Bus Rapid Transit System Global Market Report 2024

The bus rapid transit system market size has grown rapidly in recent years. It will grow from $2.56 billion in 2023 to $2.83 billion in 2024 at a compound annual growth rate (CAGR) of 10.7%. The growth observed during the historic period in Bus Rapid Transit (BRT) systems can be attributed to several factors, including increased urbanization, growing environmental concerns, government initiatives promoting sustainable transportation, fluctuations in fuel prices influencing public transportation choices, and heightened public awareness of the benefits of efficient and environmentally friendly transit solutions.

The bus rapid transit system market size is expected to see strong growth in the next few years. It will grow to $4.05 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. The anticipated growth in the forecast period for Bus Rapid Transit (BRT) systems can be attributed to the increasing focus on smart city initiatives, goals related to climate change mitigation, the rise in remote working practices influencing transportation needs, government funding and policies supporting sustainable transit, and a continuous emphasis on enhancing the passenger experience. Major trends expected in the forecast period include the integration of BRT systems with intelligent transportation systems, innovations in articulated buses, the implementation of digital payment and ticketing systems, the use of data analytics for optimizing BRT performance, and the promotion of public-private partnerships (PPPs) in the development and operation of BRT infrastructure.

The projected rise in traffic congestion and air pollution is expected to significantly boost the bus rapid transit system market in the foreseeable future. Traffic congestion characterizes situations where increased vehicles on roads result in slower speeds and extended travel times. Simultaneously, air pollution encompasses harmful compounds in the air that pose health risks, often arising from vehicle emissions. Bus rapid transit systems offer dedicated lanes for buses, allowing them to traverse cities swiftly and bypass traffic congestion, thereby addressing this issue. Moreover, these systems incorporate clean vehicle technologies such as electric, hybrid, or compressed natural gas (CNG) buses, minimizing pollutants compared to conventional diesel buses. INRIX Inc. reported that in 2022, US drivers collectively spent almost 4.8 billion hours in traffic, with the average American driver losing $869 due to traffic delays, emphasizing the severity of congestion. Additionally, the American Lung Association's State of the Air 2023 report highlighted that approximately 119.6 million Americans, constituting around 36% of the population, reside in areas marked with unsatisfactory ozone or particle pollution levels in 2021. Consequently, the mounting concerns over traffic congestion and air pollution are key drivers propelling the bus rapid transit system market.

The increasing demand for sustainable transportation stands as another influential factor fueling the growth of the bus rapid transit system market. Sustainable transport denotes transportation methods that limit adverse social and environmental impacts, focusing on energy efficiency, low or zero emissions, and affordability. Bus rapid transit (BRT) systems align with sustainable transport goals, offering numerous environmental and societal benefits. BRTs are designed to be energy-efficient and low-emission, contributing to reductions in transportation-related carbon emissions. The International Institute for Sustainable Development noted that transport accounted for 64% of global oil consumption, 27% of overall energy use, and 23% of energy-related carbon dioxide (CO2) emissions in May 2021. This underscores the urgency and significance of adopting sustainable transport modes, thereby driving the growth of the bus rapid transit system market.

Local opposition poses a substantial constraint on the projected growth of the bus rapid transit system market within the forecast period. This opposition signifies resistance or objections originating from individuals or groups within specific communities or localities concerning proposed projects, policies, or changes that directly impact their area or neighborhood. The development and success of a bus rapid transit (BRT) system can be significantly affected by local opposition, influenced by factors such as objections from property owners, concerns regarding routes and infrastructure, and anxieties related to traffic congestion. For instance, as reported by The Conversation in May 2022, challenges such as inconsistent building designs, local opposition, and unforeseen costs led to considerable delays in the creation and execution of a transportation system, spanning multiple years. Although several construction phases have been completed or are underway, issues surrounding local opposition have affected the overall progress of the project. Consequently, hindrances caused by local opposition present a notable impediment to the growth of the bus rapid transit system market.

Prominent companies within the bus rapid transit system market are actively engaged in developing innovative products, notably automated transit buses, aimed at providing reliable and efficient customer service. An automated transit bus refers to a bus capable of operating without human intervention, employing a diverse array of sensors and software to navigate roads, halt at designated stops, and manage door operations. For instance, in January 2021, New Flyer of America Inc., a US-based provider of cutting-edge mobility solutions, introduced the Xcelsior AV automated transit bus. This heavy-duty automated bus integrates advanced driver assistance systems (ADAS) technology, compliant with Society of Automotive Engineers (SAE) Standard J3016 Level 4, and harnesses the zero-emission capabilities of New Flyer's Xcelsior CHARGETM battery-electric propulsion. Equipped with AutoDrive technology, functioning as the eyes and brain of the automated system, and AutoDrive By Wire (drive-by-wire system), serving as the hands and feet of the automated system, this bus effectively manages steering, braking, and throttle operations along its route, showcasing advancements in automated transit solutions.

In August 2022, Tata Motors Ltd., an esteemed automobile manufacturer based in India, successfully acquired Marcopolo S.A., although the specific financial details of the transaction remain undisclosed. This strategic acquisition is anticipated to propel Tata Motors' bus manufacturing segment while bolstering its global foothold in the bus market. Marcopolo S.A., based in Brazil, specializes in manufacturing rail coaches, buses, and rapid transit systems, thus bringing significant expertise and resources to Tata Motors' bus manufacturing endeavors. This acquisition aligns with Tata Motors' strategic objectives to broaden its business scope and enhance its position within the global bus manufacturing landscape.

Major companies operating in the bus rapid transit system market report are Mercedes-Benz Group AG, Siemens AG, BYD Auto Co Ltd., AB Volvo, Scania AB, Iveco S.p.A., Qingdao Hisense TransTech Co Ltd., Hino Motors Ltd., MAN SE, Transdev Group S.A., VDL Bus & Coach BV, Xiamen King Long Motor Group Co Ltd., Tata Motors Ltd., Zhengzhou Yutong Group Co Ltd., Ashok Leyland Ltd., Zhongtong Bus Holding Co Ltd., Solaris Bus & Coach sp. z o. o., NFI Group Inc., New Flyer Industries Inc., Marcopolo S.A., Gillig LLC, Anhui Ankai Automobile Co Ltd., Xiamen Golden Dragon Bus Co Ltd., Optare Group Ltd., Ebusco BV.

North America was the largest region in the bus rapid transit system market in 2023. The regions covered in the bus rapid transit system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the bus rapid transit system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The bus rapid transit system market includes revenues earned by entities by providing services such as traffic signal priority, off-board fare collection, elevated platforms and enhanced stations. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The main types of Bus Rapid Transit systems include articulated, bi-articulated, and traditional buses. Articulated buses are high-capacity buses with two or more rigid sections connected by a pivoting joint, protected on all sides by bellows, and featuring a cover plate on the floor. Seating capacities can vary, categorized as less than 50, 50-80-seater, and above 80, often associated with express, semi-express, and local services. BRT buses are powered by different fuel types such as diesel, natural gas, and others, and are utilized by both government and private entities.

The bus rapid transit system market research report is one of a series of new reports that provides bus rapid transit system market statistics, including bus rapid transit system industry global market size, regional shares, competitors with a bus rapid transit system market share, detailed bus rapid transit system market segments, market trends and opportunities, and any further data you may need to thrive in the bus rapid transit system industry. This bus rapid transit system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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