School Bus Market Insights, Forecast and Competitive Strategies

School Bus Market Size, Trends, Growth and Forecast

The school bus market is expected to increase from USD 26.44 billion in 2025 to USD 45.09 billion by 2034, growing at a CAGR of 6.11% throughout the forecast period from 2025 to 2034.

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Introduction

The school bus market is a prominent segment of the automotive industry. This industry deals in manufacturing and distribution of school buses in different parts of the world. There are several types of buses developed in this sector consisting of Type A buses, Type B buses, Type C buses and Type D buses. These buses are powered using different types of fuel comprising of gasoline, diesel, electric and hybrid. The school buses are equipped with various types of drive systems including 4*2, 4*4, 6*4, 6*6 and others. It is integrated with numerous safety features such as advanced driver assistance systems (ADAS), electronic stability control (ESC), anti-lock braking system (ABS), seatbelts, cameras and some others. The growing sales of electric school buses in different parts of the world has boosted the market expansion. This market is expected to rise significantly with the growth of the bus manufacturing industry around the globe.

• According to the U.S. Department of Energy, around 5612 electric buses were sold in the U.S. during 2022 that increased to 5982 in 2023.

Highlights of the School Bus Market

• Europe held the highest share of the school bus market.
• Asia Pacific is expected to grow with a significant CAGR during the forecast period.
• By bus type, the type A segment held a dominant share of the market.
• By bus type, the type B segment is likely to rise with a considerable growth rate during the forecast period.
• By fuel type, the diesel segment held the largest share of the market.
• By fuel type, the electric segment is anticipated to witness fastest growth during the forecast period.
• By seating capacity, the ‘10-20’ segment held a significant share of the industry.
• By seating capacity, the '21-30' segment is predicted to rise with a considerable CAGR during the forecast period.

Key Metrics and Overview

School Bus: Stats and Figures

• According to the India Smart Grid Forum, around 3000 electric buses were registered in India during July 2023.
• According to the World Resource Institute, around 5000 electric buses were registered in the U.S. during 2024.
• According to the Climate Central, around 12174 electric school buses were ordered in the U.S. during 2024.

Bus Type Insights

The type A segment held a dominant share of the market. The growing adoption of Type A school buses for transporting students on shorter routes has boosted the market expansion. Additionally, the increasing preference of parents to send their children in type A buses is further adding to the industrial growth. Moreover, several advantages of these school buses including enhanced safety, smoot ride experience, cost-effectiveness, reduced traffic congestion and some others is accelerating the growth of the school bus market.

The type B segment is likely to rise with a considerable growth rate during the forecast period. The rising use of medium-sized school buses for student transportation has boosted the market growth. Additionally, these buses are built on front section chassis platform that increases the overall carrying capacity, thereby fostering the industrial expansion. Moreover, the growing adoption of type B buses for long-distance transportation of students is further anticipated to drive the growth of the school bus market.

Fuel Type Insights

The diesel segment held the largest share of the market. The growing adoption of diesel-based school buses in APAC region due to lack of EV charging stations has boosted the market growth. Also, numerous advantages of diesel-powered school buses including high reliability, low operating costs, less maintenance, superior mileage and some others is playing a vital role in shaping the industrial landscape. Moreover, numerous bus companies are collaborating with modern schools for delivering high-performance diesel buses that in turn is expected to boost the growth of the school bus market.

The electric segment is anticipated to witness fastest growth during the forecast period. The growing demand for electric school buses in western nations such as the U.S., UK, Germany, France and some others has boosted the market growth. Also, numerous government initiatives aimed at strengthening the EV charging infrastructure coupled with rapid consumer awareness to reduce emission is driving the industrial expansion. Moreover, the increasing sales of electric school buses along with rising investment by EV brands for developing advanced buses for school sector is expected to propel the growth of the school bus market.

Geographical Insights

Europe held the highest share of the school bus market. The rising adoption of electric school buses due to increased emphasis on reducing emission has boosted the market expansion. Additionally, the rise in number of convent schools coupled with numerous government initiatives aimed at strengthening the educational sector is playing a vital role in shaping the industrial landscape. Moreover, the growing development in the automotive sector along with presence of several school bus manufacturing brands is expected to propel the growth of the school bus market in this region.

UK dominated this region. The rise in number of private schools has increased the demand for school buses, thereby boosting the market expansion. Additionally, rising preference of parents to send their child safely to schools is further contributing to the industrial growth. Moreover, the schools of England and Wales are adopting electric buses for operating their daily operations that in turn is likely to shape the industrial landscape.

Asia Pacific is expected to grow with a significant CAGR during the forecast period. The growing demand for high-quality education in countries such as India, China, Japan and some others has boosted the market expansion. Additionally, numerous government initiatives aimed at developing the school infrastructure coupled with rising concern about student safety is further accelerating the industrial growth. Furthermore, the rising adoption of Type A school buses along with technological advancements in automotive sector is expected to boost the growth of the school bus market in this region.

China and India contributed significantly to the market. In China, the market is generally driven by the rising demand for advanced school buses equipped with features such as ADAS, ABS, ESC and some others coupled with rapid investment by bus manufacturers for developing superior quality school buses. In India, the rise in number of private schools along with rapid adoption e-buses for transporting students is driving the market growth.

Industry Leader Announcement

• In January 2025, T.J. Reed, the president and CEO of Thomas Built Buses made an announcement stating that, “We are proud to introduce the second generation of our Saf-T-Liner C2 Jouley, a product that reflects our commitment to innovation, meeting the evolving needs of our customers and driving the future of sustainable student transportation, With features that enhance efficiency, performance and serviceability, the new Jouley delivers unmatched value for both current electric bus operators and new adopters who are ready to embrace cleaner, smarter solutions.”

Competitive Landscape

The school bus market is a highly developing industry with the presence of a numerous dominating players. Some of the prominent companies in this industry consists of Trans Tech Bus (U.S.), TAM-Europe (Slovenia), IVECO Bus (Italy), Gillig LLC (U.S.), Navistar Inc. (U.S.), Blue Bird Corporation (U.S.), Collins Bus Corporation (U.S.) and some others. These companies are constantly engaged in developing school buses and adopting numerous strategies such as partnerships, collaborations, business expansions, launches, acquisitions, joint ventures and some others to maintain their dominant position in this industry. For instance, in November 2023, Trans Tech launched Type A school bus. This school bus is designed for the students of New York, U.S. Also, in May 2023, Collins Bus launched Ford E-Transit Type A school bus. This school bus is equipped with a 68-kWh battery and an 8-year/100,000-mile warranty.

• According to the annual report of BlueBird, the revenue of the company in 2023 was US$ 1132793 thousand in 2023 that increased to 1347154 thousand in 2024.

Recent Developments

• In April 2025, the government of California announced to deploy 1,000 zero-emission school buses. These buses are designed for providing eco-friendly transportation to school goers.
• In January 2025, Thomas Built Buses launched Saf-T-Liner C2 Jouley battery-electric school bus. This school bus is powered by a 800V Battery and advanced motor to provide superior driving range.
• In September 2024, Red Lake School District partnered with Highland Electric Fleets. This partnership aims at providing electric bus services across the U.S.

School Bus Market Segments

By Bus Type 

• Type A
• Type B
• Type C
• Type D

By Propulsion

• ICE
• Electric

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa