The global buses market size was estimated at USD 94.62 billion in 2025 and is projected to reach USD 144.42 billion by 2033, growing at a CAGR of 5.8% from 2026 to 2033. The buses industry is witnessing steady and sustainable growth as governments and transport authorities increasingly recognize the importance of organized mass transit solutions. Rapid urbanization is driving higher passenger volumes, particularly in large metropolitan areas where road space is limited and private vehicle ownership leads to congestion. Rising population density in cities, combined with growing environmental concerns, has made buses an essential component of public transportation infrastructure. As a result, demand for city buses, school buses, and intercity coaches continues to rise, supporting the expansion of the global buses market.

Governments across both developed and emerging economies are placing strong emphasis on expanding and modernizing public transport systems to improve mobility and reduce dependence on private cars. Policy initiatives aimed at reducing traffic congestion, lowering fuel consumption, and cutting carbon emissions are directly encouraging investments in bus fleets. Large-scale infrastructure projects such as metro feeder services, bus rapid transit (BRT) corridors, and smart city programs are further stimulating demand. Additionally, the growth of intercity and long-distance travel—supported by tourism, regional economic integration, and improved highway connectivity—is increasing the need for coaches, luxury buses, and sleeper buses. Replacement of aging fleets in regions such as Europe and North America remains another important growth driver, as operators transition to modern, fuel-efficient, and low-emission models.

Technological advancements are significantly transforming the buses industry, leading to a shift toward electrification, automation, and digital connectivity. Electric and hybrid buses are gaining rapid traction as improvements in battery energy density and reductions in charging time enhance operational feasibility. Lower total cost of ownership over vehicle life cycles, along with government incentives and emission mandates, is further accelerating adoption. Global manufacturers such as BYD Auto and Yutong Bus are emerging as leaders in zero-emission buses, while many European manufacturers are accelerating development of hydrogen fuel-cell buses and smart connected platforms. At the same time, features such as advanced driver-assistance systems (ADAS), telematics, real-time fleet management, predictive maintenance, and remote diagnostics are becoming standard inclusions, improving safety, route planning, and uptime for operators.

Key Market Trends & Insights:

• Asia Pacific dominated the global buses market with the largest revenue share of 42.9% in 2025. Growth is supported by rapid urbanization, rising commuter volumes, expansion of metro-feeder and city bus systems, and ongoing investments in public transport infrastructure. Within the region, China accounted for the largest market revenue share in 2025, supported by large-scale bus manufacturing, government subsidies for electric buses, and extensive urban transit networks.
• By propulsion, the internal combustion engine (ICE) segment led the market with a 63.8% revenue share in 2025. Despite growing electrification trends, diesel and gasoline-powered buses remain dominant due to established refueling infrastructure and lower upfront costs. However, the electric bus segment is expected to grow at the fastest CAGR during the forecast period, driven by global decarbonization goals, incentives, and continuous declines in battery prices.
• By seating capacity, the 31–50 seats segment led the market with the largest revenue share of 55.4% in 2025. These buses are widely used for city services, school transport, and intercity travel because they offer an optimal balance between capacity and operating cost. The up to 30 seats segment is projected to grow at the fastest rate, supported by demand for mini-buses, shuttle services, corporate transport, and last-mile connectivity.
• By end use, public transportation held the largest market revenue share in 2025, reflecting the dominant role of buses in urban mobility networks globally. Meanwhile, the private transportation segment is projected to grow at the fastest CAGR of 7.1% over the forecast period, supported by corporate employee transport, school buses, airport shuttles, and tourism-oriented charter services. The segment is expanding due to rising need for flexible, service-oriented mobility options.

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Market Size & Forecast:

• 2025 Market Size: USD 94.62 Billion
• 2033 Projected Market Size: USD 144.42 Billion
• CAGR (2026-2033): 5.8%
• Asia Pacific: Largest market in 2025

Key Companies & Market Share Insights:

Leading companies in the buses industry include Yutong Bus Co., Ltd., Tata Motors Limited, Ashok Leyland, AB Volvo, and others. These organizations are actively working to broaden their customer base and strengthen market positioning through product innovation and geographic expansion. To stay competitive, key players are pursuing strategies such as mergers and acquisitions, technology partnerships, joint ventures, and long-term supply agreements with transit authorities. Focus areas include electric powertrains, lightweight materials, hydrogen fuel systems, and digital fleet management services.

• Yutong Bus Co., Ltd., headquartered in Zhengzhou, China, traces its origins to 1963 as the Zhengzhou Bus Repair Factory and was formally established in 1993. Over the decades, it has developed into a major bus manufacturer, holding a dominant position in China’s domestic market. Yutong produces a comprehensive portfolio, including city buses, long-distance coaches, electric and hybrid buses, and special-purpose vehicles. With annual production capacity exceeding 35,000 units and exports to over 40 countries across Europe, Africa, Latin America, and other regions, the company has established strong international presence.
• AB Volvo, through its Volvo Buses division, offers an extensive range of heavy-duty city buses, intercity coaches, chassis platforms, and electric buses serving public transportation systems worldwide. The brand places strong emphasis on sustainability, highlighted by advanced electric and hybrid models such as the Volvo 7900 Electric and BZL series. These buses incorporate features such as autonomous-ready sensors, advanced navigation systems, and AI-assisted operations to enhance safety and operational efficiency. Volvo’s production facilities include locations in India (Bangalore) along with legacy sites such as the former facility in Irvine, Scotland. The company supports operators globally with services, efficient I-Shift gearboxes, ESP stability systems, and fuel-efficient D8K engines, showcased in premium platforms like the Volvo 9600, designed for luxury intercity travel and aligned with Volvo Group’s broader vision of zero-emission public mobility.

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Conclusion:

The global buses market is set to continue its growth trajectory, supported by rapid urbanization, increasing public transport investments, and the rising need for sustainable mass mobility solutions. Electrification, digitalization, and technological innovation will remain central to industry transformation, with electric and hybrid buses gaining strong momentum alongside emerging hydrogen solutions. Asia Pacific will continue to play a dominant role due to large-scale manufacturing capabilities, government support, and expanding urban transit networks. Meanwhile, replacement of aging fleets in mature markets and growing private transport demand will further reinforce market expansion. As manufacturers enhance product portfolios and strengthen strategic partnerships, the industry is expected to move toward cleaner, smarter, and more efficient transportation systems. Overall, regulatory support, infrastructure development, and technological advancements will shape the long-term outlook of the global buses market.