Home > Automotive & Transportation > Autonomous Bus Market
Industry Trends
Autonomous Bus Market size exceeded USD 1 billion in 2021 and is anticipated to grow rapidly at a CAGR of over 19% between 2022 and 2028. Rising concerns related to pollution levels and increasing preference for alternative fuels is boosting the industry growth.
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The growing adoption of automation technologies coupled with investments in research initiatives is poised to foster the market demand. Increasing emphasis on safe & secure driving with enhanced traffic control is propelling the industry statistics. For instance, in August 2021, Shanghai launched a demonstration line for self-driving buses. The vehicles are integrated with smart connected bus technology based on the third-generation autonomous driving platform.
The major factor challenging the industry growth of autonomous bus is rise in cybersecurity issues and data breaching activities. Autonomous buses are susceptible to data hacking owing to technical glitches even after the successful installation of software. Unauthorized access to the autonomous bus central digital system will result in confidential data leakage. Due to this, fleet operators are not fully ready to switch to autonomous buses. To overcome this restraint, government bodies in the U.S. have introduced the Electronic Communications Privacy Act and Federal Communications Act related to autonomous vehicle data and communications.
| Report Coverage | Details |
|---|---|
| Base Year: | 2021 |
| Market Size in 2021: | USD 1 Billion |
| Forecast Period: | 2022 to 2028 |
| Forecast Period 2022 to 2028 CAGR: | 19% |
| 2028 Value Projection: | USD 4 Billion |
| Historical Data for: | 2018 to 2021 |
| No. of Pages: | 170 |
| Tables, Charts & Figures: | 178 |
| Segments covered: | Level of Autonomy, Fuel, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The COVID-19 pandemic severely impacted the autonomous bus market in 2020. The global lockdown, travel restrictions, and supply chain disruptions caused a shortage of electrical components, resulting in production delays. Investment postponement, raw material & workforce shortage, and temporary factory shutdowns led to a decline in commercial vehicle sales. However, with a rise in government investments in autonomous vehicles and EV charging infrastructure, the industry is likely to witness a significant growth.
Integration of advanced software, sensor packages, and hardware into level 4 autonomous buses
The Europe level 4 autonomous buses are set to register growth rate of about 25% through 2028. Level 4 technology is used in self-driving vehicles, that do not require human intervention in their operations. Robust developments of radar technology and microprocessor capacity are augmenting the segment growth. Industry players are investing heavily on R&D to develop fully-autonomous vehicles.
Supportive government regulations to promote the adoption of electric vehicles
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Asia Pacific electric autonomous bus segment valued at USD 500 million in 2021. The high demand can be attributed to supportive government initiatives such as subsidies and policies to mitigate pollution levels. For instance, in December 2021, the Government of India allocated a fund of USD 100 billion for faster adoption and manufacturing of hybrid & electric vehicles under Phase II (FAME) scheme.
Low operating costs of autonomous vehicles in intracity travel
North America intracity segment held more than 90% autonomous bus market in 2021. The rising demand for intracity autonomous bus can be credited to the increasing purchasing power of fleet operators, low-cost vehicle insurance, and operating costs. Furthermore, intracity autonomous buses can navigate easily on small roads and cause less traffic jams.
Presence of major industry participants in Asia Pacific
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The Asia Pacific market size is expected to showcase 20% gains till 2028 fueled by the presence of major companies in the reginal automotive industry including Toyota Motor Corporation, and Honda Motor Company. Factors such as rapid urbanization, rising concerns to mitigate pollution levels are contributing to the market revenue. Moreover, the region is highly dependent on bus services, which is a major factor enhancing the industry statistics.
New launches of autonomous bus models by market players
Industry participants are adopting a variety of strategies including new autonomous bus launches, partnerships & acquisitions to gain a competitive edge over rivals.
The key players operating in the autonomous bus market are Volkswagen AG, Continental AG, AB Volvo, Daimler AG, Tesla, Toyota Motor Corporation, EasyMile SAS, Navya SAS, Robert Bosch GmbH, Scania AB, and Hyundai Motor Company.
This market research report on autonomous bus includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2022 to 2028 for the following segments:
Market, By Level of Autonomy
- Level 1
- Level 2
- Level 3
- Level 4
Market, By Fuel
- Electric
- Diesel
- Hybrid
Market, By Application
- Intercity
- Intracity
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Switzerland
- Asia Pacific
- China
- Australia
- Japan
- South Korea
- Singapore
- Latin America
- Brazil
- Mexico
- Chile
- MEA
- Saudi Arabia
- UAE
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