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Bus Market Size 2024-2028

The bus market size is estimated to increase by USD 19.07 billion, growing at a CAGR of 6.73% between 2023 and 2028. Market expansion hinges on various factors such as accelerated urbanization, stringent government regulations, incentives, and effective congestion and traffic management strategies. As cities grow rapidly, there is an increased demand for solutions that streamline transportation and infrastructure development. Government policies and incentives play a pivotal role in shaping market dynamics, encouraging innovation and investment in urban planning and mobility solutions. Effective congestion and traffic management strategies are crucial to optimizing urban mobility, reducing environmental impact, and enhancing quality of life. These factors collectively drive market growth in sectors ranging from transportation infrastructure and smart city technologies to sustainable urban development initiatives. Emphasizing sustainable and efficient urban solutions remains essential in meeting the challenges posed by urbanization while fostering economic growth and environmental stewardship.

What will be the Size of the Bus Market During the Forecast Period?

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Market Dynamics

In the transportation sector, vehicle configuration and fuel category significantly influence operating costs and fuel expenditures for various vehicles, including diesel transit vehicles and luxury coaches used in the tourism sector. With fluctuations in fossil fuel prices, operators of transit buses and tour buses navigate economic challenges while balancing passenger revenue and optimizing routes across the road network. Digital innovations like online ticketing and machine learning (ML) enhance operational efficiencies and passenger experience, streamlining booking processes and optimizing schedules. Addressing environmental pollution, particularly from air travel and road-based transport such as intercity and intracity buses, remains a priority. Governments and industry leaders focus on sustainable practices and integrating digital technology to mitigate environmental impacts while meeting the demands of modern transportation systems and enhancing overall travel experiences.

Key Driver

Rapid urbanization is the key factor driving the growth of the global market. Rapid urbanization has become a key driver for the global market in several countries, including the US, China, and India. There is a growing need for effective and environmentally friendly public transport systems, especially these vehicles, as cities such as Mumbai and Bangalore expand and populations concentrate in urban areas. The requirement to meet the transit needs of an expanding metropolitan population is a major driver of the global bus market. The Chinese government has made significant investments in public transportation infrastructure to accommodate the increased demand for public transportation in metropolitan areas, notably BRT networks.

Moreover, in China, more than 40 BRT lines were operating by 2020, handling millions of passengers daily. According to the United Nations Department of Economic and Social Affairs, 68% of the world's population is expected to reside in urban areas by 2050. This indicates the increased future demand for buses across the world, which is expected to drive the growth of the market during the forecast period.

Significant Trends

Technological advancements in electric vehicles are the primary trend shaping the global bus market growth. Since the global market is growing moderately, many manufacturers are entering into electric vehicle manufacturing. In addition, the need for technological advancements is also high - a factor that is encouraging electric bus manufacturers to focus on advancements in collaboration with technology-based companies. In line with this, Volvo and Nanyang Technological University in Singapore have signed a cooperation agreement on an R&D program for autonomous electric buses as a drive to create new solutions for sustainable public transport. It is expected that this technology, which is being developed by Volvo, will contribute to the future autonomous applications of Volvo.

Another technological advancement has been made to address the difficulty in charging - Li-ion batteries that can be charged with the help of solar power. For instance, Kiira Motors, a Uganda-based company, has come up with the Kayoola bus concept, which can run on solar power. Hence, the adoption of electric buses and significant technological advancements are expected to drive the demand for electric buses, which, in turn, will drive the market growth and trends during the forecast period.

Major Challenge

Inadequate bus infrastructure is a major challenge impeding the growth of the global market. The global market has significant challenges due to poor infrastructure, particularly in urb

The Bus Market is segmented by Propulsion Type (Hybrid and Electric Vehicles, ICE) and by Region (Africa, Asia-Pacific, Europe, Middle East, North America, South America). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

Bus Market Outlook

According to our latest research, the global bus market size reached USD 54.8 billion in 2024. The market is expected to grow at a robust CAGR of 6.1% from 2025 to 2033, reaching a forecasted value of USD 93.3 billion by 2033. This strong growth trajectory is primarily driven by rising urbanization, increasing demand for public transportation solutions, and significant investments in sustainable mobility initiatives worldwide. As per our comprehensive analysis, the bus market is witnessing a transformation fueled by technological advancements, changing regulatory frameworks, and evolving consumer preferences for eco-friendly mass transit options.

One of the most significant growth factors for the global bus market is the rapid urbanization across emerging economies, particularly in Asia Pacific and Latin America. As urban populations swell, there is an escalating need for efficient, high-capacity public transportation systems to alleviate traffic congestion and reduce carbon emissions. Governments are increasingly prioritizing investments in public transport infrastructure, including the procurement of modern buses that offer greater passenger comfort, safety, and operational efficiency. The integration of smart technologies, such as real-time tracking, digital ticketing, and passenger information systems, is further enhancing the appeal of buses as a primary mode of urban mobility, thereby driving market expansion.

Another pivotal driver is the global shift towards sustainable and low-emission transportation. The adoption of electric and hybrid buses is accelerating, supported by stringent emission regulations, government incentives, and growing environmental awareness among both public and private fleet operators. Technological advancements in battery technology, charging infrastructure, and powertrain efficiency are making electric and hybrid buses more viable and cost-effective. These developments are not only reducing the total cost of ownership for operators but are also helping cities meet their climate action targets. As a result, the fuel mix in the bus market is rapidly evolving, with electric and hybrid variants capturing an increasing share of new bus sales.

In addition to urban and environmental factors, the bus market is benefiting from the rising demand for intercity and school transportation services. The growth of tourism, expanding intercity connectivity, and the need for safe, reliable school transport options are all contributing to increased bus procurement. Private and public stakeholders are investing in fleet modernization, emphasizing safety features, passenger amenities, and operational reliability. This trend is particularly pronounced in developing regions, where improving access to education and enhancing regional mobility are key policy priorities. The convergence of these factors is expected to sustain the upward momentum of the global bus market over the coming decade.

Regionally, Asia Pacific dominates the global bus market, accounting for a substantial share of both production and consumption. The region’s robust growth is propelled by large-scale urbanization, government-led public transport initiatives, and the presence of leading bus manufacturers. China, India, and Southeast Asian countries are at the forefront of electric bus adoption, supported by favorable policies and significant infrastructure investments. Meanwhile, Europe is making significant strides in electrification and sustainability, driven by ambitious emission reduction targets and the expansion of green mobility programs. North America and Latin America are also witnessing steady growth, with a focus on fleet renewal and technological innovation. The Middle East & Africa, while comparatively smaller in market size, is experiencing increased demand for buses due to rapid urban development and infrastructure projects.

Vehicle Type Analysis

The bus market is segmented by vehicle type into single decker, double decker, articulated bus, mini bus, and others

The global bus market size was valued at USD 53.42 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 91.26 Billion by 2033, exhibiting a CAGR of 5.82% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 40% in 2024. The market is driven by rising urbanization, government investments in public transport infrastructure, and increasing demand for electric and fuel-efficient buses due to environmental regulations. Additionally, advancements in autonomous and connected bus technologies, coupled with growing adoption of smart mobility solutions, are enhancing passenger convenience and operational efficiency, further fueling the market growth.

IMARC Group provides an analysis of the key trends in each segment of the global bus market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on type, fuel type, seat capacity, and application.

The India Electric Bus Market is segmented by Fuel Category (BEV, FCEV, HEV, PHEV). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

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Articulated Bus Market Size 2024-2028

The articulated bus market size is forecast to increase by USD 1.88 billion at a CAGR of 5.68% between 2023 and 2028.

The market is witnessing significant growth due to several key factors. One of the primary reasons is the benefits that articulated buses offer over double-decker buses, including better maneuverability in tight city streets and increased passenger capacity. Another trend driving market growth is the increasing adoption of electric articulated buses, which contribute to reducing carbon emissions and improving air quality in urban areas. Design features include fuel-efficient propulsion systems, passenger-centric amenities, and emission regulations aimed at reducing greenhouse gas emissions and improving air quality. However, the inadequate bus infrastructure in many cities poses a challenge to the market's growth. Subsidies and incentives from governments and transit authorities help mitigate the financial risk for bus manufacturers, driving the market growth. Despite this, the market is expected to continue expanding as governments and transportation authorities invest in modernizing their public transportation systems. Overall, the market is an essential segment In the global public transportation industry, offering innovative solutions to address the growing demand for efficient and eco-friendly mass transit systems.

What will be the Size of the Articulated Bus Market During the Forecast Period?

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The market caters to the unique transportation needs of urban populations in dense areas, offering increased passenger capacity compared to conventional buses. These buses, also known as bendy buses or accordion buses, feature an articulated joint that allows them to maneuver effectively in crowded urban areas with limited road space. With a focus on low-floor designs and spacious interiors, articulated buses provide a more comfortable and accessible experience for passengers. Transit agencies in burgeoning cities increasingly turn to these buses to expand public transport options, addressing the challenges of rapid population growth and increasing road traffic. As the demand for eco-friendly and fuel-efficient bus transport solutions continues to rise, articulated buses, available in both single and double-decker configurations, offer a flexible and sustainable alternative to conventional buses.

How is this Articulated Bus Industry segmented and which is the largest segment?

The articulated bus industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Fuel Type

  Diesel
  Electric and hybrid
  Others


Type

  Single-decker bus
  Double-decker bus


Geography

  Europe

    Germany
    France


  APAC

    China


  North America



  South America



  Middle East and Africa

By Fuel Type Insights

The diesel segment is estimated to witness significant growth during the forecast period.

Articulated buses, available in both single-decker and double-decker configurations, cater to the transportation needs of dense urban areas and intracity routes. These buses, featuring low-floor designs and spacious interiors, accommodate larger passenger capacities compared to conventional buses. Transit agencies prioritize sustainable mobility initiatives, leading to the growing popularity of zero-emission electric buses. However, diesel buses continue to dominate the market due to their high range and versatility, suitable for long-haul intercity routes and areas with limited charging infrastructure.

Moreover, urban populations rely on buses for efficient and flexible transportation, especially in crowded city streets with tight turns. The vehicle market consists of various types, including single-decker buses, double-decker buses, airport shuttle services, tour & charter services, and ICE (Internal Combustion Engine) vehicles. Flexible construction and automation technologies, such as lane assist and collision avoidance, enhance safety and passenger comfort. Urban transportation and public transport options continue to evolve, with government laws and environmental concerns shaping the market landscape.

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The diesel segment was valued at USD 2.95 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 44% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Articulated bu

The APAC electric buses market is projected to experience a substantial growth over the forecast period, owing to increasing government initiatives to promote sustainable transportation and stringent emission regulations. The market size in 2025 is estimated at USD 44.74 million, and is projected to reach USD 120.55 million by 2033, growing at a CAGR of 10.55% during the forecast period. The rising adoption of electric buses by fleet operators and government agencies is also driving market growth. Additionally, technological advancements in battery technology and the development of cost-effective charging infrastructure are expected to support market expansion. Key market trends include the increasing popularity of battery electric buses due to their zero tailpipe emissions and lower operating costs compared to conventional diesel buses. Plug-in hybrid electric buses are also gaining traction due to their ability to operate in both electric and hybrid modes, providing flexibility and extended range. The market is segmented by vehicle type, power source, consumer, and region. Major market players include Ashok Leyland Limited, Scania AB, Tata Motors Limited, Volvo Group, and BYD Auto Co Limited. The Asia Pacific region is expected to dominate the market throughout the forecast period, driven by supportive government policies and the presence of major automotive manufacturers in the region. Recent developments include: In August 2022, Ashok Leyland's subsidiary Switch Mobility Ltd. secured an order to supply 200 air-conditioned electric double-decker buses from BEST in Mumbai. The double-decker buses are from EiV22 family and are powered by a 231 kWh battery, The buses will replace the existing fossil fuel powered double-decker buses in the BEST fleet., In August 2022, CAUSIS E-Mobility a part of London-based CAUSIS Group opened its office in Pune. In October 2021 the company has signed an MoU with the Government of Maharashtra to set up its second electric bus manufacturing facility in India at Pune. The company has secured an order to supply 700 electric buses to BEST in India, The company has already a manufacturing facility for electric buses in Jaipur., In May 2022, Olectra Greentech Ltd. secured an order to supply 2100 electric buses to BEST in Mumbai worth INR 3675 million., In August 2022, Switch Mobility Ltd. (Ashok Leyland Ltd.) won an order to supply 5000 electric buses to integrated Indian transport company Chalo. The memorandum of Ubderstanding has been signed for an initial period of three years and will see Chalo deploy Switch EiV12 electric buses across all Indian cities it operates in., In July 2022, Tata Motors Ltd. bagged a prestigious order to supply 1500 electric buses to Delhi Transport Corporation (DTC). Tata Motors Ltd. will supply, operate and maintain 12 meter long electric buses built on Starbus platform for a period of 12 years under the contract signed with DTC., In August 2022, Volvo Eicher joint venture VE Commercial vehicles Ltd. floated a separate subsidiary for electric buses named as VE Electro Mobility to raise capital from investores and pursue aggressive expansion in the electromobility space including electric buses., In January 2022 CRRC Electric, a Chinese manufacturer of electric buses delivered 30 units of C11 electric buses to Seoul, South Korea. These buses are 11 meters in length., In February 2022 Toyota, Isuzu and Hino (Toyota subsidiary) announced to launch their first jointly developed electric bus in Japan by 2024.. Key drivers for this market are: Growing Travel and Tourism Industry is Driving the Car Rental Market. Potential restraints include: Increasing Popularity of Ride-Sharing Services Pose Challenges for the Conventional Car Rental Market. Notable trends are: Battery Electric Bus Segment to Play Prominent Role in the Market.

By 2027, the electric bus market is projected to amount to approximately 53 billion U.S. dollars. This represents a compound annual growth rate of around 9.5 percent across seven years, up from some 28 billion U.S. dollars in 2020. This growth is in part generated by the shift towards emission regulations from national governments.

Bus Market size and share are expected to exceed USD 554,517 Million by 2032, with a compound annual growth rate (CAGR) of 4.6% during the forecast period.

Public Transport Bus Service Market Outlook

The global public transport bus service market is projected to grow significantly, with an estimated market size reaching USD 123 billion by 2032, up from USD 75 billion in 2023, showcasing a compound annual growth rate (CAGR) of approximately 5.5%. This growth is fueled by the increasing urbanization across the globe, which necessitates efficient and sustainable public transport solutions to mitigate traffic congestion and pollution. The rising population density in urban areas is leading to an increased demand for reliable and affordable public transportation, which propels the expansion of bus services worldwide. As governments and private entities invest in infrastructure and technology to make bus transport more accessible and reliable, the market is poised to achieve substantial growth over the forecast period.

One of the primary growth factors of the public transport bus service market is the increased focus on reducing carbon emissions and the global shift towards more sustainable modes of transport. Governments around the world are implementing stringent regulations to curb pollution from road transport, which is driving the adoption of electric and hybrid buses. These environment-friendly alternatives not only help in reducing the carbon footprint but also promise long-term cost savings in terms of fuel and maintenance. The advancement in battery technology and the development of charging infrastructure further support the deployment of electric buses, pushing market growth. Additionally, initiatives like subsidies and incentives for electric vehicle adoption are encouraging both public and private operators to transition towards greener fleets.

Another significant driver for the public transport bus service market is the technological advancements and innovations in the transport sector. The incorporation of smart technologies such as GPS, IoT, and real-time tracking systems in buses has enhanced the overall efficiency, safety, and passenger experience. These technologies enable operators to optimize routes, reduce delays, and provide timely information to commuters, thereby increasing the attractiveness of bus services. Moreover, the development of autonomous buses is expected to revolutionize public transport in the coming years by reducing operational costs and improving safety. The integration of such advanced technologies is anticipated to attract more passengers and boost market growth.

The growing investments in public transport infrastructure, especially in developing regions, are also contributing to the market's expansion. Governments are prioritizing the development of efficient public transport networks as part of urban planning to tackle the challenges of urbanization. Infrastructure development, such as the construction of dedicated bus lanes, terminals, and maintenance facilities, is enhancing the reliability and capacity of bus services. This is particularly evident in regions like Asia Pacific and Latin America, where rapid urbanization is driving the need for robust transport solutions. These investments not only improve service quality but also provide economic benefits by creating jobs and boosting local economies, further supporting market growth.

Regionally, the public transport bus service market is witnessing varied growth dynamics. The Asia Pacific region is experiencing significant growth due to its large population base, rapid urbanization, and governmental focus on expanding public transport infrastructure. North America and Europe are also expected to see considerable growth, driven by technological advancements and the increasing adoption of electric buses. The Middle East & Africa and Latin America are progressively recognizing the importance of sustainable public transport solutions, leading to increased investments and infrastructure development in these regions. The regional dynamics and government policies play a crucial role in shaping the growth trajectory of the public transport bus service market.

Service Type Analysis

The service type segment of the public transport bus service market includes city bus service, intercity bus service, shuttle bus service, and school bus service. City bus services dominate the market due to the increasing urban population and the need for efficient intra-city transport solutions. These services are a vital component of the urban transportation network, providing affordable and reliable transport for daily commuters. The integration of smart technologies and the expansion of urban bus networks are further enhancing the efficiency and attractiveness of city bus services, l

The global electric bus industry size has an estimated valuation of USD 21.3 billion in 2024. The electric bus market forecast will be USD 68.5 billion by 2034, projected at a CAGR of 12.4%.

Country-wise Insights

Category-wise Insights

The global electric bus market would likely grow at a CAGR of 13.60% during 2025-2034. The demand for electric buses is rising due to the fact that cities, private transit companies and schools are seeking alternatives to conventional buses; electric buses are considered more environmentally-friendly and economical. Many major countries across the world are looking to transform their bus fleets into electric. Asia, North America and Europe are likely to be key markets.

The North America Electric Bus Market is segmented by Fuel Category (BEV, FCEV, HEV) and by Country (Canada, Mexico, US). The report offers market size in both market value in USD and market volume in unit. Further, the report includes a market split by Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.

Electric Bus Market Outlook

The global electric bus market size was valued at approximately USD 30 billion in 2023 and is projected to reach a staggering USD 140 billion by 2032, growing at a compound annual growth rate (CAGR) of 18.5% during the forecast period. Major factors driving this significant growth include escalating environmental concerns, government initiatives aimed at reducing carbon emissions, and a growing preference for sustainable transportation options. These factors are prompting both public and private sectors to invest heavily in electric bus technologies, thereby accelerating market expansion.

One of the primary growth drivers for the electric bus market is the increasing global focus on environmental sustainability. Governments worldwide are enacting stringent regulations to curb carbon emissions, propelling the shift from traditional diesel and gasoline-powered buses to electric alternatives. The Paris Agreement and various national policies aimed at achieving zero-emission targets by 2050 are significantly contributing to this trend. Moreover, public awareness about the adverse effects of air pollution is encouraging municipalities to adopt electric buses as a cleaner, greener alternative to conventional public transportation systems.

Technological advancements in battery technology are another critical factor contributing to the market's growth. Innovations in lithium-ion batteries have significantly enhanced the energy density, lifespan, and charging efficiency of electric buses, making them more viable and cost-effective. Reduced battery costs and increasing energy storage capacities are making electric buses more competitive compared to their fossil-fuel counterparts. Additionally, advancements in battery management systems and charging infrastructure are further mitigating concerns related to range anxiety and operational downtime, thereby fostering greater adoption.

Financial incentives and subsidies offered by governments are also playing a pivotal role in accelerating market growth. Many countries are providing tax rebates, subsidies, and grants to encourage the adoption of electric buses. For instance, the U.S. Federal Transit Administration provides grants under the Low or No Emission Vehicle Program, while the European Union has allocated substantial funds under the Green Deal. These financial incentives are making electric buses a more financially viable option for fleet operators and public transport authorities, driving widespread adoption.

Regionally, Asia Pacific is leading the charge in the electric bus market, with China being the dominant player. China alone accounts for more than 90% of the global electric bus fleet, thanks to substantial government support, including subsidies and stringent emission regulations. Europe and North America are also witnessing robust growth, driven by strong governmental initiatives and increasing investment in electric vehicle infrastructure. In contrast, regions like Latin America and Middle East & Africa are gradually emerging markets, with growing investments in sustainable public transportation systems.

The rise of the Fully Electric Bus is a testament to the ongoing shift towards sustainable urban mobility solutions. Fully electric buses, unlike their hybrid counterparts, rely entirely on electric power, eliminating tailpipe emissions and significantly reducing noise pollution. This makes them particularly appealing for densely populated urban areas where air quality and noise levels are critical concerns. As battery technologies continue to evolve, fully electric buses are becoming increasingly viable, offering longer ranges and faster charging times. The transition to fully electric buses is also supported by government policies and incentives aimed at reducing carbon footprints and promoting green transportation. This shift is not only beneficial for the environment but also offers long-term cost savings for operators due to lower fuel and maintenance costs.

Vehicle Type Analysis

The vehicle type segment of the electric bus market is categorized into Battery Electric Bus (BEB), Plug-in Hybrid Electric Bus (PHEB), and Fuel Cell Electric Bus (FCEB). Battery Electric Buses dominate this segment due to their zero-emission capabilities and advancements in battery technology. BEBs are particularly popular in urban settings where air quality and noise pollution are significant concerns. The lower operational and maintenance costs of BEBs compared to traditional

The market for buses in North America reached 59.48 Thousand Units in 2024. During the forecast period of between 2025 and 2034, the North America bus market size is expected to grow at a CAGR of 2.60% to reach around 76.89 Thousand Units by 2034.

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Electric Bus Market Size 2025-2029

The electric bus market size is forecast to increase by USD 25.06 billion, at a CAGR of 16.7% between 2024 and 2029.

The market is witnessing significant growth, driven by the reduction in battery prices, which is making electric buses increasingly cost-competitive with their diesel counterparts. This trend is expected to continue, providing a strong impetus to market expansion. Another key driver is the increasing popularity of wireless charging systems, which offers the advantage of extended range and reduced downtime for maintenance. However, the market faces challenges, including the declining number of public transport users due to the COVID-19 pandemic and the associated shift towards remote work and personal vehicles.
To capitalize on opportunities and navigate these challenges, industry players must focus on innovation, cost competitiveness, and the development of advanced charging infrastructure. By addressing these factors, companies can effectively position themselves in the evolving the market landscape.

What will be the Size of the Electric Bus Market during the forecast period?

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The market continues to evolve, driven by advancements in technology and shifting consumer preferences. Remote diagnostics enable real-time monitoring and maintenance, enhancing fleet efficiency and reducing downtime. Solid-state batteries offer improved energy density and longer lifespan, while wireless charging and intercity buses expand the application scope. Component sourcing strategies and emissions reduction are key considerations, with a focus on optimizing operating costs. Safety standards, charging time, and maintenance costs remain critical factors, with ongoing improvements in safety systems, charging infrastructure, and battery thermal management. Fleet management systems facilitate smart charging, route optimization, and depot infrastructure development. Slow charging and onboard chargers cater to urban transportation needs, addressing range anxiety.

Traction batteries and power inverters are essential components, with advancements in lithium-ion batteries and regulatory compliance driving innovation. Electric bus manufacturing is evolving, with a focus on hybrid electric buses, regenerative braking, noise reduction, and accessibility features. Battery swapping and recycling are gaining attention, as is the integration of electric buses into the smart grid and vehicle-to-grid (V2G) systems. The market is characterized by continuous innovation, with ongoing developments in battery technology, charging infrastructure, and regulatory compliance shaping the landscape. The focus on reducing energy consumption and emissions, improving passenger capacity, and enhancing safety and accessibility will continue to drive growth in this sector.

How is this Electric Bus Industry segmented?

The electric bus industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Intercity
  Intra city


Type

  Pure electric bus
  Plug-in hybrid bus


Speed

  Less than 200 Miles
  More than 200 Miles


Capacity

  Up to 400 kWh
  Above 400 kWh


Product Type

  Semi-autonomous
  Autonomous


Propulsion Type

  Battery Electric Bus (BEV)
  Hybrid Electric Bus (HEV)
  Fuel Cell Electric Bus (FCEV)


Battery Type

  Lithium-Ion
  Nickel-Metal Hydride
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Application Insights

The intercity segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to various initiatives by governments to reduce emissions and promote sustainable transportation. In India, the government aims to replace internal combustion engine vehicles with electric vehicles by 2030, with a focus on electric buses in tier-1 and tier-2 cities. This has attracted electric bus charging system manufacturers to enter the Indian market. In China, the government's push to replace diesel buses with electric buses to curb vehicular emissions has made it the major market for electric buses in the Asia Pacific region. The electric bus industry also benefits from advancements in technology, such as remote diagnostics, solid-state batteries, and wireless charging.

Component sourcing and supply chain management are crucial aspects of electric bus

Snapshot img

School Bus Market Size 2025-2029

The school bus market size is forecast to increase by USD 1.35 billion at a CAGR of 4% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing number of school enrollments worldwide. This trend is particularly noticeable in developing countries, where expanding access to education is a priority. Another key factor fueling market expansion is the adoption of technological innovations, such as GPS tracking systems, electronic fare collection, and real-time student information systems. These advancements not only enhance safety and efficiency but also provide valuable data for school administrators and parents. However, the market is not without challenges. Stringent emission and fuel economy standards are becoming increasingly important, necessitating the use of alternative fuels and more efficient bus designs. Meeting these regulations while maintaining affordability is a significant challenge for market participants. Additionally, the ongoing COVID-19 pandemic has disrupted traditional school bus operations, leading to the need for flexible and adaptable solutions. Companies seeking to capitalize on market opportunities and navigate these challenges effectively must stay informed about the latest regulatory requirements and technological advancements, and be prepared to pivot their strategies as needed.

What will be the Size of the School Bus Market during the forecast period?

Request Free SampleThe market in the US is experiencing significant growth, driven by the increasing adoption of electric buses to mitigate harmful emissions and address student health concerns, such as allergies and asthma. This shift towards electromobility is also influenced by the integration of advanced technologies, including GPS tracking, enhanced braking systems, and IoT-enabled fleet management solutions. The market's evolution is further fueled by the rising student enrollment in educational institutions, which necessitates the expansion of transportation capacities. Parents' growing emphasis on student safety, mental and physical well-being, and reaction time improvements are also critical factors. The integration of artificial intelligence and seat belts enhances safety features, while improved driver visibility and fuel efficiency contribute to the market's expansion. Air pollution concerns and the need for greenhouse gas emissions reduction further bolster the market's momentum. Byd, among other players, is making strides in this sector by offering efficient and eco-friendly electric buses.

How is this School Bus Industry segmented?

The school bus industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. Powertrain TypeICE-poweredElectricTypeType CType BType AType DGeographyNorth AmericaUSCanadaAPACChinaIndiaJapanSouth KoreaEuropeFranceGermanyItalyUKMiddle East and AfricaSouth America

By Powertrain Type Insights

The ice-powered segment is estimated to witness significant growth during the forecast period.School buses, a vital component of the transport sector, are transitioning towards cleaner and more efficient alternatives to address the air pollution issue. ICE vehicles, including diesel buses, continue to dominate the market but face challenges due to their harmful emissions. Particulate matter and volatile organic compounds (VOCs) are major pollutants emitted by ICE-powered school buses, which can penetrate deep into the lungs and cause severe health issues such as asthma, allergies, and respiratory health concerns. To mitigate these challenges, alternative fuel options like compressed natural gas (CNG) and propane have gained traction. These fuels use the same powertrain as ICE vehicles but offer reduced emissions. Additionally, electric buses are gaining popularity due to their zero-emission capabilities. Manufacturers like Thomas Built Buses and BYD are introducing electric school buses with advanced features such as thermal management systems, Artificial Intelligence, and Fleet Management Solutions to enhance student safety, cognitive development, and driver visibility. These buses also offer longer life, better fuel efficiency, and lower maintenance costs. Electromobility and clean mobility initiatives are driving the market, with incentives and incentives for zero-emission models. The integration of IoT, GPS tracking, and mobile power units further enhances the student experience, providing a peaceful ride and addressing mental well-being concerns. Despite these advancements, challenges remain, such as battery weight, charging infrastructure, and grid failures. However, economies of scale and continuous technological advancements are expected to overcome these hurdles. Rising student en

[214+ Pages Report] The global bus market size was valued at USD 42.15 billion in 2021 and is estimated to reach USD 61.41 billion by 2028, at a CAGR value of 6.08% from 2022 to 2028.

[219+ Pages Report] The global electric bus market size is expected to grow from USD 39.45 billion in 2023 to USD 174.26 billion by 2032, at a CAGR of 17.9% from 2024-2032

Comparing the **** selected regions regarding the revenue in the 'Buses' segment of the shared mobility market, China is leading the ranking (**** billion U.S. dollars) and is followed by the United States with **** billion U.S. dollars. At the other end of the spectrum is Austria with **** billion U.S. dollars, indicating a difference of **** billion U.S. dollars to China. Find other insights concerning similar markets and segments, such as a ranking by country regarding revenue in the flights segment of the shared mobility market and a ranking of subsegments in Switzerland regarding share in the segment Bike-sharing . The Statista Market Insights cover a broad range of additional markets.