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Bus Transmission System Market Size - By Transmission (Manual, Automatic), By Drive (Front Wheel, Rear Wheel), By Fuel (Diesel, Gasoline, Hybrid, Electric), By Bus (Coach Bus, City & Intercity Bus, School Bus) & Forecast, 2024 – 2032

  • Report ID: GMI9915
  • Published Date: Jun 2024
  • Report Format: PDF

Bus Transmission System Market Size

Bus Transmission System Market size was valued at USD 21.3 billion in 2023 and is estimated to register a CAGR of over 5% between 2024 and 2032. The market is experiencing robust growth, driven by rising innovations and product introductions by leading companies. These developments are driven by the increasing availability of efficient, reliable, and environmentally friendly public transport solutions. Companies are investing heavily in research and development to develop state-of-the-art systems that improve bus performance, fuel efficiency, and longevity.

Bus Transmission System Market

For instance, in May 2022, ZF’s Commercial Vehicle Solutions (CVS) division introduced the EcoLife CoachLine, the second generation of its six-speed automatic transmission. Designed for passenger use, the EcoLife CoachLine was suitable for city, intercity, and challenging steep mountain roads.

Innovations such as automatic transmission systems, hybrid electric powertrains, and intelligent control systems are changing the BTS market. This technology improves fuel economy, reduces emissions, and provides a smooth and efficient driving experience, meeting regulatory requirements, and consumer demand for green transport options.

Major manufacturers are launching long-range cables that connect with modern bus systems with ease and provide increased reliability and maintenance. The increasing adoption of public transport in urban areas further supports market growth, driven by efforts to reduce traffic congestion and environmental impact. While cities worldwide are investing to provide their fleet of state-of-the-art buses, the market is set to continue with an upward trajectory.

The Bus Transmission System (BTS) market faces several restraints affecting its growth. The high costs associated with advanced transport technologies such as automatic hybrid systems deterred some fleet operators from adopting them. Additionally, the complexity and cost of maintaining this sophisticated system pose challenges, especially for smaller carrier companies with limited budgets. The slow-moving infrastructure markets increasingly hamper the widespread adoption of new BTS solutions. Furthermore, stringent regulatory requirements and the need to comply with international standards complicate the implementation of new mobile technologies, which restrict market expansion despite the possibility of profitability.

Bus Transmission System Market Trends

The bus transmission system (BTS) industry is witnessing rising demand, driven largely by the introduction of new products at large industry events. These forums are important venues where manufacturers display transmission technology. Companies introduce impressive designs to deliver bus performance, fuel efficiency, and passenger comfort. Trade fairs and exhibitions, for example, attract a global audience of fleet operators, and cargo companies, allowing them to highlight their latest innovations. Recent launches in these events have introduced advanced dynamic products and automotive transmission system technologies, catering to the growing needs of modern public transport.

These new systems promise to significantly improve the fuel economy, emissions reduction, and efficiency for urban planning, and transportation and address the important concerns of the authorities. Discovering and participating in industry events accelerates market acceptance as participants gain first-hand experience with the latest technologies. This direct communication builds trust and accelerates decision-making processes, increasing investment in improved BTS solutions.

Consequently, with strategic initiatives and demonstrations at these influential industry forums, the BTS market is poised for significant growth. Citing an instance, in May 2023, ZF announced that it would launch the CeTrax 2 dual electric central drive system for buses in Europe at the UITP Conference in Barcelona. The system has a three-speed transmission combination and low weight of 385 kg, which ZF says makes it easier to handle steep slopes and challenging terrain.

Bus Transmission System Market Analysis

Bus Transmission System Market, By Transmission, 2022 – 2032, (USD Billion)

Based on transmission, the market is divided into manual transmission system and automatic transmission system. The automatic transmission system segment was valued at over USD 12 billion in 2023. These systems offer many advantages over traditional manual transmissions, such as improved fuel efficiency, reduced driver fatigue, smooth driving, and automatic transmissions that enhance the driving experience.

Furthermore, the automotive transmission system is compatible with more advanced public transport solutions with less pressure on the environment. Bus builders are increasingly adopting these systems to comply with stringent emissions regulations and reduce operating costs. The convenience, reliability, and efficiency of automatic transmission systems are the major demand drivers, contributing to the growth of the overall market.

Bus Transmission System (BTS) Market Share, By Drive, 2023

Based on drive, the bus transmission system market is categorized into front wheel drive and rear wheel drive. The front wheel drive segment is anticipated to register a CAGR of over 4.5% from 2024 to 2032. FWD systems offer several benefits, such as better fuel efficiency, reduced weight, and increased interior space, which are particularly useful for urban buses. These systems for the drive train system are simpler, resulting in lower maintenance costs and higher reliability.

In addition, FWD buses provide good traction and dynamics especially in bad weather conditions, making them the preferred choice for public transport which works in a variety of environments. Manufacturers develop new BTSs specifically for FWD to provide performance and durability to meet the needs of modern transport systems. The emphasis on efficient, reliable, and cost-effective solutions is driving the growing demand for BTS in front-wheel drive buses.

China Bus Transmission System (BTS) Market Size, 2022 -2032, (USD Billion)

Asia Pacific dominated the global bus transmission system market with a major share of over 40% in 2023, due to rapid urbanization, expanded public transport infrastructure, and infrastructure development, especially those that offer fuel efficiency and low cost in terms of maintenance. The increasing adoption of electric and hybrid buses in the region is increasing the need for innovative infrastructure that can support this technology. Manufacturers are meeting the needs of the Asia-Pacific market by introducing advanced transmission solutions, contributing to the strong growth of the region’s public transport sector.

The bus transit system (BTS) industry in the U.S. is increasingly important due to the push for a more modern and sustainable public transport system. Increasing state and national investment in infrastructure is driving the need for an advanced bus transport system which are effective and environmentally friendly. In addition, the emphasis on reducing operating costs and improving passenger comfort is driving the use of automated transmission systems. Leading manufacturers are introducing cutting-edge BTS technologies to meet these demands, ensuring that the U.S. can meet these demands.

In Europe, the bus transmission system market is significantly driven by stringent environmental regulations aimed at reducing emissions and improving air quality. The European Union's policies, such as the Euro VI emission standards, are pushing public transportation providers to adopt advanced transmission technologies, including hybrid and electric systems. Additionally, increasing investments in sustainable urban mobility and government incentives for clean energy public transport solutions further propel the demand for modern, efficient bus transmission systems across the region. These initiatives are crucial in supporting Europe's commitment to environmental sustainability and energy efficiency?.

Bus Transmission System Market Share

ZF Friedrichshafen AG, Eaton Corporation, and Voith GmbH held significant market share of over 20% market share in 2023. These major players in the market are focusing on advancing their technological capabilities and expanding their product portfolios to meet the growing demand for efficient and environmentally friendly transportation solutions. They are investing in the development of hybrid and electric transmission systems, enhancing their global distribution networks, and entering strategic partnerships to strengthen their market positions.

Companies such as Eaton Corporation are expanding their global footprint through strategic acquisitions and collaborations. They are focusing on integrating smart technology into their transmission systems, such as telematics and IoT connectivity, to enhance operational efficiency and provide real-time data monitoring. This innovation not only optimizes performance but also reduces maintenance costs and downtime, offering a competitive edge in the highly dynamic bus transmission market?.

Bus Transmission System Market Companies

Major players operating in the bus transmission system (BTS) industry are:

  • Allison Transmission
  • BorgWarner Inc.
  • Cummins Inc.
  • Daimler AG (Mercedes-Benz Group AG)
  • Dana Incorporated
  • Eaton Corporation
  • Hyundai Mobis
  • Meritor, Inc.
  • Valeo SA
  • Voith GmbH
  • Weichai Holding Group Co., Ltd.
  • ZF Friedrichshafen AG

Bus Transmission System Industry News

  • In February 2024, Allison Transmission, a manufacturer of mobility solutions for commercial and safety vehicles, announced the addition of 100 JBM CityLife city buses equipped with fully automated Allison T280s transmissions into Delhi’s existing fleet.
  • In July 2023, ZF introduced ZF Health Check, specially designed for ZF EcoLife automated transmissions, marking the company’s debut in remote diagnostics for bus fleets. The system uses real-time performance data to create individualized maintenance plans based current status of transmissions.

The bus transmission system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2032, for the following segments:

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Market, By Transmission

  • Manual transmission systems
  • Automatic transmission systems

Market, By Drive

  • Front wheel drive
  • Rear wheel drive

Market, By Fuel

  • Diesel
  • Gasoline
  • Hybrid
  • Electric

Market, By Bus

  • Coach bus
  • City & intercity bus
  • School bus

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
    • Australia
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America 
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia
    • Rest of MEA


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of bus transmission system (BTS) reached USD 21.3 billion in 2023 and is set to witness over 5% CAGR from 2024 to 2032, due to the rising innovations and product introductions by leading companies.

The automatic transmission system segment in the bus transmission system industry accounted for over USD 12 billion in 2023, as these systems offer many advantages over traditional manual transmissions, such as improved fuel efficiency, reduced driver fatigue and smooth driving.

The front wheel drive segment in the bus transmission system (BTS) market is projected to grow at over 4.5% CAGR between 2024 and 2032, as these systems offer several benefits, such as better fuel efficiency, reduced weight, and increased interior space, which are particularly useful for urban buses.

Asia Pacific market accounted for over 40% share in 2023, owing to rapid urbanization, expanded public transport infrastructure, and infrastructure development in the region.

Bus Transmission System Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 285
  • Countries covered: 25
  • Pages: 265
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