North America School Bus Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.41 Billion |
| Market Size (2029) | USD 3.04 Billion |
| CAGR (2024 - 2029) | 4.74 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America School Bus Market Analysis
The North America School Bus Market size is estimated at USD 2.41 billion in 2024, and is expected to reach USD 3.04 billion by 2029, growing at a CAGR of 4.74% during the forecast period (2024-2029).
The North American school bus market holds significant importance within the region's transportation sector, serving as a vital link in ensuring the safe and efficient transportation of students to and from educational institutions.
There is a growing emphasis on adopting environmentally friendly and alternative fuel technologies within the school bus segment, driven by concerns over emissions and environmental sustainability. This trend has led to increased interest and investment in electric and alternative fuel-powered school buses, with several manufacturers introducing electric and hybrid models to cater to the evolving needs of school districts and transportation authorities.
Furthermore, technological advancements play a significant role in shaping the North American school bus market, with features such as GPS tracking, onboard cameras, and telematics systems becoming increasingly common to enhance safety, efficiency, and monitoring capabilities.
The North American school bus market remains a dynamic and evolving sector, driven by regulatory requirements, technological innovation, and a focus on safety and sustainability. Understanding these factors is essential for stakeholders to navigate the market effectively and capitalize on emerging opportunities.
North America School Bus Market Trends
Industry’s Shift Toward the Adoption of Electric School Buses
School buses play a vital role in the daily transportation of students across the United States, covering an extensive network of approximately 480,000 buses that collectively travel nearly 3.5 billion miles each year, reaching every corner of the nation.
However, the majority of the aging school bus fleet in North America relies on conventional fuels like gasoline, diesel, or propane, which contribute to harmful emissions of criteria pollutants and greenhouse gases, posing risks to both the environment and the health of students.
To address these challenges, there has been a notable shift toward electric buses driven by government support and increasing demand for emission-free public transportation solutions. The Environmental Protection Agency (EPA) of the United States launched the Clean School Bus Program in May 2022, pledging a substantial investment of USD 5 billion over five years to deploy zero-emission school buses nationwide, with a focus on underserved communities. Government agencies, school districts, and bus manufacturers are actively exploring electric school bus (ESB) technology to mitigate the negative impacts of fossil fuel-powered buses. Advancements in battery technology and the introduction of advanced electric buses present promising opportunities for the industry.
For instance, GreenPower Motor Company Inc. inaugurated a new manufacturing facility in South Charleston, West Virginia, in August 2022. This facility, spanning 80,000 square feet, is dedicated to producing fully electric school buses to cater to the growing demand on the US East Coast.
Electric buses are gaining traction as a preferred alternative to conventional diesel buses due to their zero-emission operation and significantly lower annual operating costs. Consequently, many cities and districts across North America, with California leading the way, are actively exploring the adoption of electric school buses, aligning with broader efforts to promote sustainable transportation solutions.
This trend underscores the expanding utilization of electric school buses across various states.
United States is Expected to Grow at a High Rate
Buses are rapidly gaining traction in the United States as a result of widespread adoption by school districts, municipal governments, and private partners. There were approximately 26,727 high schools in the United States, with the total number of elementary schools exceeding that figure by roughly fourfold, amounting to approximately 87,498. There were a total of 12,720 committed electric school buses in the United States as of June 2022.
This amounts to about 2-3% of the total school bus fleet in the country. Forty new school districts have committed to incorporating electric school buses into their fleets, bringing the total to 455. This is a 76% increase from the summer of 2022, but it is still a small portion of the total number of districts.
As one of the most important modes of transportation in the United States, the government has announced several plans to increase the demand for electric school buses. For instance, in September 2022, in response to overwhelming demand, the US Environmental Protection Agency (EPA) announced that it is nearly doubling the amount of money available to states to purchase electric school buses. In May, the EPA made USD 500 million available for clean buses, but that amount has now been increased to USD 965 million for districts across the country.
There are 38 states with electric school buses, with the majority of buses belonging to districts or entities on the coasts and in the suburbs. California continues to lead the way in electric school bus adoption, with nearly 1,400 committed electric buses across the state, 41% of which have been delivered or are in service. This is more than four times the number of buses in the next largest state. Following California, Virginia gained the most commitments since March 2022, with 58 electric school bus commitments, largely due to funds from the Volkswagen Mitigation Trust.
Many regional manufacturers are working with technology companies to develop new and innovative products, driving the competition and market. For instance, in September 2022, California's Modesto City Schools ordered 30 Blue Bird All-American Type D electric school buses. The deal, Blue Bird's single largest order of electric school buses from a school district to date, allows the district to convert roughly 50% of its diesel-powered bus fleet to electric.
North America School Bus Industry Overview
The North American school bus market is consolidated. The region is characterized by the presence of major school bus manufacturers who also cater to other countries. Blue Bird Corporation, IC Bus, and Thomas Built Buses Inc. are the three main players expected to occupy a major market share. Other major companies are Collins Bus Corporation, Micro Bird, and Lion Electric Company. Moreover, companies are introducing new product features to increase their market shares.
For instance, in February 2023, Allison Transmission, in collaboration with Volare, a minibus manufacturer in Brazil, introduced the first school buses in South America with fully automatic transmissions. Brazil's National Fund for Educational Development (FNDE), linked to the Ministry of Education, disclosed grants to fund 320 new buses equipped with Allison Torqmatic™ Series transmissions. This initiative is part of the School Path Program, designed to enhance access to safer and more dependable transportation for public school students.
North America School Bus Market Leaders
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Blue Bird Corporation
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Daimler AG (Thomas Built Buses)
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Collins Bus Corporation
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Lion Electric Company
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Navistar, Inc.
*Disclaimer: Major Players sorted in no particular order
North America School Bus Market News
- November 2023: The Lion Electric Company, a prominent manufacturer specializing in all-electric medium- and heavy-duty vehicles, disclosed the acquisition of a provisional purchase order for 50 LionC all-electric school buses from Highland Electric Fleets. Highland, a key provider of electrification-as-a-service for school districts, governmental entities, and fleet operators across North America, is the ordering party.
- October 2023: Blue Bird achieved a milestone by delivering its 1,500th electric, zero-emission school bus to Modesto City Schools in California. The company marked the inauguration of its Electric Vehicle (EV) Build-up Center in Georgia, aiming to boost its long-term production capacity to 5,000 electric school buses annually. This expansion underscores Blue Bird's commitment to advancing zero-emission school buses.
- November 2022: Lion Electric Co., a Canadian manufacturer of all-electric medium and heavy-duty vehicles, announced the production of its first zero-emission LionC school bus in its Joliet, Illinois, factory.
- October 2022: Thomas Built Buses (TBB) delivered its 200th Proterra Powered Saf-T-Liner C2 Jouley battery-electric school bus to Monroe County Public Schools (MCCSC) in Indiana. Monroe became Indiana's first county to receive an electric school bus in the fall of 2020 and has since ordered 12 more, committing to electrifying all 85 primary bus routes with Jouley electric buses from TBB by 2028.
- March 2022: Thomas Built Buses and Highland Electric Fleets, North America's leading provider of turnkey electrification services for school bus fleets, announced an expansion of their partnership to reduce upfront costs and accelerate the adoption of electric school buses.
North America School Bus Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Stringent Safety Regulations Mandated by Government Authorities
4.2 Market Restraints
4.2.1 Economic Downturns or Fluctuations
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in USD)
5.1 By Powertrain
5.1.1 IC Engine
5.1.2 Electric
5.2 By Bus Type
5.2.1 Type C
5.2.2 Type D
5.2.3 Other Types
5.3 By Geography
5.3.1 United States
5.3.2 Canada
5.3.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share**
6.2 Company Profiles*
6.2.1 Blue Bird Corporation
6.2.2 Navistar Inc.
6.2.3 Daimler AG (Thomas Built Buses)
6.2.4 Collins Bus Corporation
6.2.5 Girardin Blue Bird
6.2.6 Starcraft Bus
6.2.7 Trans Tech
6.2.8 Lion Electric Company
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Use Of Advanced Fuel And Artificial Intelligence in The Vehicles
North America School Bus Industry Segmentation
A school bus is owned, leased, contracted to, or operated by a school or school district. It is regularly used to transport students to and from school or school-related activities, not including a charter bus or transit bus.
The North American school bus market is segmented by powertrain, bus type, and region. By powertrain, the market is segmented into IC engine and electric. By bus type, the market is segmented into type C, type D, and other types. By region, the market is segmented into the United States, Canada, and the rest of North America. The report offers the market sizes and forecasts in value (USD) for all the above segments.
| By Powertrain | |
| IC Engine | |
| Electric |
| By Bus Type | |
| Type C | |
| Type D | |
| Other Types |
| By Geography | |
| United States | |
| Canada | |
| Rest of North America |
North America School Bus Market Research FAQs
How big is the North America School Bus Market?
The North America School Bus Market size is expected to reach USD 2.41 billion in 2024 and grow at a CAGR of 4.74% to reach USD 3.04 billion by 2029.
What is the current North America School Bus Market size?
In 2024, the North America School Bus Market size is expected to reach USD 2.41 billion.
Who are the key players in North America School Bus Market?
Blue Bird Corporation, Daimler AG (Thomas Built Buses), Collins Bus Corporation, Lion Electric Company and Navistar, Inc. are the major companies operating in the North America School Bus Market.
What years does this North America School Bus Market cover, and what was the market size in 2023?
In 2023, the North America School Bus Market size was estimated at USD 2.30 billion. The report covers the North America School Bus Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America School Bus Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
School Bus in North America Industry Report
Statistics for the 2024 School Bus in North America market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. School Bus in North America analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
