Coach Buses Market Size - By Propulsion (ICE {Diesel, CNG}, Electric, Hybrid), By Application, By End-User (Private Bus Companies, Government Authorities, Tour and Travel Companies, Educational Institutes), By Seating Capacity & Forecast, 2024 - 2032

Coach Buses Market Size

Coach Buses Market size was valued at USD 50 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032. Coach buses are a suitable alternative to private vehicles for long-distance travel since they are well-maintained and efficient transportation networks. For instance, according to the Asian Development Bank, as of 2022, approximately 70% of the urban population in Asian cities used public transportation services.
 

Coach buses are popular for tourism and group travel because they provide a practical and effective way to move big groups to events, activities, and tourist locations. Moreover, their capacity and affordability have made them a popular choice among tour operators, travel agencies, schools, and other groups.
 

To connect urban centers with suburban and rural areas, there is a growing demand for effective and dependable transportation choices as metropolitan populations continue to rise. Coach buses are essential for connecting individuals who live in different places by offering interstate and regional transportation services.
 

Furthermore, the growing concerns about environmental sustainability drive demand for eco-friendly transportation options, including electric and hybrid coach buses. Governments, businesses, and consumers are increasingly prioritizing sustainability, leading to a shift towards cleaner and greener transportation solutions. The emphasis on environmental sustainability encourages the adoption of electric and hybrid coach buses, resulting in higher sales and market growth for eco-friendly models as operators seek to reduce emissions and comply with regulations.
 

Alternative forms of transportation like flights, trains, private cars, and ride-sharing services compete with coach buses. It might be difficult for coach buses to draw customers when these alternatives, depending on the exact route, provide quicker travel times, more flexibility, or equivalent rates. Also, significant expenditures are associated with operating coach buses, including those related to fuel, upkeep, insurance, labor, and regulatory compliance. Operating costs can be impacted by changes in fuel prices, maintenance needs, and regulations, which could influence coach bus operators' profitability.
 

Coach Buses Market Trends

Coach buses are becoming equipped with electric and hybrid propulsion systems because of government emissions-reduction laws and environmental concerns. As opposed to conventional diesel-powered buses, electric buses provide quieter operation, fewer running expenses, and less environmental impact. Major coach bus manufacturers are integrating their supply chains and production facilities according to the demand for electric buses. For instance, in April 2024, VDL opened a 27,000 sq. m. facility in Belgium. The facility with an annual production capacity of 340 coach bus units is expected to open for delivery by the end of 2024.
 

With entertainment systems, passenger information screens, and onboard Wi-Fi, coach buses are becoming increasingly digitally connected. The passenger experience is improved by integrated digital platforms, which enable access to entertainment options, travel information, and onboard services.
 

Coach Buses Market Analysis

Based on propulsion type, the market is divided into ICE, electric, and hybrid. The ICE segment is expected to hold over 85% of the market share in 2023 and is expected to cross over USD 70 billion by 2032. ICE coach buses remain viable in areas with inadequate EV infrastructure, such as grid capacity and charging stations. In scenarios with few charging choices, long-distance drivers will still favor internal combustion engine (ICE) vehicles until EV infrastructure becomes more widely available and efficient. 
 

The familiarity and dependability of traditional engine technology are preferred by many operators and drivers who are used to internal combustion engine vehicles. Although electric buses have a positive impact on the environment and eventually result in cheaper operating costs, some operators may be reluctant to embrace new technology or encounter difficulties with infrastructure adaptation, maintenance, and training.
 

Based on end users, the coach buses market is categorized into private bus companies, government/public transportation authorities, tour and travel companies, educational institutions, and others. The private bus companies segment held around 52% of the market share in 2023. Coach buses are a popular choice for private bus companies looking to offer first-rate transportation services because they are more comfortable and feature-rich than standard buses.
 

Passengers' travel experience is made more pleasant and pleasurable with amenities including entertainment systems, Wi-Fi access, climate control, plenty of legroom, and reclining seats. Coach buses are a popular choice among private bus companies that specialize in intercity or cross-country routes because of their capacity, range, and comfort for passengers. These firms serve tourists looking for reasonably priced and easily accessible modes of transportation for longer trips.
 

Asia Pacific dominated the global coach buses market with a market share of over 50% in 2023. To promote urbanization and economic growth, governments in the Asia Pacific area are making significant investments in transportation infrastructure, such as roads, highways, and bus terminals. Better connectivity between cities and regions and the growth of coach bus networks are made possible by improved infrastructure.
 

Coach buses are frequently used by companies and organizations for group outings, corporate events, and employee transportation. This is especially true for off-site meetings, team-building exercises, and corporate retreats. The growing demand in a variety of use cases such as events, conventions, business travel, and business meetings, is expected to fuel coach buses market growth in North America.
 

The U.S. is a popular tourist destination, with millions of domestic and international tourists visiting each year. Coach buses are essential for sightseeing tours, group travel, and transportation to tourist attractions, contributing to market growth. Increasing urbanization and population growth in urban areas spur demand for intercity transportation services, with coach buses serving as a cost-effective and efficient mode of travel for passengers.
 

Germany has a well-developed and efficient public transportation system, with coach buses playing a vital role in providing intercity, regional, and international transportation services, supported by infrastructure investments and government policies.
 

The UAE's continuous efforts to build its infrastructure, such as roads, cities, and tourist attractions, are fueling the demand for coach buses. The increasing requirement for dependable and effective long-distance transportation choices is forecast to positively impact market growth, as the nation makes investments in its transportation network.
 

Coach Buses Market Share

Daimler AG and Volvo Group hold a significant market share in the coach buses industry. Daimler AG focuses on innovation and technology leadership to differentiate its coach buses in the market. The company continuously invests in research and development to incorporate advanced features, safety technologies, and sustainable propulsion systems into its coach bus models, enhancing their appeal to customers.
 

Volvo Group embraces digitalization and connectivity to improve the efficiency, safety, and performance of its coach buses. The company integrates advanced telematics systems, onboard sensors, and data analytics capabilities into its coach bus models, enabling real-time monitoring, predictive maintenance, and remote diagnostics, enhancing operational efficiency and customer value.
 

Coach Buses Market Companies

Major companies operating in the coach buses industry are:

• Alexander Dennis Limited (ADL)
• BYD Company Limited
• Daimler AG
• MAN Truck & Bus
• Scania AB
• Van Hool NV
• VDL Groep BV
• Volvo Group
• Yutong Group Co., Ltd.
• Zhongtong Bus Holding Co., Ltd.
   

Coach Buses Industry News

• In March 2024, Volvo Bus introduced a new Volvo BZR Electric for city, intercity, and commuter operations. The Volvo BZR Electric is built on a common e-mobility platform shared by the Volvo Group. The new line of electric buses offered by the company has increased the company’s share in 2-axle and 3-axle EV bus configurations.
   
• In August 2022, NueGo launched premium electric intercity coach services. The new product has increased the company’s mobility services portfolio across India.
   

The coach buses market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion), and shipments (Units) from 2021 to 2032, for the following segments:

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Market, By Propulsion

• ICE
  • Diesel
  • CNG 
• Electric
• Hybrid

Market, By Seating Capacity

• Up to 30 passengers
• 30-50 passengers
• Above 50 passengers

Market, By Application

• Intercity transportation
• Tour and travel
• Corporate shuttle services
• School transportation
• Rental services
• Others

Market, By End-user

• Private bus companies
• Government/public transportation authorities
• Tour and travel companies
• Educational institutions
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA