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Buses & Coaches Market Size, Share, Industry, and COVID-19 Impact Analysis, By Fuel Type (Gasoline, Hybrid, Electric, and Fuel Cell), By Type (Single Deck, Double Deck, Articulated Bus, Mini Bus, and Trolley Bus), By Application (City Bus/Coaches, Transit Bus, School Bus, and Others), By Seating Capacity (15-30 Seater, 31-50 Seater, More than 50 Seater, and Sleeper Facility), By No. of Axle (2 Axle and 3 Axle), and Regional Forecast, 2023-2030

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI106978

 

KEY MARKET INSIGHTS

The global buses and coaches market size was valued at USD 72.11 billion in 2022. The market is anticipated to grow from USD 78.33 billion in 2023 to USD 151.62 billion by 2030, exhibiting a CAGR of 9.9% during the forecast period.


Buses are typically large vehicles designed to transport many passengers within cities over relatively short or medium distances. On the other hand, coaches are similar to buses and are more luxurious, spacious, and equipped for long-distance travel; they are often used for intercity transportation, tourism, or private charters. The market includes various vehicles such as school buses, intercity & intracity buses, tour buses, and luxury coaches. Depending on the technology, these vehicles are powered by different fuels, including diesel, electric power, hydrogen, and propane.


Buses are the most common public transport mode, serving cities, suburbs, and rural areas. They are also the most cost-effective and adaptable modes of public transit, with little expenditure to construct new lines or routes. The growing demand for bus travel is likely to fuel the expansion of the buses and coaches industry over the forecast period. According to  Transport Statistics Great Britain, 62% of ticketed public transport journeys were made on local buses in 2022 in Great Britain.


The market is set to grow as many governments implement policies and regulations to promote public transportation and reduce reliance on private vehicles. This includes investment in public transit infrastructure and subsidies for bus services, among others. For instance, Under the Infrastructure Investment and Jobs Act, the U.S. government increased the federal government's annual support for public transit through 2026. The government announced an annual investment of USD 18 billion for public transportation programs from 2022 to 2026, an increase of 42% over the amount provided from 2016 to 2021.


COVID-19 IMPACT


COVID-19 Pandemic Adversely Impacted the Production and Sales of Buses and Coaches


The outbreak of the COVID-19 pandemic adversely affected the automotive industry. The global lockdown significantly impacted the bus and coach market, causing several coach and bus operators to stop their services altogether or operate at a reduced capacity to control the spread of the virus.


With the implementation of physical distancing, social bubbling, and COVID-19 mitigation factors, coaches & buses operated at a maximum of 35-50% occupancy during the pandemic. As lockdown restrictions began to ease and destinations began to reopen, bus & coach operators could begin operating again with restricted passenger numbers dampening demand as not all sectors could reopen. According to the Society of Motor Manufacturers and Traders (SMMT), the new bus and coach market in the U.S. experienced a modest growth of 0.6% in the second quarter of 2022. Furthermore, bus manufacturers reported notable surge in demand for buses post-COVID. For instance, Volvo Trucks and Volvo Buses witnessed remarkable increase in sales, with 189 units sold in January 2023 compared to 109 units in January 2022, demonstrating a substantial 73.4% increase.


LATEST TRENDS


Growing Demand for Smart Bus Technology to Enhance Travel Experience 


The adoption of innovative technology is poised to revolutionize the transport industry ushering in a new era of advancements and improvements using real-time data and analytics. With advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML), manufacturers aim to elevate overall travel experience for passengers. Smart buses offer a myriad of features aimed at enhancing the passenger experience. This includes efficient route planning, monitoring vehicle health, tracking fuel consumption, and enhancing overall fleet performance. Additionally, smart bus technology also incorporates advanced safety features to safeguard passengers and drivers, including driver monitoring, collision avoidance, surveillance, and emergency communication systems.


OEMs and telecom providers, in collaboration with the government, are focusing on providing intelligent mobility solutions to improve vehicles' connectivity and passenger comfort. For instance, in March 2023, Vodafone, in partnership with Zaragoza City Council in Spain, successfully deployed Europe's first smart and connected bus powered by 5G. The electric bus is incorporated with a driving assistance system that automates braking, acceleration, and steering without driver assistance. The bus communicates in real-time with city infrastructure using Vodafone's 5G connectivity, enabling it to detect obstacles, enhance energy efficiency, and passenger comfort. This smart bus is expected to improve safety, mobility, and accessibility in remote areas by reducing the risk of accidents and facilitating efficient route planning and scheduling.


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DRIVING FACTORS


Rise in Travel & Tourism Activities to Drive the Bus and Coaches Market Size


The rapid growth in travel & tourism post-pandemic growth has accelerated the buses and coaches market growth. According to the National Statistics published by the U.K. Department for Transport in March 2023, the number of local bus passenger journeys increased by 79.6% in March 2022. Moreover, buses are popular for travel & tourism as they are a convenient, affordable alternative to air travel and private cars and can accommodate large groups of tourists. As global travel & tourism grow, bus demand will likely expand significantly.


The growing demand for efficient and sustainable public transportation systems has driven the growth of buses and coaches. Many countries are investing in transportation infrastructure, including bus rapid transit systems and improved road networks. The infrastructure development is anticipated to create opportunities for the buses and coaches industry. In January 2023, the Government of India announced an investment of USD 2.42 billion to boost public bus transport through a Public-Private Partnership (PPP) to run over 20,000 buses to support the automobile sector.


RESTRAINING FACTORS


High Capital Investments in Production of Bus and Coaches May Restrain Market Growth


The high initial investment can restrain the growth of this market. Compared to light commercial vehicles, these vehicles are expensive to purchase and maintain. The initial investment and ongoing operational costs, such as fuel & maintenance costs and driver costs, can be significant. According to the Colorado Department of Transportation, a 30-foot coach costs USD 205,000. The cost factor can limit the market growth of buses and coaches both for private and public transportation authorities.


The availability and quality of infrastructure can be a restraining factor. These vehicles require well-maintained roads, bus lanes, adequate terminals, and parking facilities. Hence, improper infrastructure can impact the effectiveness of buses and coaches service.


SEGMENTATION


By Propulsion Analysis


Electric Segment Held the Highest Market Share Owing to its Environment Benefits and Energy Efficiency


Based on propulsion type, the market is segmented into diesel, natural gas, hybrid, electric, and hydrogen. The electric segment accounted for a significant global buses and coaches market share in 2022. Electric buses and coaches' growing popularity can be attributed to their low maintenance cost, zero-emission, and high energy efficiency. Electric buses produce zero emissions, thereby improving air quality levels. Moreover, governments across countries are offering financial incentives, tax cuts, subsidies, and regulatory policies to promote the adoption of electric buses. For instance, in March 2021, the U.K. government allocated USD 140 million to roll out electric buses to curb emission levels and improve air quality nationwide.


The hydrogen segment is anticipated to grow significantly over the forecast period. Hydrogen buses are powered by fuel cells that convert hydrogen and oxygen into electricity, with water vapor as the only by-product, making them an environmentally friendly transportation option. Also, hydrogen buses have a longer driving range than electric buses, making them a viable option for long-distance travel.


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By Bus Type Analysis 


Standard Bus Segment Leads the Market Owing To its Easy Accessibility and Maneuverability


The market is categorized into standard (single deck and double deck), coaches, and articulated based on bus type.


The standard type held a leading market share in 2022. It is further sub-segmented into single-deck and double-deck. Single-deck buses are generally more popular owing to their easy accessibility and maneuverability compared to double-deck buses. They can easily navigate through tight corners, narrow streets, and congested urban areas, making them ideal for operating in dense cities with limited space, complex road networks, and existing infrastructure. Single decks versatility allows them to be customized for different purposes, such as regular city transit, school bus, tourist, and shuttle services. Moreover, they have lower initial purchase costs than coaches, articulated buses, and double-deck buses.


The coaches segment is anticipated to register a CAGR of 10.2% over the forecast period. Coaches are becoming a popular choice for long-distance commutes. They provide a convenient and cost-effective alternative to air travel. As the demand for intercity travel continues to rise, the demand for coaches will increase over the forecast period. Moreover, evolving bus models with enhanced functionalities designed to ease long-distance travel and passenger comfort will drive demand for coaches. For instance, in June 2023, Pelican Bus and Coach launched a more extended version of its E9 model, the E9L. This electric bus is 2.4m wide and 9.5m in overall length and is designed to provide enhanced maneuverability and comfort to passengers.


By Application Analysis


School Segment Held a Higher Market Share Owing to Rise in School Enrollments Globally


The market is segmented based on application into school, intercity, and intracity.


In 2022, the school segment emerged as the dominant market share holder. This can be attributed to the global increase in school enrollments, which has subsequently driven the demand for school buses. Moreover, school buses have been rapidly deployed in countries such as the U.S., Canada, China, and the U.K. For instance, in June 2022, U.S. school districts committed to deploying 12,275 electric school buses in 38 states.


The intracity bus application is anticipated to register a robust CAGR over the forecast period. The rise in urbanization and rapid growth in travel demand among rural and city residents have increased the demand for intracity travel by bus. Moreover, intracity buses provide a convenient mode of transportation. They provide access to various commercial areas, healthcare facilities, and educational institutions within the city.


REGIONAL ANALYSIS


From the regional ground the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.


Asia Pacific Buses and Coaches Market Size, 2022 (USD Billion)

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Asia Pacific region held the dominant market share in 2022. The rapid urbanization of countries in this region is leading to rising demand for affordable and reliable public transportation systems. Many countries in Asia Pacific are focused on expanding their bus networks and upgrading infrastructure to improve urban mobility. For instance, the Indian government has launched several initiatives to promote public transportation and reduce road congestion. The National Urban Transport Policy, the Smart Cities Mission, The Atal Mission for Rejuvenation, and Urban Transformation all focus on improving the public transport system.


Europe is expected to register a CAGR of 10.0% over the forecast period. European countries are focused on promoting sustainable transportation to reduce pollution levels and combat climate change. Hydrogen and electric buses are considered environmentally friendly alternatives to diesel buses. With regard to this, government authorities in Europe are implementing strict policies to promote the adoption of electric buses. For instance, in April 2022, the Italian Ministry of Economic Development announced to fund over USD 300 million to develop the electric bus industry. Several manufacturers have announced plans to increase their sales of zero-emission buses in the next decade. Such trends are likely to boost the market growth over the forecast period.


North America is expected to resigter  a CAGR of 9.6% over the forecast period. The positive market outlook which can be contributed to growing demand for school buses in the U.S. and Canada. Moreover, government funding at the local, state, and federal levels to support the purchase of electric school buses, will further accelerate the market growth. For instance, in June 2023, the U.S. Department of Transportation’s Federal Transit Administration announced USD 1.7 billion for transit projects in 46 states and territories. This funding will be utilized towards building 1,700 buses and half of these buses will be zero-emission models to support bus electrification in order to curb emission level and fight climate change.


Rest of the World is anticipated to hold a CAGR of 6.5% over the forecast period. Growing urbanization and rise in tourism in countries such as  Argentina, Brazil, Saudi Arabia are the major factors propelling the market growth. Moreover, growing need to replace older buses with newer, more efficient, and environmentally friendly models will support the market growth over the forecast period. For instance, in February 2023, Saudi Arabia launched the first electric public transport bus in Jeddah. The bus can cover a distance of 300 kms on a single charge and consume less than 10% of electricity compared to other electric bus models.


KEY INDUSTRY PLAYERS


Companies Focus on Mergers & Acquisitions and Partnerships to Gain Competitive Edge


Various regional and international players consistently develop advanced strategies for competitive advantage. Many companies are forming mergers & acquisitions and partnership & collaboration strategies to enable market growth. For instance, in January 2022, GILLIG LLC, in partnership with Robotic Research, announced the development of advanced driver assistance and automated driving technologies for heavy-duty transit buses.


List of Key Companies Profiled: 



  • TATA Motors (India)

  • Ashok Leyland (India)

  • Volvo (Sweden)

  • BYD (China)

  • Scania (Sweden)

  • Daimler AG (Germany)

  • New Flyer (Canada)

  • MAN (Germany)

  • Marcopolo S.A. (Brazil)

  • Yutong (China)


KEY INDUSTRY DEVELOPMENTS:



  • May 2023 – Volvo developed its first electric double-deck bus, the Volvo BZL, for the U.K. market. The bus is designed to curb air pollution, provide comfortable journeys, and encourage more people to commute by bus.

  • August 2022 – The Indian government deployed a hydrogen fuel cell bus manufactured  by the Council of Scientific and Industrial Research and KPIT Limited, a software company based out of India, to fight climate change and make a transition toward clean energy.

  • June 2022 – Switch Mobility, the U.K.-based electric mobility subsidiary of Ashok Leyland, launched its electric bus platform, Switch Eiv 12, for the Indian market. This platform is expected to make E.V. buses available for intercity, intracity, school, and tarmac applications.

  • January 2022 – BYD launched its electric school bus model with vehicle-to-grid technology, enabling vehicles to serve as power storage resources when not transporting students in North America. The bus has an ADA liftgate capable of lifting to 800 pounds. The bus has a range of up to 140 miles on a single charge.

  • March 2021 – BYD launched its pure electric articulated bus for the Brazilian market. The bus is developed with Brazilian and Latin America's largest bus body manufacturer, Marcopolo. The model is 22 meters long, powered by lithium iron phosphate batteries, and can accommodate 168 passengers.


REPORT COVERAGE


 The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.


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Report Scope & Segmentation



















































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year 



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 9.9% from 2023 to 2030



Unit



Volume (Units) & Value (USD Billion)



Segmentation



By Propulsion



  • Diesel

  • Natural Gas

  • Hybrid

  • Electric

  • Hydrogen



By Bus Type



  • Standard

    • Single Deck

    • Double Deck



  • Coaches

  • Articulated



By Application



  • School

  • Intercity

  • Intracity



By Region



  • North America (By Propulsion, By Bus Type, By Application, By Country)

    • U.S. (By Propulsion)

    • Canada (By Propulsion)

    • Mexico (By Propulsion)



  • Europe (By Propulsion, By Bus Type, By Application, By Country)

    • U.K. (By Propulsion)

    • Germany (By Propulsion)

    • Italy (By Propulsion)

    • France (By Propulsion)

    • Spain (By Propulsion)

    • Rest of Europe (By Propulsion)



  • Asia Pacific (By Propulsion, By Bus Type, By Application, By Country)

    • China (By Propulsion)

    • Japan (By Propulsion)

    • India (By Propulsion)

    • South Korea (By Propulsion)

    • Rest of Asia Pacific (By Propulsion)



  • Rest of the world (By Propulsion, By Bus Type, By Application)






Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 72.11 billion in 2022.

The market will likely grow at a CAGR of 9.9% over the forecast period (2023-2030).

The standard bus segment is expected to lead the market due to the easy accessibility and availability of standard buses, particularly single-deck, globally.

Growth in travel & tourism and rapid urbanization are major factors driving market growth.

Some of the major players in the market are BYD, Volvo, Yutong, and Tata Motors.

Asia Pacific dominated the market in 2022.

The high initial investment and maintenance cost is expected to restrain the market growth.

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