Buses and Coaches Global Market Opportunities and Strategies to 2032

This report describes and explains the buses and coaches market and covers 2017-2022, termed the historic period and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and the major economies within each region.

The global buses and coaches market reached a value of nearly $42,658.9 million in 2022, having increased at a compound annual growth rate (CAGR) of 3.4% since 2017. The market is expected to grow from $42,658.9 million in 2022 to $57,023.1 million in 2027 at a rate of 6.0%. The market is then expected to grow at a CAGR of 6.1% from 2027 and reach $76,629.6 million in 2032.

Growth in the historic period resulted from the emerging markets growth, a low-interest rate environment, a rapid urbanization, and the technological advancements. Factors that negatively affected growth in the historic period were the fluctuating prices of metals, the unpredictability in political fields and trade policies across countries, and the COVID-19 impact.

Going forward, an increasing demand for travel by bus, a rise in demand for mini-buses and coaches, the favorable government initiatives, and the emphasis on cutting carbon emissions will drive the market. Factors that could hinder the growth of the buses and coaches market in the future include the limitations associated with electric vehicles, an increasing demand for metro transportation in urban centers, the implementation of severe regulations related to CO2 emissions, and the Russia-Ukraine War impact.

The buses and coaches market is segmented by fuel type into diesel, electric and hybrid, and other fuel types. The diesel market was the largest segment of the buses and coaches market by fuel type, accounting for $31,561.1 million or 74.0% of the total market in 2022. The electric and hybrid market is expected to be the fastest-growing segment going forward at a CAGR of 10.5%.

The buses and coaches market is segmented by application into general transit, personal and recreational, tourist, and other applications. The general transit market was the largest segment of the buses and coaches market by application, accounting for $23,173.4 million or 54.3% of the total market in 2022. The tourist market is expected to be the fastest-growing segment going forward at a CAGR of 7.1%.

The buses and coaches market is segmented by body built into fully built, and customizable. The fully built market was the largest segment of the buses and coaches market by body built, accounting for $25,886.2 million or 60.7% of the total market in 2022. The customizable market is expected to be the fastest-growing segment going forward at a CAGR of 6.3%.

Asia-Pacific was the largest region in the buses and coaches market, accounting for 43.9% of the global market in 2022. It was followed by North America, Western Europe, and other regions. Going forward, the fastest growing regions in the buses and coaches market will be Western Europe and the Middle East, where growth will be at CAGRs of 7.4% and 7.3% respectively from 2022-2027.

The global buses and coaches market is concentrated, with a large number of players operating in the market. The top ten competitors in the market made up to 47.54% of the total market in 2022. Daimler Truck Group was the largest competitor with an 18.09% of the market, followed by Volkswagen AG with 10.47%, Iveco Group with 5.77%, Zhengzhou Yutong Bus Co., Ltd. with 5.08%, Volvo Group with 5.02%, Hyundai Motor Company with 0.67%, King Long United Automotive Industry Co., Ltd with 0.63%, Ashok Leyland with 0.63%, Zhongtong Bus Holding Co., Ltd. with 0.61%, and ANKAI with 0.57%.

The top opportunities in the buses and coaches market by fuel type will arise in the diesel market, which will gain $8,751.7 million of global annual sales by 2027. The top opportunities in the buses and coaches market by application will arise in the general transit market, which will gain $6,767.9 million of global annual sales by 2027. The top opportunities in the buses and coaches market by body built will arise in the fully built market, which will gain $8,489.8 million of global annual sales by 2027. The buses and coaches market size will gain the most in China at $3,257.7 million.

Market-trend-based strategies for the buses and coaches market include the product innovations, the development zero-emission coaches, the adoption of electric buses, the implementation of autonomous buses, the use of predictive maintenance, the use of 3D printing for vehicle manufacturing, and offering buses with hybrid drive systems.

Player-adopted strategies in the buses and coaches industry include a focus on enhancing the business operations by offering CO2-neutral vehicles based on batteries and hydrogen, a focus on introducing new electric buses and microbuses with self-driving capabilities through partnerships and collaborations, a focus on enhancing the business operations by increasing comprehensive, integrated capabilities in production, a focus on accelerating the public transportation system by offering new environmentally-friendly electric buses with zero emissions, and a focus on enhancing the business operations by taking big orders from the bus and coaches operators strengthening partnerships with them and also a focus on enhancing the product portfolio by launching new products.

To take advantage of the opportunities, the publisher recommends the buses and coaches companies to focus on zero-emission coaches, focus on electric buses, focus on autonomous buses, focus on predictive maintenance services, focus on 3D printing technologies, expand in emerging markets, partnering with local governments, provide competitively priced offerings, participate in trade shows and events, and target fast-growing application areas.