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Shuttle Buses Market Size - By Vehicle (Mini Bus, Large Bus, Wheelchair-Accessible Vehicles, Others), By Propulsion [ICE (Diesel, CNG, Gasoline), Electric (BEV, HEV, FCEV)], By Application (Airport, Corporate, University/School) & Forecast, 2024 - 2032

  • Report ID: GMI9307
  • Published Date: Apr 2024
  • Report Format: PDF

Shuttle Buses Market Size

Shuttle Buses Market size was valued at USD 15.7 billion in 2023 and is estimated to register a CAGR of over 6% between 2024 and 2032. The growing awareness of the benefits of public transportation is driving market growth. While standard public transportation follows set routes and schedules, shuttle buses can accommodate more specialized demands, serving a broader spectrum of travellers.

Shuttle Buses Market

As people become more aware of the benefits of public transit, such as cost-effectiveness, environmental friendliness, and reduced traffic congestion, they may also recognize the drawbacks of fixed routes. Shuttle buses can convey people from their starting point (home or office) to a specific public transportation terminal. This makes public transit a more appealing choice for those who might otherwise rely on personal automobiles for short excursions.

For instance, in December 2023, a World Resources Institute study highlighted the significant reduction in Greenhouse Gas (GHG) emissions achievable by buses and trains compared to private vehicles, projecting that the global capacity for public transportation needs to double by 2030. This underscores the growing demand for public transportation as individuals recognize its advantages, thereby stimulating growth in the shuttle bus market.

The increasing popularity of ride-sharing services among consumers is fueling the adoption of shuttle buses. The popularity of ride-sharing services has boosted the idea of shared mobility. People are growing more accustomed to using on-demand transportation services rather than owning cars. Shuttle buses are a logical extension of that idea, particularly for bigger groups.

Ride-sharing systems work effectively for point-to-point transportation inside a city. Shuttle buses, on the other hand, can cover gaps that ride-sharing cannot adequately serve. Companies may offer shuttle services to transfer employees between office sites or remote work hubs, which is less practical with ride-sharing owing to cost and distance constraints. Shuttle services are popular for special occasions such as weddings, concerts, and conferences. They provide a convenient and organized means to transport people, particularly for events with predetermined pick-up and drop-off sites.

The high upfront costs of purchasing shuttle buses are a major challenge to market growth. The initial cost of a shuttle bus can be high, particularly for premium versions equipped with amenities. This can be a hindrance for businesses or organizations considering introducing shuttle services, especially given the cheaper initial cost of employing taxis or ride-sharing services. The expenses might strain the company's finances, restricting its capacity to spend on other areas such as marketing or staff training. This might restrain a company's capacity to scale operations and meet increasing demand. Incorporating additional routes or extending services may be limited by budgetary constraints.

Shuttle Buses Market Trends

The shuttle bus industry is witnessing significant technological advancements. New technologies improve the customer experience on shuttle buses, making them more competitive. Climate control systems, ergonomic seating, and enhanced suspension ensure a more comfortable ride. Onboard infotainment systems including Wi-Fi access, charging outlets, and digital displays for route information or entertainment may make lengthy trips more enjoyable and productive. Lane departure alerts, blind spot recognition, and automated emergency braking can help drivers avoid accidents and drive safely.

Software that monitors traffic patterns and real-time circumstances can assist in optimizing routes, minimizing travel time and delays. Along with this, the development of electric and hybrid shuttle buses decreases reliance on fossil fuels, resulting in reduced emissions and a lower environmental impact. This is consistent with rising environmental concerns and government policies that encourage sustainable transportation options.

In September 2023, ROAM, an electric mobility company based in Kenya, launched the Roam Move, a first-of-its-kind all-electric shuttle bus fully designed and assembled in Kenya. The Roam Move is equipped with a 170 kWh battery pack, allowing it to travel up to 200 km on a single charge. It can be fully recharged in less than 2 hours using DC fast charging. The electric bus can carry up to 51 passengers and features ergonomic seating, spacious aisles, and a quiet ride to enhance the passenger experience. It also includes advanced safety features such as collision avoidance systems.

Shuttle Buses Market Analysis

Shuttle Buses Market Size, By Vehicle, 2022-2032 (USD Billion)

Based on vehicles, the market is divided into minibuses, large buses, wheelchair-accessible vehicles, and others. The minibuses segment dominates the market in 2023 and is projected to exceed USD 9 billion by 2032. Minibuses, with seating capacities ranging from 10 to 20 passengers, provide an excellent blend of passenger capacity and mobility. They can navigate narrow streets and congested areas more efficiently than larger buses, making them ideal for urban environments with tight spaces and complex road networks, scenic tours requiring narrow roads and hairpin turns, and airport shuttles that must navigate busy drop-off and pick-up zones.

Minibuses are often less expensive to acquire and maintain than bigger shuttle buses. They also consume less fuel due to their lower weight and smaller size. This translates into lower operational costs for shuttle bus businesses, making them a more financially viable option. Furthermore, minibuses provide a good passenger experience by including amenities such as reclining seats, air conditioning, and entertainment systems. In certain cases, the smaller size might seem less crowded and provide a more personalized experience than bigger buses.

Shuttle Buses Market Share, By Application, 2023

Based on application, the shuttle buses market is categorized into airport, corporate, university/school, and others. The airport buses segment held a major market share of around 37% in 2023. Airports handle a significant number of people at various arrival and departure times. Shuttle buses are a convenient and cost-effective alternative for passengers to commute between airport terminals, parking lots, and off-site places such as hotels or transit hubs. This eliminates the need for tourists to explore new regions with luggage or rely on taxis or ride-sharing services, all of which might lead to surge pricing or availability concerns, particularly during peak travel periods.

Airports use predictability and efficiency to regulate passenger flow. Shuttle buses provide dependable and planned service to supplement airport operations. Passengers may plan their travels knowing that shuttle buses will be available at specific pick-up places and intervals. Furthermore, airports handle a large number of people throughout the day, resulting in economies of scale for shuttle bus operations. This contributes to increased ridership and perhaps reduced rates as compared to other shuttle bus applications.

Shuttle Buses Market Size, By Vehicle, 2022-2032 (USD Billion)

North America dominated the global shuttle buses market with a share of over 36% in 2023. The region is experiencing growing environmental concerns and traffic congestion, accelerating the move toward public transit alternatives. Shuttle buses are a more efficient and flexible solution than standard buses. Along with this, airports in North America have relatively high passenger flow that demands dependable and efficient transportation between terminals, parking lots, and off-site facilities. Shuttle buses adequately address this demand.

The U.S. has a vibrant tourist business that attracts millions of visitors both domestically and abroad. This increases the demand for shuttle bus services for passengers to commute between airport terminals, parking lots, and off-site places such as hotels or transit hubs. Along with this, areas with a high concentration of businesses and corporations, such as Silicon Valley, are likely to see a demand for shuttle buses for employee transportation. Companies might offer shuttle services to ferry employees between office locations, remote work hubs, or parking areas.

The APAC region is witnessing rapid urbanization, with expanding populations in major cities such as China, India, and Indonesia. This generates a desire for efficient and cost-effective transit alternatives, making shuttle buses an appealing alternative. Furthermore, several countries in the region are investing in developing and modernizing airport infrastructure. This opens up the potential for airport shuttle bus services to accommodate the increased passenger traffic.

European countries including France, Germany, the UK, and the Netherlands are witnessing significant growth in the shuttle buses market. Government initiatives and rising environmental consciousness are propelling the introduction of electric and hybrid shuttle buses throughout Europe. As Europe is a major tourist destination, shuttle buses play a crucial role in transporting tourists between airports, hotels, and popular attractions. Moreover, countries in the Middle East & Africa (MEA) region, such as the UAE and Saudi Arabia, a popular tourist destinations. This fosters growth in the airport shuttle segment, as tourists rely on convenient transportation between airports, hotels, and attractions.

Shuttle Buses Market Share

IC Bus and Thomas Built Buses hold a significant market share of over 43% in the shuttle buses industry. Numerous companies prioritize the enhancement of shuttle buses by incorporating advanced features and technologies to distinguish their offerings in the market. Additionally, they provide customization options and adaptable configurations to cater to a wide range of customer requirements, encompassing seating arrangements, wheelchair accessibility, multimedia systems, and branding possibilities.

Some companies establish strategic alliances with Original Equipment Manufacturers (OEMs), suppliers, and technology firms to leverage their knowledge, access advanced technologies, and optimize supply chain operations for accelerated product development and market expansion. Additionally, they engage in partnerships with transit agencies, operators, and transportation service providers to gain insights into market demands, create customized solutions, and secure contracts for shuttle bus services across diverse sectors.

Shuttle Buses Market Companies

Major companies operating in the shuttle buses industry are:

  • Blue Bird
  • Collins Bus
  • Giradin
  • Gillig
  • IC Bus
  • Lion Bus
  • Micro Bird
  • Starcraft Bus
  • Thomas Built Buses
  • Trans Tech

Shuttle Buses Industry News

  • In April 2024, the Hawaii Department of Transportation (HDOT) launched a new autonomous electric passenger shuttle service, "Miki", at the Daniel K. Inouye International Airport in Honolulu. The fleet of four autonomous electric shuttles can hold 11 passengers each including an attendant and are ADA-accessible to accommodate one wheelchair. The shuttles operate at a maximum speed of 10 miles per hour.
  • In November 2023, Uber announced to launch of shuttle bus services in Kolkata after signing a Memorandum of Understanding (MoU) with the Transport Department of the Government of West Bengal. This partnership aims to introduce "Uber Shuttle", a bus shuttle service in Kolkata, with plans to deploy approximately 60 air-conditioned buses on predefined routes. The buses will operate daily from 6 am to 10 pm, accommodating between 19 to 50 passengers each.

The shuttle buses market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

  • Minibus
  • Large bus
  • Wheelchair-accessible vehicles
  • Others

Market, By Propulsion

  • ICE 
    • Diesel
    • CNG
    • Gasoline
  • Electric 
    • BEV
    • HEV
    • FCEV

Market, By Application

  • Airport
    • ICE
    • Electric
  • Corporate
    • ICE
    • Electric
  • University/School
    • ICE
    • Electric
  • Others
    • ICE
    • Electric

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

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Russia
    • Italy
    • Spain
    • 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
    • UAE
    • South Africa
    • Saudi Arabia
    • Rest of MEA


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of shuttle buses reached USD 15.7 billion in 2023 and will grow at over 6% CAGR between 2024 and 2032, led by the growing awareness of the benefits of public transportation.

The minibuses vehicle segment will exceed USD 9 billion by 2032, as they provide an excellent blend of passenger capacity and mobility.

North America shuttle minibuses industry held a revenue share of over 36% in 2023, as they offer a more efficient and flexible solution than standard buses.

Blue Bird, Collins Bus, Giradin, Gillig, IC Bus, Lion Bus, Micro Bird, Starcraft Bus, and Thomas Built Buses among others.

Shuttle Buses Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 350
  • Countries covered: 24
  • Pages: 250
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