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US Buses and coaches Market

ID: MRFR/AT/15678-HCR
100 Pages
Garvit Vyas
October 2025

US Buses and Coaches Market Research Report By Type (Single Deck, Double Deck, Low floor buses, Minibus, Coaches, Others), By Propulsion (ICE, Electric), By Seat Capacity (15-30 Seats, 31-50 Seats, more than 50 Seats), By Application (City Buses, Intercity Coaches, Airport Shuttle, Delivery Van, School Buses, Others) and By Sales Channel (OEM, Aftermarket) - Forecast to 2035

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US Buses and coaches Market Summary

As per analysis, the US buses and coaches market is projected to grow from USD 168 Million in 2024 to USD 189 Million in 2025, ultimately reaching USD 409 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 8.44% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US buses and coaches market is experiencing a transformative shift towards electrification and enhanced passenger experiences.

  • The city bus segment remains the largest, driven by urbanization and the rising demand for public transportation.
  • The coach bus segment is the fastest-growing, reflecting a shift in consumer preferences for comfortable travel options.
  • The market is witnessing a significant shift towards electrification, with electric buses emerging as the fastest-growing segment.
  • Government initiatives and funding, along with environmental regulations, are key drivers propelling the market towards sustainable solutions.

Market Size & Forecast

2024 Market Size 0.168 (USD Million)
2035 Market Size 0.409 (USD Million)
CAGR (2025 - 2035) 8.44%

Major Players

Blue Bird Corporation (US), Thomas Built Buses (US), IC Bus (US), New Flyer Industries (US), Prevost Car (US), MCI (Motor Coach Industries) (US), Gillig Corporation (US), Setra (US)

US Buses and coaches Market Trends

The US buses and coaches market is currently experiencing a transformative phase, driven by various factors including technological advancements, environmental considerations, and evolving consumer preferences. The integration of electric and hybrid vehicles is becoming increasingly prevalent, as stakeholders seek to reduce emissions and enhance fuel efficiency. This shift not only aligns with national sustainability goals but also reflects a broader trend towards greener public transportation solutions. Furthermore, the demand for enhanced passenger comfort and safety features is prompting manufacturers to innovate continuously, ensuring that vehicles meet modern expectations. In addition to technological innovations, the US buses and coaches market is witnessing a growing emphasis on urban mobility solutions. Cities are increasingly investing in public transport infrastructure to alleviate congestion and improve accessibility. This trend is likely to foster collaboration between public and private sectors, leading to the development of integrated transport systems. As the market evolves, it appears that adaptability and responsiveness to changing consumer needs will be crucial for stakeholders aiming to thrive in this dynamic environment. Overall, the US buses and coaches market is poised for growth, driven by a combination of innovation, sustainability, and urban development initiatives.

Shift Towards Electrification

The US buses and coaches market is undergoing a notable shift towards electrification, with an increasing number of transit agencies adopting electric and hybrid vehicles. This trend is largely influenced by regulatory pressures and a growing public demand for sustainable transportation options. As cities aim to reduce their carbon footprints, the transition to electric buses is seen as a viable solution to enhance environmental performance.

Focus on Passenger Experience

Enhancing passenger experience is becoming a priority within the US buses and coaches market. Manufacturers are investing in advanced technologies and comfort features to attract riders. This includes improved seating, onboard Wi-Fi, and real-time tracking systems. Such enhancements are likely to encourage greater public transport usage, aligning with urban mobility goals.

Integration of Smart Technologies

The integration of smart technologies is emerging as a key trend in the US buses and coaches market. This encompasses the use of data analytics, mobile applications, and automated systems to optimize operations and improve service delivery. By leveraging technology, transit agencies can enhance efficiency, reduce operational costs, and provide a more reliable service to passengers.

Market Segment Insights

By Vehicle Type: City Bus (Largest) vs. Coach Bus (Fastest-Growing)

In the US buses and coaches market, the distribution among vehicle types reveals that the city bus segment holds the largest market share, serving urban areas where public transportation is crucial. The intercity and school bus segments also play significant roles, particularly in educational districts and long-distance travel. Coach bus services, while smaller in share compared to city buses, are experiencing rapid growth due to increasing demand for luxury travel and group transportation services, enhancing their market footprint. The growth trends within the vehicle type segment reflect changing urbanization and transportation needs. City buses remain stable in demand as cities focus on enhancing public transport. However, coach buses are seen as a fastest-growing segment, driven by tourism and the rise of coach travel agencies aiming to provide a more comfortable travel experience. School buses are also experiencing consistent demand, driven by regulations on student transportation safety and the need for reliable service in school districts.

City Bus (Dominant) vs. Coach Bus (Emerging)

City buses dominate the US market with their extensive coverage in urban areas, making them essential for daily commuters. Their design emphasizes functionality, including features such as low floors for easy access, efficient fuel consumption, and spacious interiors to accommodate a large number of passengers. They are often subsidized by local governments to ensure affordable public transport. In contrast, coach buses represent an emerging segment focused on longer-distance travel. They offer enhanced comfort, luxury features, and amenities such as reclining seats and onboard restrooms, catering specifically to leisure travelers. The appeal of coach buses is rapidly increasing as consumers seek premium travel experiences for group outings, events, and tours. This increasing interest highlights a shift in preferences, making coach buses a vital area for growth in the transportation sector.

By Fuel Type: Internal Combustion Engine (Largest) vs. Electric (Fastest-Growing)

In the US buses and coaches market, internal combustion engines (ICE) hold the largest share, dominating the fuel type segment due to their historical prevalence and infrastructure support. This segment benefits from established technologies and widespread familiarity among operators, leading to significant market penetration. On the other hand, electric buses are emerging as a strong contender, garnering increased market interest driven by advancements in battery technology and growing environmental consciousness among consumers and regulators alike.

Electric (Emerging) vs. Compressed Natural Gas (Dominant)

Electric buses represent an emerging segment in the US market, characterized by their eco-friendliness and significant reductions in greenhouse gas emissions. With a rapidly expanding infrastructure, government incentives, and advancements in battery life, electric buses are gaining traction among operators seeking sustainable alternatives. In contrast, compressed natural gas (CNG) remains a dominant choice in urban transit systems. CNG buses offer a good balance of performance, cost-effectiveness, and reduced emissions compared to traditional diesel options, making them an attractive choice for public transportation agencies committed to sustainability.

By Application: Public Transport (Largest) vs. Tourism (Fastest-Growing)

In the US buses and coaches market, public transport remains the largest segment, reflecting its critical role in daily commutes and urban mobility. This sector benefits from substantial governmental support and ongoing investment aimed at enhancing public transportation infrastructure, thus commanding a considerable share of market revenue. Conversely, the tourism segment, while smaller, is experiencing rapid growth as travel demand rebounds post-pandemic, showcasing a significant uptick in bus charters and coach tours.

Public Transport (Dominant) vs. Tourism (Emerging)

Public transport serves as the backbone of urban transit systems in the US, characterized by its extensive use in metropolitan regions. As governments prioritize sustainable transport, the adoption of electric and hybrid buses is on the rise, reinforcing public transport's dominant status. In contrast, the tourism segment has emerged as a vibrant market due to increased leisure travel, competitive pricing, and flexible travel options offered by coach operators. This segment capitalizes on eco-tourism and regional attractions, drawing an array of customers seeking affordable group travel solutions.

By Passenger Capacity: 20 to 50 (Largest) vs. More than 100 (Fastest-Growing)

The US buses and coaches market's passenger capacity segment reveals a diverse distribution. The '20 to 50' capacity buses hold the largest market share, driven by their suitability for various uses, including school transport and regional shuttles. Meanwhile, the '51 to 100' segment holds a notable share as well, specifically appealing to charter and tour services. The 'Less than 20' segment caters to niche markets like micro-transit solutions, though its proportion remains smaller, making way for the more popular categories.

Passenger Capacity: 20 to 50 (Dominant) vs. More than 100 (Emerging)

The '20 to 50' passenger capacity buses dominate the US market, primarily due to their versatility and adaptability to different operational needs, such as short-distance commuting and community transport. This size allows for cost-effective operations while accommodating a reasonable number of passengers, making them preferred choices for many organizations. In contrast, the 'More than 100' capacity buses are emerging as significant players, fueled by increasing demand for group travel and event transportation. They are particularly favored in urban areas with larger populations. Urban planning initiatives and a focus on sustainability are expected to further bolster the growth of this segment, making it a key area for future investment.

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Key Players and Competitive Insights

The buses and coaches market in the US is characterized by a competitive landscape that is increasingly shaped by innovation, sustainability, and strategic partnerships. Key players such as Blue Bird Corporation (US), New Flyer Industries (US), and MCI (Motor Coach Industries) (US) are actively pursuing strategies that emphasize technological advancements and eco-friendly solutions. Blue Bird Corporation (US) has positioned itself as a leader in electric bus manufacturing, focusing on reducing emissions and enhancing operational efficiency. Meanwhile, New Flyer Industries (US) has been expanding its portfolio of zero-emission buses, indicating a strong commitment to sustainability. MCI (Motor Coach Industries) (US) is also adapting to market demands by integrating advanced technologies into its offerings, thereby enhancing customer experience and operational performance. Collectively, these strategies are reshaping the competitive environment, driving a shift towards more sustainable and technologically advanced transportation solutions.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance responsiveness to market demands. The market structure appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for a diverse range of offerings, yet the collective actions of major companies are likely to consolidate market power over time, particularly as they pursue strategic collaborations and technological advancements.

In November 2025, Blue Bird Corporation (US) announced the launch of its latest electric bus model, which features enhanced battery technology aimed at increasing range and reducing charging times. This strategic move not only reinforces Blue Bird's commitment to sustainability but also positions the company to capture a larger share of the growing electric vehicle market. The introduction of this model is expected to attract environmentally conscious consumers and public transit agencies looking to modernize their fleets.

In October 2025, New Flyer Industries (US) secured a significant contract with a major metropolitan transit authority to supply a fleet of zero-emission buses. This contract underscores New Flyer’s strategic focus on expanding its footprint in the zero-emission segment, which is anticipated to grow as cities implement stricter emissions regulations. The successful execution of this contract could enhance New Flyer’s reputation as a leader in sustainable transportation solutions.

In September 2025, MCI (Motor Coach Industries) (US) unveiled a new digital platform designed to streamline operations for fleet managers. This platform integrates AI-driven analytics to optimize route planning and maintenance schedules. By leveraging technology, MCI aims to improve operational efficiency and reduce costs for its clients, thereby enhancing its competitive edge in the market. This initiative reflects a broader trend towards digital transformation within the industry.

As of December 2025, the competitive trends in the buses and coaches market are increasingly defined by digitalization, sustainability, and the integration of advanced technologies such as AI. Strategic alliances among key players are shaping the landscape, facilitating knowledge sharing and resource pooling. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability. Companies that can effectively leverage these trends will likely emerge as leaders in the market.

Key Companies in the US Buses and coaches Market market include

Industry Developments

The US Buses and Coaches Market has witnessed several notable developments recently, particularly in the electric bus segment. Companies such as Proterra and BYD have been at the forefront, pushing for increased adoption of electric vehicles to meet the growing demand for sustainable transportation solutions. In September 2023, Proterra secured significant contracts with various transit agencies to supply electric buses, further emphasizing the shift towards eco-friendly public transportation.

Additionally, ElDorado National and New Flyer announced an expansion of their manufacturing facilities to meet the increasing demand for both buses and coaches, which speaks to a robust growth trend in the market.

In terms of mergers and acquisitions, Thomas Built Buses announced in August 2023 a partnership with Daimler Buses aimed at enhancing their electric bus department, providing a strategic edge in the competitive landscape. Gillig also recently expanded its operations in California, indicating a strong commitment to growing market share in the region. The overall market valuation has seen a positive uptick, driven by investments in Research and Development as well as technological advancements to further streamline operational efficiency and sustainability in public transit systems across the country.

Future Outlook

US Buses and coaches Market Future Outlook

The US buses and coaches market is projected to grow at an 8.44% CAGR from 2024 to 2035, driven by urbanization, sustainability initiatives, and technological advancements.

New opportunities lie in:

  • Development of electric bus charging infrastructure
  • Integration of smart technology for fleet management
  • Expansion of subscription-based bus services for urban commuters

By 2035, the market is expected to be robust, driven by innovation and increased demand for sustainable transport solutions.

Market Segmentation

US Buses and coaches Market Fuel Type Outlook

  • Internal Combustion Engine
  • Electric
  • Hybrid
  • Compressed Natural Gas

US Buses and coaches Market Application Outlook

  • Public Transport
  • Tourism
  • School Transport
  • Corporate Transport

US Buses and coaches Market Vehicle Type Outlook

  • City Bus
  • Intercity Bus
  • School Bus
  • Coach Bus

US Buses and coaches Market Passenger Capacity Outlook

  • Less than 20
  • 20 to 50
  • 51 to 100
  • More than 100

Report Scope

MARKET SIZE 20240.168(USD Million)
MARKET SIZE 20250.189(USD Million)
MARKET SIZE 20350.409(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)8.44% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies ProfiledBlue Bird Corporation (US), Thomas Built Buses (US), IC Bus (US), New Flyer Industries (US), Prevost Car (US), MCI (Motor Coach Industries) (US), Gillig Corporation (US), Setra (US)
Segments CoveredVehicle Type, Fuel Type, Application, Passenger Capacity
Key Market OpportunitiesIntegration of electric and autonomous technologies in the US buses and coaches market.
Key Market DynamicsGrowing emphasis on electric buses driven by regulatory mandates and consumer demand for sustainable transportation solutions.
Countries CoveredUS

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FAQs

What is the expected market size of the US Buses and Coaches Market by 2035?

The US Buses and Coaches Market is expected to be valued at 14.0 billion USD by 2035.

What is the projected CAGR for the US Buses and Coaches Market from 2025 to 2035?

The market is projected to have a CAGR of 6.299% from 2025 to 2035.

Who are the key players in the US Buses and Coaches Market?

Major players in the market include ElDorado National, IC Bus, New Flyer, Daimler Buses, and Proterra.

What was the market value of Single Deck buses in 2024?

The market value of Single Deck buses in 2024 was 2.5 billion USD.

What is the expected market size for Coaches by 2035?

The expected market size for Coaches by 2035 is 3.1 billion USD.

What is the expected market value of Double Deck buses in 2024?

The market value of Double Deck buses in 2024 was 1.8 billion USD.

What is the forecasted market size for Low floor buses by 2035?

The forecasted market size for Low floor buses by 2035 is 2.8 billion USD.

What growth opportunities are present in the US Buses and Coaches Market?

There are significant growth opportunities driven by urbanization and the demand for public transportation.

What was the market size of Minibus in 2024?

The market size of Minibus in 2024 was 0.75 billion USD.

How is the US Buses and Coaches Market expected to evolve by 2035?

By 2035, the market is expected to continue growing, reflecting increasing investments in infrastructure and public transport systems.

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