|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
159.46
Thousand Units
|
|
CAGR
(2023-2028)
|
4.07%
|
|
Fastest
Growing Segment
|
8m
- 10m
|
|
Largest
Market
|
United
States
|
Market Overview
North America Bus Market has valued 159.46 Thousand
Units in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 4.07% through 2028. The market for buses in North America
is projected to grow over the next years because of the region population growth
and escalating demand for zero emission transportation. Governments and
authorities all around the world have imposed unprecedented levels of
transportation and mobility challenges as a consequence of the COVID-19
pandemic. Furthermore, social distance seriously affects mobility preferences
also to minimize the danger of illness many people shifted to a personal
transportation option. Additionally, individuals who had a private vehicle were
using it for daily commuting while those who had previously relied on public
transportation were switching to another option such ad bicycling or riding a
bike. In many North American cities countries walking automobiles for personal
use and bike riding gained the greatest ground in 2020 while bus usage got
decreased. This led to a lack of demand for the bus market in North America.
Key Market Drivers
Urbanization and Population Growth:
The increasing urbanization and population growth
in North America have created a higher demand for efficient and sustainable
public transportation solutions. As cities become more densely populated,
traffic congestion and pollution escalate. This has led to a greater need for
reliable and accessible mass transit options. Buses, being a flexible mode of
transport that can serve both densely populated urban areas and suburban
communities, play a pivotal role in addressing these challenges. The intricate
network of bus routes can effectively connect various neighborhoods, offering a
viable alternative to private vehicles and reducing traffic congestion. This
driver is further fueled by the convenience and affordability that buses
provide, making them an attractive option for diverse segments of the
population, including students, professionals, and tourists.
Environmental Awareness and Sustainability
Initiatives:
The growing concerns over climate change, air
quality, and carbon emissions have driven a push towards more sustainable
transportation solutions. This emphasis on environmental consciousness has
spurred the adoption of cleaner bus technologies, including electric and hybrid
buses. Governments and transit authorities in North America are incentivizing
the transition to zero-emission buses through grants, subsidies, and
regulations that promote eco-friendly options. This driver aligns with the
broader global movement towards sustainability. Electric and hybrid buses
reduce greenhouse gas emissions and lower air pollutants, contributing to
improved urban air quality and a reduction in the transportation sector's
carbon footprint. As cities strive to meet emission reduction targets, electric
buses have emerged as a significant market driver.
Investments in Infrastructure and Modernization:
The recognition of the importance of robust public
transportation networks has led to significant investments in infrastructure
and modernization. Governments and local authorities are allocating resources
to expand bus fleets, enhance bus stops and terminals, and establish dedicated
bus lanes. The implementation of intelligent transportation systems, such as
real-time tracking and fare payment systems, further boosts the appeal of bus travel.
Infrastructure improvements directly impact the rider experience by reducing
travel times and enhancing reliability. As cities develop efficient and
user-friendly transit systems, buses become an attractive choice for daily
commuters, offering a convenient and time-saving mode of transportation
compared to dealing with traffic congestion and parking challenges.
Fuel Costs and Operational Efficiency
The volatility of fuel prices and the operational
costs associated with conventional fossil fuel-powered buses drive the demand
for more cost-effective alternatives. Electric and hybrid buses offer not only
reduced fuel consumption but also lower maintenance requirements. As fuel
prices fluctuate, the appeal of electric and hybrid buses grows stronger. The
cost savings associated with electric and hybrid buses make them an appealing
option for transit agencies looking to optimize operational expenses. Electric
buses, in particular, benefit from lower fueling costs and reduced maintenance
due to fewer moving parts compared to internal combustion engine buses. These
savings contribute to the overall economic viability of the transit system.
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Key Market Challenges
Aging Infrastructure and Funding Shortfalls
One of the major challenges faced by the North
American bus market is the aging and inadequate infrastructure. Many cities
have outdated bus terminals, shelters, and depots that hinder efficient
operations and passenger experience. However, modernizing this infrastructure
requires substantial investments, and transit agencies often struggle to secure
sufficient funding. The challenge lies in finding the necessary resources to
upgrade facilities, create dedicated bus lanes, and implement intelligent
transportation systems that enhance the overall efficiency and attractiveness
of bus services.
Technological Integration and Expertise
The integration of advanced technologies poses a
challenge for the North American bus market. Incorporating features like
real-time passenger information, contactless payment systems, and electric or
hybrid propulsion requires technological expertise and investment. Transit
agencies must navigate the complexities of selecting, implementing, and
maintaining these technologies, often requiring partnerships with technology
providers. Ensuring seamless integration, reliability, and the necessary skill
set among staff members to operate and maintain these systems are ongoing
challenges.
Regulatory and Permitting Hurdles
Operating a bus service in North America involves
navigating a complex web of regulations, permits, and approvals. Transit
agencies often require federal, state, and local permits, which can be
time-consuming and subject to frequent changes. Additionally, regulations related
to emissions standards, safety certifications, and accessibility requirements
can impact fleet purchasing decisions and operational practices. Navigating
this regulatory landscape while adhering to evolving standards adds complexity
and uncertainty to the market.
Budget Constraints and Funding Allocation
Many transit agencies face budget constraints that
limit their ability to invest in new bus technologies, fleet expansions, and
infrastructure improvements. While there is a growing demand for sustainable
and technologically advanced buses, securing funding for these initiatives can
be challenging. Balancing the need to invest in new buses and technologies with
other essential operational expenses requires careful budget allocation and
strategic planning.
Charging Infrastructure for Electric Buses
While electric buses offer significant
environmental benefits, the lack of widespread charging infrastructure presents
a substantial challenge. Transit agencies transitioning to electric buses must
invest in charging stations, which can be expensive and require coordination
with utility companies. Ensuring sufficient charging infrastructure to support
the operational needs of electric buses while minimizing downtime is a critical
challenge, especially as the electrification of bus fleets accelerates.
Workforce Development and Training
Operating and maintaining advanced bus technologies
requires a skilled workforce. Transit agencies need to invest in training
programs to ensure that drivers, mechanics, and support staff are proficient in
handling electric and hybrid buses, as well as the associated technologies.
Developing a skilled workforce capable of adapting to evolving bus technologies
and addressing maintenance challenges is an ongoing concern for the industry.
Key Market Trends
Electrification and Sustainable Mobility
A significant trend in the North American bus
market is the increasing focus on electrification and sustainable mobility.
Transit agencies are progressively transitioning from traditional diesel-powered
buses to electric and hybrid models. This shift is driven by environmental
concerns, emissions regulations, and the desire to reduce the carbon footprint
of public transportation. As battery technology advances and charging
infrastructure improves, electric buses are becoming more viable options,
enabling cities to achieve their sustainability goals while providing cleaner
and quieter transit solutions.
Smart and Connected Buses
The integration of technology is transforming buses
into smart and connected vehicles. Real-time passenger information systems,
Wi-Fi connectivity, and contactless payment options are becoming standard
features. This trend enhances the passenger experience by providing
convenience, entertainment, and improved communication. Additionally, connected
buses offer valuable data insights for transit agencies, enabling better route
optimization, maintenance scheduling, and performance monitoring.
Mobility-as-a-Service (MaaS) Integration
The emergence of Mobility-as-a-Service (MaaS)
platforms is influencing the bus market by offering integrated transportation
solutions. MaaS platforms provide a seamless experience for passengers to plan
and pay for multi-modal journeys that may include buses, trains, rideshares,
and more. Transit agencies are collaborating with MaaS providers to enhance the
accessibility and convenience of their services, attracting new riders and
increasing overall transit utilization.
Focus on Safety and Accessibility
Safety and accessibility remain significant priorities
in the North American bus market. Advanced driver assistance systems (ADAS) are
being adopted to improve road safety by reducing accidents caused by driver
error. Additionally, buses are being designed and equipped to ensure
accessibility for all passengers, including those with mobility challenges.
Features like low floors, ramps, and priority seating are becoming standard,
enhancing the inclusivity of public transit services.
Data-Driven Decision-Making
Transit agencies are leveraging data analytics to
make informed decisions about route planning, service optimization, and
resource allocation. By analyzing ridership patterns, travel behavior, and
operational performance, agencies can tailor their services to better meet the
needs of passengers. Data-driven insights enable proactive adjustments to
routes and schedules, resulting in more efficient and reliable bus services.
Partnerships and Public-Private Collaborations
Collaborations between public transit agencies and
private sector entities are becoming more common. Partnerships with technology
companies, ride-hailing services, and MaaS providers offer opportunities to
enhance service offerings, extend reach, and provide integrated transportation
solutions. These collaborations foster innovation and enable transit agencies
to provide a broader range of mobility options to passengers.
Flexible and On-Demand Services
On-demand and flexible transit services are gaining
traction in response to changing mobility preferences. Microtransit, shuttle
services, and dynamic route adjustments cater to specific demand patterns and
provide personalized transportation solutions. These services bridge the gap
between traditional fixed-route buses and rideshare options, offering
convenience and flexibility to passengers.
Segmental Insights
Bus Type Analysis
In 2022, the diesel sector held the predominant
market share, surpassing 73%. This can be attributed to the relatively lower
cost of diesel compared to alternative vehicle fuels. Consequently, diesel-powered
buses are widely favored due to their reduced operational expenses.
Furthermore, diesel engines are known for their durability and safety
attributes. This is evidenced by their dominant use in powering 95% of all
school buses in North America. Among these, a remarkable 58% of consumers opt
for the cleanest, nearly emission-free diesel engine technology.
Although initiatives are encouraging schools to
adopt blends of high-quality biodiesel and renewable fuel, along with various
schemes aimed at promoting bus electrification, the substantial initial costs
and investments associated with electric buses have led local agencies to
persist in their utilization of diesel buses.
The electric and hybrid segment constituted a
significant portion of the market in 2022 and is positioned for rapid expansion
during the forecast period. This growth can be attributed to the ongoing
electrification of public fleets and the enthusiastic embrace of hybrid buses
by public fleet operators in the United States. To catalyze the transition to
electric buses, a multitude of incentives, subsidies, and rebates are made
available. A pertinent example is the City of Jonesboro in Arkansas, which
secured funding amounting to USD 878,584 to acquire hybrid buses. These buses are
intended to replace older diesel counterparts, thereby contributing to enhanced
air quality within the city.
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Regional Insights
In 2022, the United States held the dominant share
of the market. This growth can be attributed to various factors, including
governmental initiatives in both Canada and the United States aimed at
transitioning to electric-powered public transit bus fleets. Notably,
substantial investments have been directed towards developing the necessary
charging infrastructure for buses, further bolstering this growth trajectory.
Additionally, the expansion of electric bus fleets
by private transit operators and proactive investments from the school and
federal government to electrify school bus fleets within the U.S. have played
pivotal roles in driving this upward trend. As we look ahead, advancements in
technology, particularly in diesel engines, electric motors, and hydrogen fuel
cell technology, are anticipated to contribute significantly to the continued
expansion of the market.
Canada, on the other hand, is poised to showcase
the swiftest Compound Annual Growth Rate (CAGR) throughout the forecast period.
The country is actively embarking on initiatives aimed at deploying electric
buses across its regions. An illustrative instance is the announcement made in
January 2023 by the mayor of Ottawa regarding a substantial USD 350 million
federal funding allocation. This funding is earmarked for the acquisition of
350 electric buses and the establishment of a robust charging infrastructure to
support the burgeoning bus fleet in Ottawa.
Moreover, Canada is witnessing a noteworthy trend
wherein private transit entities are collaborating with major domestic bus
manufacturers to electrify their vehicle fleets. This strategic partnership
dynamic is further propelling the advancement of the market in the region.
Recent Developments
- Flexcavo, a construction technology firm with
headquarters in Berlin, raises USD 8 million in funding in February 2022 for
its fleet of Bus. Additionally, the initial use of the projected money will be
to purchase a recently built rental park in Maisach, Munich. Additionally,
manufacturers JCB and Wacker Neuson have already planned around 150 new pieces
of construction machinery and equipment for a 4,500 square meter site.
- Daimler Trucks & Buses aim to offer only new
vehicles that are CO2- neutral in driving operation (tank-to-wheel) in the
triad markets of Europe, Japan and North America by 2039.
- As of March 2020, IVECO has an employee base of
25,000 employees globally. In 2017, IVECO bus launched a new generation of
trolleybuses considering the reduction of greenhouse gas emissions.
- In April 2022, MAN Truck and Bus SE received an
order for 700 units of electric buses, 90% of which will be delivered with
battery drive by 2030.
- In March 2022, the company announced the
development programme of its new chassis and tanks smaller, smarter, lighter
and more efficient making their vehicles increasing their range and robustness.
- Scania won a tender from the Municipal Transport
Company of Madrid (EMT Madrid) to deliver 170 Scania N 280 buses with 9-liter
gas engines, bodied by Castrosua on 18 June 2021.
- In 2021, the company unveiled the newest
zero-emission bus, the Blue Electroliner BEV, which includes many notable
features. In order to improve the performance of its fleet, the company
developed an AI-driven telematics solution in 2021.
Key Market Players
- Mercedes-Benz AG (Daimler AG)
- IVECO
S.p.A.
- MAN Truck
& Bus SE
- Scania AB
- AB Volvo
- BYD CO.
Ltd.
- Lion
Electric Company
- NFI Group
Inc.
- Proterra
Inc.
- Gilling
LLC
|
By Application
|
By Length
|
By Seating
Capacity
|
By Fuel Type
|
By Body Type
|
By Country
|
- Transit
Buses
- Motor
Coaches
- School Buses
- Others
|
|
|
|
|
- United
States
- Canada
- Mexico
|
Report Scope:
In this report, the North America Bus Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- North America Bus Market, By Application:
o Transit Buses
o Motor Coaches
o School Buses
o Others
- North America Bus Market, By Length:
o 6-8m
o 8-10m
o 10-12m
o Above 12m
- North America Bus Market, By Seating Capacity:
o 15-30
o 30-40
o 40-50
o Above 50
- North America Bus Market, By Fuel Type:
o Diesel
o Petrol
o CNG
o Others
- North America Bus Market, By Body Type:
o Fully Built
o Customizable
- North America Bus Market, By Country:
o United States
o Canada
o Mexico
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the North
America Bus Market.
Available Customizations:
North America Bus Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
North America Bus Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]