Intercity Buses Market Intelligence Report, Key Trends, Innovations and Market Dynamics

Intercity Buses Market Size, Share, Trends and Competitive Landscape

The intercity buses market is projected to reach USD 28.04 billion by 2034, expanding from USD 20.81 billion in 2025, at an annual growth rate of 3.37% during the forecast period from 2025 to 2034.

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Introduction

The intercity buses market is a crucial sector of the automotive industry. This industry deals in manufacturing and distribution of intercity buses across the globe. There are several types of buses developed in this sector including single deck buses, double deck buses, coach buses, luxury buses and some others. These buses are powered by different types of fuels consisting of diesel, natural gas, electric and hybrid. The intercity buses are used for delivery various types of services comprising of scheduled service, charter service, tourist service and some others. The rising urbanization in different parts of the world has contributed to the industrial expansion. This market is expected to rise significantly with the growth of the commercial vehicles industry around the world.

• According to the Worldometer, the urban population of Germany was 63930305 in 2020 that increased to 64345635 in 2025.

Highlights of the Intercity Buses Market

• North America held the highest share of the intercity buses market.
• Asia Pacific is expected to grow with a significant CAGR during the forecast period.
• By bus type, the single deck buses segment held a dominant share of the market.
• By bus type, the coach buses segment is likely to rise with a notable growth rate during the forecast period.
• By fuel type, the diesel segment held the dominant share of the industry.
• By fuel type, the electric segment is expected to grow with a significant CAGR during the forecast period.
• By service type, the scheduled service segment held a significant share of the market.
• By service type, the tourist segment is anticipated to witness considerable growth during the forecast period.

Key Metrics and Overview

Intercity Buses: Stats and Figures

• According to the China Automobile Dealers Association, around 8,554 buses were exported from China during March 2025.
• According to the Zemo Organization, around 1000 electric buses were registered in UK during 2023.
• According to the Bus World Organization, the electric city bus market in Europe grew by 22% by 2023.
• According to the SMMT, around 851 minibuses were registered in UK during the 1st quarter of 2024.

Bus Type Insights

The single deck buses segment held a dominant share of the market. The growing demand for single deck buses for over-night travelling has boosted the market expansion. Additionally, the rising sales of these buses due to numerous benefits including better accessibility, lower operational costs, adaptability and some others is playing a vital role in shaping the industrial landscape. Moreover, rapid adoption of these buses by fleet operators coupled with technological advancements in single-deck buses is projected to boost the growth of the intercity buses market.

• According to the SMMT, around 533 single-deck buses were registered in UK during the 1st quarter of 2024.

The coach buses segment is likely to rise with a notable growth rate during the forecast period. The rising demand for buses that are equipped with advanced features such as Wi-Fi, emergency exits, plush seating and some others has driven the market growth. Additionally, the growing adoption of these buses for operating long-distance services is crucial for the industrial expansion. Moreover, the increasing application of large coach buses for intercity operations is anticipated to boost the growth of the intercity buses market.

• In March 2025, Wrightbus launched Contour coach. Contour coach is a 55-seater bus is equipped with Cummins Euro 6 400BHP X11 engine and a ZF automatic gearbox.

Fuel Type Insights

The diesel segment held the dominant share of the industry. The growing adoption of diesel buses for long-distance intercity travelling has boosted the market growth. Also, unavailability of EV charging stations in several parts of the world coupled with increasing awareness about range anxiety further accelerates the industrial expansion. Moreover, the superior performance and enhanced fuel efficiency delivered by diesel buses is accelerating the growth of the intercity buses market.

• In November 2024, Allison Transmission partnered with Ashok Leyland. This partnership is done for launching a series of low-floor city buses in Tamil Nadu, India.

The electric segment is expected to grow with a significant CAGR during the forecast period. The rising adoption of electric buses in countries such as India, China, U.S., UK and some others has boosted the market expansion. Additionally, the growing initiatives by government for developing the EV charging infrastructure coupled with technological advancements in powertrain is playing a vital role in shaping the industrial landscape. Moreover, numerous bus companies are developing advanced electric buses to enhance intercity operations is predicted to boost the growth of the intercity buses market.

• In March 2025, Volvo Buses launched Volvo 7800 Electric in Mexico. Volvo 7800 electric bus is powered by a battery of 25 kWh that has a passenger carrying capacity of around 300 passengers.

• According to the International Energy Agency, around 30000 electric buses were sold in China in 2023 followed by Europe (8000) and the U.S. (1000).

Service Type Insights

The scheduled service segment held a significant share of the market. The rise in number of scheduled bus services launched by fleet operators has boosted the market growth. Also, the growing adoption of electric buses for providing scheduled bus services along with availability of scheduled bus services in online platforms is accelerating the industrial expansion. Additionally, the increasing demand for timely bus services among people to reach destination on proper time is further driving the growth of the intercity buses market.

• In September 2024, the Navi Mumbai Municipal Corporation Transport (NMMT) launched an air-conditioned bus service in Mumbai, India. This is a scheduled bus service designed for the travelers of India.

The tourist segment is anticipated to witness considerable growth during the forecast period. The rise in number of international travelers around the world has boosted the market expansion. Also, numerous partnerships among hotels and bus operators to provide superior intercity travel experience to tourists is adding to the industrial growth. Moreover, numerous government initiatives aimed at developing the tourism sector is driving the growth of the intercity buses market. 

• In February 2025, KSRTC launched a series of double-decker buses for tourist. These tourist buses are designed for the tourists of Munnar, India.

Geographical Insights

North America held the highest share of the intercity buses market. The growing demand for sustainable transportation solutions has boosted the industrial expansion. Additionally, the rising adoption of luxury buses for corporate travelling coupled with rapid urbanization in several countries such as the U.S. and Canada is anticipated to foster the market growth. Moreover, the rise in number of fleet operators is likely to drive the drive the growth of the intercity buses market in this region.

• In April 2024, Blade launched a luxury shuttle bus in the U.S. This bus is designed for the elite-consumers of this nation.

U.S. dominated the market in this region. The market is generally driven by the rising demand for eco-friendly buses along with rapid investment in urban road infrastructure development. Also, the increasing trend of hybrid buses coupled with presence of several market players such as Greyhound, BoltBus, Lux Bus and some others is playing a vital role in shaping the industrial landscape.

Asia Pacific is expected to grow with a significant CAGR during the forecast period. The increasing adoption of electric buses in countries such as India, China, Japan and some others has boosted the market expansion. Also, the rising investment by bus manufacturing brands for developing superior-quality buses is playing a vital role in shaping the industrial landscape. Moreover, the growing demand for sleeper buses for enhancing intercity travelling is expected to boost the growth of the intercity buses market in this region.

China is the major contributor of this region. In China, the market is driven by the growing sales of electric buses along with rapid development in the automotive sector. Also, the rising adoption of double-decker buses for enhancing intercity operations coupled with technological advancements in autonomous buses is further adding to the industrial growth.

• In July 2024, the government of China announced to deploy around 20 autonomous buses in the country. These autonomous buses are equipped with advanced cameras and lidar sensors to enhance safety.

Industry Leader Announcement

• In January 2025, Rajeev YSR, the CEO of Thunder Plus and Group Chief Marketing Officer at ETO Group. made an announcement stating that, “We are always on a look out to solve shared mobility problems while reducing carbon footprint. This partnership with FlixBus marks an important step for India towards sustainable and environmentally friendly transportation. This partnership enables us to offer end to end solutions to the Indian commuters from first mile, last mile and including middle mile / intercity operations.”

Competitive Landscape

The intercity buses market is a highly fragmented industry with the presence of a few dominating players. Some of the prominent companies in this industry consists of Arriva, FirstGroup, SNF Group, Stagecoach Group, FlixMobility, Megabus, Greyhound Lines, Coast Mountain Bus Company, Daimler and some others. These companies are constantly engaged in developing intercity buses and adopting numerous strategies such as joint ventures, launches, partnerships, business expansion, acquisitions, collaborations, and some others to maintain their dominant position in this industry. For instance, in January 2025, Arriva launched a new range of e-bus in Italy. These e-buses are designed for intercity operations across the country. Also, in March 2023, Daimler launched Setra MultiClass 500 LE. Setra MultiClass 500 LE is an intercity bus that comes with advanced features such as Predictive Brake Assist 2, Predictive Powertrain Control (PPC), automatic gearshift system and some others.

Recent Developments

• In April 2025, FlixBus partnered with Vertelo. This partnership is done for launching a series of electric intercity buses across India.
• In March 2025, NueGo launched an intercity AC bus in India. This bus is designed for providing superior intercity bus service across the country.
• In March 2025, Yutong launched an intercity e-bus named as ‘IC12E’. IC12E is an electric intercity bus designed for the eco-friendly consumers of European region.

Intercity Buses Market Segments

By Bus Type

• Single Deck Buses
• Double Deck Buses
• Coach Buses
• Luxury Buses

By Fuel Type

• Diesel
• Natural Gas
• Electric
• Hybrid

By Passenger Capacity

• Up to 30
• 31 to 50
• 51 to 70
• Over 70

By Service Type

• Scheduled Service
• Charter Service
• Tourist Service

By Region

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa