Press Release

South America Bus Market to Grow with a CAGR of 6.15% through 2030

Rising investments in public transportation, growing urban population, and increasing government focus on low-emission mass transit solutions are the factors driving the market in the forecast period 2026–2030.

 

According to TechSci Research report, “South America Bus Market – Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F”, The South America Bus Market was valued at USD 2.48 Billion in 2024 and is expected to reach USD 3.55 Billion by 2030 with a CAGR of 6.15% during the forecast period.

The South America bus market is undergoing a significant transformation shaped by economic diversification, evolving commuter behavior, and increased emphasis on cost optimization across public transport systems. Population growth, coupled with shifting employment zones, has led to a rising need for scalable mobility networks that can adapt to complex urban and peri-urban travel patterns. Governments are placing stronger focus on multimodal integration, where buses serve as the connective backbone linking metro systems, BRT corridors, and last-mile solutions. Rising fuel prices and inflationary pressure have intensified demand for operationally cost-effective transit solutions, prompting fleet operators to reevaluate lifecycle costs, maintenance models, and procurement strategies.

Digitalization has emerged as a key enabler in this market, with route optimization, fleet tracking, and real-time passenger information systems improving service efficiency and reliability. Growing emphasis on safety, accessibility, and inclusivity is prompting redesigns in bus configurations to better serve diverse user groups, including students, elderly passengers, and rural commuters.

 

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South America Bus Market Is Segmented by Application, Length, Seating Capacity, Propulsion, and Country.


​The fastest-growing segment in 2024 across South America's bus market was electric propulsion, which experienced a sharp rise in adoption as cities prioritized cleaner, quieter, and more energy-efficient mobility solutions. Battery electric buses saw the highest demand, supported by their ability to lower fuel costs, reduce emissions, and align with evolving public sustainability goals. Urban transport agencies increasingly selected electric models over traditional internal combustion engine buses due to rising fuel prices, growing environmental awareness, and favorable total cost of ownership over the vehicle lifecycle. Fleet operators responded to policy shifts by accelerating replacement of diesel models with battery-powered alternatives, especially in high-density transit corridors. Improvements in charging infrastructure, battery performance, and localized manufacturing capabilities further supported this growth. Municipalities emphasized long-term benefits such as lower maintenance needs, better urban air quality, and reduced noise pollution, reinforcing electric buses as the preferred choice for fleet modernization in 2024.

Chile recorded the most significant growth in electric bus adoption during the year, driven by a national commitment to fully electrify public transport. Santiago led deployment efforts with extensive expansion of its electric bus network, backed by coordinated procurement strategies and infrastructure development. Policy clarity and strong institutional coordination enabled rapid execution of tenders, resulting in significant new fleet orders and large-scale upgrades to transit depots and terminals. The country’s clear roadmap for decarbonization, combined with urban mobility priorities and a focus on long-term cost savings, positioned it ahead of other South American nations. The transition in Chile reflected not just environmental ambition, but also a systematic approach to transport modernization aligned with national development objectives.


Major Market Players Operating in South America Bus Market Are:

  • Anhui Ankai Automobile Co. Ltd
  • Ashok Leyland Limited
  • Byd Auto Industry Company Limited
  • Daimler Truck Holding AG
  • King Long United Automotive Industry Co. Ltd.
  • NFI Group Inc.
  • Proterra INC.
  • Tata Motors Limited
  • Volvo Group
  • Zhengzhou Yutong Bus Co. Ltd

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“The South America bus market is going through a fascinating transition. We’re seeing not just a shift in propulsion technologies, but a deeper change in how cities across the region approach public mobility. It’s no longer just about moving people—it’s about doing it cleaner, smarter, and more efficiently. The growing focus on electrification, multimodal integration, and data-driven operations shows that urban transport is evolving into a more strategic pillar of development. What’s really exciting is how different countries are aligning investment, policy, and infrastructure in ways that could make South America a global reference point for sustainable bus transit.”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“South America Bus Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Transit Buses, Motor Coaches, School Buses/Others), By Length (6-8m, 8-10m, 10-12m, Above 12m), By Seating Capacity (15-30, 30-40, 40-50, Above 50), By Seating Propulsion (ICE, Electric), By Country, By Competition, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the South America Bus Market.

 

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South America Bus Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Transit Buses, Motor Coaches, School Buses/Others), By Length (6-8m, 8-10m, 10-12m, Above 12m), By Seating Capacity (15-30, 30-40, 40-50, Above 50), By Seating Propulsion (ICE, Electric), By Country, By Competition, 2020-2030F

Automotive | Jul, 2025

Rising investments in public transportation, growing urban population, and increasing government focus on low-emission mass transit solutions are the factors driving the market in the forecast period 2026–2030.

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