Buses and Coaches Market Report 2026

The buses and coaches market size has grown steadily in recent years. It will grow from $17.55 billion in 2025 to $18.37 billion in 2026 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to expansion of public transport fleets, diesel bus dominance, urban mobility needs, tourism sector growth, government fleet procurement.

The buses and coaches market size is expected to see strong growth in the next few years. It will grow to $22.91 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to electric bus subsidies, connected mobility platforms, emission regulations, autonomous driving pilots, smart fleet management. Major trends in the forecast period include shift toward electric and hybrid buses, adoption of connected vehicle technologies, demand for low-emission fleets, growth of intercity coach services, focus on passenger comfort.

Rising urbanization is expected to propel the growth of the buses and coaches market. Urbanization, the increasing concentration of populations in cities and towns, creates conditions where buses and coaches become essential for integrated and sustainable public transportation. For instance, in December 2024, Our World in Data, a UK-based non-profit, reported that by 2050, the global population is projected to reach approximately 9.8 billion, with nearly 7 billion living in urban areas. Therefore, rising urbanization is driving the growth of the buses and coaches market.

Major companies in the bus and coach market are increasingly concentrating on creating technologically advanced solutions, such as electromobility platforms, to improve sustainability, lower emissions, and boost operational efficiency in public transportation. An electromobility platform is a comprehensive system that combines electric vehicles (EVs) with supporting technologies, including charging infrastructure, energy management, and software solutions. This platform aims to facilitate the transition to electric transportation by optimizing performance, enhancing user experience, and promoting sustainable mobility solutions. For example, in March 2024, AB Volvo, a Sweden-based financial services company, introduced BZR Electric to improve its electric bus offerings for city, intercity, and commuter operations. This platform features a modular energy storage system that enables customizable battery configurations tailored to various operational needs, enhancing efficiency and passenger capacity. Moreover, it includes advanced active safety systems designed to protect vulnerable road users, such as cyclists and pedestrians, surpassing EU safety regulations with features like a collision warning system that identifies both vehicles and pedestrians.

In June 2024, VDL Groep, a Netherlands-based company known for developing and producing a broad array of industrial products, acquired Van Hool for an undisclosed amount. Through this acquisition, VDL Groep intends to bolster its bus division, safeguard jobs, and improve its market presence while emphasizing sustainability and innovation in transportation. Van Hool is a Belgium-based engineering firm that specializes in the manufacturing of a wide range of buses and coaches.

Major companies operating in the buses and coaches market report include Mercedes-Benz Group AG, Volkswagen AG, CNH, INDUSTRIAL N.V. (IVECO subsidiary of CNH Industrial), YUTONG, Volvo, Hyundai Motor Company, Xiamen King Long United Automotive Industry, Ashok Leyland, Zhongtong Bus, ANKAI, Mitsubishi, Fiat Chrysler Automobiles, Scania, Toyota Motor Corporation, BYD Auto, Shaanxi Automobile Group, Beiqi Foton Motor Co., SAIC Motor Commercial Vehicle Co., MAN Truck & Bus SE, Irizar, Solaris, VDL, Gaz Group, UAZ, Elegantbus, Cento Bus, Bus Factory, Temsa, Karsan, Otokar, Tata Motors.

North America was the largest region in the buses and coaches market in 2025. Asia-Pacific was the second-largest region in the global buses and coaches market share. The regions covered in the buses and coaches market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the buses and coaches market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The buses and coaches market consists of sales of Intercity bus, double-decker bus, minibus and charter bus. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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