Bus Rapid Transit (BRT) Vehicles Market Size

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.

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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.