Europe Buses and Coaches Market Assessment, By Type [Buses, Coaches], By Length [Up to 8 Meter, 8-10 Meter, 10-12 Meter, Above 12 Meter], By Seating Capacity [Up to 30, 31-50, Above 50], By Region, Opportunities and Forecast, 2018-2032F

Europe buses and coaches market is projected to witness a CAGR of 4.61% during the forecast period 2025-2032, growing from USD 5.45 billion in 2024 to USD 7.82 billion in 2032. Buses and coaches are an ancillary sub segment of the commercial vehicles market. The market refers to vehicles manufactured primarily for specific modes of transportation, like public transport, school buses, tourism buses, and highway-bound buses.

Buses and coaches are designed to carry high volumes of people, often on a regular, fixed route or over long distances. They come in a range of sizes and configurations-including city buses, intercity coaches, mini-busses, and luxury touring coaches and this encompasses the production and sales of public transportation buses run by governments and private enterprises. Moreover, private coaches are used for tourism, corporate travel, and other niche applications. Europe buses and coaches Market players include significant manufacturers such as AB Volvo, Mercedes-Benz AG, and Scania CV AB, along with local and specialty companies catering to the local markets. All the key manufacturers contribute towards the development of public transportation by introducing new technologies and by strategic alliance like partnership, collaboration, any merger or acquisition to boost the growth of the market.

For instance, in June 2024, VDL Groep acquire parts of the bankrupt Flemish bus manufacturer Van Hool NV, including its production facility in North Macedonia. This move aims to bolster VDL's buses division and preserve approximately 1,600 jobs in the European bus industry.

Increasing Adoption of Electric Buses

One of the key drivers for the growth of the buses and coaches market in Europe is the increasing adoption of electric buses. This trend is largely fuelled by heightened environmental concerns and stringent emission regulations aimed at curbing pollution levels. Electric buses offer an eco-friendly alternative to conventional diesel-powered buses, significantly reducing carbon emissions and contributing to cleaner urban air quality. The European Union's commitment to green transportation is evident in its policies and funding initiatives.

For instance, in February 2025, it was announced that approximately USD 439.4 millions of EU funding was allocated to 39 projects to enhance alternative fuels infrastructure under the first cut-off deadline of the 2024-2025 Alternative Fuels Infrastructure Facility (AFIF). This includes charging points for heavy-duty vehicles. The AFIF call itself was launched in February 2024 with a total budget of approximately USD 1.041 billion.

Growth of Tourism in the Region Drives the Market

Europe has been one of the world's most favored tourist destination for a very long time. For example, in 2023, 54.5% of tourists in the EU were international visitors. Despite representing only 5.6% of the world's population and 3% of its land area, the EU attracted 54.5% of global international tourism arrival. Notably, six EU countries France, Spain, Italy, Germany, Greece, and Austria ranked among the key global destinations. Most travelers like to travel inter-city or intra-city by bus since they have more luxury and comfort for long-distance journeys. Again, for sightseeing purposes, buses are more preferred than cabs or taxis, which is another growth boost for Europe's bus and coach market.

For instance, in July 2024, European tourism hit new highs, with foreign arrivals up 6% and overnight stays up 7% in second quarter, surpassing 2019 levels. This reflects a year-on-year increase of 12% in arrivals and 10% in overnight stays.

Coaches Segment Dominates the Market

In many countries, long-distance travelers are increasingly opting for coaches. This has increased the demand for comfortable travel options. Moreover, the rising middle-class disposable income is also a factor considering in the increasing demand for intercity bus service usage. Furthermore, increasing health concern has boosted the demand for double-decker buses, which offer improved safety and hygiene, thereby accelerating growth in the market. In addition to this, the government as well the vehicle manufacturers are continuously working to expand the electric fleet across the world by considering the growing emission levels and advancing the battery technology to make electric vehicle a source for long distance travel.

For instance, in 2024, the city of Burgas, Bulgaria, incorporated 44 Irizar zero-emission electric buses into its public transport system. This fleet consisted of 34 units measuring 12 meters and 10 units of 18 meters, significantly bolstering the city's commitment to cleaner urban transportation. These modern electric buses contribute to reducing carbon emissions and improving air quality in Burgas

Digitization in Public Transportation Services

Rapid digitization is positively influencing the overall growth of the Europe buses and coaches market. Many small and medium operators are increasingly making their businesses available online, offering booking and payment services from their websites and mobile applications that ensure customer convenience and ease of access, thus reviving the industry. This shift towards digital solutions is transforming the passenger experience and streamlining operations. For instance, in early 2025, several European cities, including Paris, were upgrading their transit systems to incorporate AI-driven features in their ticketing systems. These advancements automatically calculate the best fares for passengers, eliminating the need to manually select options and ensuring the lowest possible cost, thereby boosting ridership.

Furthermore, the widespread adoption of contactless payments and mobile wallets in countries like the UK, Germany, and France has significantly expanded the infrastructure for digital ticketing services. This trend, bolstered by increasing smartphone penetration and a preference for cashless transactions, allows for quicker and more seamless boarding processes, reducing queues and improving overall efficiency. By integrating real-time schedules, personalized offerings, and various payment methods, digital platforms are attracting new demographics, including tech-savvy and regular travelers, and encouraging greater patronage of bus and coach services. This enhancement in operational efficiency and user convenience is a critical factor driving the robust growth of the European bus and coach market.

Future Market Scenario (2025 - 2032F)

Better passenger experience is the hallmark through which more engaging and efficient public transport solutions are evolving.

The increase in environmental concerns is demanding energy-saving, eco-friendly buses and coaches, and this is making manufacturers shift towards sustainable technologies.

Increasing advanced technologies, such as autonomous driving systems and enhanced safety features, will be integrated to attract the modern buses and coaches.

Key Players Landscape and Outlook

Europe buses and coaches market is seeing constant innovation as companies work to outdo each other in performance, energy efficiency, and unique features. The future looks bright, driven by growing demand for top-quality public transport, sustainability, and cutting-edge technology. Key focus areas include ensuring reliable supply chains, improving energy efficiency, and adopting eco-friendly practices. Partnerships and new technologies are expected to heighten competition and drive further advancements in this fast-evolving sector.

For instance, in October 2024, VDL Bus & Coach BV received a substantial order for 157 new generation VDL Citea electric buses from public transport operator Arriva for the West Brabant concession in the Netherlands. These buses, comprising 58 units of type LE-122 and 99 units of type LE-135, are scheduled for delivery starting in the first half of 2025. Such example shows a partnership between bus manufacturer and operator.