U.S. Bus Market Report: By Vehicle Type (Inter-City Buses, Intra-City Buses, School Buses), Body Type (Standard, Customizable), Ownership (Individual, Fleet, Government), Propulsion (Diesel, Gasoline, CNG, Electric, Fuel Cell), Length (Below 6 m, 6–8 m, 8.1–10 m, 10.1–12 m, Above 12 m), Seating Capacity (Less than 30 Seats, 30–50 Seats, More than 50 Seats) – Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The U.S. bus market size stood at $7,453.4 million in 2021. This number is expected to increase to $11,237.7 million by 2030, advancing at a CAGR of 4.7% during 2021–2030. This can be ascribed to the rapid urbanization and growing population, coupled with the increasing government spending on the upgradation of public transport vehicles. Moreover, the availability of local, state, and federal fundings and the presence of a large number of school buses fuel the market growth.

School Buses Contribute Largest Revenue to the Market

The school buses category held the largest revenue share, around 55%, in the market in 2021, and it is expected to continue witnessing the same trend during the forecast period as well. This is because these buses are the largest form of mass transportation in the country. Nearly 480,000 school buses were on the roads in 2021 in the U.S., outnumbering transit buses roughly 7 to 1. Furthermore, the surging adoption of electric buses for school purposes enhances the market in this category in the U.S.

Advantages Associated with Public Transit

Public transportation has the potential to improve traffic safety, air quality, active transportation, and accessibility, as well as personal health benefits. Public transportation uses less fuel and produces lower levels of volatile organic compounds, carbon monoxide, and carbon dioxide per passenger mile relative to private vehicles. Along with the environmental benefits, it has substantially lower crash rates and lower crash severity than automotive travel. Commuting by public transit is 10 times safer per mile than commuting by automobile. Moreover, people can minimize their chance of being in an accident by more than 90% simply by taking public transport as opposed to traveling by car. These aforementioned factors help in boosting the U.S. bus market growth.

Standard Buses Are Widely Used to Commute

Standard buses accounted for a larger revenue share in 2021, and the category is also projected to dominate the market during the forecast period, advancing at a higher growth rate. This is because, in public transportation and schools, standard buses are used in a huge number. Also, customizable buses are not permitted in schools, which gives a boost to the demand for standard buses in the country.

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Government Buses Hold Maximum Revenue in the Market

The government category is expected to generate the largest revenue, around $9.0 billion, by 2030. The increase in government funding for transportation and the active involvement of the government to deploy electric buses are some of the major factors making government ownership stronger in the country. For example, on June 25, 2021, the FTA, an agency within the U.S. DOT, announced a $182.9 million grant under the Low- or No-Emission Grant Program. The funding will offer financial assistance for the purchase or leasing of low-emission vehicles or ZEVs that incorporate advanced technologies in the form of equipment or features. This funding trend in the field of electric buses is driving the expansion of the U.S. bus market revenue.

Electric Category To Witness the Fastest Growth

The electric propulsion category is projected to grow at the highest CAGR, of around 30%, during the forecast period, in terms of revenue. This is because the penetration of electric buses in the U.S. was around 1.6% of the country’s total bus sales in 2021, and the share of electric buses in public fleets is consistently increasing. Further, many public transport agencies have signed contractual orders with electric bus manufacturers for the procurement of electric buses.

8.1–10 m Length Buses Contribute Largest Revenue

8.1–10 m bus is expected to remain the largest category in the market during 2021–2030. This type of bus offers better milage and seating comfort than other types of buses. In addition, electric buses in this length make more sense for environmental protection than comparatively smaller buses.

Demand for Buses with a Capacity of 30–50 Seats To Record Fastest Growth

The buses with a seating capacity of 30–50 seats held the largest revenue share in the market, and it is projected to record the highest CAGR, of around 5.0%, in the coming years. This is because these buses can carry more passengers, burn less fuel, and are economically efficient.

California Is the Largest and Fastest-Growing Market in the U.S.

The Californian bus market accounted for the largest revenue share, of around 12%, in 2021, in the U.S. This is because a huge population demands efficient transportation systems. In addition, California has become a hub of new electric bus programs. The California Air Resources Board (CARB), a subsidiary of the California EPA, aids the implementation of state-wide clean air standards by funding innovative emissions reduction projects, such as CARBS’ Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP).

Strategic Measures Taken by Key Players

Players in the U.S. bus market have been engaged in collaborations, partnerships, geographical expansions, product launches, and contract wins to gain a competitive edge. For instance:

• In January 2022, GILLIG LLC and Robotic Research. RR.AI, a developer of autonomous mobility solutions, partnered to develop advanced driver assistance systems and Society of Automotive Engineers level 4 autonomous vehicle technology for transit buses in North America. The partnership helps combine RR.AI’s vehicle automation experience and GILLIG’s transit operation expertise.
• In September 2021, AB Volvo (Volvo Buses) launched the new Volvo BZL Electric chassis to expand its electromobility offering worldwide. With this launch, Volvo Buses provides a platform for sustainable and efficient public transport in cities around the world.

Key Players in the Market Are:

• BYD Company Limited
• NFI Group Inc.
• GreenPower Motor Company Inc.
• GILLIG LLC
• Blue Bird Corporation
• AB Volvo
• The Lion Electric Company
• Daimler Truck AG
• REV Group Inc.
• Navistar International Corporation

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Vehicle Type

• Inter-City Buses
• Intra-City Buses
• School Buses

Based on Body Type

• Standard
• Customizable

Based on by Ownership

• Individual
• Fleet
• Government

Based on Propulsion

• Diesel
• Gasoline
• CNG
• Electric
• Fuel Cell

Based on Length

• Below 6 m
• 6–8 m
• 8.1–10 m
• 10.1–12 m
• Above 12 m

Based on Seating Capacity

• Less than 30 Seats
• 30–50 Seats
• More than 50 Seats

Geographical Analysis

• California
• New York
• Texas
• Florida
• Pennsylvania
• Ohio
• Georgia
• Virginia
• Illinois
• North Carolina
• Tennessee
• Louisiana
• Missouri
• New Jersey
• Washington