U.S. Bus Market Size to Reach $11,237.7 Million by 2030

The U.S. bus market is projected to generate $11,237.7 million revenue in 2030, advancing at a CAGR of 4.7% during the forecast period. This can be ascribed to the stringent government regulations to curb environmental emissions and reduce traffic congestion. Moreover, the adoption of new technologies to enhance consumer experience and engine efficiency further accelerates the market growth.

Surging Demand for Electric Buses Fuels the Market Growth

The electric propulsion category is projected to witness the fastest growth, advancing at a CAGR of around 30%, during the forecast period. Subsidies, financial incentives, and tax credits offered by the federal and state governments have had a major positive impact on electric bus sales in the U.S. in recent years. There are a variety of incentives for electric buses, including toll charge and vehicle emission test exemptions. Being high-occupancy vehicles, electric buses qualify for reduced rates or exemptions from toll charges imposed on high-occupancy toll lanes in certain states, including Arizona, California, Colorado, Georgia, and Hawaii. Thus, the aforementioned factors are driving the market growth.

The demand for intra-city buses is expected to grow at the highest growth rate during the forecast period. This is because these buses improve social inclusion and provide access to educational facilities, employment opportunities, and healthcare facilities, including those who have low incomes and do not drive, the older generation, people with disabilities, and people living in remote areas. Moreover, intra-city buses are the most widely used form of public transport in the nation and thus, a vital contributor to the tourism sector.

Geographically, California accounts for the largest revenue in the U.S. bus market. This is because the growing population requires a more efficient transportation infrastructure. It has become a hotspot for high-performance electric bus initiatives. Furthermore, California is leading the way in ZEV uptake in the U.S. with an ambitious 100% ZEV sales target for passenger cars and trucks by 2035 and the investments in EV charging infrastructure in the state, including hydrogen stations. Also, California is one of the top exporters of EVs in the country.

Product Launches, Partnerships, and Collaboration Are Major Strategies Taken by Key Players

To maintain a strong position in the industry, key players in the U.S. bus market are engaged in product launches, partnerships, and collaborations. For instance, in November 2021, Proterra Inc. and Anadolu Isuzu collaborated to use Proterra’s commercial vehicle battery technology to power the new generation of Anadolu Isuzu’s all-electric Citi VOLT public transportation buses. Through this agreement, Anadolu Isuzu will integrate Proterra’s battery technology into its 12 m and 18 m zero-emission Citi VOLT electric bus models.

Similarly, BYD launched a battery-electric Type D school bus with length options of 35, 38, and 40 feet in January 2021. The Type D bus can seat up to 84 and equip with an ADA liftgate. The bus has a range of up to 155 miles on a single charge.

Some of the major players in the U.S. bus market are Proterra Inc., 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., and Navistar International Corporation.