PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1725063
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1725063
According to Stratistics MRC, the Global Airport Bus Market is accounted for $17.79 billion in 2025 and is expected to reach $43.45 billion by 2032 growing at a CAGR of 13.6% during the forecast period. Airport buses are specialized transportation services that are intended to make it easier for people to move between airport terminals and airplanes or between the airport and neighboring hotels, parking lots, or city centers. Air conditioning, real-time information systems, low floors for easy boarding, and spacious interiors are common features of these buses, which are designed to comfortably carry passengers and their belongings. Moreover, airport buses are essential to the seamless and effective ground transportation of airports, especially in large or crowded hubs where direct access to gates is limited or walking distances may be considerable.
According to the International Air Transport Association (IATA), global air passenger traffic is projected to reach 8.2 billion passengers by 2037, highlighting the growing need for efficient ground transportation solutions.
Increase in air passenger volume
One of the main drivers of the airport bus market is the rise in air travel worldwide, which is being driven by urbanization, economic expansion, and the emergence of low-cost carriers. Domestic and international travel is increasing at an especially rapid rate in emerging markets in Asia, Africa, and Latin America, which calls for effective ground handling systems. In airports where direct jet bridge access is restricted or not available for all gates, airport buses provide a scalable way to move passengers across expansive terminals. Additionally, airports can lower gate turnaround times and manage peak traffic volumes with their flexible deployment.
Expensive start-up and ongoing expenses
The purchase, installation of charging infrastructure, and maintenance equipment of airport buses, particularly electric and hybrid models, necessitate a substantial initial investment. Even though these vehicles save money over time, many airports still find the initial outlay prohibitive, especially in developing nations with tight budgets. Expenses for driver education, battery replacement, and specialized service facilities can add significantly to the cost of a vehicle. Furthermore, incorporating smart technologies like automated dispatch systems or real-time tracking adds to the financial complexity, making it harder for smaller airports or privately run terminals to defend the investment.
Utilizing connected and autonomous vehicle technology
The development of connected and autonomous car technologies offers the airport bus market a game-changing opportunity. Controlled airport settings with fenced perimeters, low speeds, and predictable routes are the perfect setting for testing driverless shuttle buses. The autonomous shuttles that are operated at Changi and Frankfurt airports are two examples. Combining V2X communication can increase efficiency even more by enabling buses to communicate with control towers, gates, and traffic lights. Moreover, smarter and more responsive ground transportation systems are made possible by autonomous buses, which lessen reliance on human drivers, cut operating expenses, and minimizes delays brought on by human error.
Competition from other terminal transportation systems
Traditional airport buses are under threat from the rise of alternative intra-airport transportation options like automated people movers (APMs), high-speed rail connections, underground trains, and even moving walkways. These systems provide driverless, continuous, high-capacity services that can be faster, more convenient, and more scalable than buses, especially in major international hubs. Reliance on bus fleets may be lessened or eliminated at airports that give priority to these fixed systems during expansions. Additionally, these systems frequently draw funding from the public or private sectors, hastening their deployment and relegating buses to supporting roles.
Due to lockdowns, border closures, and travel restrictions that brought passenger traffic to a near halt, the COVID-19 pandemic had a significant and immediate impact on the airport bus market. Long-term inactivity at several airports resulted in the suspension or drastic cutback of airport shuttle services. Furthermore, airports were also forced to restrict the number of passengers per bus due to increased hygienic concerns and social distancing norms, which further reduced operational efficiency. Even though the market has started to rebound as travel has increased, the pandemic has permanently changed priorities in favor of flexible, hygienic, and contactless transit options, forcing operators to reconsider fleet management and design tactics.
The electric segment is expected to be the largest during the forecast period
The electric segment is expected to account for the largest market share during the forecast period. The growing focus on lowering carbon emissions, noise pollution, and reliance on fossil fuels in airport operations is what is causing this dominance. Significant advantages of electric airport buses include reduced operating costs, silent operation, and adherence to strict environmental regulations. With the help of government incentives, advancements in battery technology, and growing infrastructure for charging, airports are giving priority to electric fleets as part of their green infrastructure plans.
The terminal transfer segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the terminal transfer segment is predicted to witness the highest growth rate, driven by the growing need for smooth and effective passenger transfers between terminals. Because travelers frequently have to switch between terminals for connecting flights, this growth is especially noticeable in major international airports. Reliable and prompt terminal transfer services are now more important than ever due to the growth of airport infrastructure and the increase in air travel. Additionally, the overall travel experience is being improved by the use of contemporary airport buses to make these transfers easier and guarantee that travelers can travel between terminals swiftly and comfortably.
During the forecast period, the Europe region is expected to hold the largest market share. A strong public transportation system, a well-established aviation industry, and effective government programs encouraging the use of electric and hybrid buses are the main drivers of this dominance. In order to handle large passenger volumes, the area is home to some of the busiest international airports in the world, which call for effective and environmentally responsible ground transportation options. Furthermore, adoption of electric buses has accelerated due to strict environmental regulations and government incentives, improving passenger experience and supporting sustainability goals.
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, driven by nations like China and India's growing demand for air travel, economic growth, and fast urbanization. India's airport network has doubled from 74 in 2014 to 148 in 2023, indicating a notable increase in air travel and the need for improved ground transportation options. The adoption of environmentally friendly airport transportation options is further supported by the region's strong manufacturing base for electric and hybrid buses. Moreover, the region's top growth prospects in the airport bus market are also a result of the development of airport infrastructure and the increased focus on sustainability and passenger convenience.
Key players in the market
Some of the key players in Airport Bus Market include BYD Company Ltd., Kiitokori OY, Yutong Bus Co. Ltd, AB Volvo, Weihai Guangtai Airport Equipment Co. Ltd., Mallaghan Inc, Cobus Industries GmbH, TAM-Europe, BMC Corporation, Ashok Leyland Limited, JCBL Limited, Aeromobiles Pte Ltd and Tata Bus.
In January 2025, Ashok Leyland has partnered with ESAF Small Finance Bank to provide vehicle financing options to its customers. The memorandum of understanding was signed in Chennai today between Viplav Shah, Head of LCV Business at Ashok Leyland, and George Oommen, Business Head of General and Mobility Loans at ESAF Small Finance Bank.
In October 2024, Volvo Group and Daimler Truck have signed a binding agreement to establish a new 50/50 joint venture to develop a software-defined vehicle platform for heavy duty vehicles and drive the industry transformation. The new company aims to set an industry standard with headquarters in Gothenburg, Sweden.
In September 2024, BYD Automotive GmbH and Hedin Mobility Group have entered into an agreement for the sale of the subsidiary Hedin Electric Mobility GmbH, the appointed Dealer+ of BYD vehicles and spare parts in the German market. The transaction also includes a business transfer of the two pioneer stores in Stuttgart and Frankfurt which are operated by Hedin Mobility Group's German retail division.