smart traffic management, and the introduction of mobile ticketing. Enhancements in bus stop distribution and the implementation of intelligent traffic systems are driving market expansion. The development of bus lanes and the push for greater cost-efficiency and schedule optimization in public transportation are expected to further boost Israel bus transportation market demand.

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Leading Companies in the Israel Bus Transportation Market

The company’s focus on manufacturing high-quality buses and are recognised for their innovation and advanced technology. They provide a diverse range of vehicles, including city buses, coaches, and electric buses, to meet various transportation needs.

• Merkavim transportation Ltd. 
• BYD Company Ltd. 
• Xiamen Golden Dragon Bus Co.,LTD 
• Higer Bus Company Limited. 
• Daimler AG 
• Volvo Group