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Bus Rapid Transit (BRT) Vehicles Market Size - By Vehicle (Conventional, Articulated, Bi-Articulated), Fuel (Diesel, Natural Gas, All-Electric, Hybrid), Seating Capacity (Below 100 Seats, 100-200 Seats, Above 200 Seats), Application & Forecast, 2024 - 2032

  • Report ID: GMI9290
  • Published Date: Apr 2024
  • Report Format: PDF

Bus Rapid Transit Vehicles Market Size

Bus Rapid Transit Vehicles Market size was valued at USD 37 billion in 2023 and is estimated to register a CAGR of over 7.5% between 2024 and 2032. The increasing urbanization and rising population are driving the market growth. Cities are growing increasingly populated, resulting in traffic congestion, lengthier commuting times, and pressurizing traditional transportation networks.

Bus Rapid Transit Vehicles Market

BRT systems may frequently use existing roadways by establishing dedicated lanes for BRT buses. This is a more practical and cost-effective approach to improving traffic flow in densely populated locations. As populations grow, so will the demand for cheap transportation choices. BRT provides a dependable and speedier alternative to regular buses at a lesser cost than metros or light rail.

For instance, according to the World Bank’s April 2023, urban development report around 56% of the world’s population live in cities. This trend is expected to continue, with the urban population more than doubling its current size by 2050. By 2045, the world's urban population will increase by 1.5 times to 6.6 billion. Rapid urbanization will put a strain on different transportation services used in cities across the world, fueling the need for a fast and less crowded experience, thereby driving the demand for the bus rapid transit (BRT) vehicles market.

The growing demand for sustainable and efficient transportation options is fueling the adoption of bus rapid transit (BRT) vehicles. BRT systems pollute substantially less than private cars. The industry is gradually adopting electric and hybrid buses, which reduces hazardous emissions and air pollution in cities.

Dedicated lanes and priority signaling at junctions enable BRT buses to avoid congested traffic, resulting in quicker and more predictable journey times for passengers. This efficiency motivates individuals to choose BRT over private cars trapped in traffic jams. Compared to heavier rail systems such as subways, BRT infrastructure is less expensive to create and maintain. This results in decreased operating expenses for governments, making BRT a more financially viable choice.

The public perception and high upfront costs are a major challenge to the BRT vehicles market, potentially slowing down its growth. Implementing BRT often involves reserving existing traffic lanes for buses only. This can interrupt traffic flow in the near term, causing annoyance among drivers and companies that rely on the roadways. Public education will play a crucial role in informing citizens about the long-term benefits of BRT, including reduced traffic congestion and improved air quality.

Furthermore, the initial expenditure in a BRT system may be significant, which includes acquiring BRT buses, constructing dedicated lanes and stops, and establishing ticketing systems. Decision makers in the industry ecosystem may be cautious to authorize significant spending, especially if they face public resistance over disruption fears.

Bus Rapid Transit Vehicles Market Trends

The bus rapid transit (BRT) vehicles industry is witnessing significant technological advancements in passenger experience and overall system integration. Real-time traffic intelligence, signal prioritization for BRT buses, and dynamic route alterations depending on passenger demand all help to enhance BRT operations, resulting in smoother rides and quicker travel times.  Contactless ticketing systems, which use cards or mobile applications, speed up passenger boarding and minimize station stay times, thereby enhancing system efficiency.

Real-time tracking of BRT vehicles enables more efficient scheduling, deployment, and maintenance, assuring consistent service and lowering operational expenses. Mobile applications and digital displays at stations give passengers real-time arrival and departure information, which improves the predictability of waiting times and the overall travel experience. Offering internet access, news updates, or even entertainment alternatives on board may make BRT rides more pleasant and enticing to passengers. Audio announcements for visually impaired passengers, as well as specific zones for bicycles and wheelchairs, can help to make BRT systems more inclusive and accessible.

In April 2023, a new smartcard system was introduced for Dar's rapid bus transport system, which aims to expedite passenger boarding by allowing commuters to load their cards in advance through mobile money payments. This smartcard system enables passengers to swipe their cards over a scanner for quick access to BRT stations, eliminating the need to queue for paper tickets at cashiers.

Bus Rapid Transit Vehicles Market Analysis

Bus Rapid Transit (BRT) Vehicles Market Size, By  Fuel, 2022 – 2032, (USD Billion)

Based on fuel, the market is divided into diesel, natural gas, all-electric, hybrid, and others. The diesel segment accounted for USD 22 billion market share in 2023. In general, diesel engines are less expensive to acquire than other fuel sources such as electric or hybrid buses. This is a crucial problem for cities with limited funds, particularly in developing nations where BRT systems are rapidly expanding.

The refueling infrastructure for diesel is already extensively accessible across the globe. This makes operating a fleet of diesel BRT buses easier and less expensive than using alternative fuels, which may need new stations or depot changes. Furthermore, diesel engines have a greater travel range on a single tank than many electric or hybrid options. This is critical for BRT systems that have long routes or few possibilities for mid-route charging.

Bus Rapid Transit (BRT) Vehicles Market Share, By Application, 2023

Based on the application, the bus rapid transit vehicles market is categorized into urban and suburban. The urban segment is expected to hold around USD 41.5 billion market revenue by 2032. Urban regions are heavily populated, creating a strong demand for public transit. BRT systems provide a high-capacity, efficient option for moving large numbers of passengers across a city. Traditional buses may struggle to meet peak hour demand, while other solutions such as subways or trams can be costly to install in densely populated regions. BRT systems may escape heavy traffic in urban areas by using dedicated lanes and priority signaling, providing commuters with a quicker and more dependable mode of transportation.

Additionally, cities already have existing road networks, which make them ideal for BRT adoption. While some adaptation may be required for dedicated lanes and stations, using existing infrastructure makes BRT a more cost-effective choice than creating fully new rail systems in metropolitan areas.

Asia Pacific BRT Vehicles Market Size, 2022 -2032, (USD Billion)

Asia Pacific is the fastest-growing region in the global bus rapid transit vehicles market, with a major share of around 62% in 2023. Cities around Asia are undergoing tremendous expansion, resulting in an increase in demand for efficient public transit bus. BRT provides a cost-effective and scalable alternative for transporting large numbers of passengers. Regional governments are rapidly realizing the benefits of BRT, which include decreased congestion, improved air quality, and economic development. This is leading to large expenditures in BRT infrastructure and car procurement.

The U.S. BRT vehicles market is expected to grow steadily, driven by factors such as increased urbanization and traffic congestion in major cities, rising public awareness regarding sustainability and a push for cleaner transportation options, and potential government funding and initiatives to promote public transportation development. While not as widespread as in other countries, the U.S. has an increasing number of BRT systems in operation, particularly in large metropolitan areas such as Los Angeles, San Francisco, Seattle, and New York City.

European countries, including France, Germany, UK, and the Netherlands, are witnessing significant growth in the BRT vehicles market. European cities are working to reduce carbon emissions and air pollution. BRT systems, which frequently include hybrid or electric buses, correspond with these objectives, resulting in market development.

Europe's well-developed road networks provide an excellent platform for building BRT systems. BRT is a less expensive alternative than completely new systems since it makes use of existing infrastructure. In the Middle East and Africa (MEA), the dependence on oil makes public transportation even more attractive as an alternative to private vehicles. BRT systems offer a fuel-efficient solution, becoming more appealing with rising oil prices.

Bus Rapid Transit Vehicles Market Share

Volvo Group and Daimler dominate the market with around 13% of the market share. Volvo places a strong emphasis on sustainability in its BRT vehicles, providing alternative fuel choices, electric propulsion systems, and environmentally friendly attributes to lessen emissions, noise disturbances, and ecological footprints. This aligns with urban sustainability goals and meets the demands of environmentally conscious customers.

Daimler AG focuses on customer-centric strategies in developing products and delivering services, recognizing the distinct requirements and obstacles faced by transit agencies, operators, and passengers. Daimler AG's BRT vehicles are designed to prioritize reliability, accessibility, and passenger comfort, ensuring a tailored solution that meets the needs of all stakeholders involved.

Bus Rapid Transit Vehicles Market Companies

Major companies operating in the bus rapid transit (BRT) vehicles industry are:

  • BYD Company Limited
  • Daimler AG
  • MAN Truck & Bus AG
  • Marcopolo S.A.
  • New Flyer Industries Inc.
  • Scania AB
  • Tata Motors Limited
  • Van Hool NV
  • Volvo Group
  • Zhengzhou Yutong Bus Co., Ltd.
  • Zhongtong Bus Holding Co., Ltd.

Bus Rapid Transit Vehicles Industry News

  • In April 2024, IndyGo unveiled 60-foot electric buses for the future Purple Line Bus Rapid Transit (BRT) route. These fully electric buses are designed to work seamlessly with rapid transit operations on IndyGo's BRT lines, offering fast, frequent, and reliable service to passengers. The Purple Line BRT route is set to provide increased frequency, reliability, comfort, and convenience at a fraction of the cost of light rail, enhancing transportation options for the community.
  • In December 2023, the Dakar electric BRT network announced it would be operational by summer 2024, with 121 CRRC e-buses already delivered to the city. The new electric BRT system is part of a larger project to modernize Dakar's urban mobility and transport network by 2025 and is expected to create 1,000 jobs. The system will include four lines, one omnibus line serving all stops, two semi-express lines serving certain stations, and an express line serving only the main hubs.

The bus rapid transit (BRT) vehicles market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

  • Conventional
  • Articulated
  • Bi-articulated

Market, By Fuel

  • Diesel
  • Natural gas
  • All-electric
  • Hybrid
  • Others

Market, By Seating Capacity

  • Below 100 seats
  • 100-200 seats
  • Above 200 seats

Market, By Application

  • Urban
  • Suburban

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Southeast Asia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia
    • Rest of MEA


Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of bus rapid transit (BRT) vehicles reached USD 37 billion in 2023 and is set to witness 7.5% CAGR from 2024 to 2032, owing to the increasing population, resulting in traffic congestion, lengthier commuting times, and pressurizing traditional transportation networks worldwide.

The diesel fuel segment held over USD 22 billion in 2023, due to being less expensive to acquire than other fuel sources.

Asia Pacific market recoded around 62% share in 2033, attributed to providing a cost-effective and scalable alternative for transporting large numbers of passengers in the region.

Daimler AG, MAN Truck & Bus AG, Marcopolo S.A., New Flyer Industries Inc., Scania AB, Tata Motors Limited, Van Hool NV, Volvo Group, Zhengzhou Yutong Bus Co., Ltd., and Zhongtong Bus Holding Co., Ltd., are some of the major bus rapid transit (BRT) vehicles companies worldwide.

Bus Rapid Transit Vehicles Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 350
  • Countries covered: 25
  • Pages: 250
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