Double-decker Buses Market Size

Double-decker Buses Market Size

Double-decker Buses Market size was valued at USD 15.1 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. The rising urbanization and population density across cities are driving market growth. As cities become more densely populated, the number of people who require transportation grows dramatically. Existing public transportation systems frequently fail to keep up with the increase in demand, resulting in overcrowding and lengthier travel times.

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Double-decker buses have a large passenger capacity, generally transporting nearly twice as many passengers as single-decker buses. This enables them to effectively move a large number of passengers, decreasing congestion and improving overall traffic flow in densely populated metropolitan areas. Operating a fleet of double-decker buses can be less expensive for public transportation authorities as compared to running a larger number of single-decker buses to satisfy the same passenger demand.
 

The rapidly growing tourism industry is fueling the adoption of double-decker buses. Double-deckers are particularly popular for sightseeing trips due to their unique selling point, which is panoramic views. Tourists can view far more of the city on a tour than on a typical single-decker bus, improving the overall tourist experience. This specific advantage makes them an increasingly popular choice among tour operators, resulting in increased demand for double-decker buses.
 

For instance, in February 2024, The Kerela State Road Transport Corporation (Kerela RTC) expanded its double-decker bus service in Thalassery, after getting good response in Kochi and Thiruvananthapuram.  The bus can accommodate 33 people on the ground floor and 30 on the upper floor. The bus service connects major tourist centers in Thalassery including Thalasseri Kadalpalam, Jawahar ghat, Kota, Odathill Palli, Muzhupilangadi Beach, and Mahi Palli.
 

The high initial purchase and maintenance costs are a major challenge to the double-decker buses market, potentially slowing down its growth. Public transportation authorities, the principal consumers of double-decker buses, sometimes face stringent financial restraints.  Double-decker buses typically entail a higher initial cost compared to ordinary single-deckers, which could strain budget considerations. In rare circumstances, private businesses may run double-decker buses for specialized purposes, such as sightseeing excursions. The substantial initial investment might reduce profit margins, especially if ridership is insufficient. This prevents private enterprises from entering the market, restricting the possibility of market expansion.