Press Release

North America Bus Market to Grow with a CAGR of 11.57% through 2030

Government initiatives for sustainable mobility, growing urbanization with rising transit ridership, and advancements in electric bus technology are the factors driving the market in the forecast period 2026–2030.


According to TechSci Research report, “North America Bus Market – By Country, Competition, Opportunities and Forecast, 2020-2030F”, The North America Bus Market was valued at USD 7.03 billion in 2024 and is expected to reach USD 13.57 billion by 2030 with a CAGR of 11.57% during the forecast period.

Growing city populations are pushing transit systems to expand capacity, fueling a surge in bus demand. Data from the U.S. Department of Transportation indicates a 7.5% uptick in transit passengers in 2024, underscoring buses as critical urban mobility tools. The EPA reports transportation accounts for nearly 29% of national emissions, creating momentum for greener fleets. Improved battery performance and new charging solutions foster electric bus adoption, while digital tools are transforming how fleets operate and enhance passenger service.

Federal and state support is pivotal, with the Federal Transit Administration providing over USD 1.6 billion in grants during 2024 for cleaner, modern buses. Stronger safety regulations and public environmental consciousness spur upgrades, particularly in school buses. Transit providers are investing in systems like telematics, driven by the American Public Transportation Association’s findings of a 20% growth in digital fleet technologies from 2023 to 2024. These changes aim to increase operational efficiency and meet sustainability goals.

Despite the momentum, steep acquisition costs for electric buses challenge widespread uptake, though lifecycle savings exist. Infrastructure for charging remains incomplete, delaying full-scale transitions. Meeting emissions standards often demands costly solutions, affecting smaller players. Fuel price swings and shortages of drivers, noted by the Bureau of Labor Statistics with a 6.3% increase in driver deficits in 2024, also hinder market growth. Market fragmentation and evolving passenger demands require continuous innovation and significant financial outlay from operators striving to stay competitive.

 

Browse over North America Bus Market data Figures spread through XX Pages and an in-depth TOC on " North America Bus Market"

 

North America Bus Market is Segmented By Application, Length, Seating, Fuel and By Country.

The North America bus market includes diverse propulsion technologies, reflecting shifts toward sustainability and cost optimization. Diesel buses maintain a presence due to established fueling infrastructure, lower upfront costs, and proven reliability for high-mileage operations. However, concerns regarding emissions and evolving regulatory mandates continue to encourage operators to explore alternatives.

Electric buses represent a transformative segment as transit agencies and school districts commit to reducing carbon footprints. Battery technology improvements and expanding charging networks are enabling longer operational ranges and more cost-effective deployments. Despite higher purchase costs, electric buses appeal for their lower lifetime maintenance expenses and compliance with stringent emission standards.

Other fuel options, including compressed natural gas, hydrogen fuel cells, and hybrid drivetrains, contribute to the market’s energy diversification. CNG buses attract interest due to lower greenhouse gas emissions compared to diesel, offering a transitional path toward sustainability while infrastructure expands. Hydrogen fuel cells gain traction for longer routes requiring greater range and faster refueling than battery-electric alternatives. Hybrid models blend conventional and electric technologies, providing efficiency benefits while easing the transition toward full electrification. Diverse fuel strategies reflect operators’ priorities balancing environmental objectives, operational requirements, and financial constraints.

Mexico’s bus market reflects accelerated transformation driven by intercity travel demand, urban transit expansion, and evolving sustainability goals. Bus transport remains essential for both daily commuting and long-distance travel, serving millions without access to personal vehicles. Growing pressure to modernize public transport fleets aligns with national climate commitments and the desire to reduce urban congestion. Transit authorities focus on fleet renewal initiatives targeting low-emission vehicles, particularly in high-density corridors and metropolitan areas.

The government supports public-private partnerships to enhance mobility infrastructure, with policy frameworks encouraging adoption of electric and alternative-fuel buses. Manufacturers respond with localized solutions tailored to the country’s operational needs and charging capabilities. New operators entering the market with digital booking platforms and value-added services cater to changing consumer expectations. Rising tourism activity and cross-border connectivity further influence demand for modern, fuel-efficient coaches offering comfort, safety, and lower emissions.


Major Market Players Operating in North America Bus Market Are:

  • Mercedes-Benz AG (Daimler AG)
  • IVECO S.p.A.
  • MAN Truck & Bus SE
  • Scania AB
  • AB Volvo
  • BYD CO. Ltd.
  • Lion Electric Company
  • NFI Group Inc.
  • Proterra Inc.
  • Gilling LLC


Download Free Sample Report

Customers can also request for 10% free customization on this report.


“The North America bus market is undergoing rapid change with growing emphasis on electrification, safety, and passenger comfort. Regulatory initiatives, rising urbanization, and public funding for clean transportation drive fleet upgrades across transit, school, and coach segments. Technological innovation, from smart telematics to lightweight materials, is reshaping operational efficiency and sustainability outcomes. Electric and alternative fuel buses gain traction as infrastructure and policy support expand. Market challenges include infrastructure limitations, high upfront costs, and skilled labor shortages”, said Mr. Karan Chechi, Research Director of TechSci Research, a research based global management consulting firm.

North America Bus Market By Application (Transit Buses, Motor Coaches & School Buses, Others), By Length (6-8m, 8-10m, 10-12m and Above 12m), By Seating (15-30, 30-40, 40-50, Above 50), By Fuel (Diesel, Electric, Others), By Country, Competition, Opportunities and Forecast, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the North America Bus Market.

 

Contact Us-

TechSci Research LLC                                                                                              

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: [email protected]

Website: www.techsciresearch.com

Relevant Reports

North America Bus Market By Application (Transit Buses, Motor Coaches & School Buses, Others), By Length (6-8m, 8-10m, 10-12m and Above 12m), By Seating (15-30, 30-40, 40-50, Above 50), By Fuel (Diesel, Electric, Others), By Country, Competition, Opportunities & Forecast, 2020-2030F

Automotive | Aug, 2025

Government initiatives for sustainable mobility, growing urbanization with rising transit ridership, and advancements in electric bus technology are the factors driving the market in the forecast period 2026–2030.

Relevant News