Express Buses Market Size

Express Buses Market size was valued at USD 29 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. The increasing urbanization and rising population are driving market growth. Urbanization frequently results in urban sprawl, in which cities grow outward. This creates larger distances between suburbs and city centers, making personal automobiles less useful owing to longer travel times and parking issues. Express buses provide a solution by quickly linking these booming suburbs to city centers, offering a faster and less expensive alternative to cars.

As urban populations grow, so does demand for public transit. Express buses, which have bigger capacity than conventional buses, can easily accommodate the increased population. They can meet intercity travel demands, easing the burden on intra-city public transportation networks. Urbanization generally draws a younger demographic, which is more willing to use public transit. Express buses, which prioritize cost and convenience, might be especially enticing.

In April 2023, the World Bank in its urban development report, stated that 56% of the world’s population – 4.4 billion inhabitants – live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050. By 2045, the world's urban population will increase by 1.5 times to 6.6 billion. Rapid urbanization will put a strain on different transportation services used in cities across the world, fueling the need for a fast and less crowded experience, thereby driving the demand for the express buses market.

The rising demand for passenger convenience and comfort is fueling the adoption of express buses. Express bus operators are investing in comfortable seats with plenty of legroom, reclining choices, and headrests to create a more relaxed travel experience and consider bigger seats with superior padding and an ergonomic design compared to regular buses. Many express buses now include individual entertainment systems with seatback displays or integrated iPads. Throughout their voyage, passengers may access a wide range of movies, TV shows, music, and even games.

A reliable Wi-Fi connection is becoming a standard feature, enabling passengers to stay connected, work remotely, or access entertainment content while traveling. Precise temperature control systems guarantee a comfortable cabin atmosphere throughout the year, minimizing concerns about extreme heat or cold throughout the entire trip. All these features further fuels the growth of the express bus market.

The presence of competing transportation modes is a major challenge to the express buses market, potentially slowing down its growth. High-speed rail provides much quicker travel times on certain lines, particularly between big cities. This might be a deal-breaker for time-conscious tourists, particularly businesspeople who are ready to pay a premium for speed.

The time savings and perceived comfort advantage offered by low-cost air carriers may persuade travelers away from express buses. For smaller groups or shorter excursions, ridesharing services such as Uber or Lyft provide door-to-door convenience and potentially reduced prices, particularly during off-peak hours. This can be a big challenge for express buses travelling shorter distances with several stops. Furthermore, the intense competition from other modes causes express bus firms to be extremely competitive in terms of pricing. This may restrict their capacity to invest in additional facilities or modifications to improve the passenger experience.

Express Buses Market Trends

The integration of telematics systems enables real-time monitoring of vehicle performance, location tracking, and fuel efficiency. This translates to greater scheduling adherence, better maintenance practices, and a more pleasant cabin atmosphere with the help of optimal temperature management. High-definition seatback entertainment systems or integrated iPads loaded with movies, TV shows, music, and even games provide a more interesting and restful experience for passengers, particularly on longer trips. Passengers use user-friendly smartphone applications to easily purchase tickets, manage bookings, check-in for excursions, and even follow the real-time position of their bus. This prevents the stress of waiting in lines and allows for greater flexibility in vacation planning.

Express Buses Market Analysis

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Based on buses, the market is divided into standard express buses, luxury express buses, sleeper express buses, and mini express buses. The standard express buses segment accounted for a market share of over 42% in 2023 and is expected to exceed USD 19 billion by 2032. Standard express buses are the most affordable option in the express bus industry. They often provide comfortable seating with basic facilities like as reclining seats and overhead storage but lack the additional features or luxuries available in higher-end sectors. This cost-effectiveness appeals to a wide spectrum of passengers, particularly budget-conscious consumers, students, and others who value affordability over luxurious facilities.

Standard express buses can transport a greater number of passengers than luxury or double-decker choices. This enables firms to provide more frequent departures on popular routes, adapting to increased passenger numbers and demand for travel during specified intervals. Standard express buses are an excellent alternative for short to medium-distance excursions, weekend getaways, and unexpected travel plans due to their regularity and low cost.

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Based on the propulsion, the express buses market is categorized into diesel, natural gas, hybrid electric, and others. The diesel segment accounted for over 87% of the market share in 2023. Diesel engines are much less expensive to acquire than alternative-fuel vehicles such as electric or hydrogen buses. This is an important factor for bus operators, particularly in areas with limited government subsidies or support for sustainable transportation programs.

Diesel fuel is still typically less expensive than electricity or hydrogen, particularly given the present infrastructure for refilling stations. This results in decreased operating expenses per kilometer for bus companies. Diesel petrol stations are widely distributed across most regions, making them well-suited for long-distance express bus routes. Along with this, diesel buses can be refueled considerably faster than electric buses, which take time to charge, or hydrogen fuel cell cars, which may require extensive refilling operations.

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Asia Pacific is the fastest-growing region in the global express bus market, with a major share of around 51% in 2023. The region is undergoing a steady increase in urban citizens. This generates a desire for rapid and economical interstate travel, making express buses an appealing alternative. As the region's economies expand, individuals have more money for leisure travel. Express buses provide a comfortable and affordable option to see new places. Many countries in the Asia Pacific area are focusing on public transportation development. This can include bus infrastructure upgrades, express bus lanes, and greener fuel policies.

The U.S. express buses market holds significant potential for growth, driven by factors like urbanization, rising disposable incomes, and advancements in bus technology. Express buses are in great demand in densely populated urban corridors such as the Northeast areas (Boston-Washington, D.C.) and Florida's metropolitan regions due to population concentration and limited high-speed rail choices.

California, with its emphasis on environmental sustainability, may see more rapid adoption of electric express buses, particularly for shorter routes between large cities. Federal and state emissions laws can impact the adoption of greener technology such as electric or hydrogen buses. Regions with more stringent environmental rules may experience a more rapid transition away from diesel-powered express buses.

European countries, including France, Germany, UK, and the Netherlands, are witnessing significant growth in the express buses market. As European cities expand, the demand for efficient and inexpensive intercity transportation alternatives such as express buses is set to rise. Some organizations collaborate with airlines or ridesharing services to offer multi-modal journeys that appeal to passengers looking for a convenient door-to-door experience.

Companies cater to certain populations with offers such as luxury express buses for corporate travelers. Moreover, countries in the Middle East and Africa (MEA) region, such as the UAE and Saudi Arabia, lack extensive railway networks, making express buses a crucial mode of long-distance travel, especially for connecting smaller towns and cities.

Express Buses Market Share

Daimler AG, Volvo, and Yutong Bus hold dominant positions holding market share over 19% in the express buses industry due to their extensive experience, global presence, and innovative offerings. Daimler AG, known for its Mercedes-Benz and Setra brands, provides high-quality buses with advanced safety and comfort features. Volvo, renowned for its safety standards and fuel-efficient engines, offers a wide range of reliable buses tailored to various passenger needs.

 Yutong Bus, a leading Chinese manufacturer, specializes in electric buses and has established itself as a key player in the market with its focus on sustainability and technological innovation. These companies' strong reputations, diverse product portfolios, and commitment to excellence contribute to their dominance in the market, serving both urban and intercity transportation needs worldwide.

Express Buses Market Companies

Major companies operating in the express buses industry are:

• Daimler AG
• Yutong Bus
• Zhongtong Bus
• King Long United Automotive
• Solaris Bus & Coach
• Scania AB
• Volvo Buses
• Marcopolo
• Tata Motors
• VDL Bus & Coach
• Irizar Group
• Xiamen King Long
• Zhengzhou Yutong Bus Co., Ltd.
  

Express Buses Industry News

• In March 2024, TSRTC launched 22 Electric Green Metro Express buses in Hyderabad, India. This initiative by the Telangana State Road Transport Corporation signifies a significant step towards sustainable urban transport in the city, reducing carbon emissions and enhancing the quality of public transportation. The new fleet offers full charging within three to four hours and onboard cell phone charging facilities, contributing to eco-friendly transportation in Hyderabad.
  
• In October 2023, WeGo extended express bus routes to Antioch and Murfreesboro for Nashville SC games. These routes depart from Old Fort Park at 5:50 p.m. and Hickory at specific times to accommodate fans attending the games, providing convenient transportation options for supporters travelling to Geodis Park for Nashville SC matches.
  

The express 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 Buses

• Standard express buses
• Luxury express buses
• Sleeper express buses
• Mini express buses

Market, By Propulsion

• Diesel
• Natural gas
• Hybrid electric
• Others

Market, By Application

• Intercity transportation
• Airport shuttles
• Tour and travel services
• Others

Market, By Ownership

• Private
• Government/public

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