South America Bus Market to Grow with a CAGR of 6.15% through 2030
Rising investments in public transportation, growing
urban population, and increasing government focus on low-emission mass transit
solutions are the factors driving the market in the forecast period 2026–2030.
According to TechSci Research report, “South America
Bus Market – By Country, Competition, Opportunities and Forecast, 2020-2030F”,
The South America Bus Market was valued at USD 2.48 Billion in 2024 and is
expected to reach USD 3.55 Billion by 2030 with a CAGR of 6.15% during the
forecast period.
The South America bus market is undergoing a significant
transformation shaped by economic diversification, evolving commuter behavior,
and increased emphasis on cost optimization across public transport systems.
Population growth, coupled with shifting employment zones, has led to a rising
need for scalable mobility networks that can adapt to complex urban and
peri-urban travel patterns. Governments are placing stronger focus on
multimodal integration, where buses serve as the connective backbone linking metro systems, BRT corridors, and last-mile solutions. Rising fuel prices and inflationary pressure have intensified demand for operationally cost-effective transit solutions, prompting fleet operators to reevaluate lifecycle costs,
maintenance models, and procurement strategies.
Digitalization has emerged as a key enabler in this market,
with route optimization, fleet tracking, and real-time passenger information
systems improving service efficiency and reliability. Growing emphasis on
safety, accessibility, and inclusivity is prompting redesigns in bus
configurations to better serve diverse user groups, including students, elderly
passengers, and rural commuters.
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South America Bus Market Is Segmented by Application,
Length, Seating Capacity, Propulsion, and Country.
The
fastest-growing segment in 2024 across South America's bus market was electric
propulsion, which experienced a sharp rise in adoption as cities prioritized
cleaner, quieter, and more energy-efficient mobility solutions. Battery
electric buses saw the highest demand, supported by their ability to lower fuel
costs, reduce emissions, and align with evolving public sustainability goals.
Urban transport agencies increasingly selected electric models over traditional
internal combustion engine buses due to rising fuel prices, growing
environmental awareness, and favorable total cost of ownership over the vehicle
lifecycle. Fleet operators responded to policy shifts by accelerating
replacement of diesel models with battery-powered alternatives, especially in high-density
transit corridors. Improvements in charging infrastructure, battery
performance, and localized manufacturing capabilities further supported this
growth. Municipalities emphasized long-term benefits such as lower maintenance
needs, better urban air quality, and reduced noise pollution, reinforcing
electric buses as the preferred choice for fleet modernization in 2024.
Chile recorded the most significant growth in electric bus
adoption during the year, driven by a national commitment to fully electrify
public transport. Santiago led deployment efforts with extensive expansion of
its electric bus network, backed by coordinated procurement strategies and
infrastructure development. Policy clarity and strong institutional
coordination enabled rapid execution of tenders, resulting in significant new
fleet orders and large-scale upgrades to transit depots and terminals. The country’s
clear roadmap for decarbonization, combined with urban mobility priorities and
a focus on long-term cost savings, positioned it ahead of other South American
nations. The transition in Chile reflected not just environmental ambition, but
also a systematic approach to transport modernization aligned with national
development objectives.
Major Market Players Operating in South America Bus
Market Are:
- Anhui
Ankai Automobile Co. Ltd
- Ashok
Leyland Limited
- Byd
Auto Industry Company Limited
- Daimler
Truck Holding AG
- King
Long United Automotive Industry Co. Ltd.
- NFI
Group Inc.
- Proterra
INC.
- Tata
Motors Limited
- Volvo
Group
- Zhengzhou
Yutong Bus Co. Ltd
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“The demand for tailored transport solutions has led to the rise of modular bus designs that can be configured based on route requirements, passenger loads, and service types. Operators are increasingly seeking flexible platforms that support customization in terms of seating arrangements, accessibility features, energy systems, and onboard services. Buses are now being designed with modular components that can be adapted post-production to serve school transport, city commuting, or intercity travel needs with minimal downtime. This approach allows manufacturers to optimize production while offering clients diverse configurations for different operating environments. Low-floor designs for easy boarding, wheelchair ramps, and dedicated luggage spaces are being integrated into standard builds, making buses more inclusive and user-friendly. Energy modules such as battery packs or fuel systems are also being made swappable or upgradable, reducing the lifecycle cost of ownership”, said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
“South America Bus Market By Application (Transit Buses, Motor Coaches, School Buses/Others), By Length (6-8m, 8-10m, 10-12m, Above 12m), By Seating Capacity (15-30, 30-40, 40-50, Above 50), By Seating Propulsion (ICE, Electric), 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 South
America Bus Market.
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