Autonomous Bus Market Size By Level of Autonomy (Level 1, Level 2, Level 3, Level 4), By Fuel (Diesel, Electric, Hybrid), By Application (Intercity, Intracity), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028
The autonomous bus market is expected to record significant gains by 2028 on account of ongoing electrification and automation of public transport across key regions. In addition, growing prominence of autonomous driving is set to further support market growth over the forecast timeline.
The advent of self-driving technologies, along with increasing R&D activities by commercial vehicle manufacturers, has driven market growth. Autonomous buses are considered to provide enhanced mobility, safety, and energy efficiency, which has accelerated product adoption in recent years.
Notably, industry players have been implementing profitable strategic initiatives to tap into emerging trends in the market, thereby strengthening the overall business landscape. For instance, in January 2022, NAVYA, a France-based autonomous and electric vehicles producer, extended its collaboration with VALEO, a global automotive supplier, to co-develop an innovative safety system for autonomous vehicles dubbed the Autonomous Vehicle Failsafe System (AVFS). The AVFS has been developed to safeguard operations of Level 4 autonomous vehicles.
To cite another instance, in May 2021, Scania AB, a prominent commercial automotive manufacturer, announced a considerable investment in Scantinel Photonics GmbH, a leading manufacturer of LiDAR sensors. The firm intended to ensure autonomous vehicles' efficient performance and safety by investing in the unique FMCW LiDAR sensor technology.
The autonomous bus market has been segregated on the basis of application, level of autonomy, fuel, and region. With respect to level of autonomy, the market has further been classified into level 1, level 2, level 3, and level 4. The level 2 sub-segment is estimated to expand at a robust pace through the review period. Increasing deployment of level 2 autonomous buses in developing economies is likely to propel market growth over the forthcoming years.
From the fuel point of view, the autonomous bus market has been bifurcated into diesel, electric, and hybrid. The diesel sub-segment is projected to witness moderate growth, progressing at a nominal CAGR over the forecast period. This moderate growth is attributed to the widespread adoption of electric autonomous buses on account of rising awareness regarding alternative fuels.
In terms of application, the autonomous bus market has been segmented into intracity and intercity. The intercity sub-segment is anticipated to register substantial growth over the study timeframe owing to soaring number of intercity commuting trips.
On the regional front, the Middle East & Africa autonomous bus market is speculated to reach a notable valuation by 2028, developing at a CAGR of more than 9% over the assessment period. Mounting investments towards the modernization of the regional transport system are likely to foster market expansion in the coming years.
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