Report Description

Forecast Period


Market Size (2022)

159.46 Thousand Units

CAGR (2023-2028)


Fastest Growing Segment

8m - 10m

Largest Market

United States

Market Overview

North America Bus Market has valued 159.46 Thousand Units in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.07% through 2028. The market for buses in North America is projected to grow over the next years because of the region population growth and escalating demand for zero emission transportation. Governments and authorities all around the world have imposed unprecedented levels of transportation and mobility challenges as a consequence of the COVID-19 pandemic. Furthermore, social distance seriously affects mobility preferences also to minimize the danger of illness many people shifted to a personal transportation option. Additionally, individuals who had a private vehicle were using it for daily commuting while those who had previously relied on public transportation were switching to another option such ad bicycling or riding a bike. In many North American cities countries walking automobiles for personal use and bike riding gained the greatest ground in 2020 while bus usage got decreased. This led to a lack of demand for the bus market in North America.

Key Market Drivers

Urbanization and Population Growth:

The increasing urbanization and population growth in North America have created a higher demand for efficient and sustainable public transportation solutions. As cities become more densely populated, traffic congestion and pollution escalate. This has led to a greater need for reliable and accessible mass transit options. Buses, being a flexible mode of transport that can serve both densely populated urban areas and suburban communities, play a pivotal role in addressing these challenges. The intricate network of bus routes can effectively connect various neighborhoods, offering a viable alternative to private vehicles and reducing traffic congestion. This driver is further fueled by the convenience and affordability that buses provide, making them an attractive option for diverse segments of the population, including students, professionals, and tourists.

Environmental Awareness and Sustainability Initiatives:

The growing concerns over climate change, air quality, and carbon emissions have driven a push towards more sustainable transportation solutions. This emphasis on environmental consciousness has spurred the adoption of cleaner bus technologies, including electric and hybrid buses. Governments and transit authorities in North America are incentivizing the transition to zero-emission buses through grants, subsidies, and regulations that promote eco-friendly options. This driver aligns with the broader global movement towards sustainability. Electric and hybrid buses reduce greenhouse gas emissions and lower air pollutants, contributing to improved urban air quality and a reduction in the transportation sector's carbon footprint. As cities strive to meet emission reduction targets, electric buses have emerged as a significant market driver.

Investments in Infrastructure and Modernization:

The recognition of the importance of robust public transportation networks has led to significant investments in infrastructure and modernization. Governments and local authorities are allocating resources to expand bus fleets, enhance bus stops and terminals, and establish dedicated bus lanes. The implementation of intelligent transportation systems, such as real-time tracking and fare payment systems, further boosts the appeal of bus travel. Infrastructure improvements directly impact the rider experience by reducing travel times and enhancing reliability. As cities develop efficient and user-friendly transit systems, buses become an attractive choice for daily commuters, offering a convenient and time-saving mode of transportation compared to dealing with traffic congestion and parking challenges.

Fuel Costs and Operational Efficiency

The volatility of fuel prices and the operational costs associated with conventional fossil fuel-powered buses drive the demand for more cost-effective alternatives. Electric and hybrid buses offer not only reduced fuel consumption but also lower maintenance requirements. As fuel prices fluctuate, the appeal of electric and hybrid buses grows stronger. The cost savings associated with electric and hybrid buses make them an appealing option for transit agencies looking to optimize operational expenses. Electric buses, in particular, benefit from lower fueling costs and reduced maintenance due to fewer moving parts compared to internal combustion engine buses. These savings contribute to the overall economic viability of the transit system.


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Key Market Challenges

Aging Infrastructure and Funding Shortfalls

One of the major challenges faced by the North American bus market is the aging and inadequate infrastructure. Many cities have outdated bus terminals, shelters, and depots that hinder efficient operations and passenger experience. However, modernizing this infrastructure requires substantial investments, and transit agencies often struggle to secure sufficient funding. The challenge lies in finding the necessary resources to upgrade facilities, create dedicated bus lanes, and implement intelligent transportation systems that enhance the overall efficiency and attractiveness of bus services.

Technological Integration and Expertise

The integration of advanced technologies poses a challenge for the North American bus market. Incorporating features like real-time passenger information, contactless payment systems, and electric or hybrid propulsion requires technological expertise and investment. Transit agencies must navigate the complexities of selecting, implementing, and maintaining these technologies, often requiring partnerships with technology providers. Ensuring seamless integration, reliability, and the necessary skill set among staff members to operate and maintain these systems are ongoing challenges.

Regulatory and Permitting Hurdles

Operating a bus service in North America involves navigating a complex web of regulations, permits, and approvals. Transit agencies often require federal, state, and local permits, which can be time-consuming and subject to frequent changes. Additionally, regulations related to emissions standards, safety certifications, and accessibility requirements can impact fleet purchasing decisions and operational practices. Navigating this regulatory landscape while adhering to evolving standards adds complexity and uncertainty to the market.

Budget Constraints and Funding Allocation

Many transit agencies face budget constraints that limit their ability to invest in new bus technologies, fleet expansions, and infrastructure improvements. While there is a growing demand for sustainable and technologically advanced buses, securing funding for these initiatives can be challenging. Balancing the need to invest in new buses and technologies with other essential operational expenses requires careful budget allocation and strategic planning.

Charging Infrastructure for Electric Buses

While electric buses offer significant environmental benefits, the lack of widespread charging infrastructure presents a substantial challenge. Transit agencies transitioning to electric buses must invest in charging stations, which can be expensive and require coordination with utility companies. Ensuring sufficient charging infrastructure to support the operational needs of electric buses while minimizing downtime is a critical challenge, especially as the electrification of bus fleets accelerates.

Workforce Development and Training

Operating and maintaining advanced bus technologies requires a skilled workforce. Transit agencies need to invest in training programs to ensure that drivers, mechanics, and support staff are proficient in handling electric and hybrid buses, as well as the associated technologies. Developing a skilled workforce capable of adapting to evolving bus technologies and addressing maintenance challenges is an ongoing concern for the industry.

Key Market Trends

Electrification and Sustainable Mobility

A significant trend in the North American bus market is the increasing focus on electrification and sustainable mobility. Transit agencies are progressively transitioning from traditional diesel-powered buses to electric and hybrid models. This shift is driven by environmental concerns, emissions regulations, and the desire to reduce the carbon footprint of public transportation. As battery technology advances and charging infrastructure improves, electric buses are becoming more viable options, enabling cities to achieve their sustainability goals while providing cleaner and quieter transit solutions.

Smart and Connected Buses

The integration of technology is transforming buses into smart and connected vehicles. Real-time passenger information systems, Wi-Fi connectivity, and contactless payment options are becoming standard features. This trend enhances the passenger experience by providing convenience, entertainment, and improved communication. Additionally, connected buses offer valuable data insights for transit agencies, enabling better route optimization, maintenance scheduling, and performance monitoring.

Mobility-as-a-Service (MaaS) Integration

The emergence of Mobility-as-a-Service (MaaS) platforms is influencing the bus market by offering integrated transportation solutions. MaaS platforms provide a seamless experience for passengers to plan and pay for multi-modal journeys that may include buses, trains, rideshares, and more. Transit agencies are collaborating with MaaS providers to enhance the accessibility and convenience of their services, attracting new riders and increasing overall transit utilization.

Focus on Safety and Accessibility

Safety and accessibility remain significant priorities in the North American bus market. Advanced driver assistance systems (ADAS) are being adopted to improve road safety by reducing accidents caused by driver error. Additionally, buses are being designed and equipped to ensure accessibility for all passengers, including those with mobility challenges. Features like low floors, ramps, and priority seating are becoming standard, enhancing the inclusivity of public transit services.

Data-Driven Decision-Making

Transit agencies are leveraging data analytics to make informed decisions about route planning, service optimization, and resource allocation. By analyzing ridership patterns, travel behavior, and operational performance, agencies can tailor their services to better meet the needs of passengers. Data-driven insights enable proactive adjustments to routes and schedules, resulting in more efficient and reliable bus services.

Partnerships and Public-Private Collaborations

Collaborations between public transit agencies and private sector entities are becoming more common. Partnerships with technology companies, ride-hailing services, and MaaS providers offer opportunities to enhance service offerings, extend reach, and provide integrated transportation solutions. These collaborations foster innovation and enable transit agencies to provide a broader range of mobility options to passengers.

Flexible and On-Demand Services

On-demand and flexible transit services are gaining traction in response to changing mobility preferences. Microtransit, shuttle services, and dynamic route adjustments cater to specific demand patterns and provide personalized transportation solutions. These services bridge the gap between traditional fixed-route buses and rideshare options, offering convenience and flexibility to passengers.

Segmental Insights

Bus Type Analysis

In 2022, the diesel sector held the predominant market share, surpassing 73%. This can be attributed to the relatively lower cost of diesel compared to alternative vehicle fuels. Consequently, diesel-powered buses are widely favored due to their reduced operational expenses. Furthermore, diesel engines are known for their durability and safety attributes. This is evidenced by their dominant use in powering 95% of all school buses in North America. Among these, a remarkable 58% of consumers opt for the cleanest, nearly emission-free diesel engine technology.

Although initiatives are encouraging schools to adopt blends of high-quality biodiesel and renewable fuel, along with various schemes aimed at promoting bus electrification, the substantial initial costs and investments associated with electric buses have led local agencies to persist in their utilization of diesel buses.

The electric and hybrid segment constituted a significant portion of the market in 2022 and is positioned for rapid expansion during the forecast period. This growth can be attributed to the ongoing electrification of public fleets and the enthusiastic embrace of hybrid buses by public fleet operators in the United States. To catalyze the transition to electric buses, a multitude of incentives, subsidies, and rebates are made available. A pertinent example is the City of Jonesboro in Arkansas, which secured funding amounting to USD 878,584 to acquire hybrid buses. These buses are intended to replace older diesel counterparts, thereby contributing to enhanced air quality within the city.

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Regional Insights

In 2022, the United States held the dominant share of the market. This growth can be attributed to various factors, including governmental initiatives in both Canada and the United States aimed at transitioning to electric-powered public transit bus fleets. Notably, substantial investments have been directed towards developing the necessary charging infrastructure for buses, further bolstering this growth trajectory.

Additionally, the expansion of electric bus fleets by private transit operators and proactive investments from the school and federal government to electrify school bus fleets within the U.S. have played pivotal roles in driving this upward trend. As we look ahead, advancements in technology, particularly in diesel engines, electric motors, and hydrogen fuel cell technology, are anticipated to contribute significantly to the continued expansion of the market.

Canada, on the other hand, is poised to showcase the swiftest Compound Annual Growth Rate (CAGR) throughout the forecast period. The country is actively embarking on initiatives aimed at deploying electric buses across its regions. An illustrative instance is the announcement made in January 2023 by the mayor of Ottawa regarding a substantial USD 350 million federal funding allocation. This funding is earmarked for the acquisition of 350 electric buses and the establishment of a robust charging infrastructure to support the burgeoning bus fleet in Ottawa.

Moreover, Canada is witnessing a noteworthy trend wherein private transit entities are collaborating with major domestic bus manufacturers to electrify their vehicle fleets. This strategic partnership dynamic is further propelling the advancement of the market in the region.

Recent Developments

  • Flexcavo, a construction technology firm with headquarters in Berlin, raises USD 8 million in funding in February 2022 for its fleet of Bus. Additionally, the initial use of the projected money will be to purchase a recently built rental park in Maisach, Munich. Additionally, manufacturers JCB and Wacker Neuson have already planned around 150 new pieces of construction machinery and equipment for a 4,500 square meter site.
  • Daimler Trucks & Buses aim to offer only new vehicles that are CO2- neutral in driving operation (tank-to-wheel) in the triad markets of Europe, Japan and North America by 2039.
  • As of March 2020, IVECO has an employee base of 25,000 employees globally. In 2017, IVECO bus launched a new generation of trolleybuses considering the reduction of greenhouse gas emissions.
  • In April 2022, MAN Truck and Bus SE received an order for 700 units of electric buses, 90% of which will be delivered with battery drive by 2030.
  • In March 2022, the company announced the development programme of its new chassis and tanks smaller, smarter, lighter and more efficient making their vehicles increasing their range and robustness.
  • Scania won a tender from the Municipal Transport Company of Madrid (EMT Madrid) to deliver 170 Scania N 280 buses with 9-liter gas engines, bodied by Castrosua on 18 June 2021.
  • In 2021, the company unveiled the newest zero-emission bus, the Blue Electroliner BEV, which includes many notable features. In order to improve the performance of its fleet, the company developed an AI-driven telematics solution in 2021.

Key Market Players

  • 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

 By Application

By Length

By Seating Capacity

By Fuel Type

By Body Type

By Country

  • Transit Buses
  • Motor Coaches
  • School Buses
  • Others
  • 6-8m
  • 8-10m
  • 10-12m
  • Above 12m
  • 15-30
  • 30-40
  • 40-50
  • Above 50
  • Diesel
  • Petrol
  • CNG
  • Others
  • Fully Built
  • Customizable
  • United States
  • Canada
  • Mexico


Report Scope:

In this report, the North America Bus Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • North America Bus Market, By Application:

o   Transit Buses

o   Motor Coaches

o   School Buses

o   Others

  • North America Bus Market, By Length:

o   6-8m

o   8-10m

o   10-12m

o   Above 12m

  • North America Bus Market, By Seating Capacity:

o   15-30

o   30-40

o   40-50

o   Above 50

  • North America Bus Market, By Fuel Type:

o   Diesel

o   Petrol

o   CNG

o   Others

  • North America Bus Market, By Body Type:

o   Fully Built

o   Customizable

  • North America Bus Market, By Country:

o   United States

o   Canada

o   Mexico


Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Bus Market.

Available Customizations:

North America Bus Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

North America Bus Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]                

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Countries

3.4.  Key Segments

4.    Impact of COVID-19 on North America Bus Market

5.    Voice of Customer Analysis

5.1.  Brand Awareness

5.2.  Factors Influencing Purchase Decision

5.3.  Brand Satisfaction

6.    North America Bus Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Volume

6.1.2.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Application Market Share Analysis (Transit Buses, Motor Coaches, School Buses, others)

6.2.2.    By Length Market Share Analysis (6-8m, 8-10m, 10-12m, & above 12m)

6.2.3.    By Seating Capacity Market Share Analysis (15-30, 30-40, 40-50, & above 50)

6.2.4.    By Fuel Type Market Share Analysis (Diesel, Petrol, CNG, Others)

6.2.5.    By Body Type Market Share Analysis (Fully Built, Customizable)

6.2.6.    By Country Market Share Analysis        United States Bus Market Share Analysis        Canada Bus Market Share Analysis        Mexico Bus Market Share Analysis

6.2.7.    By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2022)

6.3.  North America Bus Market Mapping & Opportunity Assessment

6.3.1.    By Application Type Market Mapping & Opportunity Assessment