Global Buses

Global Buses

Through 2026, global demand for buses is forecast to expand 8.4% per year to 549,800 units, from a low 2021 base, as sales of buses declined nearly 20% in 2020, then fell 7% lower in 2021. Bus use around the world fell sharply because of the COVID-19 pandemic and restrictions enacted by governments worldwide. In response, numerous bus operators delayed new purchases and retired older buses. However recovery through 2026 will be supported by:

•      increased national, regional, and local government investment in public transit bus networks worldwide and the upgrading of transit bus fleets
  
•      the ongoing transition from conventional buses to electric, hybrid, and CNG/LNG models, aided by government and industry initiatives and the increasing availability of alternative fuel buses
  
•      growing demand for intra- and inter-city private transportation services around the world, strengthening the financial positions of operators
  
•      a rebound in global tourism, which will push hotels, airports, tour operators, and similar businesses to invest in new buses
  

Emission Concerns Will Spur Demand for Transit Buses That Use Alternative Fuels
Transit buses will offer the best opportunities for sales, as operators once again begin to replace these models following delays that occurred during the pandemic. Local and regional governments will also look to expand transit routes and install BRT systems to reduce vehicle traffic and congestion.

While transit buses can address these concerns, models that use conventional fuel can be a significant source of air pollution due to their long hours of operation. To limit emissions, governments will turn to models that run on electricity and natural gas. These alternative fuel types are increasingly available globally and have become more affordable, making them attainable for budget-strapped agencies tasked with managing public transportation.

Rising Tourism Rates Will Support Sales of Motor Coaches
Recoveries in both domestic and international travel will be a boon to producers of motor coaches, as the private transportation and tourism industries are the two most important end users of these buses. Motor coaches are also benefiting from rising interest among operators around the world, who are looking to upgrade from less expensive, smaller buses to models with more comfort and features. As air and railway travel continues to expand throughout the world, bus operators need to offer greater comfort and amenities in order to compete with the speed offered by alternative transportation.

This Freedonia study analyzes the nearly 370,000 units global bus market. It presents product supply and demand for 2011, 2016, and 2021, as well as forecast for 2026 and 2031. The study also presents bus demand by type (motor coaches, transit buses, school buses, and other buses) and fuel type (diesel, electric/hybrid, gasoline, or CNG/LNG) for 18 nations. Finally, it evaluates market share and offers a competitive analysis of the leading industry participants, such as BYD, Daimler, Hyundai, Marcopolo, Tata Motors, Toyota, Volkswagen, Volvo, and Zhengzhou Yutong Bus.
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