North America Bus Market Size, Share and Industry Analysis, Report | 2025-2034

Insight Pro Analytic
16 hours ago
6 min read

North America Bus Market Outlook

According to the report by Expert Market Research (EMR), the North America bus market attained a volume of 59.48 thousand units in 2024. The market is anticipated to witness moderate growth over the coming years, propelled by increasing investments in public transportation infrastructure, a rising emphasis on sustainable and eco-friendly mobility solutions, and technological innovations in vehicle manufacturing. The North America bus market is expected to grow at a CAGR of 2.60% between 2025 and 2034, reaching an estimated volume of 76.89 thousand units by 2034.

Buses serve as a crucial component of the transportation ecosystem across North America, facilitating efficient urban mobility, reducing traffic congestion, and offering cost-effective alternatives to private vehicle use. The market comprises a diverse range of vehicles including city buses, intercity buses, school buses, and electric buses. A growing focus on reducing carbon emissions and improving fuel efficiency is reshaping the regional bus market, with electric and hybrid buses witnessing increased adoption across both the United States and Canada.

Government support through incentives and regulatory mandates is also driving the transition toward low-emission transportation modes. Federal and state-level policies aimed at reducing the environmental impact of public transport are encouraging fleet modernization and the replacement of diesel-powered buses with electric alternatives. Furthermore, the growing emphasis on transportation equity and accessibility is prompting investments in inclusive and accessible bus networks across urban and rural areas.

North America Bus Market Size

The market size of the North America bus industry reflects its strategic importance in the region’s transportation network. Valued at 59.48 thousand units in 2024, the market is underpinned by robust demand from municipal transportation systems, school transportation services, and private transit operators. As cities continue to urbanize and populations grow, the need for scalable, efficient, and environmentally friendly public transit solutions is driving the steady expansion of the bus market.

The market's future growth is anticipated to be bolstered by increased government funding aimed at modernizing transit infrastructure, particularly in densely populated metropolitan areas. Additionally, the rising demand for school and shuttle buses in suburban and rural areas is contributing to market growth. Canada and the United States account for the majority of the regional demand, while Mexico is emerging as a significant market with growing investments in transportation networks and urban development initiatives.

North America Bus Market Share

The market share in the North American bus industry is distributed across various segments based on vehicle type, fuel type, and end-use applications. School buses continue to command a large share of the market, particularly in the United States, which operates the largest fleet of school buses globally. City buses also hold a substantial share due to their integration into municipal transportation systems in large cities such as New York, Los Angeles, Toronto, and Chicago.

In terms of fuel type, diesel buses currently dominate the market, but electric and hybrid buses are rapidly gaining ground. The electric bus segment is expected to grow significantly over the forecast period, fueled by sustainability initiatives and the availability of government subsidies for zero-emission vehicles. Leading manufacturers including Blue Bird Corporation, New Flyer Industries, Thomas Built Buses, and Gillig LLC hold a significant portion of the market due to their established distribution networks, technological expertise, and long-standing relationships with public and private transit authorities.

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North America Bus Market Trends

Several emerging trends are shaping the trajectory of the North America bus market. One of the most prominent is the shift towards electrification. With increasing environmental awareness and stricter emission regulations, transit authorities are prioritizing the adoption of electric buses. This trend is further reinforced by government grants and funding programs aimed at promoting sustainable transport, such as the Federal Transit Administration’s Low or No Emission Vehicle Program in the United States.

The integration of smart technologies in buses is another key trend influencing the market. Modern buses are being equipped with GPS tracking, Wi-Fi connectivity, digital ticketing systems, and real-time passenger information systems to enhance operational efficiency and rider experience. Additionally, automation is gaining traction with pilot projects for autonomous buses underway in select urban centers.

Customization and modular designs are also gaining popularity, allowing operators to tailor bus configurations based on specific route requirements, passenger capacity, and accessibility features. Furthermore, the increasing focus on safety and comfort is driving demand for features such as advanced braking systems, air purification units, and ergonomic seating.

Drivers of Growth

Multiple factors are driving the growth of the North America bus market. A primary driver is the rising demand for efficient public transportation solutions amid growing urban populations. Cities are experiencing increased traffic congestion and pollution levels, prompting authorities to invest in high-capacity and low-emission bus systems to promote sustainable urban mobility.

Another major driver is the regulatory push for environmental sustainability. With governments across North America setting ambitious targets for reducing greenhouse gas emissions, the demand for electric and hybrid buses is surging. Incentives such as tax credits, grants, and low-interest financing options are encouraging transit agencies to upgrade their fleets with cleaner alternatives.

The increase in school enrollment and student population in the United States is also contributing to the sustained demand for school buses. Meanwhile, the growth of the tourism sector and the need for reliable intercity travel options are supporting the adoption of coaches and shuttle buses. The emphasis on providing equitable and accessible transportation services to underserved communities is further bolstering investment in public transit solutions.

North America Bus Market Segmentation

The market can be divided based on voltage, power rating, application, end use and region.

Market Breakup by Fuel Type

Diesel
Electric / Hybrid
CNG
Fuel Cell
Others

Market Breakup by Bus Type

Intercity Bus
Intracity Bus

Market Breakup by Length

Up to 6 Meter
6 -8 Meter
8–10 Meter
12 Meter
18 Meter

Market Breakup by Body Type

Fully Built
Customisable Body

Market Breakup by Region

United States
Canada

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

Daimler Truck AG
AB Volvo
MAN SE
Marcopolo S.A.
Navistar, Inc.
Proterra
NFI Group
Blue Bird Corporation
Rev Group

North America Bus Industry Analysis

The North America bus industry is characterized by a competitive landscape with a mix of long-established manufacturers and emerging players. Established firms dominate due to their extensive distribution channels, trusted brand reputation, and longstanding partnerships with government bodies and private operators. However, the shift towards electrification is creating opportunities for new entrants and technology companies to disrupt the traditional market.

Strategic collaborations between automakers and technology firms are becoming increasingly common, particularly in areas such as battery development, autonomous driving, and smart infrastructure integration. Industry stakeholders are also investing in training and after-sales support services to enhance customer satisfaction and build brand loyalty.

The industry is also shaped by regulatory frameworks that mandate safety standards, emissions limits, and accessibility requirements. Compliance with these regulations is essential for market participation and can pose challenges for smaller manufacturers with limited R&D resources.

Challenges and Opportunities

Despite the positive growth outlook, the North America bus market faces several challenges. One of the key obstacles is the high initial cost of electric and hybrid buses, which can deter adoption among smaller transit agencies with constrained budgets. The lack of adequate charging infrastructure, especially in rural areas, further limits the widespread deployment of electric buses.

Regulatory complexities, particularly in cross-border operations between the United States, Canada, and Mexico, can also hinder market expansion. Additionally, supply chain disruptions and the shortage of critical components such as semiconductors have impacted production timelines and delivery schedules for new buses.

However, these challenges present opportunities for innovation and investment. Public-private partnerships can play a crucial role in overcoming funding gaps and infrastructure limitations. Expansion into underserved regions, particularly in Mexico and rural Canada, offers untapped market potential. Moreover, the rising interest in mobility-as-a-service (MaaS) platforms creates opportunities for flexible and on-demand bus services tailored to modern commuter needs.

North America Bus Market Forecast

The North America bus market is expected to witness stable and consistent growth over the forecast period. From 59.48 thousand units in 2024, the market is projected to reach 76.89 thousand units by 2034, expanding at a CAGR of 2.60%. This growth will be driven by ongoing investments in transit infrastructure, the transition to low-emission vehicle fleets, and the adoption of advanced technologies aimed at enhancing efficiency and passenger experience.

As urbanization continues and environmental concerns intensify, the role of buses as a cornerstone of sustainable public transportation is set to grow. Companies that invest in innovation, align with regulatory requirements, and focus on customer-centric solutions will be well-positioned to thrive in the evolving North America bus market landscape through 2034 and beyond.