Market Research Report
School Bus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
|School Bus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)|
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 90 Pages
Delivery time: 2-3 business days
The school bus market was valued at USD 3.71 billion in 2020, and it is expected to reach a value of USD 5.44 billion by 2026, registering a CAGR of around 6.59% during the forecast period.
In the wake of the COVID-19 pandemic, the global bus market is expected to witness nominal growth due to continuous lockdown and travel restrictions across the world. Many schools were still closed in some parts of the region to maintain the safety of children, as there is a high risk of contact of the virus to children. However, due to the availability of the COVID-19 vaccine and educational expert's assertion of missing practical knowledge for children, schools were permitted to reopen for higher class students first maintaining social distance norms and guidelines.
The advantage of school buses over the other modes of transport for students is also one reason for augmenting the market's growth during the forecast period. School buses are generally built with high safety standards, protective seating, rollover protection, etc. The increasing global population, especially in countries such as China and India, has led to a rise in the number of children enrolling in schools. This resulted in the increased demand for a large number of schools and adequate infrastructure for the education industry, which includes transportation and other amenities.
The increasing adoption of electric vehicles in the commercial vehicle segment has influenced the school bus segment, which is expected to drive the North American school bus market during the forecast period. China is another major market as the country is witnessing a transition towards electric buses, which could influence the school bus fleet as well. The Middle East is expected to be one of the new emerging markets, as various companies have been importing high volumes of school buses, mainly from Asian countries.
Reducing the emissions has increased the demand for alternative fuel-powered vehicles for public transport and increased the adoption of electric vehicles in the commercial segment to influence the school bus market during the forecast period.
More than 95% of the school buses worldwide run on fossil fuels, especially diesel. Numerous studies worldwide have shown that inhaling diesel exhaust causes respiratory diseases, which are seen widely in children who are the main commuters. Replacing all the school buses of only America itself with electric buses could avoid an average of 5.3 million tons of greenhouse gas emissions each year.
Electric buses give out zero emissions, and their annual operating cost is almost half of a diesel bus. In Shenzhen, China, it is expected that the incentives for electric transit buses would also be extended towards school buses, thus increasing their adoption. Few states in the United States, such as California, New York, etc., and Quebec in Canada, are also testing and adopting electric buses, which is expected to drive the market. The district of California has been at the forefront in the adoption of electric school buses. For instance,
The North American school bus market is anticipated to register a CAGR of over 4% during the forecast period (2021 - 2026). In the major North American countries, school transport is very organized and has been in existence for many decades. Hence, the demand has been stable for the past few years and is expected to be similar over the forecast period.
The market for school buses in North America is a consolidated one. The region is characterized by the presence of major school bus manufacturers who also cater to other countries. Blue Bird Corporation, IC Bus, and Thomas Built Buses Inc. are the three main players who are expected to occupy a major share of the market. Other major companies are Collins Bus Corporation, Micro Bird, and Lion Electric company. Moreover, companies are introducing new features in their products to increase their market share.
Canadian school buses are more or less similar to their US counterparts both in terms of design and usage by school systems. Buses are sometimes marketed to customers in Canada differently than in the United States. For instance, the Blue Bird All American was rebadged as the Blue Bird TX3 in Canada. Micro Bird and Lion Electric Company are the major school bus manufacturers from Canada.
In Mexico, along with the yellow school buses, various other types of buses are used for student transport. Depending on capacity needs, vans and minibusses are also used. Mexico mainly imports used and old school buses from the United States, but some newer ones are also imported and used school services. The school bus market is still in the nascent stage in Mexico, with very few manufacturers having a production plant in the country.
The school bus market is neither a fragmented nor consolidated one. The market is characterized by the presence of major school bus manufacturers who also cater to other countries. The market is mainly dominated by players based in the United States, China, and India. IC engines are expected to have a larger share, whereas electric buses are expected to be the fastest-growing segment. For instance,