Press Release

U.S. School Bus Market to Grow with a CAGR of 6.5% during the forecast period

The rising focus on student safety standards, increasing government funding for school transportation modernization, and growing demand for low-emission transportation alternatives are the factors driving the market in the forecast period 2026–2030.

 

According to TechSci Research report, “U.S. School Bus Market - By Region, Competition Forecast & Opportunities, 2020-2030F”, The U.S. School Bus Market was valued at USD 5.6 billion in 2024 and is expected to reach USD 8.3 billion by 2030 with a CAGR of 6.5% during the forecast period. The U.S. school bus market is witnessing notable development, propelled by rising concerns over student safety and the need for secure travel options. Regulations emphasizing the modernization of transportation fleets have encouraged institutions to invest in updated vehicles. Parental awareness about safe commuting and active governmental support through grants and programs are enhancing the adoption of modern school buses across the country. Technological progress is reshaping the industry, with advanced features such as real-time GPS tracking, Wi-Fi capability, and improved security installations becoming standard. Environmental considerations are promoting the uptake of hybrid and electric school buses, aligning with sustainability targets set by educational authorities. Collaboration between tech companies and school transportation providers is fostering innovation, offering buses that cater to both safety and environmental priorities.

Despite these advances, the market faces barriers such as the high costs associated with the adoption of electric buses and the inadequate availability of necessary charging stations. Financial limitations in smaller or rural districts restrict the ability to refresh aging fleets. Integrating state-of-the-art technologies into existing systems without causing operational disruptions remains a persistent challenge for many institutions.

 

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U.S. School Bus Market Is Segmented by Type, Power Train Type, and By Region.

The U.S. school bus market can be segmented by power train type into IC Engine and Hybrid and Electric categories. Internal combustion engines (IC Engine) school buses have traditionally formed the backbone of the market, powered primarily by diesel and gasoline. Diesel engines are known for their durability and suitability for long-distance travel, making them a common choice among school districts with extensive transportation routes. Gasoline-powered buses have seen adoption where short-distance travel is predominant, and emissions regulations are less stringent.

The Hybrid and Electric segment is gaining considerable traction as districts aim to reduce their carbon footprint and operating costs. Hybrid school buses combine conventional engines with electric propulsion systems, allowing for greater fuel efficiency and reduced emissions without completely transitioning away from traditional fuels. Electric buses offer a zero-emission alternative, appealing to school systems focusing on sustainability and adhering to stricter environmental regulations. Their adoption is also encouraged by various state and federal incentives aimed at promoting green transportation initiatives in schools. Both segments are adapting to the inclusion of advanced features like telematics, driver assistance systems, and enhanced student monitoring tools to meet the evolving expectations of safety and operational efficiency. Battery technology advancements and reductions in charging times are also supporting the growth of electric buses in the market. Meanwhile, traditional IC engine buses are undergoing upgrades to improve fuel economy and lower emissions, ensuring they remain viable options in the evolving landscape of school transportation. The choice between IC Engine and Hybrid and Electric models is largely influenced by district budgets, route logistics, and regional policy frameworks.

In 2024, the South region is anticipated to lead the growth within the U.S. school bus market. This growth is supported by expanding student populations, especially in states with high enrollment rates such as Texas and Florida. The focus on replacing aging fleets and the allocation of state-level grants for greener transportation solutions are fueling new bus procurements across southern districts. Investment in electric and hybrid bus infrastructure is also more pronounced in the South compared to some other regions. Several large school districts have committed to transitioning their entire fleets to zero-emission buses over the next few years. Alongside environmental initiatives, rising urbanization and school expansions in suburban and rural areas are further driving the demand for newer, safer, and technologically advanced school buses across the southern United States.


Major Market Players Operating in U.S. School Bus Market Are:

  • Blue Bird Corporation
  • Thomas Built Buses, Inc.
  • IC Bus, LLC (Navistar International Corporation)
  • Collins Bus Corporation
  • GreenPower Motor Company, Inc.
  • BYD Company Limited
  • The Lion Electric Company
  • Ford Motor Company
  • Cummins Inc.
  • Daimler AG (Mercedes-Benz)


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The increasing demand for advanced and sustainable school transportation, particularly for fuel-efficient and high-performance school buses, is driving the growth of the U.S. School Bus Market. Manufacturers are focusing on developing buses that enhance fuel efficiency, improve operational performance, and reduce environmental impact, leading to a growing demand for electric and hybrid-powered solutions. Stricter emission regulations and initiatives promoting clean energy in transportation are further accelerating the shift toward electric school buses. As the industry moves toward more eco-friendly and energy-efficient vehicles, the adoption of electric and hydrogen-powered school buses is expected to rise. This transition is anticipated to play a crucial role in the market’s expansion in the coming years", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

U.S. School Bus Market By Power Train Type (IC Engine and Hybrid and Electric), By Type (Type A, Type B, Type C, and Type D), and By Region, Competition Forecast & Opportunities, 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 U.S. School Bus Market.

 

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U.S. School Bus Market By Power Train Type (IC Engine and Hybrid and Electric), By Type (Type A, Type B, Type C, and Type D), and By Region, Competition Forecast & Opportunities, 2020-2030F

Automotive | Sep, 2025

The U.S. School Bus Market is driven by advancements in electric vehicle technology, rising government initiatives for sustainable transportation, and growing concerns about student safety. These are the factors driving the market in the forecast period 2026-2030.

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