North America Bus Market Size, Share & Trends Analysis Report By Type (Single Deck, Double Deck), By Fuel Type, By Seat Capacity, By Application- Industry Analysis, Size, Share, Growth, Trends, and Forecast 2025-2034

North America Bus Market Size and Trends

The North America bus market size was exhibited at USD 7.55 billion in 2024 and is projected to hit around USD 21.25 billion by 2034, growing at a CAGR of 10.9% during the forecast period 2025 to 2034.

North America Bus Market Key Takeaways:

• The single deck segment accounted for the largest market share of over 92% in 2024 and is expected to exhibit the fastest growth rate over the forecast.
• The diesel segment accounted for the largest market share of more than 74% in 2024.
• The electric and hybrid segment is anticipated to register the highest growth over the forecast period.
• The 31 - 50 seats segment accounted for the largest market share of more than 50% in 2024 and is expected to exhibit the fastest growth rate from 2025 to 2034.
• The more than 50-seat segment is anticipated to register considerable growth over the forecast period.
• The school segment accounted for the largest market share of over 80.0% of the overall market in 2024.

Report Scope of North America Bus Market

Factors such as advancement in the public transportation industry and the expansion & revamping of American and Canadian road networks are driving the market growth. The use of electric buses for long-distance intercity travel and school commuting is expected to increase the use of buses, which results in fueling the demand for electric and non-electric buses in North America. To address the problem of rising environmental pollution brought on by travel and transportation, the federal government is offering funding & incentives for electric vehicles to replace fossil fuel-based buses. The support from the government in the form of incentives is also encouraging OEMs to manufacture and launch electric buses in the market.

Growing concerns regarding the increased concentration of greenhouse gases and pollution levels are encouraging American and Canadian government organizations to undertake several initiatives to reduce carbon emission levels. One such initiative includes electrifying the public transport fleet by procuring electric buses through bus manufacturers. For instance, in May 2024, the Canadian government announced the procurement of 1,299 electric buses to enhance the public transportation network in the eastern province of Quebec, Canada. Additionally, Canada's Federal, and provincial government is said to invest USD 585 million and USD 823.2 million, respectively, to purchase 1,229 electric buses for Quebec.

Moreover, the ongoing transition from conventional buses to battery-powered and hydrogen-fuel-powered buses are driving the demand for the North America bus market. The U.S. Federal government, schools, automobile manufacturers & suppliers, and regional public transport providers to install efficient charging infrastructure are partnering to reduce the challenge faced by fleet operators in the electric bus market. They are working on the development of battery charging infrastructure and hydrogen fuel stations in the region. For instance, in April 2024, BorgWarner Inc., an automotive supplier, announced its partnership with Pontiac City School District, Michigan, for providing proprietary charging with direct current fast chargers, enabling vehicle-to-grid charging for 25 IC electric buses.

Companies in the market are enhancing their offerings with features such as Wi-Fi, communication systems, and Advanced Driver Assistance Systems (ADAS) to elevate the travel experience and ensure passenger safety. For instance, in April 2024, Scania AB introduced an electric bus in Mexico equipped with ten batteries totaling 330 kWh, providing a range of 300 km. It also features a 2-speed transmission for efficient battery management, regenerative braking, a power output of 230 kW, and 1,800 Nm of torque. Furthermore, the bus incorporates an ADAS system for alerting the driver to nearby people and objects, along with an Acoustic Vehicle Alerting System (AVAS) to further enhance safety and comfort for passengers.

Moreover, prominent players in the North America Bus Market investing in developing low-emission diesel engines. These engines are integrated with clean diesel technology, require less fuel, and have lower operating costs, thereby buses integrated with clean diesel engine technology are widely used for transit buses. For instance, in April 2024, New Flyer, a subsidiary of NFI Group Inc., announced that they had received the order for an additional 116 Xcelsior heavy-duty transit buses on behalf of the New York City Transit Authority. The Xcelsior buses are equipped with a diesel engine that complies with the Heavy-Duty National Program standards set by the United States Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA). This engine features ultra-low-sulfur diesel fuel and emits 95% fewer nitrogen oxides compared than regular engine emissions.

North America Bus Market By Type Insights

The single deck segment accounted for the largest market share of over 92% in 2024 and is expected to exhibit the fastest growth rate over the forecast. The aggressive investments being made across the U.S. and Canada to enhance the road transportation network have increased the accessibility of single-deck buses for interstate travel for passengers. Several city administrations are pursuing plans to convert their entire bus fleets to all-electric vehicles. For instance, the Metropolitan Transportation Authority (MTA) is contemplating replacing its entire bus fleet with zero-emission vehicles by 2040.

Many cities are pursuing plans to convert their public transport fleets to electric bus fleets. For instance, the Metropolitan Transportation Authority is planning to convert its ICE buses to a zero-emission buses by 2040. Similarly, in January 2024, Federal Transit Administration (FTA) U.S. announced funding worth approximately USD 1.7 Million for state authorities to upgrade or purchase buses and improve bus facilities. Such initiatives encourage manufacturers to produce single-deck electric buses, thereby opening new opportunities for market growth.

North America Bus Market By Fuel Type Insights

The diesel segment accounted for the largest market share of more than 74% in 2024. Diesel tends to be cheaper as compared to other vehicle fuels. Hence, diesel-fired buses are preferred due to their lower operating costs. Diesel engines are also considered rigid and safe. Hence, diesel engine power accounts for 95% of all school buses in North America. Among these, the cleanest, emission-free diesel engine technology is used by 58% of consumers.

While most schools are being encouraged to utilize blends of high-quality biodiesel and renewable fuel to power their school buses, and several schemes are also being launched to encourage the electrification of buses, the high initial costs and investments are compelling local agencies to continue using diesel buses.

The electric and hybrid segment is anticipated to register the highest growth over the forecast period. The growth of the segment can be attributed to the continued electrification of public fleets and the aggressive adoption of hybrid buses by public fleet operators in the U.S. A myriad of incentives, subsidiaries, and rebates are being offered to electrify the existing bus fleet. For instance, the City of Jonesboro in the U.S. state of Arkansas received funding worth USD 878,584 to buy hybrid buses. These buses would replace older diesel buses and subsequently help in improving air quality throughout the city.

North America Bus Market By Seat Capacity Insights

The 31 - 50 seats segment accounted for the largest market share of more than 50% in 2024 and is expected to exhibit the fastest growth rate from 2025 to 2034. Buses with a capacity of 30-50 seats are utilized for scheduled travel, tourism, and student transportation. Traffic congestion particularly makes these buses an ideal alternative for public transport. Electrification is also emerging as a popular trend, particularly when it comes to buses with a capacity of 30-50 seats. Several initiatives are being pursued to curb pollution and protect school-going children from vehicular pollution. For instance, the U.S. government’s Clean School Bus program envisages the U.S. Environmental Protection Agency (EPA) covering up to 100% of the cost of replacing incumbent school buses with zero-emission school buses, including the cost of vehicles and the charging infrastructure. OEMs are particularly focusing on the 30-50-seater variants, typically by integrating low emission technologies or improving the range of electric buses by adding extra battery packs.

The more than 50-seat segment is anticipated to register considerable growth over the forecast period. The growing preference for bus rapid transit systems, in line with the unabated increase in urban population, which is expected to drive the growth of the segment. Bus rapid transit systems combine the speed and capacity of metro services to offer affordable and flexible commutes. Buses with more than 50 seats are used for tourism purposes, especially for long travels, sightseeing, and pick-and-drop schedules during long-distance travel.

North America Bus Market By Application Insights

The school segment accounted for the largest market share of over 80.0% of the overall market in 2024. Factors such as refurbishment and replacing existing fossil fuel-powered bus fleets with electric ones are expected to support the segment growth over the forecast period. Schools in various U.S. states, including Illinois, New York, Virginia, Florida, and California, are committed to increasing the use of electric school buses. California is already leading the way in the adoption of electric school buses by deploying over 1,000 electric school buses across the state. Similarly, in April 2022, New York Governor Kathy Hochul reached an agreement on a USD 220 billion state budget with legislators, which includes the goal of having around 50,000 of the state's school buses run on electricity by 2035.

Transit buses are emerging as the preferred choice for long-distance commuters, who are increasingly relying on these buses to meet their transportation needs. The bus ridership is typically growing in the U.S., especially in the federal district of Washington DC and the state of New York, among other areas. For instance, bus ridership in New York City increased by 9.9% over the year to USD 312 million in 2021. Washington DC has enacted the zero-fare bus bill into law and eliminated the USD 2 fare for all the city buses. Such initiatives are propelling the growth of the transit buses segment.

Country Insights

U.S. Bus Market Trends

The bus market in the U.S. accounted for the largest market share of over 88% in 2024. The growing traction of buses in the U.S. is attributed to the revamping of highway infrastructure throughout the country, the electrification of public transit bus fleets by the different state governments, growing investment towards bus charging infrastructure, the development of electric bus fleets by private transit service operators and aggressive investment by the school and federal government to electrify school buses fleet with the country. The electrification efforts, coupled with technological development in diesel engines, electric motors, and hydrogen fuel cell technology, are expected to augment the market growth.

Canada Bus Market Trends

Canada's bus market is expected to grow at the fastest CAGR over the forecast period. Canada is also undertaking initiatives for the deployment of electric buses in the country. For instance, in January 2024, the mayor of Ottawa announced USD 350 million in federal funding to purchase 350 electric buses and install the charging infrastructure for the bus fleet in Ottawa. The region is also witnessing a trend of private transit entities in Canada electrifying their vehicle fleets in association with major bus manufacturers present in Canada, which is further driving the market growth.

Some of the prominent players in the North America bus market include:

• AB Volvo
• Anhui Ankai Automobile Co., Ltd.
• Blue Bird Corporation
• BYD Company Limited
• Daimler AG (Mercedes-Benz Group AG)
• IVECO SpA
• Man Se
• NAVISTAR (Traton Group)
• NFI Group
• Proterra Inc.

North America Bus Market Recent Developments

• In January 2024, BLUE BIRD CORPORATION delivered twenty-three electric school buses to Carter County Schools (CCS) in Kentucky. This marks a new era for the school district, replacing traditional diesel buses with zero-emission alternatives. These buses produce zero tailpipe emissions, significantly contributing to cleaner air for students, communities, and the environment.
  
  
• In January 2024, Group Keolis S.A.S. announced two major contracts to operate and maintain bus networks in Phoenix, Arizona, and Austin, Texas. These contracts solidify Keolis's position as a major player in the U.S. public transportation market. They will expand access to reliable and efficient public transportation in both Phoenix and Austin. The use of natural gas and electric buses in these networks demonstrates Keolis's commitment to sustainability.
  
  
• In December 2024, BLUE BIRD CORPORATION and Generate Capital, a sustainable investment firm, announced partnership to create Clean Bus Solutions - a joint venture focused on accelerating the adoption of electric school buses in North America. Clean Bus Solutions offers a "fleet electrification-as-a-service" model, making it easier and more affordable for school districts to transition to electric buses.
  
  
• In October 2024, NFI Group announced a multi-year agreement with American Battery Solutions (ABS) for the supply of custom battery packs for their electric buses and coaches. The ABS partnership expands NFI's battery supply chain, adding resilience and ensuring they have enough batteries to meet their production targets.
  
  
• In July 2024, IC Bus, a subsidiary of NAVISTAR, launched the next generation of its flagship CE Series school bus, 20 years after its initial debut. This new iteration prioritizes efficient operations, improved driver comfort, lower total cost of ownership (TCO), and enhanced safety features.

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the North America bus market

By Type

• Single Deck
• Double Deck

By Fuel Type

• Diesel
• Electric and Hybrid
• Other Fuel Type

By Seat Capacity

• 15-30 Seats
• 31-50 Seats
• More Than 50 Seats

By Application

• Transit
• School
• Coach
• Others

By Country

• U.S.
• Canada
• Mexico