Autonomous Bus Market Size

The global autonomous bus market size was valued at USD 2.1 billion in 2024 and is projected to grow at a CAGR of 18.9% between 2025 and 2034. The primary growth driver of the market is the increasing demand for sustainable and efficient public transportation systems. Governments worldwide are investing in smart city initiatives, supporting the integration of autonomous buses to reduce traffic congestion and carbon emissions.

Advancements in AI, IoT, and sensor technologies are enabling safer and more reliable autonomous operations, encouraging adoption. The need for cost-effective transportation solutions is further driving interest in shared autonomous mobility services. Environmental regulations are pushing public transit agencies to transition toward electric and autonomous fleets. Additionally, pilot programs and collaborations between manufacturers and municipalities are accelerating market readiness and consumer trust.

For instance, according to GMI, Autonomous Vehicle Market size was valued at USD 2 trillion in 2023 and is estimated to register a CAGR of over 13.5% between 2024 and 2032. Thus, this surge in adoption for connected and autonomous vehicles is anticipated to generate demand for autonomous bus in the coming years.

Another significant driver of the autonomous bus market is the rapid urbanization in developing and developed regions. Increasing population density in urban areas has led to higher demand for advanced public transportation solutions. Autonomous buses offer improved operational efficiency, reduced labor costs, and optimized route management, making them ideal for congested cities. The integration of autonomous buses with smart traffic management system enhances overall urban mobility. Furthermore, the focus on enhancing passenger safety and convenience is pushing governments and transit agencies to invest in autonomous technologies.