Luxury Coaches Market revenue worth $43 Bn by 2026

Published Date: September 4, 2020

Luxury Coaches Market size is set to be over USD 43 billion by 2026, according to a new research report by Global Market Insights Inc.

The rapidly growing global tourism industry is increasing the market demand for luxury coaches. According to the UN World Tourism Organization, over 1.5 billion international tourist arrivals were reported in 2019. Tour operators provide the services of luxury buses for sightseeing and intercity travel purposes, contributing to the growing adoption of these buses.

Increasing government investments in expanding the road network to connect cities and towns have led to a proliferation of luxury coach service providers. Initiatives for the development of road-side recreational facilities and rest stops by government authorities are providing robust market opportunities.

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Rising fuel prices and insurance costs are adversely impacting the luxury coaches market growth. Extremely high body weight and high-power engine significantly impact the fuel efficiency of these buses. Low fuel efficiency causes delays in long distance travels as drivers have to stop for frequent refills. The market growth is also restrained by the regular maintenance requirements of luxury coaches. Bus service operators have to maintain the quality of interiors and ensure proper functioning of electronic appliances to ensure customer satisfaction.

Analyst view: “The electric luxury coach segment will witness a high growth rate due to increasing focus of large bus operators on reducing the emission levels from their vehicle fleet.”

The rising spread and impact of COVID-19 pandemic across the globe have led to a temporary slowdown in the luxury coaches market. Government-imposed restrictions on international trade have caused disruptions in the supply chain and acute shortage of raw materials. This has impacted the production capabilities of market players. Moreover, the demand for luxury coaches from industrial and bulk buyers in the market has reduced owing to rising financial insecurities and shortage of capital. The impact of these industry challenges due to COVID-19 is expected to reduce in 2021.

High demand for double decker buses in the luxury coaches industry

According to this research report, double decker coaches held around 12% market share in 2019. The steadily growing demand for these coaches can be attributed to the large passenger carrying capacity offered by them. A double decker luxury coach is capable of carrying over 70 passengers at a time, contributing to its growing adoption in the market.

Browse key industry insights spread across 220 pages with 387 market data tables & 23 figures & charts from the report, “Luxury Coaches Market Size By Deck (Single Deck [Seating Capacity {Below 40 Seats, 40 – 70 Seats, Above 70 Seats}, Double Deck]), By Fuel (Diesel, Electric, Natural Gas), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/luxury-coaches-market

High torque, engine power, and fuel efficiency driving the diesel luxury coaches market growth

Diesel buses market was valued more than USD 28.50 billion in 2019. Growing demand for high fuel efficiency in luxury coaches to reduce their operating costs is supporting the market for diesel coaches. High energy density of diesel fuel significantly enhances the fuel efficiency. The placement of diesel engine at the rear end of the bus reduces the noise levels and increases passenger comfort. Diesel engines also offer high power and torque to vehicles, thereby boosting the demand.

Growing adoption of luxury coaches for interstate passenger movement in North America

North America luxury coaches market is anticipated to grow at over 7% CAGR from 2020 to 2026. The regional market statistics are positively influenced by several factors such as increasing number of international tourist arrivals, investments in road infrastructure development, and proliferation of tour operators.

Companies operating in the market are adopting new product launch strategies to cater to the growing market trend of deploying double decker luxury coaches to carry large batches of tourists.  For instance, in February 2020, Volvo launched its new model of luxury double decker bus, the Volvo 9700 DD with enhanced passenger comfort and safety. Another prominent strategy adopted by market leaders is strategic collaborations and acquisitions, contributing to the industry growth.

Some of the major players operating in the luxury coaches market include Daimler AG, Alexander Dennis Limited, Scania AB, VDL, Volvo Group, DFAC JCBL Ltd., Golden Dragon, Yutong, Marcopolo SA, BYD Group, Xiamen King Long Motor Group Co., Napoleon Bus GmbH, Irizar Group, and Foton.