Transit Bus Market Size

Transit Bus Market Size

The global transit bus market size was valued at USD 488.7 billion in 2024 and is projected to grow at a CAGR of 8.3% between 2025 and 2034. Urbanization and rising population density are transforming public transportation infrastructure globally. Cities are prioritizing sustainable and efficient transit solutions to address traffic congestion and enhance mobility. The increasing demand for cost-effective and accessible transportation is driving transit agencies to modernize bus networks.

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For instance, according to the UN Department of Economic and Social Affairs, as of May 2024, 55% of the global population resides in urban areas, with this share projected to increase to 68% by 2050. Urbanization is expected to drive an additional 2.5 billion people into urban areas by 2050. Key investments are being directed toward advanced routing technologies, real-time tracking systems, and integrated public transit solutions. Governments are positioning buses as critical assets for fostering economic growth, promoting social inclusion, and achieving carbon emission reduction targets in urban areas.
 

Strict global environmental regulations are accelerating the shift toward zero-emission vehicle technologies in the transit sector. Governments are enforcing ambitious carbon reduction goals, mandating the adoption of electric and hydrogen-powered buses. Financial incentives, tax benefits, and grants are expediting the deployment of green transportation solutions. The push for sustainable mobility is underpinned by climate change mitigation efforts, the need to improve urban air quality, and the goal of reducing reliance on fossil fuels. These regulatory frameworks are creating strong business opportunities for adopting cleaner transit bus technologies.