Bus Rapid Transit Market Assessment, By Type [Standard, Articulated, Others], By Power Source [Hybrid, Diesel, Electric, Others], By System [Open BRT, Closed BRT, Hybrid BRT], By Application [Urban Areas, Others], By Region, Opportunities and Forecast, 20

Bus Rapid Transit Market Assessment, By Type [Standard, Articulated, Others], By Power Source [Hybrid, Diesel, Electric, Others], By System [Open BRT, Closed BRT, Hybrid BRT], By Application [Urban Areas, Others], By Region, Opportunities and Forecast, 2017-2031F

Global bus rapid transit (BRT) market is projected to witness a CAGR of 6.24% during the forecast period between 2024-2031, growing from USD 2.46 billion in 2023, to USD 3.99 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years.

Increasing urbanization and industrialization have ended up advancing public transportation. Advanced sustainability and cost-effective public mobility solutions fuel market growth. Furthermore, higher convenience and government investment in restructuring and renovating the transport stations are adding value to the market growth. Specific lanes, aligned stations, and bus routes along with the online fare collection are advancing the bus rapid transit system. Performing better than light rail systems and metro, advanced bus rapid transit enables faster operations. The advent of electric buses and new bus charging infrastructure with additional transit stations are propelling the development of futuristic bus rapid transits (BRTs). The increased population of emerging economies, like China and India, is pushing authorities to adopt bus rapid transit with high-quality, high-frequency, and high-capacity. The higher adoption of EV buses for lower vehicular emissions is adding new transit systems for buses.

In August 2023, India approved a plan of USD 7 billion for launching 10,000 electric buses. These electric buses are expected to be distributed in 169 cities all over the country. The plan in persuasion involves a budget of USD 12 billion to cater to a total number of 50,000 electric buses nationwide.

Rising Population and Adoption of Electric Buses Surge the Market

The increasing population across the globe with limited sources of transportation is increasing the importance of faster and more advanced transit. Authorities are partnering with private transportation companies to deliver better mobility solutions. From fare regulations to the accessibility of frequent public transport services, bus rapid transit adds additional layers to road safety. The adoption of new electric buses with 0% emissions and lower maintenance costs is helping modern cities lower pollution while fastening the transportation for daily commuters. Apart from intercity travel, the BRT systems integrate with the broader urban transit networks such as metro and railway networks.

Advance Multimodal Integration to Thrive Market Growth

The multimodal integration includes integrated bike-sharing, commuter trains, and subways that shorten end-to-end distances. City planning authorities are adopting BRT at a larger scale to smoothen transportation. It includes the introduction of new rapid bus routes with longer buses. In January 2024, TransLink (British Columbia Rapid Transit Company Ltd.) launched the latest R6 RapidBus in Surrey and Delta. It is metro Vancouver’s sixth RapidBus route comprising a 12 km long distance. The R6 includes limited stops, longer articulated buses, and all-door boarding.

Reduced Travel Time and Lower Operational Costs to Proliferate the Market Growth

The smoother transportation delivered by bus rapid transit network reduces the travel time and the average cost of implementation. While train and metro transit networks require rail tracks, bus rapid transit can be implemented at lower costs and in smaller locations. The frequent arrivals, easy payment methods, and cheaper fares make buses the first choice of daily commuters for transportation. BRT systems are enabled through transit-oriented development (TOD) as it has become a crucial part of the urban strategy including public transport stations. The integrated BRT comprises crossing signs, crossings, foot-over bridges, bus stops, pedestrian subways, and road markings. It delivers ease for daily commuters to save a lot of time while delivering hassle-free transport solutions. Overall, the BRT network has become one important component of modern city planning for overall development.

For instance, in July 2023, the Sound Transit (Central Puget Sound Regional Transit Authority) adopted the final budget and scheduled the new stride bus rapid transit (BRT) service, comprising a new bus base, BRT lines between SR522/NE 145th street and I-405. The network is open for service between 2027 and 2029.

Public Transportation Route and Government Investment to Fuel Market Growth

The rising population and limited mobility options have pushed the government to adopt accessible, faster, and smoother transport measures. The city planning budget includes a fair share for the development of transit networks including bus rapid transit. The increased demand for faster mobility has fueled the market growth as governments implement new routes for rapid bus services. Furthermore, government allocation of new planned city projects reflects positively on the global bus rapid transit (BRT) market.

The vendor companies adopt new technological advancements such as solutions like foot over bridges and integration of subways and crossings. Governments across the globe understand the importance of transport efficiency and sustainability. Hence, it invests, incentivizes, and endorses BRT to counter urban transportation challenges. Furthermore, the government’s adoption of electric vehicles at a large scale is a profiting factor for the market as new bus fleets would require rapid transit.

For instance, In January 2024, Senegal launched its first electric bus rapid network for faster transportation. While China Railway Rolling Stock Corporation is providing all-electric buses for the project, China Road and Bridge Corporation has built the Dakar BRT project.

Urban Area Holds Significant Share in Global Bus Rapid Transit Market

Based on application, the urban area segment holds a significant share. The factor leading the segment is dense and congested urban setting along with the rapidly increasing traffic in the urban spaces. The urban area covers two types of rapid transit, i.e. intracity and intercity. The intercity subsegment consumes more of the bus rapid transit market due to the major portion of commuters traveling between shorter distances inside the city. However, the integration of broader transit networks has allowed BRT to expand it in the intracity application as well. The increasing urban population includes daily commuters along with the tourists visiting the city. New urban planning strategies are adopting the BRT networks to manage the city's public transport in a better manner while promoting sustainable transportation.

For instance: In August 2023, Lund, Sweden revolutionized its transportation route with the adoption of a new electric route network. The decision was approved by the municipal board. The new network route is developed with the collaboration of skånetrafiken, Keolis, and the municipality of Lund.

Asia-Pacific Dominates Bus Rapid Transit Market

The rapidly increasing population in emerging economies like China and India are adopting sustainable transport solutions. The increased urbanization and industrialization in these countries give a push to the development and renovation of already existing transportation structures. Furthermore, the governments in the region are focusing on sustainable urban transport while adopting safe, green, inclusive, and smart mobility solutions. The higher consumption of electric buses is an outcome of the government's decision to make transport easy, fast, and environmentally friendly. Nations are extending these rapid transit networks between urban and rural regions to maintain the equilibrium. The countries are adhering to ""people-oriented"" BRT solutions to shorten the time spent while traveling.

For instance: In December 2023, India's Indira Gandhi International (IGI) airport (Delhi International Airport Limited) announced to build a hub comprising multimodal interstate transport hubs including bus terminus. The bus terminus will facilitate smooth bus rides between Delhi and neighbouring states to enhance flyers' experience.

Future Market Scenario (2024 – 2031F)

Lower operational costs and increased population to drive market growth during the forecast period.

Government authorities and private companies are building bus rapid transit components like stations, bridges, and electric buses, anticipated to add value to the market dynamics.

Rapid urbanization and advanced city planning are projected to deliver smooth, accessible, and faster modes of transportation.

Emerging countries of Asia-Pacific are restructuring and building intelligent urban bus systems is propelling the market growth.

Key Players Landscape and Outlook

The competitive landscape for bus rapid transit (BRT) includes transportation solution vendors, bus manufacturers, and public entities. The key players are focusing on delivering inclusive transit network solutions that include all necessary components. These players collaborate with government authorities to implement transit-oriented development (TOD) projects in urban and other applications. Furthermore, the companies partner with each other to develop new solutions and expand their distribution channel. Key companies work on delivering lower congestion and shorter travel time while keeping cities clean and safe.

For example, in November 2023, AB Volvo Group acquired the battery business of Proterra for USD 210 million in a bankruptcy auction. In addition, it will purchase Proterra Powered, a development centre located in California, and an assembly plant located in South Carolina.