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Transit Bus Market Size Worth USD 1406.55 Bn by 2034

According to Towards Automotive consultants, the global transit bus market is projected to reach approximately USD 1406.55 billion by 2034, increasing from USD 560.87 billion in 2024, at a CAGR of 9.63% during the forecast period 2025 to 2034.

Ottawa, Sept. 09, 2025 (GLOBE NEWSWIRE) -- According to Towards Automotive consultants, the global transit bus market is projected to reach approximately USD 1406.55 billion by 2034, increasing from USD 560.87 billion in 2024, at a CAGR of 9.63% during the forecast period 2025 to 2034.

The global transit bus market size stood at USD 614.88 billion in 2025 and is projected to reach USD 1406.55 billion by 2034, according to a study published by Towards Automotive, a sister firm of Precedence Research. The transit bus market is expanding globally due to the growing population, along with high demand for sustainable transportation modes and cost-efficient methods.

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Key Highlights of the Transit Bus Market

  • By region, the Asia Pacific dominated the transit bus market, whereas Europe is expected to grow in the foreseeable period.
  • By fuel type, the diesel segment dominated the transit bus market, whereas the all-electric segment is expected to grow in the foreseeable period.
  • By application, the urban segment dominated the transit bus market, whereas the intercity segment is expected to grow in the foreseen period.
  • By seating capacity, the 40-70 seats segment dominated the transit bus market, whereas the below 40 seats segment is expected to grow in the foreseen period.

Market Overview

The growing population demanding cost-effective, efficient, and sustainable modes of transport is helping the growth of the transit bus market. The growing population of urban areas, leading to growing demand for transportation within the city and between different regions, is another major growth factor for the market. Transit buses offer an easy solution for transportation in densely populated regions, allowing a cost-effective method for people to travel from one place to another.

High demand for sustainable modes of transportation, which help contribute to the environment, is another major factor for the growth of the transit bus market. Use of electric or hybrid buses helps to lower carbon emissions, further helping the growth of the market. Government initiatives to promote the use of electric and hybrid buses for transportation in urban and suburban areas are also helping the market grow.

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New Trends of the Transit Bus Market

  • High adoption of electric and hybrid buses is helping the growth of the transit bus market in recent period. Falling costs of battery are the major driving force of the market.
  • Government initiatives for the adoption of electric buses in the transportation industry are also helping the market grow. It helps to maintain sustainability and lower the carbon emission levels of the transportation industry.
  • Integration of smart technology in the transportation industry in the form of an automated fare system and real-time tracking for the convenience of passengers is also helping the market flourish. Use of telematics and analytics for enhanced fleet management and opting for the most efficient route is also essential for the growth of the transit bus market.

Market Dynamics

Driver

What are the growth drivers of the Transit Bus Market?

Multiple growth factors have aided the growth of the transit bus market in recent times. Growing urbanization, rising needs of transportation, and high demand for sustainable means of transportation are some of the major factors for the growth of the transit bus market. Government initiatives and support for electric and hybrid buses in the transportation industry are helping the growth of the market. It helps to support sustainability and lower the carbon footprint of the industry as well. Factors such as passengers’ convenience, safety, and managing traffic congestion are also some of the major factors for the growth of the transit bus market.

Challenge

High Costs of Charging Infrastructure Restraining Market’s Growth

One of the major challenges in the growth of the transit bus market is the rising costs of the charging infrastructure for electric buses. Hence, such issues restrain the growth of the market. High costs of charging stations, grid updates, and maintenance facilities restrain the growth of the market, and underdeveloped nations are unable to manage such high costs and are unable to contribute to the growth of the market. Electric buses with limited driving range and increasing charging time also hamper the market’s growth.

Opportunity

Smart City Infrastructure is helpful for the Growth of the Market

Smart city infrastructure with opportunities for development of a higher number of charging stations, data-driven management, and helping the transportation system to be technologically advanced and efficient, helps the growth of the transit bus market. The smart city infrastructure also helps the market by using various technological methods helpful for the market’s growth. Route planning, energy management, and coordination are other major opportunities helpful for the growth of the transit bus market.

More Insights of Towards Automotive:

Regional Analysis:

Asia Pacific Transit Bus Market Trends:

The Asia Pacific dominated the transit bus market due to multiple factors aiding the growth of the market. Factors such as rapid urbanization, growing demand for public transportation, sustainability, and cost-effective means of transport are some of the major factors for the growth of the market. Public transportation also helps people to move from one place to another, avoiding traffic congestion and saving time, which also helps the market to grow. India and China contribute a major scale to the growth of the market in the region.

Europe Transit Bus Market Trends:

Europe is observed to be the fastest-growing region in the foreseen period due to high government initiatives of the region for sustainable modes of transport, helping the growth of the transit bus market. The government of the region supports the plan of zero emissions in Europe, further supporting the use of electric buses. The rising urban population of the region is also helping the market grow, as it further leads to higher demand for cost-effective and efficient means of transport.

Segmental Analysis

By Fuel Type

The diesel segment led the transit bus market as it is one of the highly reliable and highly opted forms of public transportation. The method is an economical option and ideal for public transportation. Developed infrastructure, high adaptability, high usage, and economic benefits for underdeveloped nations are some of the segment’s supportive factors helping the growth of the transit bus market. Diesel engines are known for their high torque and durability. Hence, they are highly preferred for public transportation and for the transportation of heavy loads. Hence, the segment ruled the market previously.

The electric segment is observed to be the fastest-growing segment in the foreseen period, helping the growth of the transit bus market. Electric buses help to maintain sustainability and are also helpful to lower the carbon footprint of the transport industry, fueling the growth of the market as well. The buses hence prove to be an economical option for the industry, allowing people to opt for the option as well. Hence, the cost-effective and sustainable option is highly promoted globally, allowing the industry to flourish. Hence, the segment is observed to be the fastest growing in the foreseen period.

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By Application

The urban transit segment led the transit bus market due to the rising need for transportation within the city for work and various purposes. The segment also led to a huge consumer shift from diesel to electric buses. It helps to provide efficient and cost-effective means of transportation, further fueling the growth of the transit bus market. The segment also highlights the importance of public transport to avoid traffic congestion in urban regions, allowing people to save time and arrive at their desired destinations.

The growing demand for cost-effective and efficient modes of transport for longer routes is one of the major growth driving forces for the transit bus market. The segment highlights the importance of electric means of transportation for avoiding traffic, saving time, and cost-effective and efficient means of transportation. Another major factor for the growth of the market involves a shift towards sustainable means of transportation. It helps the industry to lower its carbon footprint by maintaining sustainability.

By Seating Capacity

The below 40-seat segment led the transit bus market due to growing needs for transportation of a few people at a time efficiently and cost-effectively. The segment involves schools and office buses helping people to commute easily in a cost-effective manner, and is helpful for avoiding traffic congestion as well. The segment also highlights the importance of sustainability, which is helpful to lower carbon footprint and encourages the use of electric transportation.

The 40-70 seats segment is observed to grow in the foreseen period due to multiple factors such as high demand for cost-effective and efficient means of transport, promoting sustainable transportation, and maintaining safety as well. Inculcation of technologically advanced methods also helps the growth of the segment, further helping the growth of the transit bus market. The segment is also helpful for densely populated regions such as India and China, helping the market grow in the foreseeable period.

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Recent Developments in the Transit Bus Market

  • In July 2025, the Delhi government launched electric AC tourist buses to promote tourism in the region. The buses will cover popular spots in the region to promote tourism in a sustainable manner.
  • In August 2025, Winnipeg, Canada, launches its first-ever 60-foot, no-emission, electric bus into passenger service. The buses will undergo certain assessment factors that will decide the future of the electric fleet in the region.

Access our exclusive, data-rich dashboard dedicated to the Transit Bus Market, designed specifically for decision-makers, strategists, and industry leaders. The Towards Automotive dashboard offers in-depth statistical insights, segment-wise market analysis, regional share breakdowns, comprehensive company profiles, annual updates, and much more. From market sizing to competitive benchmarking, this all-in-one platform is your strategic gateway to smarter, data-driven decisions in the truck rental and leasing industry.

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Transit Bus Market Companies & Their Offerings

  1. AB Volvo
    Offers a wide range of sustainable and energy-efficient transit buses, including hybrid and fully electric models, focusing on urban public transportation.
  2. Apollo Baidu (Baidu, Inc.)
    Develops autonomous driving technologies and AI-powered smart transit solutions through its Apollo platform, including driverless shuttle buses for urban mobility.
  3. BYD Co. Ltd.
    A global leader in electric buses, BYD manufactures zero-emission battery-electric transit buses for city and intercity transport.
  4. Daimler AG
    Through its subsidiary Mercedes-Benz, Daimler offers a comprehensive lineup of high-performance and electric transit buses tailored for urban and regional routes.
  5. Easymile
    Specializes in autonomous shuttle buses and software solutions for driverless transit, focused on first- and last-mile connectivity in smart cities.
  6. MAN Truck & Bus
    Provides diesel, hybrid, and electric transit buses with advanced driver assistance systems and fuel-efficient technologies for public transportation networks.
  7. Navya
    Focuses on manufacturing fully autonomous, electric shuttles designed for short-distance urban transit without a human driver.
  8. New Flyer (NFI Group)
    Offers a wide portfolio of clean energy transit buses—including battery-electric, hydrogen fuel cell, and compressed natural gas models—serving North America.
  9. Toyota Motor Corporation
    Develops hydrogen fuel cell buses and autonomous transit platforms as part of its vision for zero-emission, future-ready public transportation.
  10. Yutong Group Co., Ltd.
    One of the world’s largest bus manufacturers, Yutong produces a broad range of diesel and electric buses, with a strong emphasis on smart and eco-friendly transit solutions.

Transit Bus Market Segmentation

By Fuel Type

  • Diesel
  • Urban Transit
  • Suburban Transit
  • Intercity
  • Others

Compressed Natural Gas

  • Urban Transit
  • Suburban Transit
  • Intercity
  • Others

All-electric

  • Urban Transit
  • Suburban Transit
  • Intercity
  • Others

Fuel Cell Electric Vehicle

  • Urban Transit
  • Suburban Transit
  • Intercity
  • Others
  • Hybrid
  • Urban Transit
  • Suburban Transit
  • Intercity
  • Others

By Application

  • Urban Transit
  • Suburban Transit
  • Intercity
  • Others

By Seating Capacity

  • Below 40 Seats
  • 40-70 Seats
  • Above 70 Seats

By Geography

North America

  • United States
  • Canada

Europe

  • United Kingdom
  • Germany
  • France
  • Italy

Asia Pacific

  • China
  • India
  • Japan
  • South Korea
  • Latin America
  • Brazil
  • Argentina

Middle East and Africa

  • UAE
  • Saudi Arabia
  • South Africa

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About Us

Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. With a focus on accuracy and innovation, we empower clients to make informed decisions and stay competitive in a rapidly evolving landscape.

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