Bus Market - Growth, Trends, and Forecast (2020 - 2025)

The bus market is segmented by Type (Single Deck and Double Deck), Application (Transit Bus, Intercity/Coaches, and Other Applications), Fuel Type (Diesel, Electric/Hybrid, and Other Fuel Types), Seating Capacity (15 - 30 Seats, 31 - 50 Seats, and More than 50 Seats), and Geography.

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

7.58 %

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Market Overview

The bus market was valued at USD 50.25 billion in 2019, and it is expected to register a CAGR of 7.58% during the forecast period. The total bus stock in 2017 amounted to 17.2 million units.

  • Buses are the preferred mode of public transportation, as billions of people use buses for their day-to-day commute across the world. The bus demand has increased significantly in recent years, especially in developing countries, such as India, China, Brazil, and Mexico, owing to the rapid population growth, urbanization, and government initiatives to connect rural areas to cities.
  • Growing concerns over pollution and the rise in stringent emission regulations have encouraged countries to include a greater number of electric buses in the existing bus fleet, thereby contributing to the overall bus market growth.
  • Some of the major companies that captured a significant market share include Daimler AG, Zhengzhou Yutong Bus Co., Volvo, Traton (Man, Scania, etc.), Tata Motors, Ashok Leyland, and Alexander Dennis.

 

Scope of the Report

The bus market is segmented by type, application, fuel type, and geography.

By Type
Single Deck
Double Deck
By Application
Transit Bus
Intercity/Coaches
Other Applications (School Bus, etc.)
By Fuel Type
Diesel
Electric and Hybrid
Other Fuel Types (CNG, Biofuel, etc.)
By Seat Capacity
15 - 30 Seats
31 - 50 Seats
More than 50 Seats
Geography
North America
United States
Canada
Rest of North America
Europe
United Kingdom
Germany
France
Spain
Italy
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East & Africa

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Key Market Trends

INCREASING ADOPTION OF ELECTRIC BUSES

Fuel constitutes a major part of the operating cost of any vehicle. With increasing fuel costs, using an electric bus for public transport is significantly cost-effective in the long run.

  • Electric buses help reduce 81-83% of the maintenance and operating costs, compared to a diesel engine bus.

Electric buses offer more comfort to travelers compared to gasoline or diesel buses. The NVH levels in electric buses are minimal, unlike traditional diesel buses, providing enhanced comfort to passengers.

Currently, China is the most promising market in this sector, and this is likely to lead the e-bus demand over the forecast period. For instance, in 2018, nearly 23% of bus purchases in China were e-buses. Moreover, the country's overall bus purchases are expected to remain stable, with more than 400,000 new purchases by 2025. Electric bus purchases are expected to increase, supported by continuous government initiatives to promote e-mobility, and the overall e-bus adoption is likely to reach 40% of new bus purchases, globally, by 2040.

The Chinese e-bus market is likely to be followed by the US and European markets, as it is expected that both the countries may have a combined contribution of more than 40,000 electric heavy-duty vehicles on the roads by 2025. In 2019, approximately 12% of city buses registered were battery-electric. In Western Europe and Poland, 2019 was a record year with regards to the transition to zero-emission buses. The limit of 1,000 electric bus units was already exceeded in September 2019, and the year ended with as many as 1,687 e-buses registered on a total market of 14,392 city buses.

At the end of 2019, 39% of the city buses had an alternative driveline in Europe. In 2018 this was 28% (3.340 buses with an alternative driveline of 11,845 city buses).

Furthermore, governments across the regions are taking initiatives to promote electric vehicles, which play a pivotal role in the growth of the on-demand bus industry.

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Europe is Expected to Witness the Second-fastest Growth Rate

The European region is expected to witness the second-fastest CAGR of 7.50% during the forecast period.
In Europe, in 2018, the United Kingdom dominated the market and accounted for 20.22% of the total market, followed by Germany, France, and Spain. In the United Kingdom, buses are the most frequently used mode of transport. In 2017, 4.4 billion bus trips were made across England, and buses accounted for approximately 59% of all public transport trips in Great Britain, compared to 21% by rail.
Local bus passenger journeys have been continually declining in London, English metropolitan areas, English non-metropolitan areas, England, Scotland, Wales, and Great Britain. The prime reason is the steep decline in travel on local government-funded bus and privatization of buses (as bus operators can decide the routes they want to travel), which resulted in sparse services. However, owing to the rise in pollution and to reduce reliance on oil and dependence on oil-producing countries, the country is focusing on e-mobility. Moreover, clean air zones have been introduced in many cities of the United Kingdom, and commuters are deterred by the congestion and high parking costs, which in turn, is propelling the need for clean and efficient bus service in the country.
In Europe, the United Kingdom has the most electric buses, with hybrid-electric buses currently running in many British cities, representing 18% of Europe’s fleet. The electrification of the country’s road transport is still in its nascent stage, but the falling costs are expected to drive the growth of the market.

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Competitive Landscape

The bus market is fragmented, with the major players holding a competitive position in the market, owing to their strong product portfolio, brand image, and a strong network of various dealers. The major players in the market studied include Daimler AG, Zhengzhou Yutong Bus Co., Volvo, Traton (Man, Scania, etc.), Tata Motors, Ashok Leyland, Alexander Dennis, etc.


The other players, such as Solaris, Navistar, IC Bus, etc., hold a relatively smaller market share. These companies are in the process of expanding their operations in the local and international markets.


The bus market is characterized by mergers, acquisitions, and collaborations between various manufacturers, who are trying to tap into the potential markets.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Single Deck

      2. 5.1.2 Double Deck

    2. 5.2 By Application

      1. 5.2.1 Transit Bus

      2. 5.2.2 Intercity/Coaches

      3. 5.2.3 Other Applications (School Bus, etc.)

    3. 5.3 By Fuel Type

      1. 5.3.1 Diesel

      2. 5.3.2 Electric and Hybrid

      3. 5.3.3 Other Fuel Types (CNG, Biofuel, etc.)

    4. 5.4 By Seat Capacity

      1. 5.4.1 15 - 30 Seats

      2. 5.4.2 31 - 50 Seats

      3. 5.4.3 More than 50 Seats

    5. 5.5 Geography

      1. 5.5.1 North America

        1. 5.5.1.1 United States

        2. 5.5.1.2 Canada

        3. 5.5.1.3 Rest of North America

      2. 5.5.2 Europe

        1. 5.5.2.1 United Kingdom

        2. 5.5.2.2 Germany

        3. 5.5.2.3 France

        4. 5.5.2.4 Spain

        5. 5.5.2.5 Italy

        6. 5.5.2.6 Rest of Europe

      3. 5.5.3 Asia-Pacific

        1. 5.5.3.1 China

        2. 5.5.3.2 Japan

        3. 5.5.3.3 India

        4. 5.5.3.4 South Korea

        5. 5.5.3.5 Rest of Asia-Pacific

      4. 5.5.4 Rest of the World

        1. 5.5.4.1 South America

        2. 5.5.4.2 Middle East & Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Anhui Ankai Automobile Company

      2. 6.2.2 Daimler AG

      3. 6.2.3 Alexander Dennis

      4. 6.2.4 Volvo

      5. 6.2.5 Solaris Bus

      6. 6.2.6 Tata Motors

      7. 6.2.7 Ashok Leyland

      8. 6.2.8 Traton (Scania, MAN, etc.)

      9. 6.2.9 Zhengzhou Yutong Bus Co. Ltd

      10. 6.2.10 Xiamen King Long United Automotive Industry

      11. 6.2.11 BYD Auto Co. Ltd

      12. 6.2.12 Suzhou Eagle Electric Vehicle

      13. 6.2.13 Iveco Bus

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER

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