Europe bus and coach market is expected to grow at CAGR of 4.44% through 2027 to reach USD 6809 million by 2027. Anticipated growth in the market can be attributed to increasing population and growing demand for public transportation services.
Buses are the most popular form of public transport in the European countries, connecting cities, suburban and rural areas. They are also the most cost-effective form of public transport. Most European cities are well-connected by roads and buses/coaches making it one of the best travelling option for daily commuters in terms of cost and convenience. Many bus manufacturing companies focus on developing their product portfolio encompassing city buses with advance technologies like connected buses and app-booking services. For instance, FlixBus accounts for the majority share in Germany transit transportation. However, the company is facing fierce competition from its French rival BlaBlaBus — offshoot of the car-sharing platform BlaBlaCar — which is expanding in Germany and other European countries.
Europe bus and coach market is segregated based on vehicle type, length, seating capacity, fuel type, body type, and country. Countries like France, Spain, Italy and the United Kingdom are among the world's most frequently visited vacation hubs, with Spain being the most popular European destination for international tourists.
According to the World Tourism Organization (UNWTO) World Tourism Barometer, in January 2022, Europe witnessed a 199% increase in the international tourist arrivals while Americas, Middle East and Africa witnessed around 97%, 89% and 51% increase, respectively, as compared to January 2021. Such increases aid the growth of transit companies and increase their demands for new buses and coaches for the years to come.
On the basis of fuel type, diesel buses are still dominating the market by around 71.83% share in 2021 in terms of volume. However, due to the environmental concern caused by the vehicular emissions of diesel and petrol buses, the share of diesel buses and coaches is expected to fall significantly to around 66.85% by 2027.
Petrol and diesel propelled buses and coaches are expected to be replaced by electric buses slowly, owing to government initiatives and tax rebates. Moreover, companies are also pushed forward to promote green and zero emission vehicles more prominently; hence, the share of electric buses and coaches is expected to reach around 11.65% in the year 2027.
Companies operating in the market include Mercedes-Benz AG (Daimler AG), IVECO S.p.A., MAN Truck & Bus SE, Scania AB, AB Volvo, EvoBus GmbH (Setra), Temsa Skoda Sabanci Ulaşim Araçlari A.Ş., Alexander Dennis Limited, Solaris Bus & Coach Sp. Z o.o and Wrightbus.