Buses Market Opportunities and Trends Report by 2028

Buses Industry Overview

The global buses market size was valued at USD 13.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2022 to 2028.

The market is significantly driven by the developments and investments in the transport area in the emerging countries including, India, China, Brazil, etc. Improving public transportation sector and expansion of road network across these countries is increasing the accessibility of the buses by passengers for intercity travel. Government initiatives are also creating favorable conditions fueling market growth. For instance, as published on 16th March 2021, China is planning to extend the total length of its national expressway by almost 50% by 2035. Furthermore, local tourism development is also likely to boost market growth.

Gather more insights about the market drivers, restrains and growth of the Global Buses Market

The global market was negatively impacted by the COVID-19 pandemic across the world. As a precaution, public events, travel, and gatherings were banned during the pandemic. People preferred to stay at home as a precaution, except for emergencies. This resulted in a decline in the intercity travel passenger numbers worldwide. According to the Google mobility data, passenger visits to the bus services and terminals fell by 80% in the IGC countries during the lockdown. This number is recovering slowly and intercity buses are running, however not at full capacity. The market growth is expected to witness a steady and slow recovery in the forecast period.

The global market growth is supported by developments in the tourism sector. The improvements in the tourism sector are expected to increase the passenger traffic in the intercity bus transportation and drive the passenger revenue in the forecast period. For instance, in India, 2018 marked the inauguration of the world’s tallest statue in Gujarat. This resulted in the rise in the tourist traffic in the area and facilitated the demand for intercity buses.

Besides, the market growth is majorly restrained by the growth of the passenger cars market. Increasing affordability and increasing purchasing power is encouraging consumers to purchase personal cars and SUVs. This is subsequently expected to affect the consumer preference for buses for intercity travel and decline in revenue generation. Additionally, affordable air travel is also hampering the further growth of the bus market.

In the global market, online ticketing is expected to present a promising opportunity for the key market players. The use of digital technology and apps is expected to rise tremendously in the forecast period. Moreover, a shift in consumer profile is anticipated to influence consumer preference over the forecast period. Consumer preference, on the account of convenience, comfort, and quick facility, for online booking is increasing.

Moreover, the trend of electric buses for intercity, long-distance travel is expected to rise over the forecast period. Increasing environmental pollution caused by travel and transport is encouraging various governments and service providers to launch electric bus services to tackle the problem of rising pollution. For instance, in the U.S., as reported in 2019, long-distance electric bus fleets are being introduced for transportation. Flixbus, service provider, and MCI, bus manufacturer carried out the test run of the first pilot of a long-distance electric bus.

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Market Share Insights

• December 2021: National Express Group plc and Stagecoach Group plc agreed to GBP 437 Mn merger.
• February 2020: FlixBus, a German intercity bus operator, was planning to enter India’s intercity bus market as published in December 2019, and recently Flixbus India Private Limited was incorporated.

Key Companies profiled:

Some prominent players in the global buses market include

• FirstGroup plc.
• National Express Group plc.
• Stagecoach Group plc.
• Transdev
• Central Japan Railway Company
• Group Keolis SAS
• RegioJet A.S.
• MTR Corporation Limited
• Go Ahead Group plc

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