![School Bus Market Size School Bus Market Summary](https://s3.mordorintelligence.com/school-bus-market/1736423171061-school-bus-market-Market-Summary.png)
Study Period | 2020 - 2030 |
Market Size (2025) | USD 50.60 Billion |
Market Size (2030) | USD 66.73 Billion |
CAGR (2025 - 2030) | 5.69 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
School Bus Market Analysis
The School Bus Market size is estimated at USD 50.60 billion in 2025, and is expected to reach USD 66.73 billion by 2030, at a CAGR of 5.69% during the forecast period (2025-2030).
The increasing number of school enrollments with the rise in the demand for a large number of schools and adequate infrastructure in the education sector, which includes transportation and other amenities, creates a positive impact on the market.
The transition around electric school buses (ESBs) is growing across the globe as school districts are adapting to transition to this cleaner and healthier technology, which is also funded by the various governments as they are recognizing the benefits of electric vehicles (EVs) and are implementing various fiscal incentives to stimulate their adoption. For instance,
In January 2024, The United States announced nearly USD 1 billion to replace diesel-powered school buses with electric and lower-emitting vehicles.
Moreover, the adoption of fleet management solutions, encompassing real-time tracking, maintenance scheduling, and data analytics, is emerging as a key trend as it allows educational institutions to optimize operations, enhance safety, and reduce overall costs.
The companies operating in the market are focusing on the launch of new integrating various technologies to increase their consumer base. For instance,
In October 2023, GreenPowerMotor Company Inc. unveiled the Mega BEAST GreenPower’sall-electric all-electric Type D school bus which provides a range of up to 300 miles on a single charge via a 387 kWh battery pack.
In addition, with the launch of new models many schools across the globe are upgrading their school bus fleet to achieve net zero emission goals. For example, In May 2024, Zum, the school platform announced that Oakland Unified School District (OUSD) is the first major school district in the U.S. to transition to a 100% electrified school bus system with groundbreaking vehicle-to-grid technology.
Furthermore, North America is estimated to hold a prominent share in the school bus market with Asia Pacific and Europe s also expected to grow rapidly due to the growing demand for safe and secure transportation for school-going children and, rising disposable incomes of parents in markets like China and India.
Thus, the school bus market is expected to continue its growth trajectory in the coming years.
School Bus Market Trends
IC Engine Holds the Highest Share
The market has witnessed strong growth, owing to the technological advancement in internal combustion engines and the use of renewable biodiesel fuels has augmented the market growth.
According to Engine Technology Forum, internal combustion engines power 99.8% of all school buses which includes diesel, gasoline, and propane.
Diesel is the technology of choice powering over 90% of the fleet because it combines fuel safety, energy efficiency, reliability, durability, established fueling and maintenance network, range and operational flexibility, secondary markets, and low acquisition and operating costs.
Considering the stringent regulations by various governments to reduce CO2 emissions and rising environmental concerns, many automakers are focusing on new technologies such as near-zero emission advanced diesel engine technology with the combination of ultra-low sulfur diesel (ULSD) fuel that utilizes particulate filters and selective catalytic reduction systems (SCR) to achieve near-zero levels of nitrogen oxide emissions. For instance,
In March 2024, Cummins announced it will launch its most efficient heavy-duty diesel engine HELM 15-litre which will be compliant with United States EPA and CARB 2027 aligned regulations.
Moreover, with the increasing shift of the fueling of the bus fleet to low-carbon biodiesel fuels, as all diesel-powered school buses can also use low-carbon renewable biodiesel fuels without the need for new buses or any changes to the refueling systems. This approach reduces carbon emissions by 50%-85% depending on feedstocks.
With the above-mentioned development across the country, internal combustion engines contribute a significant share of the market.
![School Bus Market Trends School Bus Market: Total number of electric school buses awarded or delivered in the United States as of 2022, by manufacturers](https://s3.mordorintelligence.com/school-bus-market/1736754367887-school-bus-market-Total-number-of-electric-school-buses-awarded-or-delivered-in-the-United-States-as-of-2022-by-manufacturers.png)
North America Holds the Highest Share
With a well-established and extensive school transportation system, North America boasts many schools and educational institutions that heavily rely on school buses for student transportation. Additionally, the region's population density and geographic factors contribute significantly to the demand for school buses, especially in suburban and rural areas where schools are not easily accessible by foot.
Over the long term, factors such as increasing awareness of environmental sustainability, the adoption of alternative fuel technologies, the modernization of school transportation fleets, and substantial investment in education & school transportation are all factors contributing to the high demand for school buses.
According to the National Center for Educational Statistics (NCES), the United States spends an average of USD 17,013 per public school pupil each year to provide quality education.
Considering the growth in the education sector, the demand for school transportation is also high. According to the World Resource Institute, there are nearly half a million school buses in the United States that transport more than 20 million children to and from school, out of which 90% were considered to be diesel-powered.
To achieve the goal of net zero emissions and rising environmental concerns, school districts, communities, and policymakers across the United States are focusing on increasing the adoption of electric school buses (ESBs).
Furthermore, the initiative taken by the government for the electrification of school buses in the North America resulted in increased demand for electric school buses as in many developed and developing nations, school buses play an integral role in transporting students, saving a considerable amount of money for parents, and reducing traffic on the roads. For example,
In May 2024, Under the United States Environmental Protection Agency’s Clean School Bus Program, The Biden administration allotted nearly USD 900 million of funds to 530 school districts to replace thousands of aging, gas-fueled school buses with cleaner, mainly electric models.
The market is expanding due to developments in bus technologies, such as the incorporation of onboard cameras, GPS tracking systems, and other safety measures. Moreover, the recent advancements in lithium-ion batteries, which have dramatically improved energy density, charging speed, and overall reliability, are positively influencing the school bus market growth in the North America.
Thus, the above-mentioned factors contribute to the growth.
![School Bus Market Trends School Bus Market - Growth Rate (%), By Region, 2024 - 2029](https://s3.mordorintelligence.com/school-bus-market/1736754387493-school-bus-market-School-Bus-Market---Growth-Rate--By-Region-2024---2029.png)
School Bus Industry Overview
The school bus market is consolidated and led by globally and regionally established players. The companies adopt strategies such as new product launches, collaborations, mergers to sustain its market positions. For instance
In July 2023, The Pontiac School District announced to put 40 new electric school buses on the road as part of a federal effort to reduce the number of diesel-powered buses transporting kids to and from school.
Some of the major players in the market include Thomas Built Buses, Yutong Bus Co., Tata Motors Ltd, Ashok Leyland Ltd, and IC Bus.
School Bus Market Leaders
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Tata Motors Ltd.
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Yutong Bus Co. Ltd.
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Ashok Leyland Ltd.
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IC Bus (Navistar International Corporation)
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Thomas Built Buses Inc.
- *Disclaimer: Major Players sorted in no particular order
![School Bus Market Concentration School Bus Market Concentration](https://s3.mordorintelligence.com/school-bus-market/school-bus-market_1667581928620_Market_Concentration-_School_Bus_Market.webp)
School Bus Market News
- May 2024: The Salinas City Elementary School District (SCESD) added ten new electric school buses and ten new electric bus chargers to the District's school bus fleet.
- December 2023: GreenPower Motor Company announced its first orders for the Type A all-electric, purpose-built, zero-emission Nano BEAST school bus for the New York market through its dealer Leonard Bus Sales.
- October 2023: GreenPower, a West Virginia-based electric bus maker, unveiled the Mega BEAST, a ramped-up version of the BEAST (“Battery Electric Automotive School Transportation”), its Type D electric school bus that has a 140-mile range. The new model will be manufactured at GreenPower’s facilities in both California and South Charleston, West Virginia, beginning in 2024.
School Bus Industry Segmentation
The school bus is a type of bus that is used to ferry children to and fro from school or activities related to school. School buses may be owned by the school or leased by bus providers. School buses are built with specific seating arrangements and luggage-carrying shelves that are designed for children.
The school bus market is segmented by propulsion type, capacity design, and geography. By propulsion type, the market is segmented as internal combustion engine (IC), Compressed natural gas (CNG)/liquified natural gas (LNG), and electric and hybrid. By capacity design, the market is segmented as Type A, Type B, Type C, and Type D. By geography, the market is segmented as North America, Europe, Asia-Pacific, and the Rest of the World.
The report offers market size and forecasts for the school bus market in value (USD) and volume (units) for all the above segments.
By Propulsion Type | Internal Combustion Engine (ICE) | ||
Compressed Natural Gas (CNG)/ Liquified Natural Gas (LNG) | |||
Electric and Hybrid | |||
By Capacity Design Type | Type A | ||
Type B | |||
Type C | |||
Type D | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
Rest of North America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Russia | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
India | |||
Japan | |||
South Korea | |||
Rest of Asia-Pacific | |||
Rest of the World | South America | ||
Middle-East and Africa |
School Bus Market Research Faqs
How big is the School Bus Market?
The School Bus Market size is expected to reach USD 50.60 billion in 2025 and grow at a CAGR of 5.69% to reach USD 66.73 billion by 2030.
What is the current School Bus Market size?
In 2025, the School Bus Market size is expected to reach USD 50.60 billion.
Who are the key players in School Bus Market?
Tata Motors Ltd., Yutong Bus Co. Ltd., Ashok Leyland Ltd., IC Bus (Navistar International Corporation) and Thomas Built Buses Inc. are the major companies operating in the School Bus Market.
Which is the fastest growing region in School Bus Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in School Bus Market?
In 2025, the North America accounts for the largest market share in School Bus Market.
What years does this School Bus Market cover, and what was the market size in 2024?
In 2024, the School Bus Market size was estimated at USD 47.72 billion. The report covers the School Bus Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the School Bus Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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School Bus Industry Report
Statistics for the 2025 School Bus market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. School Bus analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.