Global Transit and Coach Bus Growth Outlook, 2023

Global Transit and Coach Bus Growth Outlook, 2023

Strong Growth for Zero-emission Buses in Europe and North America, but the Global Bus Market to Shrink Due to China

Geopolitical crises and high inflation prompted most central banks to raise interest rates in 2022, derailing the post-pandemic recovery. Energy costs increased manifold, impacting demand- and supply-side participants equally. Oil prices reached record highs as countries cut dependency on Russian imports, with the price of Brent crude oil reaching $123 per barrel in early March 2022 and continuing to average above $100 through October 2022.

In this report, Frost & Sullivan covers the global transit and coach bus market for North America, Europe, China, India, and Latin America. The study period is 2022–2023, with 2022 as the base year and 2023 as the forecast year.

The size of the global bus market in 2022 was approximately 180,248 units. Frost & Sullivan estimates it to grow to about 180,610 units in 2023, recording a year-over-year rate of 0.2%. The economic downturn, repeated pandemic waves, and the termination of electric vehicle purchase subsidy will weigh heavily on the Chinese market, resulting in negative growth and countering the robust growth registered across all regions.

Zero-emission powertrains in transit buses have gained momentum across Europe, North America, India, and Latin America. The Inflation Reduction Act in the United States will provide $1.97 billion of competitive grants for bus and bus facilities over 5 years. The extension of the Alternative Fuels Excise Tax Credit and the new Clean Hydrogen Tax Credit in the United States will lower the fuel costs of using zero-emission vehicles. At country and city municipal levels, Latin American governments set goals toward sustainable urban transportation favoring electric bus adoption. The Zero Emission Bus Rapid-deployment Accelerator (ZEBRA) partnership has been instrumental in deploying zero-emission buses in major Latin American cities. In Europe, proposed revisions to carbon dioxide emission standards in February 2023 includes a 100% zero-emission target for city buses for 2030.

Other information includes:
• Notable regulations and mandates
• Global economic outlook
• Top market trends and impact by region
• In-depth coverage of North America, Europe, Latin America, China, and India
• Powertrain technology share by region, including electric and natural gas vehicles
• Powertrain technology product portfolio of different OEMs
• Growth opportunities