Autonomous Bus Market Size - By Level of Autonomy (Level 1, Level 2, Level 3, Level 4), Fuel (Diesel, Electric, Hybrid), Application (Intercity, Intracity), Growth Prospects, Regional Outlook & Global Forecast, 2023 - 2032

Autonomous Bus Market Size - By Level of Autonomy (Level 1, Level 2, Level 3, Level 4), Fuel (Diesel, Electric, Hybrid), Application (Intercity, Intracity), Growth Prospects, Regional Outlook & Global Forecast, 2023 - 2032

Autonomous bus market size is projected to grow at 19.7% CAGR from 2023 to 2032, due to the increasing urbanization coupled with the growing need for efficient and sustainable public transportation. Several governments and transit authorities worldwide are investing in smart mobility solutions to address traffic congestion and reduce emissions.

The rising advances in AI and sensor technologies are contributing to the development of reliable autonomous systems for enhancing safety and navigation capabilities. For instance, in May 2023, the U.K. inaugurated a fully operational autonomous bus service available to the public. Additionally, the rising focus on electric and hybrid buses to meet the environmental sustainability goals is also facilitating the deployment of autonomous electric buses. The public acceptance for smart, efficient, and eco-friendly urban mobility solutions will further drive the industry growth ahead.

The market is segregated into level of autonomy, fuel, application, and region.

The level 4 autonomy segment is estimated to accumulate sizeable share of the autonomous bus market by 2032. This is ascribed to the growing technological advancements for enabling buses to operate with high autonomy in specific conditions without continuous human intervention. This level of automation also enhances safety, efficiency, and reliability in urban transportation systems.

Based on application, the autonomous bus industry value from the intercity segment is projected to increase at substantial CAGR through 2032, driven by the increasing demand for efficient and convenient long-distance transportation. Autonomous technology promises enhanced safety and comfort for intercity travel, emerging as an attractive solution for commuters. The rising government support and the growing focus on sustainable mobility will further drive the adoption of autonomous buses in intercity applications.

Regionally, the Europe autonomous bus market size is projected to expand at significant CAGR from 2023 to 2032. The growth can be attributed to the supportive regulatory frameworks, increasing emphasis on sustainable and smart mobility solutions, and the influx of government initiatives for promoting autonomous vehicle development. Additionally, rapid technological advancements, rising collaborations between industry stakeholders, and the growing demand for innovative public transportation will contribute to the regional market expansion.