Global Bus Industry: At a Glance
Global bus and coach sales are set to hit 234,000 units by 2024. Over the past year, region-wise sales have been phenomenal:
- Europe: ~46,300 units (+15% YoY)
- India: ~45,900 units (+18%)
- China: +9.7%, Latin America: +6.6%,
North America: +5.2%
Proactive bus companies:
- NFI Group: North American leader in sustainable buses.
- BYD: Chinese automaker disrupting Europe’s bus market with impressive gains.
- Tata Motors: Dominating India’s electrified bus ecosystem amid a regulatory push.
Deep-dive into the bus industry with our latest analysis, Global Bus Growth Opportunities, 2024.
As stricter emission norms take effect globally, bus companies are phasing out traditional fleets. The rise in sales and innovation in commercial vehicle technology signals that the bus and coach industry is on the verge of transformative growth. The resurgence of public transportation and tourism, following the pandemic, has also boosted the demand for buses, once again placing them at the heart of public commuting solutions. Electric buses (eBuses), especially, are proving to be pivotal growth accelerators, while digitization and connectivity are further fueling this momentum.
This evolving ecosystem presents numerous growth opportunities for bus companies, and a business landscape conducive to strategic collaborations and industry partnerships. As this transformation unlocks new opportunities, a key question emerges:
Are you leveraging the right strategic imperatives to drive your business forward and outpace the competition?
To help you in that endeavor, Frost & Sullivan’s growth experts have outlined a selection of ten top strategic imperatives that should be at the forefront of your growth strategy:
Industry Convergence
Building Synergies to Steer the Bus and Coach Transformation
- Collaborating with automakers, Tier-1 suppliers, and technology firms to overcome global challenges related to emissions, safety, and connectivity — transforming buses through shared expertise.
Industry Convergence
Expanding the Ecosystem and Diversifying Offerings
- Integrating with value chain participants to reduce charging times, expand geographical coverage, improve parking solutions, and foster competitive pricing for ecosystem-wide growth.
Disruptive Technologies
Harnessing Innovation for Service Fulfillment
- Advancing telematics, safety systems, and autonomous solutions in buses to facilitate service delivery models like integrated payments, creative financing, and innovative software solutions.
Disruptive Technologies
Catalyzing the Electric Revolution in Bus and Coach Fleets
- Driving fuel cell and battery vehicle technology adoption for buses and coaches, especially with assistance from Tier-1s, to accelerate the shift to eBuses.
Transformative Megatrends
Harnessing Sustainability and Automation
- Prioritizing the meeting of emission targets and adopting sustainable manufacturing practices; incorporating automation and software for enhanced efficiency and cost savings.
Transformative Megatrends
Lightweighting for Better eBus Application
- Leveraging lightweight materials, such as aluminum, in eBus manufacturing to reduce vehicle weight, improve packaging, and enhance operational range.
Innovative Business Models
Defining Growth by Total Cost of Ownership (TCO)
- Adopting green alternatives for fuel and manufacturing, while revising cost models to consider fuel cost reduction and other future savings. Thus, accounting for the higher long-term profitability.
Geopolitical Chaos
Mitigating Supply Chain Constraints
- Localizing production, building alternative supply chains, and navigating trade-route and other constraints stemming from global conflicts, like the Russo-Ukraine War.
Competitive Intensity
Bringing Cost Competitiveness
- Identifying pricing models and service-based business models to counter competition from Chinese bus companies, while collaborating with the same disruptive players to benefit from their growth.
Internal Challenges
Complying with Regulatory Shifts
- Staying proactive and adaptable as emission and manufacturing regulations evolve, while capitalizing on regulatory incentives to promote eBus adoption.
Has your team identified the growth opportunities associated with these strategic imperatives?
If not, Frost & Sullivan’s expert team will get you started right away — Click here to engage with our Growth Experts.
