North America Bus Market Size & Industry Report | 2025-2034

 

North America Bus Market Outlook

The North America bus market reached a volume of 59.48 thousand units in 2024. Aided by the growing need for sustainable and efficient public transportation systems and the steady adoption of electric and hybrid buses across urban areas, the market is expected to grow at a CAGR of 2.60% during the forecast period from 2025 to 2034, reaching a volume of 76.89 thousand units by 2034.

Buses play a crucial role in the region's public transportation ecosystem. From city transit buses and school buses to intercity coaches and shuttle services, the versatility of buses contributes significantly to both urban and rural mobility. As North America seeks to modernise its transportation infrastructure and reduce carbon emissions, buses are increasingly becoming a focal point in achieving green mobility targets. The rise of smart city initiatives and the integration of advanced technologies are expected to further enhance the reliability, comfort, and environmental impact of bus fleets in the region.

North America Bus Market Size and Share

In 2024, the North America bus market stood at 59.48 thousand units, marking a stable recovery from the pandemic-induced slowdown. The market is characterised by a strong presence of public transportation authorities, school districts, and private fleet operators. United States holds the largest share, driven by a well-developed transit system, an expansive school transportation network, and increasing adoption of clean-energy buses. Canada follows, with notable investments in green mobility and public transit improvements in cities such as Toronto, Vancouver, and Montreal.

School buses represent a dominant segment of the North America bus market, accounting for a significant share due to mandatory student transport services in the U.S. and Canada. Meanwhile, transit buses used in city and metropolitan areas are gaining traction as municipalities seek to upgrade aging fleets with modern, low-emission alternatives.

North America Bus Market Trends

Several emerging trends are reshaping the dynamics of the North America bus market:

• Electrification of Bus Fleets: Government incentives, stricter emission standards, and environmental awareness are fuelling the transition towards electric and hybrid buses. Transit agencies across major cities are increasingly investing in battery-electric buses (BEBs) to reduce dependence on diesel and minimise greenhouse gas emissions.

• Smart and Connected Transit Systems: The integration of telematics, real-time tracking, and fleet management software is enhancing operational efficiency. Features like automated passenger counting, predictive maintenance, and AI-driven route optimisation are transforming public bus services.

• Expansion of On-Demand Bus Services: Inspired by ride-hailing models, on-demand buses offer flexible, point-to-point service. This trend is particularly visible in suburban areas and smaller towns aiming to increase ridership without the costs of fixed-route services.

• Accessibility and Inclusivity Initiatives: Increasing emphasis is being placed on ADA-compliant buses, with features like low floors, wheelchair ramps, and audio-visual passenger information systems to support people with disabilities and elderly passengers.

• School Bus Modernisation: School districts are exploring alternative fuel buses, especially electric school buses, to reduce children's exposure to pollutants and lower operational costs over the vehicle lifespan.

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Drivers of Growth

Several critical factors are contributing to the sustained growth of the North America bus market:

• Urbanisation and Congestion Management: With growing urban populations and increasing road congestion, governments are investing heavily in public transportation to reduce traffic and pollution, creating strong demand for buses.

• Supportive Government Policies: Federal and local initiatives such as the U.S. Infrastructure Investment and Jobs Act, Canada's Zero Emission Transit Fund, and state-level clean transportation programs are accelerating the adoption of modern and clean-energy bus fleets.

• Environmental and Health Concerns: The urgent need to address air quality issues and reduce greenhouse gas emissions is pushing transit authorities to phase out diesel buses and invest in electric and CNG-powered alternatives.

• Cost Efficiency: Buses, particularly in dense urban areas, remain one of the most cost-effective mass transportation options, offering high passenger capacity with lower per capita emissions and operating costs.

• Resurgence of Public Transit Post-Pandemic: As economies recover from the COVID-19 pandemic, public transit usage is rebounding. This resurgence is prompting municipalities to upgrade their fleets with newer, more efficient buses to attract riders back.

Technology and Advancement

Technology is a major catalyst in driving the evolution of the North America bus market:

• Electric Bus Technology: Major advancements in battery technology—such as solid-state batteries, fast-charging solutions, and extended range capabilities—are making electric buses more viable for mainstream adoption.

• Hydrogen Fuel Cell Buses: Though still nascent, fuel cell electric buses (FCEBs) are emerging as a promising alternative for long-range, heavy-duty transit operations, particularly in regions with access to hydrogen infrastructure.

• Vehicle-to-Grid (V2G) Integration: Some school districts and transit agencies are exploring V2G technology, where electric buses can feed electricity back into the grid during idle hours, enhancing energy resilience and offering revenue opportunities.

• Autonomous and Semi-Autonomous Buses: While still under pilot phases, autonomous bus technology is being tested in controlled environments. These buses are equipped with LIDAR, radar, and AI-based navigation systems, setting the stage for future adoption.

• Advanced Safety Features: Modern buses now come equipped with collision avoidance systems, lane departure warnings, adaptive cruise control, and pedestrian detection, improving safety for passengers and pedestrians alike.

North America Bus Market Segmentation

The market can be divided based on fuel type, bus type, length, body type and region.

Market Breakup by Fuel Type

• Diesel
• Electric / Hybrid
• CNG
• Fuel Cell
• Others

Market Breakup by Bus Type

• Intercity Bus
• Intracity Bus

Market Breakup by Length

• Up to 6 Meter
• 6 -8 Meter
• 8 – 10 Meter
• 12 Meter
• 18 Meter

Market Breakup by Body Type

• Fully Built
• Customisable Body

Market Breakup by Region

• United States
• Canada

Competitive Landscape

Some of the major players explored in the report by  Expert Market Research are as follows:

• Daimler Truck AG
• AB Volvo
• MAN SE
• Marcopolo S.A.
• Navistar, Inc.
• Proterra
• NFI Group
• Blue Bird Corporation
• Rev Group
• Others

Challenges and Opportunities

While the North America bus market shows positive momentum, it also faces several challenges:

• High Upfront Cost of Electric Buses: Despite long-term savings, the initial acquisition cost of electric buses remains significantly higher than that of conventional diesel buses, which may deter cash-strapped municipalities and school districts.

• Charging Infrastructure Limitations: The lack of adequate EV charging infrastructure and high installation costs pose barriers to widespread electric bus adoption, particularly in rural or underserved regions.

• Supply Chain Disruptions: Ongoing global supply chain challenges, especially for semiconductors and battery components, can delay production and delivery timelines, affecting fleet expansion plans.

• Operational Complexity: Transit agencies need to invest in staff training, maintenance protocols, and route optimisation to accommodate the new technologies and fuel types associated with next-generation buses.

However, these challenges present significant opportunities:

• Federal and State Funding Support: Substantial funding opportunities, grants, and tax incentives are available for agencies transitioning to clean-fuel and electric buses.

• Private Sector Collaboration: Tech firms, energy companies, and transport operators are forming partnerships to deploy integrated, end-to-end solutions including vehicle supply, infrastructure, software, and maintenance.

• Green Branding and Public Support: Operating low-emission bus fleets can boost the public image of municipalities and transport operators, attracting ridership and aligning with climate commitments.

• New Market Segments: There is untapped potential in employee shuttle services, university transport fleets, and tourism buses, where demand for sustainable and comfortable transport is rising.

North America Bus Market Forecast (2025–2034)

The North America bus market is expected to continue its upward trajectory over the next decade, reaching approximately 76.89 thousand units by 2034. This growth will be primarily driven by increasing investments in public transit infrastructure, regulatory support for zero-emission vehicles, and the demand for modern, efficient, and accessible transportation solutions.

As the region moves toward a cleaner, smarter, and more connected transportation future, the bus market will remain a critical component of the solution. Manufacturers, policymakers, and transit agencies are expected to play a collaborative role in shaping a resilient, inclusive, and technologically advanced mobility ecosystem for North America.

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