Intercity Buses Market Size - By Bus Type (Motor Coach, Transit Bus, Minibus), By Seating Capacity (Small, Medium, Large), By Application (Intercity Transport, Airport Shuttle, Tour & Travel, Corporate Shuttle, Others), By Fuel Type & Forecast, 2024 - 2032

Intercity Buses Market Size

Intercity Buses Market size was valued at USD 76 billion in 2023 and is estimated to register a CAGR of over 8% between 2024 and 2032. Growing road infrastructure developments across the cities are majorly driving market growth. Modernized roads and highways can speed up intercity bus travel times, increasing the bus's ability to compete with other forms of transportation such as private cars or trains. For instance, in 2021, the U.S. government signed the Bipartisan Infrastructure Law which directed USD 1.2 trillion of federal funds toward energy, transportation, and climate infrastructure projects.
 

Moreover, rising fuel prices across the globe are another driving factor for intercity bus adoption as people are using government as well as commercial transportation services rather than private vehicles. For instance, according to EU data, in 2022, distilleries in the United States held 22 million barrels (-16%) less than the previous seasonal average. Inventory levels in Europe at the end of December were 20 million barrels (-5%) lower than the previous 10-year average. The EU report also stated that, although crude prices have only climbed by 2% since the beginning of the year, gasoil cracks for April 2024 have increased by 37%; as a result, gasoline prices have increased by 9%.
 

Furthermore, intercity bus companies frequently provide flexible timetables and a variety of route alternatives driving the demand for intercity bus travel across the globe. The intercity buses enable passengers to select the departure and destination times that best fit their needs. Passengers who appreciate convenience and personalization in their travel arrangements are drawn to this flexibility.
 

Private vehicles, trains, and airplanes are some transportation options that intercity buses compete with. Every mode has benefits and drawbacks; thus, to draw customers, buses need to provide competitive pricing, comfort, and convenience.
 

Intercity buses are linked to less affluent passengers or less ideal travel experiences in particular areas. For bus companies looking to reach a wider range of riders, changing this attitude and enhancing the image of bus travel may be a challenge. Moreover, owing to factors including bad weather, mechanical problems, and traffic congestion, it is difficult to follow timetables. Passengers may get irritated by delays and lose trust in the bus service.
 

Intercity Buses Market Trends

Companies that operate intercity buses are using technology to improve the traveler experience. This includes onboard Wi-Fi, entertainment systems, real-time bus tracking, and smartphone apps for ticket purchasing. For instance, in February 2023, Prevost Car Inc. unveiled next-generation intercity bus coaches, H3-45. The coaches provide fuel savings of up to 12% with a design featuring real-time tracking and Wi-Fi systems.
 

Many intercity bus companies are adopting eco-friendly policies in response to the growing environmental concerns. These activities include purchasing fuel-efficient cars, using alternative fuels, and marketing carbon offset programs to attract environmentally conscious passengers.
 

Some bus operators are responding to the demands of modern travelers by providing on-demand services, where buses are dispatched based on user requirements instead of following set routes & schedules, and flexible scheduling alternatives.
 

Intercity Buses Market Analysis

Based on bus type, the market is divided into motor coaches, transit buses, and minibuses. The motor coach segment is expected to hold over 69% of the market share by 2032. Larger interiors, more comfortable seats, and features, such as Wi-Fi, power outlets, entertainment systems, and onboard facilities, are common in motor coaches. Individuals looking for a more pleasurable travel experience are drawn to these advantages.
 

Advanced safety features found in modern motor coaches include electronic stability control, collision avoidance systems, and telematics technology that allows for real-time monitoring of both driver behavior and vehicle performance. These improvements enhance the safety and dependability of motor coach travel.
 

To ensure seamless intermodal connectivity, motor coach operators are increasingly working with other transportation providers such as rail and air carriers. Passengers may switch more quickly and easily between various modes of transportation owing to this integrated strategy, further boosting efficiency in reaching destinations.
 

Based on application, the intercity buses market is categorized into intercity transport, airport shuttle, tour & travel, corporate shuttle, and others. The intercity transport segment held around 40% of the market share in 2023. Through mobile smartphones or other devices, users can utilize intercity transport applications to find bus routes, evaluate ticket costs, reserve seats, and follow their buses in real time. Owing to its convenience, bus travel is now preferable for a wider variety of tourists including those who might not have easy access to conventional ticket agencies.
 

Intercity transport applications offer convenient payment alternatives, personalized recommendations, and user-friendly interfaces that improve the overall consumer experience. Higher passenger satisfaction levels result from the ease of use of the app to manage reservations, receive trip updates, and contact customer service.
 

Asia Pacific dominated the global intercity buses market, generating USD 45.1 billion in revenue in 2023, owing to several factors such as growing urbanization, environmental concerns, and budget-conscious tourists looking for less expensive transportation options than other forms including rail or air.
 

The demand for transportation between cities & regions has surged owing to the rapid urbanization in several Asia Pacific countries. For individuals commuting between urban areas, intercity buses offer an affordable and practical means of transportation. Intercity buses appeal to tourists, both foreign and domestic, visiting the Asia Pacific region, which is home to numerous attractions and sights.
 

More routes are being added to the UK's intercity bus network to connect more major cities & communities. Bus travel is now a feasible choice for both short- and long-distance trips owing to this expansion. 
 

The UAE government actively promotes public transit to lower carbon emissions and traffic jams. This covers the establishment of integrated transportation systems as well as subsidies for public transit operators.
 

Intercity Buses Market Share

Scania, Setra, Tata Motors holds a significant market share of 15% in Intercity buses industry. These manufacturers are renowned for producing intercity buses of exceptional quality, offering reliability, comfort, and superior performance. Their extensive global presence and well-established distribution networks enable them to effectively reach customers in key regions worldwide. With manufacturing facilities, sales offices, and service centers strategically located, they provide comprehensive support throughout the bus lifecycle, enhancing customer satisfaction and loyalty.

Their commitment to sustainability and the adoption of eco-friendly technologies aligns with evolving environmental regulations and consumer preferences, further strengthening their competitive position.
 

Intercity Buses Market Companies

Major companies operating in the intercity buses industry are:

• Alexander Dennis
• King Long
• Motor Coach Industries (MCI)
• Prevost
• Scania
• Setra
• Tata Motors
• Van Hool
• VDL Bus & Coach
• Yutong
   

Intercity Buses Industry News

• In December 2023, the Metropolitan Transportation Authority of New York State awarded a contract to Prevost to manufacture 381 intercity coaches.
   
• In March 2023, Setra extended its Setra Multiclass quartet program with a new product addition in the MultiClass 500 LE Series. The product covers applications ranging from peri-urban to long-distance inter-city transport in sparsely populated regions.
   

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

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Market, By Bus Type

• Motor coach
• Transit bus
• Minibus

Market, By Seating Capacity

• Up to 30 passengers
• Small buses (9-25 seats)
• Medium buses (26-35 seats)
• Large buses (36 seats and above)

Market, By Fuel Type

• Diesel
• CNG
• Hybrid electric
• Battery electric

Market, By Application

• Intercity transport
• Airport shuttle
• Tour & travel
• Corporate shuttle
• 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