The global bus market size was valued at USD 56.51 Billion in 2025. Resurgence in the tourism sector post-pandemic has triggered bulk orders for minibuses and luxury coaches, with operators in Europe and Southeast Asia expanding fleets to meet growing demand for intercity and cross-border travel. As a result, the market is expected to grow at a CAGR of 7.90% during the forecast period of 2026-2035 to reach a value of USD 120.88 Billion by 2035.
Growth in the market is largely driven by sustainable mobility mandates and smarter public transportation systems. Governments worldwide are setting emission goals and actively funding public transport revamps. For instance, India’s PM-eBus Sewa scheme, announced in 2023, allocated INR 57,613 crore to deploy 10,000 electric buses across on PPP model, which indicates a clear shift from policy drafts to implementation. In addition, The EU-funded ZeEUS project has been pivotal in testing electric buses in urban spaces, now influencing national policies. Colombia leads the Latin American market with over 1,500 electric buses operating as of late 2023.
B2B buyers, including fleet operators, city transit authorities, and private transport contractors, are targeting modular, AI-integrated, and ultra-low emission buses, accelerating the overall bus market development. The industry also observes that smart bus solutions are beginning to take precedence over traditional physical fleets. These solutions include onboard diagnostics, dynamic route optimization, and predictive maintenance.
In addition, rising fuel prices are making public transport, especially buses, more appealing to the cost-conscious passengers. As the prices of fuel escalate, the cost of running one’s vehicle also increases, which gives people a reason to look for cheaper means of transport. This leads to increased demand for buses as they offer a cheaper means of transport and reduce the cost incurred individually when travelling. More bus passengers surge the demand for development and procurement of more bus fittings and facilities, hence driving industry growth.
Market Size & Forecast
- Market Size in 2025: USD 56.51 Billion
- Projected Market Size in 2035: USD 120.88 Billion
- CAGR from 2026 to 2035: 7.90%