Public Bus Services Market Report 2026

The public bus services market size has grown strongly in recent years. It will grow from $254.02 billion in 2025 to $272.92 billion in 2026 at a compound annual growth rate (CAGR) of 7.4%. The growth in the historic period can be attributed to expansion of urban population density, growth of government-funded public transport systems, increasing demand for affordable urban mobility, development of dedicated bus corridors, availability of large-scale bus manufacturing.

The public bus services market size is expected to see strong growth in the next few years. It will grow to $368.74 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to increasing investments in zero-emission public transport, rising adoption of intelligent transport systems, expansion of integrated urban mobility planning, growing focus on reducing traffic congestion, increasing replacement of aging bus fleets. Major trends in the forecast period include increasing deployment of electric and hybrid buses, expansion of smart ticketing and fare systems, growing focus on fleet optimization and scheduling, rising adoption of low-floor and accessible bus designs, enhanced integration of real-time passenger information systems.

Government-led initiatives to promote public transportation are supporting the growth of the public bus services market. Governments are increasingly encouraging the use of public transport to reduce environmental impact, improve road safety, and ease traffic congestion. Expanded use of public transportation benefits both citizens and governments by offering an affordable and safe travel option while generating revenue and improving urban mobility. For example, in September 2024, according to Housing, Infrastructure and Communities Canada, a Canada-based federal government department responsible for public infrastructure and transit funding, federal, provincial, and municipal governments committed more than US $83 million to enhance public transit systems in Eastern Ontario communities. This funding included the procurement of new battery-electric buses and upgrades to bus shelters and terminals. Therefore, government initiatives aimed at strengthening public transportation are driving the growth of the public bus services market.

Companies operating in the public bus services market are increasingly focusing on innovative route-specific services to reduce congestion and improve accessibility, including dedicated services for high-demand destinations such as ski resorts. Ski destinations are popular locations for winter sports that often experience heavy seasonal traffic. For instance, in November 2023, the Utah Transit Authority, a US-based multimodal public transportation agency, launched its ski bus service for the 2023-24 season to help reduce traffic congestion on routes leading to Utah’s ski areas. The service operates buses every 30 minutes, improving frequency compared to the previous season. Despite workforce challenges, the agency strengthened recruitment and retention efforts to ensure reliable service delivery, helping ease commuter frustration during peak travel periods.

In March 2023, Transdev Group, a France-based provider of mobility and public transportation services, acquired First Transit for an undisclosed amount. Through this acquisition, Transdev aimed to expand its presence in the North American public transit market, strengthen its contract-based operations, and enhance its capability to deliver large-scale bus, paratransit, and on-demand mobility services for public authorities. First Transit is a US-based public transit operations company specializing in the management of fixed-route bus services, paratransit systems, and other mobility solutions for municipal agencies, airports, universities, and government organizations across the United States and Canada.

Major companies operating in the public bus services market are BC Transit Corporation, Transport International Holdings Limited, The Brussels Intercommunal Transport Company, Transdev Group, The Berliner Verkehrsbetriebe (BVG), Chicago Transit Authority, MTR Corporation Limited, Transport for London, Eurobusways Ltd., PostBus Switzerland Ltd., Zhengzhou Yutong Bus Co. Ltd., AB Volvo Ltd., Scania AB, Tata Motors Limited, SML Isuzu Limited, Hino Motors Ltd., MAN Truck & Bus SE, Marcopolo S.A., OurBus Inc., Andhra Pradesh State Road Transport Corporation, ComfortDelGro Corporation Limited, FirstGroup plc, National Express Group plc, Stagecoach Group plc, Nobina AB, Arriva plc, Durham School Services L.P., Keolis Transit America Inc., Kowloon Motor Bus Company Limited, MV Transportation Inc., Petermann LLC, Régie Autonome des Transports Parisiens Co., SBS Transit Ltd., SMRT Corporation Ltd., Stock Transportation Ltd., Student Transportation of America Inc., The Go-Ahead Group plc, Tower Transit Group Limited.

Asia-Pacific was the largest region in the public bus services market in 2025. The regions covered in the public bus services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the public bus services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The public bus services market includes revenues earned by entities by providing conventional bus, intercity bus, and rapid transit (BRT) bus services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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