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Autonomous Bus Software Market Size – By Functionality, Deployment, Propulsion, Autonomy Level, Application, End Use and Growth Forecast, 2026-2035
Report ID: GMI13373
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Published Date: February 2026
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Report Format: PDF
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Authors: Preeti Wadhwani, Aishvarya Ambekar
Premium Report Details
Base Year: 2025
Companies covered: 25
Tables & Figures: 375
Countries covered: 25
Pages: 265
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Autonomous Bus Software Market
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Autonomous Bus Software Market Size
The global autonomous bus software market was estimated at USD 1.04 billion in 2025. The market is expected to grow from USD 1.27 billion in 2026 to USD 9.23 billion in 2035, at a CAGR of 24.7% according to latest report published by Global Market Insights Inc.
As cities around the world pursue more eco-friendly and efficient mobility solutions, the demand for autonomous buses, supported by cutting-edge software, is rapidly increasing. With the global push toward reducing traffic congestion, pollution, and enhancing the overall urban mobility experience, autonomous buses are emerging as a key component in the future of public transportation. A major driver of growth is the increasing collaboration between technology providers, automotive manufacturers, and local governments. These partnerships are accelerating the development and deployment of autonomous bus solutions across various regions. By leveraging sophisticated sensors, AI, machine learning, and cloud-based analytics, these buses can offer real-time navigation, optimize route management, and ensure enhanced passenger safety.
In July 2024, Hamburg, Germany, launched a large-scale pilot program for autonomous electric buses, aiming to become a "smart city" with sustainable mobility. Backed by Volkswagen Group, Deutsche Bahn, and several tech providers, the buses, equipped with AI, sensors, and cloud-based software, navigated complex urban environments and integrated into the city’s existing public transport system. This showcased the potential for seamless operation in mixed-traffic environments, while reducing carbon emissions. The initiative represents a significant step toward the global adoption of autonomous buses in urban transport.
The COVID-19 pandemic significantly disrupted global industries, including the transportation and mobility sectors, by forcing a shift in how people and goods move. Public transportation systems faced massive declines in ridership due to lockdowns and social distancing measures, leading to financial strain. However, the crisis also accelerated the adoption of technology, including autonomous vehicles, as cities and companies sought solutions to minimize human contact while maintaining transportation services. In the wake of the pandemic, there was an increased emphasis on contactless, automated, and safe transit solutions, which accelerated interest in autonomous buses. As public health concerns continue to influence urban mobility trends, the pandemic has underscored the need for more resilient, tech-driven public transportation systems that can withstand future crises.
The growing emphasis on smart cities is also propelling the adoption of autonomous bus solutions. With the integration of intelligent transportation systems (ITS), autonomous buses can communicate with other vehicles, traffic infrastructure, and transit management systems, facilitating seamless operation and reducing the potential for accidents. Government initiatives aimed at increasing urban mobility, reducing emissions, and enhancing public transportation services are also fueling market growth. For example, cities like Singapore and Helsinki have already initiated pilot programs for autonomous buses, setting a global example for the future of mobility.
The Asia-Pacific region, particularly China and South Korea, is poised for substantial growth in the autonomous bus software market. The rapid pace of urbanization, strong government support for autonomous vehicle (AV) technology, and growing demand for innovative transportation solutions make this region a critical market. In China, government-backed initiatives such as Made in China 2025, focusing on innovation and smart manufacturing, are accelerating the development of autonomous vehicle technologies. Additionally, the region's massive investment in smart cities and 5G infrastructure lays the foundation for widespread autonomous bus adoption.
8.93% Market Share
Collective Market Share is 37.4%
Autonomous Bus Software Market Trends
Autonomous buses are increasingly relying on AI-driven vision-based navigation systems that use computer vision and machine learning to interpret data from cameras, sensors, and LiDAR devices in real-time. Unlike traditional mapping methods that rely on pre-existing digital maps, this approach allows buses to dynamically understand and adapt to their environment, such as identifying pedestrians, traffic signals, and road markings. By doing so, these systems can enhance safety and route optimization, ensuring the bus operates efficiently even in complex or changing traffic conditions.
In March 2024, Stellantis Ventures made a significant investment in artificial intelligence (AI) technology aimed at improving LiDAR-based systems for driver assistance and autonomous vehicles. This investment was focused on advancing the development of cost-effective AI systems that enable real-time decision-making without the need for pre-mapped routes. By improving computer vision and sensor fusion capabilities, Stellantis seeks to offer smarter and more affordable solutions for autonomous transportation, helping to push the automotive industry toward safer and more efficient self-driving solutions.
As the transportation sector pivots toward sustainability, the integration of electric drivetrains and autonomous technology is becoming increasingly important. Autonomous buses are not only being designed to improve efficiency and safety but also to reduce the environmental impact of public transportation. Many cities are now incorporating electric autonomous buses into their fleets, capitalizing on the dual benefits of autonomous technology and clean energy to reduce carbon emissions and operating costs.
In January 2024, ABB announced its acquisition of a controlling stake in Meshmind, a company specializing in AI and Industrial IoT solutions. Meshmind's machine vision and AI technologies are expected to complement ABB's efforts to develop more sophisticated electric autonomous systems. The partnership aims to integrate AI with electric drivetrains for smarter and more sustainable automation systems, with a focus on enhancing the efficiency of autonomous buses and vehicles. This acquisition supports ABB’s broader goal of advancing electric and autonomous mobility solutions across multiple industries.
Autonomous Bus Software Market Analysis
Based on functionality, the market is divided into fleet management software, autonomous driving, traffic management, passenger management, safety & security, bus route design. The autonomous driving segment dominated the market accounting by 36.08% share in 2025 and is expected to grow at a CAGR of 26.1% from 2026 to 2035.
Based on autonomy level, the autonomous bus software market is divided into level 3, level 4, level 5. The level 4 is the largest segment in market and was valued at USD 671.6 million in 2025.
Based on end use, the market is categorized as public transportation authorities, private transport operators, and corporate fleets. Public transportation authorities segment dominated the market with 53.8% share in 2025 and is expected to grow at a CAGR of 25.5% between 2026 to 2035.
Based on deployment, the autonomous bus software market is divided into cloud based, On-premises and hybrid. Cloud based dominated the market and was valued at USD 579.4 million in 2025.
Based on application, the autonomous bus software market is divided into public transport, campus and corporate shuttles, airport shuttles, others. Public transport is the largest segment in market and was valued at USD 518.1 million in 2025.|
China autonomous bus software market will grow tremendously with CAGR of 27.1% between 2026 and 2035.
US autonomous bus software market will grow tremendously with CAGR of 25.2% between 2026 and 2035.
The Germany autonomous bus software market in Europe will experience robust growth of 26.1% between 2026 and 2035.
The Brazil will experience robust growth of 22.2% between 2026 and 2035.
UAE autonomous bus software market will grow tremendously with CAGR of 20.3% between 2026 and 2035.
Autonomous Bus Software Market Share
Autonomous Bus Software Market Companies
Major players operating in the autonomous bus software industry include:
Baidu
Autonomous Bus Software Industry News
In September 2025, under Karsan & RATP partnership they launched the Autonomous e-ATAK, the first Level 4 serial-production bus to carry passengers on the 4.5-kilometer Paris 393 bus route. This is a major real-world integration into a high-density urban transit line.
In April 2025, Guident launched a pilot in West Palm Beach, Florida, featuring the MiCa autonomous shuttle. The defining software feature here is Guident's Remote Monitoring and Control center, which allows a human operator to "tele-operate" or oversee multiple buses from a central hub, solving the "edge case" problem where buses get stuck in unexpected construction.
The autonomous bus software market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) volume (Million Units) (from 2022 to 2035), for the following segments:
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Market By Functionality
Market By Level of Automation
Market By Deployment model
Market By Application
Market By End Use
The above information is provided for the following regions and countries: