Double-decker Buses Market Size

Double-decker Buses Market size was valued at USD 15.1 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. The rising urbanization and population density across cities are driving market growth. As cities become more densely populated, the number of people who require transportation grows dramatically. Existing public transportation systems frequently fail to keep up with the increase in demand, resulting in overcrowding and lengthier travel times.

Double-decker buses have a large passenger capacity, generally transporting nearly twice as many passengers as single-decker buses. This enables them to effectively move a large number of passengers, decreasing congestion and improving overall traffic flow in densely populated metropolitan areas. Operating a fleet of double-decker buses can be less expensive for public transportation authorities as compared to running a larger number of single-decker buses to satisfy the same passenger demand.

The rapidly growing tourism industry is fueling the adoption of double-decker buses. Double-deckers are particularly popular for sightseeing trips due to their unique selling point, which is panoramic views. Tourists can view far more of the city on a tour than on a typical single-decker bus, improving the overall tourist experience. This specific advantage makes them an increasingly popular choice among tour operators, resulting in increased demand for double-decker buses.

For instance, in February 2024, The Kerela State Road Transport Corporation (Kerela RTC) expanded its double-decker bus service in Thalassery, after getting good response in Kochi and Thiruvananthapuram.  The bus can accommodate 33 people on the ground floor and 30 on the upper floor. The bus service connects major tourist centers in Thalassery including Thalasseri Kadalpalam, Jawahar ghat, Kota, Odathill Palli, Muzhupilangadi Beach, and Mahi Palli.

The high initial purchase and maintenance costs are a major challenge to the double-decker buses market, potentially slowing down its growth. Public transportation authorities, the principal consumers of double-decker buses, sometimes face stringent financial restraints.  Double-decker buses typically entail a higher initial cost compared to ordinary single-deckers, which could strain budget considerations. In rare circumstances, private businesses may run double-decker buses for specialized purposes, such as sightseeing excursions. The substantial initial investment might reduce profit margins, especially if ridership is insufficient. This prevents private enterprises from entering the market, restricting the possibility of market expansion.

Double-decker Buses Market Trends

Modern double-decker buses are outfitted with a variety of developments that considerably improve the passenger experience. Wi-Fi connectivity, USB charging connections, and even real-time trip information displays allow passengers to stay connected while on board. Onboard entertainment systems with multimedia capabilities can keep passengers entertained during long-distance travel. Sophisticated air conditioning and heating systems maintain a comfortable temperature throughout the bus, regardless of the weather outside.

Ergonomic seating with plenty of legroom and improved cushioning may considerably improve passenger comfort, especially on double-decker buses where ride quality is a problem for some. Lane departure alerts, blind-spot monitoring, and collision avoidance systems can greatly lower the likelihood of an accident while also improving overall safety. Furthermore, the development of electric and hybrid double-decker buses addresses environmental issues while lowering the operating costs associated with conventional diesel engines.

In February 2024, Sound Transit introduced a fleet of 48 electric buses, including 33 double-decker models, in Seattle, all equipped with InductEV's wireless charging technology. This will make Seattle the first location in North America to have double-decker electric buses with inductive wireless charging. This initiative aims to address urban challenges like limited real estate in green community districts by offering a seamless, high-powered charging solution without the spatial demands of traditional wired methods.

Double-decker Buses Market Analysis

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Based on propulsion, the market is divided into standard diesel, electric, and hybrid. The diesel segment accounted for a market share of around 80% in 2023 and is expected to reach around USD 19 billion by 2032. Diesel technology for buses is well established, with a track record of dependability and performance. This translates into easily available technology, a well-established maintenance infrastructure, and a large pool of qualified technicians, all of which help to reduce upfront costs when compared to younger alternative fuel choices.

Diesel is a commonly available commodity, with a well-established network of refilling stations in most places. This guarantees that double-decker buses have easy access to gasoline, avoiding operational disturbances that might otherwise occur with alternative fuels with a smaller refilling network.

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Based on the application, the double-decker buses market is categorized into public transit, tourism and sightseeing, charter and events, and others. The public transit segment accounted for around 65% of the market share in 2023. Double-decker buses have a major advantage in terms of passenger capacity. This is especially advantageous in congested metropolitan settings where increasing passenger throughput is crucial. In crowded areas, deploying a single double-decker bus may effectively transport as many people as several single-decker buses, minimizing traffic congestion and infrastructural pressure.

While double-decker buses have a greater starting cost, their large passenger capacity results in a cheaper cost per passenger than single-decker buses. This can result in considerable operating cost reductions for public transportation agencies in the long run. Along with this, governments worldwide are increasingly concentrating on enhancing public transportation infrastructure. 

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Europe hold a dominant market share of over 55% in the global double-decker buses market in 2023. Countries including France, Germany, UK, and the Netherlands, are witnessing significant growth in the market. European cities have a well-developed and frequently used public transportation system. People are accustomed to taking buses for transportation, making double-deckers an ideal choice for highly populated locations. European governments encourage sustainable urban mobility and frequently enforce higher emission standards. This offers an ideal atmosphere for electric or hybrid double-decker buses, which are environmentally friendly. Subsidies or tax benefits for public transportation agencies purchasing double-deckers might also encourage their use.

Double-decker buses are popular for special events, private parties, and charter services in the U.S. Event planners, wedding organizers, and corporate clients often rent these buses for group transportation, offering passengers a memorable and enjoyable experience.

The growing population in Asian countries, including China, India, and Southeast Asian nations are putting pressure on the current public transit infrastructure. Double-decker buses, with their massive capacity, provide an effective way to transport big groups of people in congested cities. Furthermore, the Asia Pacific region is a popular tourism destination.

The UAE, particularly cities like Dubai and Abu Dhabi, is a major global tourist destination known for its iconic landmarks, luxury shopping, and vibrant culture. Double-decker buses are popular for sightseeing tours, offering tourists panoramic views of skyscrapers, beaches, and other attractions. The steady growth of tourism in the UAE drives demand for double-decker buses in the tourism sector.

Double-decker Buses Market Share

Alexander Dennis Limited (ADL) and Wrightbus hold a significant market share in the double-decker bus industry. ADL has pursued an aggressive strategy of global expansion to tap into new markets and diversify its customer base. The company has established manufacturing facilities, sales offices, and service centers in key regions worldwide, including Europe, Asia Pacific, and North America. By expanding its geographic footprint, ADL capitalize on emerging opportunities and mitigate risks associated with market fluctuations in specific regions.

Wrightbus focuses on differentiation through innovative design and customization options for its double-decker buses. The company offers a range of customizable features, including seating layouts, interior amenities, and exterior branding options, allowing customers to tailor vehicles to their specific requirements. By providing unique appealing designs, Wrightbus attracts customers seeking distinctive and branded transportation solutions.

Double-decker Buses Market Companies

Major companies operating in the double-decker bus industry are:

• Alexander Dennis Limited (ADL)
• BYD Company Limited
• Daimler AG
• MAN Truck & Bus AG
• New Flyer Industries
• Scania AB
• Volvo Buses
• Wrightbus
• Yutong Group Co., Ltd
• Zhongtong Bus Holding Co., Ltd.
  

Double-decker Buses Industry News

• In April 2024, West Auckland's flagship bus service, the WX1, announced the launch of electric double-decker buses and plans to run fully electric double-decker buses starting in April 2025, under a new USD 109.5 million contract between Auckland Transport and bus operator Tranzit Group. More than 20 electric double-decker buses will be added to the AT fleet, with over half of the 40 new electric buses being double-deckers. The new electric buses will operate on the WX1, 11T/11W and 120 bus routes under the Tranzurban Auckland brand.
  
• In April 2024, AMTS (Ahmedabad Municipal Transport Services) launched three more AC double-decker buses. The buses were launched on new routes connecting different parts of Ahmedabad city. Each bus has a seating capacity of 65 passengers, with 29 seats on the lower deck and 36 on the upper deck. The double-decker buses are equipped with features like CCTV cameras, walkie-talkie sets, USB charging ports, and digital route boards.
  

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

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Market, By Propulsion

• Diesel
• Electric
• Hybrid

Market, By Seating Capacity

• Below 60 seats
• 60-80 seats
• Above 80 seats

Market, By Body-type

• Open-top
• Closed top

Market, By Application

• Public transit
• Tourism and sightseeing
• Charter and events
• 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
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA