Bus Market Size to Reach USD 154.78 Billion by 2031, Driven by Electrification Mandates and Urban Transit Expansion - Mordor Intelligence

Mordor Intelligence has published a new report on the bus market, offering a comprehensive analysis of trends, growth drivers, and future projections.
Market Overview

According to Mordor Intelligence, the bus market size [https://www.mordorintelligence.com/industry-reports/bus-market?utm_source=abnewswire] was valued at USD 109.89 billion in 2026 and is projected to reach USD 154.78 billion by 2031, registering a CAGR of 7.09% during the forecast period. The global bus market continues to expand as governments prioritize public transport, emission reduction, and fleet modernization.

The current bus market growth trajectory is closely linked to zero-emission procurement mandates, battery-electric fleet adoption, and policy-backed investments in urban mobility. Public transit agencies remain the core buyers, while school transportation, intercity mobility, and tourism fleets are also contributing to the overall bus industry demand outlook.

Key Bus Market Trends Shaping the Industry

Electrification Across Public Transit Fleets: One of the most visible bus market trends is the accelerating shift toward battery-electric buses. National and regional zero-emission mandates are requiring public operators to phase out diesel purchases. Cities across Asia-Pacific, Europe, and North America are aligning tenders with clean mobility targets.

National Zero-Emission Procurement Policies: Government-backed funding programs and regulatory mandates are influencing bus industry procurement cycles. Policies in major regions are requiring public agencies to transition toward zero-emission fleets within defined timelines. These directives are providing clearer visibility into long-term bus market growth opportunities for manufacturers.

Urban Air-Quality Regulations in Mega Cities: City-level air-quality restrictions are pushing operators to adopt electric fleets in high-density corridors. Restrictions on diesel buses in urban cores are reinforcing demand for battery-electric alternatives. This regulatory push is expected to strengthen the electric segment's contribution to the overall bus market size during the forecast period.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/bus-market?utm_source=abnewswire

Bus Market Segmentation Analysis

By Propulsion Type

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Hybrid and Electric Vehicles

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Internal Combustion Engine

By Deck Type

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Single

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Double

By Application

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Transit Bus

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Intercity Bus / Motorcoach

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School Bus

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Other Applications

By Seating Capacity

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Up to 30 Seats

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31 - 50 Seats

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More than 50 Seats

By Bus Length

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Up to 9 m

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9 - 12 m

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More than 12 m

By Region

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North America

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South America

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Europe

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Asia-Pacific

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Middle East and Africa

Competitive Landscape and Bus Industry Leaders

The global bus market is moderately fragmented, with both global and regional manufacturers competing across propulsion platforms and geographies. Chinese manufacturers benefit from vertically integrated battery supply chains, while European and North American players focus on service-based differentiation.

Key players operating in the bus industry include:

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BYD Company Ltd.

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Yutong Bus Co., Ltd.

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Daimler Truck Holding AG

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Volvo AB

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Tata Motors Limited

Conclusion

The global bus market forecast points toward sustained expansion driven by electrification mandates, public transport investments, and urban sustainability goals. While diesel buses continue to operate across many regions, structural policy shifts indicate a long-term transition toward electric platforms within the bus industry.

Transit fleets will remain central to the bus market size, while school buses and compact electric buses add incremental bus market growth opportunities. Infrastructure development and financing innovation will play a decisive role in accelerating adoption.

Overall, the bus market is moving toward a cleaner and service-oriented operating model. As regulatory clarity improves and energy ecosystems mature, manufacturers and operators that adapt quickly to evolving bus market trends are likely to secure stronger competitive positions in the coming years.

Industry Related Reports

Refrigerated Trailer Market: The refrigerated trailer market is witnessing steady growth driven by rising demand for temperature-controlled logistics across frozen foods, dairy, meat, seafood, and pharmaceutical supply chains.

Get more insights: https://www.mordorintelligence.com/industry-reports/refrigerated-trailer-market?utm_source=abnewswire

Heavy-Duty Trucks Market size: The heavy-duty trucks market size stood at USD 232.57 billion in 2026 and is projected to reach USD 301.23 billion by 2031, advancing at a CAGR of 5.31%.

Get more insights: https://www.mordorintelligence.com/industry-reports/heavy-duty-trucks-market?utm_source=abnewswire

Semi-Trailer Market share: The semi-trailer market reached USD 33.12 billion in 2026 and is projected to grow at a CAGR of 6.73%, reaching USD 45.87 billion by 2031.

Get more insights: https://www.mordorintelligence.com/industry-reports/semi-trailer-market?utm_source=abnewswire

About Mordor Intelligence

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.

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