Buses and Coaches Market Report 2025

The buses and coaches market size has grown strongly in recent years. It will grow from $48.32 billion in 2024 to $51.35 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to emerging markets growth, low-interest rate environment, rapid urbanization, and technological advancements across the market.

The buses and coaches market size is expected to see strong growth in the next few years. It will grow to $64.67 billion in 2029 at a compound annual growth rate (CAGR) of 5.9%. The growth in the forecast period can be attributed to the emphasis on cutting carbon emissions, the rise in demand for mini-buses and coaches, and favorable government initiatives. Major trends in the forecast period include focusing on the electrification of vehicles to improve energy efficiency, adopting driverless technology, adopting predictive maintenance solutions in vehicles to reduce breakdowns, investing in 3d printing technology to enhance the manufacturing process, and investing in hybrid drive systems.

The burgeoning demand for bus travel is projected to be a key driver for the bus and coach market's growth in the foreseeable future. Red Bus Creators reports a robust expansion rate of 30-40% annually within India's bus sector, while their own organization, Redbus, notably demonstrates an impressive 80% year-on-year growth in India. Hence, the escalating need for buses underscores the substantial growth potential within the bus and coach market.

The expansion of urban areas, known as urbanization, is anticipated to be a driving force behind the growth of the buses and coaches market. Urbanization involves the concentration of people in cities, leading to their development and the migration of individuals from rural to urban regions. This shift fosters an environment conducive to the success of buses and coaches, which are integral to a sustainable and integrated public transportation system. Statistics from the United Nations Conference on Trade and Development in January 2023 indicated that urban populations were at 56% in 2021, with a projected rise to 68% by 2050. Hence, the escalating urbanization trend is significantly influencing the expansion of the buses and coaches market.

Major companies in the bus and coach market are increasingly concentrating on creating technologically advanced solutions, such as electromobility platforms, to improve sustainability, lower emissions, and boost operational efficiency in public transportation. An electromobility platform is a comprehensive system that combines electric vehicles (EVs) with supporting technologies, including charging infrastructure, energy management, and software solutions. This platform aims to facilitate the transition to electric transportation by optimizing performance, enhancing user experience, and promoting sustainable mobility solutions. For example, in March 2024, AB Volvo, a Sweden-based financial services company, introduced BZR Electric to improve its electric bus offerings for city, intercity, and commuter operations. This platform features a modular energy storage system that enables customizable battery configurations tailored to various operational needs, enhancing efficiency and passenger capacity. Moreover, it includes advanced active safety systems designed to protect vulnerable road users, such as cyclists and pedestrians, surpassing EU safety regulations with features like a collision warning system that identifies both vehicles and pedestrians.

Major players in the buses and coaches market are intensifying their focus on introducing cutting-edge technologies, specifically emphasizing coaches, to secure a competitive advantage. Coaches represent a category of passenger vehicles tailored for long-distance travel, characterized by a capacity to accommodate a larger number of passengers compared to standard cars. In April 2023, Academy Bus, a US-based transportation firm, unveiled the Mercedes-Benz Tourrider Coach, a robust single-deck vehicle constructed from corrosion-resistant stainless steel. This coach features an advanced infotainment system integrated with multimedia functionalities. Safety remains paramount, incorporating top-tier systems such as Active Brake Assist 5 and Sideguard Assist, ensuring enhanced control for drivers. Passengers experience a comfortable and serene journey courtesy of well-designed, ergonomic seating arrangements.

In June 2024, VDL Groep, a Netherlands-based company known for developing and producing a broad array of industrial products, acquired Van Hool for an undisclosed amount. Through this acquisition, VDL Groep intends to bolster its bus division, safeguard jobs, and improve its market presence while emphasizing sustainability and innovation in transportation. Van Hool is a Belgium-based engineering firm that specializes in the manufacturing of a wide range of buses and coaches.

Major companies operating in the buses and coaches market include Mercedes-Benz Group AG, Volkswagen AG, CNH, INDUSTRIAL N.V. (IVECO subsidiary of CNH Industrial), YUTONG, Volvo, Hyundai Motor Company, Xiamen King Long United Automotive Industry, Ashok Leyland, Zhongtong Bus, ANKAI, Mitsubishi, Fiat Chrysler Automobiles, Scania, Toyota Motor Corporation, BYD Auto, Shaanxi Automobile Group, Beiqi Foton Motor Co., SAIC Motor Commercial Vehicle Co., MAN Truck & Bus SE, Irizar, Solaris, VDL, Gaz Group, NefAZ (KAMAZ affiliate), UAZ, Elegantbus, Cento Bus, Bus Factory, Temsa, Hafilat, Karsan, Otokar, Tata Motors.

North America was the largest region in the buses and coaches market in 2024. Asia-Pacific was the second-largest region in the global buses and coaches market share. The regions covered in the buses and coaches market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the buses and coaches market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Buses and coaches are motor vehicles, with or without a trailer, designed for transporting passengers and their belongings. They are capable of carrying more than nine people, including the driver. Buses are typically pre-scheduled or shared modes of transportation, while coaches operate on routes chosen by passengers or trip planners, often considered private transportation.

The main types in the bus and coach market include diesel buses, hybrid buses, and others. Hybrid electric buses combine a conventional internal combustion engine with an electric propulsion system. Body-built segments can be fully built or customizable, catering to general transit, personal and recreational, tourist, and other applications.

The buses and coaches market research report is one of a series of new reports that provides buses and coaches market statistics, including global market size, regional shares, competitors with a buses and coaches market share, detailed buses and coaches market segments, market trends and opportunities, and any further data you may need to thrive in the bus and coach industry. This buses and coaches market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The buses and coaches market consists of sales of Intercity bus, double-decker bus, minibus and charter bus. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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