School Bus Market Report 2026

The school bus market size has grown strongly in recent years. It will grow from $19.31 billion in 2025 to $20.29 billion in 2026 at a compound annual growth rate (CAGR) of 5.1%. The growth in the historic period can be attributed to expansion of public school transportation programs, increasing student enrollment in urban areas, availability of government-funded school bus fleets, established diesel school bus infrastructure, standardization of school transport safety norms.

The school bus market size is expected to see strong growth in the next few years. It will grow to $24.67 billion in 2030 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to increasing investments in zero-emission school transportation, rising government incentives for electric buses, expansion of smart fleet management systems, growing focus on reducing student exposure to emissions, increasing adoption of connected vehicle technologies. Major trends in the forecast period include increasing adoption of electric school buses, rising integration of advanced safety systems, growing use of fleet monitoring technologies, expansion of alternative fuel school fleets, enhanced focus on student transportation safety.

The growing number of school enrollments is expected to drive the expansion of the school bus market in the coming years. School enrollment refers to the process of registering to attend an educational institution and specific courses, encompassing the total number of students currently enrolled in a school or program. The rise in school enrollments is supported by global literacy initiatives and improved access to education, particularly in developing regions. School buses play a critical role in safely transporting students to and from schools and school-related activities. For example, in November 2024, according to the Institute of International Education (IIE), a U.S.-based educational organization, the total number of international students increased by 3% in the 2024/25 academic year compared to the previous year. As a result, increasing school enrollments are supporting the growth of the school bus market.

Major players in the school bus market are concentrating on technological advancements, such as type-D school buses, to enhance customer service. A Type D school bus is built using a stripped chassis and is commonly used for transporting students in densely populated and highly trafficked areas, offering improved front service doors and driver visibility. For example, in October 2023, GreenPower Motor Company Inc., a Canada-based electric bus manufacturer and distributor, unveiled the Mega BEAST, an all-electric Type D school bus featuring the longest range and largest battery pack in the market. With a 387 kWh battery pack, the Mega BEAST can travel up to 300 miles on a single charge, making it suitable for longer routes, rural regions, and school districts lacking mid-day recharging facilities.

In February 2023, Transdev Canada Inc., a Canadian multi-modal transportation company, acquired Kunkel Bus Lines Ltd. for an undisclosed sum. This acquisition is intended to strengthen Transdev Canada Inc.'s presence in Ontario by integrating 100 school buses in the Hanover area, thereby improving its capacity to offer customized multi-modal transportation solutions to local communities. Kunkel Bus Lines Ltd., a Canadian company, specializes in providing school bus services.

Major companies operating in the school bus market report include Blue Bird Corporation, Thomas Built Buses, IC Bus, Collins Bus Corporation, The Lion Electric Co., GreenPower Motor Co. Inc., Trans Tech Bus Inc., Van Con Inc., Starcraft Corp., Superior Coach Corp., Endera Motors, Yutong Bus Co. Ltd., Ashok Leyland Ltd., Tata Motors Ltd., SML Isuzu Ltd., Navistar Inc., Daimler Truck AG, AB Volvo, Eicher Motors Ltd., Mahindra and Mahindra Ltd.

North America was the largest region in the school bus market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the school bus market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the school bus market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The school bus market consists of sales of conventional school buses, electric school buses, hybrid school buses, and school bus parts and components. 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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