Europe Bus Market Size - By Type, By Propulsion, By Seating Capacity, By Application, Growth Forecast 2025-2034

Europe Bus Market Size

The Europe bus market was valued at USD 10.2 billion in 2024. The market is expected to grow from USD 10.6 billion in 2025 to USD 16 billion in 2034, at a CAGR of 4.6%, according to latest report published by Global Market Insights Inc.

The Europe bus market is expected to witness significant growth, driven by increasing demand for sustainable mobility, fleet modernization, and compliance with stringent EU emission standards. With advancements in electric and hydrogen propulsion technologies, manufacturers are focusing on zero-emission bus solutions to improve urban air quality, passenger comfort, and operational efficiency.
 

Bus play an important role in enhancing public transportation by reducing congestion, supporting green mobility policies, and offering affordable mass transit options. Zero-emission Bus are particularly valuable in densely populated European cities, where reduced noise and emissions are essential for environmental sustainability and improved passenger experience. With the integration of advanced telematics, lightweight materials, and high-capacity batteries, modern Bus offer longer ranges, faster charging, and improved lifecycle cost efficiency compared to conventional fleets.
 

For instance, in May 2024, Solaris Bus & Coach launched a new generation of hydrogen-powered Bus across several EU cities. This technology enhances fleet sustainability, provides extended operational range, and supports the EU’s clean transport initiatives, helping cities meet their decarbonization targets under the Green Deal framework.
 

The Europe bus market is experiencing rapid advancements driven by technological innovation, increasing adoption of electric and hydrogen vehicles, and regulatory mandates for zero-emission mobility. One of the most significant developments is the adoption of fleet-as-a-service models, which combine Bus with integrated charging or refueling infrastructure, predictive maintenance, and digital passenger services. Additionally, OEMs are integrating connected mobility platforms and ADAS features into bus fleets, ensuring enhanced safety, real-time route optimization, and improved passenger accessibility for next-generation public transport systems.
 

Europe Bus Market Trends

The demand for Bus in European market is fueled by the rising collaborations between bus manufacturers to accelerate the development of electric and hybrid Bus and by operators’ willingness to adopt low-emission vehicles. More companies are pooling their resources and expertise to reduce costs and share technology to shorten the time-to-market for electrified Bus. For instance, in early 2024, Mercedes-Benz Bus and Volvo Bus announced a collaboration to jointly develop electric bus platforms for urban transit, leveraging their combined expertise in battery management and drivetrains.
 

Localization of electric bus manufacturing to meet regional demand and comply with local regulations is another growing trend. Volvo and Solaris, for example, are establishing production and assembly hubs within Europe to ensure Bus meet EU emissions standards while optimizing supply chains. These strategies allow manufacturers to deliver electric and hybrid Bus more efficiently to target markets and reduce dependency on cross-border logistics.
 

The entry of emerging electric bus manufacturers offering high-performance, long-range electric city and intercity Bus is gaining traction among operators increasingly focused on sustainability. For example, in late 2024, Ebusco and Arrival began delivering next-generation electric Bus in several European cities, featuring extended ranges, fast-charging capabilities, and modular interiors designed for diverse passenger volumes.
 

The development of flexible, multi-propulsion platforms is enabling manufacturers to produce diesel, hybrid, and electric Bus on the same chassis architecture. An example is VDL Bus & Coach’s Future Mobility platform, announced in 2024, which supports multiple powertrains and modular body configurations. This type of platform allows efficient production of multiple bus models while reducing development costs and accelerating the launch of new low-emission vehicles across city, intercity, and coach segments.
 

Europe Bus Market Analysis

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Based on type, the Europe bus market is divided into city Bus, coaches, intercity Bus, shuttle & minibus, school Bus and others. The city Bus segment dominated the market accounting by around 62% in 2024 and is expected to grow at a CAGR of 4.4% from 2025 to 2034.
 

• The city bus segment dominates the marketplace as urban transit authorities increasingly prioritize vehicles that provide passenger comfort, operational efficiency, and environmental sustainability. Operators specifically demand Bus that combine high passenger capacity, low-floor accessibility, advanced safety features, and connectivity for fleet management. As a result, Europe bus manufacturers are equipping city Bus with electric and hybrid powertrains, modular interiors, and smart technologies to optimize passenger experience and operational performance.
   
• Even within intercity and coach segments, manufacturers are addressing evolving requirements for comfort, efficiency, and long-distance performance. For example, in 2024, Volvo and Mercedes-Benz introduced premium intercity and coach models featuring reclining seats, climate control, and integrated infotainment systems. These developments highlight how operators and manufacturers are elevating passenger experience while meeting regulatory standards and sustainability goals.
   
• The commercial and shuttle & minibus segment is also evolving rapidly, driven by growing demand from logistics, airport transfers, corporate mobility, and tourism operators. Companies are showing increased interest in Bus with alternative powertrains, telematics-enabled fleet management, and advanced safety systems to reduce operational costs, improve route efficiency, and meet EU emission standards.

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Based on propulsion, the Europe bus market is categorized into diesel, electric and hybrid. Diesel Bus segment dominates the market with 55% share in 2024, and the segment is expected to grow at a CAGR of 3.4% between 2025 and 2034.
 

• The Diesel Bus segment continues to remain dominant in the marketplace, due to solid demand for reliability, long-range capability, and established infrastructure support. A key trend in this segment is the gradual integration of fuel efficiency technologies and low-emission engines, as manufacturers aim to comply with stricter EU emission regulations while maintaining operational cost-effectiveness for fleet operators.
   
• Producers of diesel Bus are expanding their model offerings to appeal to both traditional urban transport operators and environmentally conscious fleet managers. In 2025, several European manufacturers unveiled updated diesel models with enhanced fuel efficiency, hybrid-ready configurations, and upgraded passenger amenities, demonstrating that performance, comfort, and regulatory compliance are key drivers for continued adoption in this segment.
   
• An important trend in the Electric and Hybrid Bus segments is the increasing demand for eco-friendly, low-emission vehicles targeted at urban public transport networks. The electric bus sector is growing rapidly as municipalities adopt clean energy initiatives, while hybrid Bus gain popularity due to their ability to combine extended range with reduced emissions.
   

Based on seating capacity, the Europe bus market is divided into 31–50 Seats, more than 50 Seats and Less than 30 Seats. The 31–50 Seats segment dominates the market and was valued at USD 5 billion in 2024.
 

• The 31–50 Seats segment continues to dominate the marketplace, driven by strong demand for mid-sized Bus that balance passenger capacity with maneuverability and fuel efficiency. A key trend in this segment is the increasing incorporation of comfort features, safety technologies, and low-emission engines to meet the evolving needs of urban and intercity transport operators.
   
• Manufacturers are expanding their offerings in the 31–50 seats category to cater to both traditional fleet operators and private transport services. In 2025, several European bus makers introduced updated mid-sized models with enhanced seating ergonomics, infotainment options, and hybrid or low-emission powertrains, highlighting the focus on passenger comfort, operational efficiency, and regulatory compliance.
   
• The less than 30 seats segment is gaining traction among shuttle services, corporate transport, and niche operators seeking compact, fuel-efficient Bus, while the more than 50 seats segment continues to serve long-distance and high-density urban routes. A notable trend is the adoption of advanced safety systems, passenger amenities, and flexible interior layouts across all seating categories, reflecting operators’ emphasis on safety, comfort, and operational versatility.
   

Based on application, the Europe bus market is divided into public transport, tourism & travel operators, private fleets & corporate mobility and school transportation. The public transport segment dominates the market and was valued at USD 5.7 billion in 2024.
 

• The Public Transport segment continues to dominate the marketplace, driven by increasing urbanization, government investments in mass transit infrastructure, and rising demand for reliable and efficient urban mobility solutions. A key trend in this segment is the adoption of low-emission, electric, and hybrid Bus to meet stringent environmental regulations while ensuring operational efficiency.
   
• Bus manufacturers are expanding their product offerings for public transport operators, integrating advanced safety systems, real-time passenger information systems, and enhanced comfort features. In 2025, several European manufacturers launched updated models with improved accessibility, low-floor designs, and energy-efficient drivetrains, highlighting the focus on sustainability, passenger convenience, and regulatory compliance.
   
• The Tourism & Travel Operators segment is growing steadily, driven by rising tourism activities and demand for comfortable intercity travel. Meanwhile, Private Fleets & Corporate Mobility and School Transportation segments are witnessing increased adoption of mid-sized and compact Bus with safety and infotainment features, reflecting the broader trend of optimized fleet operations and enhanced passenger experience.

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In 2024, Germany dominated the Western Europe bus market with around 29% market share and generated approximately USD 1.63 billion in revenue.
 

• Western Europe continues to lead the European market, driven by its advanced transport infrastructure, strong emphasis on sustainable mobility, and progressive regulatory policies supporting low-emission and energy-efficient Bus.
   
• Germany continues to lead the European market driven by its well-developed transport infrastructure, strong focus on sustainable mobility, and progressive regulatory policies encouraging low-emission and energy-efficient Bus. As the largest economy in Europe, Germany represents a key opportunity for bus manufacturers, supported by a public transport system that values reliability, safety, and environmental performance. Cities such as Berlin, Hamburg, and Munich are increasingly adopting electric and hybrid Bus for urban routes, demonstrating a clear trend toward sustainable and technologically advanced public transportation solutions.
   
• Moreover, domestic bus manufacturers and fleet operators such as MAN Truck & Bus, Solaris, and Daimler Bus are pioneering innovations in electric and hybrid bus deployment. These companies are enhancing the market by integrating advanced safety features, low-floor designs, and telematics systems, substantially improving passenger comfort and operational efficiency. Investments in battery technology and modular bus designs are helping fleets adapt to varied route demands while reducing environmental impact.
   
• The priorities of the German government along with sustainability objectives are important facilitators for the growth of the bus market. Federal and state-level policies aimed at reducing carbon emissions include significant funding for electric bus infrastructure, modernization of public transit fleets, and incentives for zero-emission vehicles. Furthermore, Germany’s urban mobility frameworks, smart city initiatives, and digital ticketing systems are supporting the adoption of advanced Bus, positioning the country as a key driver for innovation and growth in the European market.
   
• For example, Solaris Bus & Coach received EUR 50 million in 2024 from the European Investment Bank (EIB) to expand its electric bus production and deploy new zero-emission Bus in major German cities such as Berlin and Munich, strengthening sustainable urban mobility and reinforcing Germany’s leadership in the European market.
   

The bus market in Eastern Europe with around 21% market share and generated approximately USD 2.2 billion in revenue.
 

• Eastern Europe is emerging as a significant growth region for Bus, driven by modernization of public transport systems, EU-backed infrastructure investments, and increasing urbanization. Countries in the region are focusing on fleet electrification, adoption of clean mobility policies, and deployment of low- and zero-emission Bus, creating opportunities for both urban and intercity transit expansion.
   
• Poland is a key market within Eastern Europe, benefiting from European Union financial support for urban transport and public transit infrastructure. Several cities are expanding bus rapid transit (BRT) systems and fleet modernization programs. Poland is also leading in adopting clean mobility policies and electrifying public transport fleets. In March 2025, Poland announced two funding programs worth €440 million each to support the deployment of electric and zero-emission Bus, including the construction of charging infrastructure and procurement of e-Bus for urban and intercity routes.
   
• The Czech Republic is witnessing market expansion due to robust policies on public transport modernization, EU-backed infrastructure investments, and rising urbanization. The country’s growing tourism and commuter transport demand, coupled with the adoption of electric and hybrid Bus, is driving fleet upgrades. The Czech Republic’s bus fleet size and deployment of low- and zero-emission Bus are projected to grow at a rate of roughly 3.1% from 2025 to 2030.
   

The bus market in Northern Europe is expected to experience significant and promising growth from 2025 to 2034.
 

• Northern Europe is emerging as a key region for bus market growth, driven by proactive green transport policies, investments in modern urban transit infrastructure, and increasing adoption of zero and low-emission Bus. Countries in this region are emphasizing electrification of public transport fleets, sustainable mobility initiatives, and upgrades to urban and intercity Bus, creating strong demand for cleaner and more efficient transit vehicles.
   
• Sweden’s proactive policies on green transport and modern urban transit infrastructure make it a leading market for Bus in Europe. The country’s strong support for electric and hybrid Bus, along with upgrades to older urban and intercity fleets, is driving demand for zero-emission city Bus, commuter Bus, and regional transport vehicles.
   
• For instance, in March 2025, Sweden introduced a new road-use fee system for public transport fleets based on vehicle emissions and energy efficiency. Older Bus are incentivized to adopt cleaner alternatives through reduced fees, accelerating the replacement of diesel Bus with Euro 6-compliant and electric models.
   
• Norway is aiming for a fully decarbonized public transport sector by mandating 50% adoption of zero-emission Bus by 2030 and a complete transition to emission-free fleets by 2040. Funding programs like Enova’s €11.5 million subsidy for deploying electric Bus and expanding fast-charging infrastructure along major transit corridors are boosting fleet modernization.
   
• Estonia and Lithuania are also emerging as notable markets for Bus due to upgraded infrastructure and focus on sustainable urban mobility. Lithuania’s regulations on alternative fuels and subsidies for electric bus fleets are expected to accelerate adoption of Euro 6 and zero-emission Bus. Estonia is seeing growing interest in electric Bus, although charging infrastructure still needs expansion to support full-scale deployment.
   

The Europe bus market in Southern Europe is expected to experience significant growth from 2025 to 2034.
 

• Southern Europe is witnessing significant growth in the market, driven by urban mobility initiatives, public transport expansion, modernization of intercity and regional fleets, and increasing adoption of cleaner and more efficient vehicles. Governments in the region are promoting sustainable transport solutions, including electrification, Euro 6-compliant Bus, and infrastructure upgrades to support e-mobility.
   
• Italy’s bus market is expected to expand, driven by the growth of public transport, urban mobility initiatives, and the modernization of intercity and regional fleets. Advancements in e-mobility technologies, coupled with infrastructure upgrades, are promoting the adoption of environmentally friendly and Euro 6-compliant Bus.
   
• Spain is one of the fastest-growing markets for Bus due to the rapid expansion of urban transit networks, investment in sustainable transport infrastructure, and the increasing demand from commuter and intercity travel.
   
• Turkey and Greece are experiencing rising demand for Bus, fueled by the development of logistics frameworks, tourism, retail, and urban transport networks. As cross-border travel and passenger transport volumes increase, there is a stronger emphasis on emission-control regulations and adoption of low- and zero-emission Bus.
   
• Greece is emerging as a notable market for urban and regional Bus, supported by growing demand from public transport, tourism, and city transit services. EU-supported sustainability initiatives are encouraging the transition toward more efficient and electric Bus, particularly in urban centers such as Athens and Thessaloniki, where stricter emission regulations and last-mile mobility requirements are being implemented.
   

Europe Bus Market Share

The top 7 companies in the market are Mercedes-Benz Bus, Volvo Bus, Scania, MAN Truck & Bus, Iveco Bus, BYD Europe and VDL Bus & Coach. These companies hold around 70% of the market share in 2024.
 

• Mercedes-Benz Bus is a significant player in the Europe bus market, well-known for its reliability, fuel efficiency, and advanced safety technologies. The company offers a wide range of city, intercity, and touring Bus, with models such as the Citaro and Tourismo being particularly popular for public transport and corporate fleets. Mercedes-Benz is also investing in electrification, introducing eCitaro electric Bus and hybrid variants to align with sustainability goals and regulatory mandates in Europe.
   
• Volvo Bus leads the European bus segment with a complete portfolio of city, intercity, and coach Bus. Flagship models include the 7900 Electric and the 9700 Coach, renowned for comfort, low emissions, and high passenger capacity. Volvo focuses on integrating advanced telematics, safety systems, and alternative powertrains, including fully electric and hybrid options, to promote sustainable urban and intercity transport solutions.
   
• Scania AB is a strong competitor in the Europe bus market with a focus on performance, durability, and fuel efficiency. Key models include the Scania Citywide and Touring Bus, used across public transport and private operators. Scania emphasizes sustainable operations, offering hybrid, electric, and biofuel-compatible Bus while leveraging advanced driver-assistance and connectivity technologies.
   
• MAN Truck & Bus focuses on city, intercity, and coach Bus, appealing to public transport authorities and commercial operators. Its flagship products, including the Lion’s City and Lion’s Coach series, deliver advanced safety, comfort, and operational efficiency. MAN is actively expanding its electric and hybrid bus offerings to meet European low-emission regulations and to support sustainable mobility initiatives.
   
• Iveco Bus targets the urban and intercity segments with Bus designed for efficiency, reliability, and low operational costs. Flagship models include the Crossway and Urbanway series, used by public transport operators across Europe. Iveco has introduced electric and hybrid Bus, combining sustainable technologies with comfort and accessibility features, catering to both municipal and private operators.
   
• BYD Europe is a key player in the electric bus segment, specializing in zero-emission solutions for urban transport. Its models, including the eBus and K-series, are recognized for long-range battery technology, low operational costs, and compliance with stringent European emission standards. BYD Europe continues to expand its presence by collaborating with cities and fleet operators to accelerate adoption of electric Bus.
   
• VDL Bus & Coach focuses on urban, intercity, and tour Bus, offering models such as the Citea and Futura series. Known for fuel efficiency, comfort, and innovative design, VDL is advancing electric mobility solutions in Europe through eCitea electric Bus and hybrid variants. The company emphasizes sustainability, low-emission technologies, and digital connectivity features to enhance fleet operations.
   

Europe Bus Market Companies

Major players operating in the Europe bus industry include:

• BYD Europe
• Irizar
• Iveco Bus
• MAN Truck & Bus
• Mercedes-Benz Bus
• Scania
• Solaris Bus & Coach
• Van Hool
• VDL Bus & Coach
• Volvo Bus
   
• The Europe bus market is intensely competitive, with established players Mercedes-Benz Bus, Volvo Bus, Solaris Bus & Coach, MAN Truck & Bus, Scania AB, and Iveco Bus occupying primary segments. Daimler leads the sector with its strong portfolio of electric and hybrid Bus under the Mercedes-Benz and Setra brands, focusing on premium quality, advanced safety technologies, and integrated digital fleet management solutions.
   
• Volvo Bus competes through a strong emphasis on sustainability and innovation, offering fully electric city Bus and hybrid models that are integrated with advanced driver assistance, telematics, and energy-efficient drivetrains. Solaris Bus & Coach has established itself as a leader in electric and hydrogen fuel-cell Bus across Central and Western Europe, delivering high operational reliability and aligning with stringent EU emissions reduction goals.
   
• Meanwhile, MAN and Scania, both part of the TRATON Group, position themselves within similar segments but differentiate through modular product platforms, competitive lifecycle cost efficiency, and strong aftersales service networks. MAN is recognized for its efficient urban and intercity Bus, while Scania focuses on alternative fuels and scalable electrification solutions. Iveco Bus maintains a strong footprint with natural gas and electric Bus, leveraging its experience in sustainable drivetrains and public transport tenders across Southern and Eastern Europe.
   
• Overall, the Europe bus market is characterized by intense competition across powertrain technologies, fleet service models, and urban mobility requirements. Manufacturers are continually innovating to capture evolving operator needs, meet EU Green Deal emission mandates, and maintain leadership in the transition toward zero-emission, digitally integrated bus fleets across the continent.
   

Europe Bus Industry News

• In August 2025, VDL Bus & Coach announced that production of its new Futura Electric intercity bus would begin in the Netherlands, marking a strategic expansion to meet the growing demand for sustainable urban and intercity transport solutions across Europe. Futura Electric is part of VDL’s broader strategy to accelerate adoption of zero-emission Bus and provide flexible fleet solutions for municipalities and private operators.
   
• In August 2025, Mercedes-Benz Bus formally announced a €1.8 billion investment to transition to its Mannheim manufacturing facility for electric and hybrid bus production. The site will adopt a flexible production platform supporting multiple bus types, with the aim of launching a new line of fully electric city Bus by 2027. This move highlights Mercedes-Benz’s ongoing commitment to electrification and sustainable public transport solutions.
   
• In July 2025, BYD Europe launched the eBus CityMax, its latest fully electric city bus, for deployment across selected European urban areas starting at €320,000 per unit. The company also announced plans to establish a local assembly line in Poland by mid-2026, signaling a focused effort to expand electric bus adoption and hybrid solutions in emerging and mature European markets.
   
• In May 2024, Volvo Bus and Scania expressed their intent to lead the European bus industry’s shift toward software-defined and connected mobility. The two companies signed a memorandum of understanding to co-develop a standardized digital bus platform and an integrated operating system aimed at improving fleet efficiency, passenger experience, and enabling the next generation of smart and connected public transport vehicles.
   

The Europe bus market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue and volume ($ Bn & Units) from 2021 to 2034, for the following segments:

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Market, By Type

• City Bus
• Coaches
• Intercity Bus
• Shuttle & Minibus
• School Bus
• Others

Market, By Propulsion

• Diesel
• Electric
• Hybrid

Market, By Seating Capacity

• 31–50 Seats
• More than 50 Seats
• Less than 30 Seats

Market, By Application

• Public transport
• Tourism & travel operators
• Private fleets & corporate mobility
• School transportation

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

• Western Europe
  • Austria
  • Belgium
  • France
  • Germany
  • Ireland
  • Luxembourg
  • Monaco
  • Netherlands
  • Switzerland
  • United Kingdom
• Eastern Europe
  • Bulgaria
  • Croatia
  • Czech Republic
  • Hungary
  • Poland
  • Romania
  • Serbia
  • Slovakia
  • Slovenia
  • Ukraine
• Northern Europe
  • Denmark
  • Estonia
  • Finland
  • Iceland
  • Latvia
  • Lithuania
  • Norway
  • Sweden
• Southern Europe
  • Albania
  • Greece
  • Italy
  • Portugal
  • Spain
  • Turkey