Minibus Market Size - By Seating Capacity (Below 10 Seats, 10 - 20 Seats, Above 20 Seats), By Propulsion (ICE, Electric, Hybrid), By Application (School, Tourism, Public Transport) & Forecast, 2024 - 2032

Minibus Market Size

Minibus Market size was valued at USD 10.3 billion in 2023 and is estimated to register a CAGR of over 4% between 2024 and 2032. Rapid urbanization in cities is a critical factor propelling the market. Minibuses can bridge these gaps by offering transit to newly built areas or underdeveloped neighborhoods. The intensifying traffic congestion has led to minibuses gaining prominence, since they present a faster and more dependable choice for shorter excursions as compared to larger buses.
 

In January 2024, the United Nations (UN) published a report indicating that urbanization is surpassing rural growth, with projections suggesting that two-thirds of the global population will reside in urban areas by 2050. This report, issued by the United Nations Department of Economic and Social Affairs, underscores the swift pace of urbanization and its potential implications on social, economic, and environmental sustainability. The escalating urbanization trend is anticipated to drive growth in the market.
 

The growth in tourism and recreational activities is a significant growth factor for the minibus market. Minibuses are well-suited for carrying large groups of visitors, friends, or families on sightseeing tours, adventure outings, or weekend vacations. They provide a feeling of community and shared experience as compared to larger buses and are more comfortable and customizable than standard taxis. Many tourist attractions and leisure activities are located outside of large cities, with limited public transportation access.
 

Minibuses can handle off-road terrain or tiny roads, allowing them to reach areas where bigger vehicles cannot. This enables tour companies to provide unique experiences and cover a greater selection of places. Additionally, minibuses allow tour operators and activity suppliers to create customized itineraries. Unlike huge tour buses with predetermined itineraries, minibuses may be tailored to specific interests and time limits, making them perfect for personalized tours.
 

The high maintenance costs are a major challenge for the minibus market, potentially slowing down its growth. Minibuses, while typically fuel-efficient, require more specialized components and maintenance than normal automobiles. These parts can be more expensive, and labor expenses for mechanics skilled in minibuses are often higher. This can severely reduce profit margins for minibus operators, particularly small enterprises with limited fleets. Regular maintenance is essential for minibus safety and dependability.
 

However, repairs might be more difficult and time-consuming than for normal automobiles, resulting in higher downtime and reduced income generation. The high capital and operating expenditure can be a barrier to entry for new firms or individuals considering entering the minibus industry.
 

Minibus Market Trends

The minibus industry has witnessed significant technological advancements and safety features. Ergonomic seats, improved temperature control systems, and onboard entertainment choices improve passenger comfort during journeys. This is especially useful for extended excursions or tours. The integration of technology such as autonomous emergency braking, lane departure warning systems, and blind-spot monitoring considerably increases passenger safety. This is a big selling factor for parents looking for transportation for their children, as well as employers planning staff shuttles. In addition to this, modern minibuses can have Wi-Fi connectivity, USB charging outlets, and digital information displays. These capabilities address the increased desire for travelers to stay connected and informed during their journeys.
 

For instance, in June 2023, the hydrogen-powered Renault Master minibus, known as the Renault Master City Bus H2-TECH, was launched at the UITP Summit. This innovative minibus features a 30-kW fuel cell, a 33 kWh lithium-ion traction battery, and a tank containing 4.5 kg of hydrogen at 350 bar. Manufactured in France, this minibus is designed to carry up to 15 passengers with 10 seats, offering a daily range of up to 300 km and a quick refueling time of five minutes. The Renault Master City Bus H2-TECH is part of the HYVIA ecosystem, a joint venture between the Renault Group and Plug Power, aimed at promoting hydrogen mobility solutions.
 

Minibus Market Analysis

Based on the seating capacity, the market is divided into Below 10 seats, 10 - 20 seats, and above 20 seats. The 10 - 20 seats segment is expected to hold over 40% of the market share by 2032. This size range provides a blend of passenger capacity and maneuverability. They can negotiate tight streets and congested areas more efficiently than bigger buses, making them excellent for urban settings as well as for sightseeing tours, airport shuttles, and accessing isolated sites.
 

Along with this, the 10 to 20-seater sector provides an ideal blend of passenger capacity and operational expenses. They utilize less fuel than larger buses and are frequently exempt from some laws or licensing requirements that would apply to larger vehicles. They also provide a more pleasant travel experience than smaller vans, with more capacity for baggage and legroom for people, making them ideal for extended travels or tours.
 

Based on propulsion, the market is categorized into ICE, electric, and hybrid. The ICE segment holds around 75% of the minibus market share in 2023. ICE minibuses are often less expensive to acquire than electric or hybrid vehicles. This is an important consideration for many firms, particularly smaller operators, or those in cost-conscious areas. The cheaper initial expenditure enables faster fleet deployment and greater return on investment.
 

In contrast to charging facilities for electric minibuses, gas stations are widely distributed and easily accessible around the globe. This makes ICE minibuses easier to run, particularly on lengthy travels or in locations with inadequate electric car infrastructure. In addition to this, there is a wide availability of mechanics with experience maintaining and repairing ICE engines. This results in reduced maintenance costs and shorter repair periods as compared to electric or hybrid minibuses that typically require specialist experts or components.
 

Asia Pacific minibus market size dominated around USD 4.9 billion in 2023. As cities across the region expand, the demand for efficient and flexible transportation choices such as minibuses is set to increase. Minibuses can handle crowded regions and provide first- and last-mile connections, making them excellent for urban settings. The Asia Pacific area is a major tourist destination, leading to a growing demand for minibuses for imparting a comfortable and personalized travel experience for groups. Along with this, large investments in airports, hotels, and corporate headquarters around the area are driving up demand for minibuses for passenger shuttles and transportation services.

U.S. minibus market will register substantial growth between 2024 and 2032, driven by the rising demand for shared and group transportation options, especially for tourism, corporate events, and community services. Minibuses provide flexible and cost-effective solutions for transporting small to medium-sized groups. Additionally, the growth of the ride-sharing and shuttle service industries has increased demand for minibusses as they offer efficient, convenient, and comfortable transport. Environmental concerns and stricter emissions regulations are further driving the market toward more sustainable options such as electric minibusses. This apart, advancements in safety features and modern amenities enhance the appeal of minibusses to both operators and passengers.
 

Minibus Market Share

Ford and Volkswagen dominate the market with over 12% market share. Ford endeavors to broaden its minibus product range, providing a varied selection of models tailored to different customer segments such as shuttle services, schools, tourism, and urban mobility. These models offer varying seating capacities, fuel options, and customizable features to meet diverse needs.
 

Volkswagen Group prioritizes electric mobility by unveiling electric minibus options powered either by Volkswagen's adaptable MEB platform or specialized electric vehicle platforms. This moves targets environmentally aware consumers and markets with strict emissions standards.
 

Minibus Market Companies

Major companies operating in the minibus industry are:

• Daimler AG
• Fiat Chrysler Automobiles
• Ford
• General Motors
• Hyundai
• Iveco S.p.A.
• Nissan
• Renault
• Toyota
• Volkswagen
   

Minibus Industry News

• In July 2023, Mistral Mobility recently entered the accessible minibus industry, marking a significant expansion in their product offerings. This strategic move aligns with Mistral Mobility's commitment to providing accessible transportation solutions and catering to the diverse needs of customers in the mobility sector.
   
• In September 2023, Altas Auto entered a strategic partnership with Chinese manufacturer Zhongtong Bus to produce e-minibuses in Europe. This collaboration marks a significant expansion of Altas Auto's electric vehicle (EV) bus lineup and aims to introduce innovative e-minibuses to the European market.
   

The minibus 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 Seating Capacity

• Below 10 seats
• 10 - 20 seats
• Above 20 seats

Market, By Propulsion

• ICE
  • Below 10 seats
  • 10 - 20 seats
  • Above 20 seats 
• Electric
  • Below 10 seats
  • 10 - 20 seats
  • Above 20 seats
• Hybrid
  • Below 10 seats
  • 10 - 20 seats
  • Above 20 seats

Market, By Application

• School
• Tourism
• Public transport
• 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