Market Research Report
Bus Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||823707|
|Published||Content info||122 Pages
Delivery time: 2-3 business days
|Bus Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: April 1, 2019||Content info: 122 Pages||
The bus market (henceforth, referred to as the market studied) is expected to reach USD 72.43 billion by 2024, projecting a CAGR of 7.58%, during the forecast period (2019 - 2024). The total bus stock in 2017 amounted to 17.2 million units.
The bus market is segmented by type, application, and fuel type.
The Transit Bus Segment is Expected to Witness the Fastest Growth in the Coming Years
The transit bus segment of the market studied was valued at USD 29.69 billion in 2018, and it is expected to project a CAGR of 8.78%, during the forecast period.
A transit bus is a type of bus used for shorter-distance routes within metropolitan cities and other urban areas by public transport service providers. These buses are also used by private transport companies on a public contract or fully independent basis. Almost half of the world's population lives in cities, which makes optimized public transport a top priority for local and national governments. Working professionals and common public in the developing economies depend on transit systems to cater to their transportation needs, in turn, driving the demand for these buses.
Transit buses running on diesel and other fossil fuels have been a major cause of pollution in cities across the world. Therefore, the market for transit buses is witnessing a paradigm shift toward electric buses. This shift is supported by many governments for tackling environmental issues.
In 2015, the Chinese government began subsidizing the purchase of electric buses, encouraging transit systems to replace their diesel, CNG, LNG, and gasoline transit buses. Owing to this, sales of battery-powered models in the country increased dramatically. As of December 2018, China is the largest market for transit electric buses. In December 2018, the California Air Resources Board (CARB) voted on a regulation for transition to 100% zero-emission bus fleets by 2040. Programs like these are expected to become major drivers for the transit bus segment of the market studied over the forecast period.
Europe is Expected to Witness the Second-fastest Growth Rate
The European region is expected to witness the second-fastest CAGR of 7.50%, during the forecast period.
In Europe, in 2018, the United Kingdom dominated the market and accounted for 20.22% share of the total market, followed by Germany, France, and Spain. In the United Kingdom, buses are the most frequently used mode of transport. In 2017, 4.4 billion bus trips were made across England, and buses accounted for approximately 59% of all public transport trips in Great Britain, compared to 21% by rail.
Local bus passenger journeys have been continually declining in London, English metropolitan areas, English non-metropolitan areas, England, Scotland, Wales, and Great Britain. The prime reason is the steep decline in travel on local government funded bus and privatization of buses (as bus operators can decide the routes they want to travel), which resulted in sparse services. However, owing to rise in pollution, and to reduce reliance on oil and dependence on oil producing countries, the country has been focusing on e-mobility. Moreover, clean air zones have been introduced in many cities of the United Kingdom, and commuters are deterred by the congestion and high parking costs, which in turn, is propelling the need for clean and efficient bus service in the country.
In Europe, the United Kingdom has the most number of electric buses, with hybrid electric buses currently running in many British cities, representing 18% of the Europe's entire fleet. The electrification of the country's road transport is still in its nascent stage, but the falling costs are expected to drive the growth of the market.
The bus market is fragmented, with the major players holding a competitive position in the market owing to their strong product portfolio, brand image, and a strong network of various dealers. The major players in the market studied include Daimler AG, Zhengzhou Yutong Bus Co., Volvo, Traton (Man, Scania, etc.), Tata Motors, Ashok Leyland, Alexander Dennis, etc.
The other players, such as Solaris, Navistar, IC Bus, etc., hold a relatively smaller market share. These companies are in the process of expanding their operations in the local and international markets.
The bus market is characterized by mergers, acquisitions, and collaborations between various manufacturers, who are trying to tap into the potential markets.