School Bus Market Report 2025

The school bus market size has grown strongly in recent years. It will grow from $18.29 billion in 2024 to $19.52 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to increased population, fluctuations in fuel prices, increased awareness about environment, rise in demand for electric school buses, and increased concerns for student safety.

The school bus market size is expected to see strong growth in the next few years. It will grow to $24.93 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to environmental awareness, growing demand for electric school buses, rise in urbanization, growing demand for hybrid school buses, and growing demand for propane school buses. Major trends in the forecast period include innovations in vehicle design, integration of technology in education systems, infrastructure development, integration of advanced technologies, and adoption of electromobility.

The growth of the school bus market is anticipated to be propelled by the increasing number of school enrollments in the future. School enrollment involves arranging attendance at an institution and specific classes, encompassing the current student population in a school or course. The rise in school enrollments is fueled by global literacy initiatives and improved education access, particularly in developing areas. School buses are utilized for safely transporting students to and from school and related activities. For instance, in December 2023, as per the United States Census Bureau, the total school enrollment increased by 1.3 million from 2021 to 2022, reaching 75.2 million enrolled students. In 2022, 81.1% of college-enrolled students attended public universities or colleges, marking a 2.3% point increase from 2020. Thus, the growing school enrollments are contributing to the expansion of the school bus market.

Major players in the school bus market are concentrating on technological advancements, such as type-D school buses, to enhance customer service. A Type D school bus is built using a stripped chassis and is commonly used for transporting students in densely populated and highly trafficked areas, offering improved front service doors and driver visibility. For example, in October 2023, GreenPower Motor Company Inc., a Canada-based electric bus manufacturer and distributor, unveiled the Mega BEAST, an all-electric Type D school bus featuring the longest range and largest battery pack in the market. With a 387 kWh battery pack, the Mega BEAST can travel up to 300 miles on a single charge, making it suitable for longer routes, rural regions, and school districts lacking mid-day recharging facilities.

In February 2023, Transdev Canada Inc., a Canadian multi-modal transportation company, acquired Kunkel Bus Lines Ltd. for an undisclosed sum. This acquisition is intended to strengthen Transdev Canada Inc.'s presence in Ontario by integrating 100 school buses in the Hanover area, thereby improving its capacity to offer customized multi-modal transportation solutions to local communities. Kunkel Bus Lines Ltd., a Canadian company, specializes in providing school bus services.

Major companies operating in the school bus market are Toyota Motor Corporation, Mercedes Benz Group AG, Ford Motor Co., Daimler Truck AG, AB Volvo, Traton SE, Tata Motors Ltd., Mahindra and Mahindra Ltd., Navistar Inc., Ashok Leyland Ltd., Yutong Bus Co. Ltd., Eicher Motors Ltd., Blue Bird Corporation, Thomas Built Buses, SML Isuzu Ltd., The Lion Electric Co., Collins Bus Corporation, IC Bus, GreenPower Motor Co. Inc., Van Con Inc., JCBL Limited, Starcraft Corp., Superior Coach Corp., Endera Motors, Trans Tech Bus Inc.

North America was the largest region in the school bus market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the school bus market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the school bus market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A school bus is a specialized vehicle intended for transporting students to and from school, as well as to school-related events. It is customarily built for this purpose and distinguished by its yellow color, warning lights, and safety features. School buses ensure safe and efficient transportation for students, adhering to federal and state regulations to uphold the highest standards of safety and security.

School buses come in several types, including those powered by diesel fuel, alternative fuels, hybrid-electric systems, and batteries. Diesel fuel is a refined petroleum product specifically for use in engines that operate on compression ignition rather than spark ignition. These buses are classified into types A, B, C, and D based on their capacity and are utilized in various settings such as education, law enforcement, and community services.

The school bus market research report is one of a series of new reports that provides school bus market statistics, including school bus industry global market size, regional shares, competitors with a school bus market share, detailed school bus market segments, market trends, and opportunities, and any further data you may need to thrive in the school bus industry. This school bus 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 school bus market consists of sales of conventional school buses, electric school buses, hybrid school buses, and school bus parts and components. 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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