Semi-Autonomous and Autonomous Bus Market Report 2026

The semi-autonomous and autonomous bus market size has grown rapidly in recent years. It will grow from $1.14 billion in 2025 to $1.33 billion in 2026 at a compound annual growth rate (CAGR) of 16.4%. The growth in the historic period can be attributed to advancements in driver assistance systems, urban public transport modernization, government-led smart mobility initiatives, availability of sensor technologies, early adoption of electric buses.

The semi-autonomous and autonomous bus market size is expected to see rapid growth in the next few years. It will grow to $2.51 billion in 2030 at a compound annual growth rate (CAGR) of 17.2%. The growth in the forecast period can be attributed to increasing investments in fully autonomous transit systems, expansion of connected urban infrastructure, rising demand for low-emission public transport, growing regulatory support for autonomous vehicles, increasing integration of ai-driven traffic management. Major trends in the forecast period include rising deployment of autonomous public transit pilots, growing integration of advanced sensor suites, expansion of electric autonomous bus fleets, increasing focus on passenger safety automation, enhanced connectivity with smart city infrastructure.

The rising demand for 5G technology to enable vehicle connectivity is expected to drive the growth of the semi-autonomous and autonomous bus market in the coming years. 5G technology for vehicle connectivity involves the application of fifth-generation cellular networks to support high-speed, low-latency communication between vehicles (V2V) and between vehicles and infrastructure (V2X). This technology enables direct vehicle-to-vehicle communication, allowing semi-autonomous and autonomous buses to enhance road safety by sharing real-time information on potential hazards and coordinating movements to reduce the risk of accidents. For example, in August 2023, according to the 5G Automotive Association (5GAA), a Germany-based cross-industry organization focused on connected and autonomous vehicles, more than 45 million 5G-connected passenger vehicles are expected to be shipped globally each year by 2025. Consequently, the growing adoption of 5G technology for vehicle connectivity is supporting the expansion of the semi-autonomous and autonomous bus market.

Key companies operating in the semi-autonomous and autonomous bus market are emphasizing strategic collaborations to deliver reliable solutions to customers. A strategic collaboration refers to a partnership between two or more independent organizations working together to achieve shared, long-term objectives. For instance, in May 2023, Mobileye Global Inc., an Israel-based developer of autonomous driving technologies and advanced driver-assistance systems, partnered with MAN Truck & Bus SE, a Germany-based commercial vehicle manufacturer, to introduce autonomous city buses. This collaboration focuses on integrating Mobileye’s Drive technology into MAN’s city buses, enabling automated public transportation. Mobileye’s expertise in autonomous driving systems is combined with MAN’s experience in bus manufacturing and infrastructure to develop dependable and efficient autonomous solutions.

In December 2024, Foresight Autonomous Holdings Ltd., an Israel-based provider of advanced 3D perception solutions for autonomous vehicles, entered into a commercial collaboration with Bumhan Motors Ltd. to advance autonomous electric bus technology. Through this partnership, Foresight aims to integrate its advanced 3D perception systems into Bumhan’s electric buses, supporting semi-autonomous and fully autonomous driving capabilities while enhancing safety, vision accuracy, and operational efficiency. Bumhan Motors Ltd. is a South Korea-based company specializing in the manufacture of electric buses and commercial vehicles, contributing vehicle platforms, production expertise, and access to the regional transportation market.

Major companies operating in the semi-autonomous and autonomous bus market report include AB Volvo, Daimler Truck, BYD Company Limited, Yutong Bus Co. Ltd., Proterra Inc., Navya SAS, EasyMile, Alexander Dennis Limited, MAN Truck & Bus SE, Scania AB, IVECO Group, Solaris Bus & Coach, VDL Bus & Coach, Blue Bird Corporation, Gillig LLC, ZF Friedrichshafen AG, Robert Bosch GmbH, Continental AG, Denso Corporation, Aptiv PLC, NVIDIA Corporation, Qualcomm Inc., NXP Semiconductors, Hitachi Astemo, Alstom SA.

North America was the largest region in the semi-autonomous and autonomous bus market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the semi-autonomous and autonomous bus market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the semi-autonomous and autonomous bus market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The semi-autonomous and autonomous bus market consists of revenues earned by entities by providing services such as infrastructure support, safety and security systems, maintenance and diagnostic systems, and passenger information systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The semi-autonomous and autonomous bus market also includes sales of testing and validation equipment, sensors and perception systems, and electric and hybrid powertrains. 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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