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Autonomous Bus Market worth over $4 Bn by 2028
- Published Date: February 4, 2022
Autonomous Bus Market size is set to reach USD 4 billion by 2028, according to a new research report by Global Market Insights Inc.
The growing development of smart cities in several countries will fuel the autonomous bus industry expansion. To cite an instance, Abu Dhabi’s Vision 2030 aims to shift the country’s base from natural resources to innovative & smart technologies. Through Vision 2030, the government aims to promote the use of smart & autonomous vehicles to reduce traffic accidents and develop world-class transportation systems.
Supportive government regulations and policies is likely to further propel the autonomous bus market. Government authorities are emphasizing on laying strict policy framework & regulations for implementing the self-driving concept.
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One of the major market factors limiting the industry growth is the high initial cost of autonomous buses. Autonomous buses are equipped with sophisticated software and hardware including sensors, cameras, LIDAR, processing unit, and V2X equipment, which add up to the high costs of these vehicles.
Moreover, limited availability of skilled technicians for aftersales services including parts replacement or other digital settings is restricting the market demand. To overcome this issue, several OEMs are establishing special training centers to perform essential repair services on autonomous buses. For instance, in December 2021, Land Transport Authority in Singapore, announced to train about 100 public drivers to handle the operation of autonomous buses and ensure public safety.
Analyst view: “Stringent regulations regarding emission levels coupled with rapid advancements in AI and IoT technologies will boost the autonomous buses demand.”
The COVID-19 pandemic negatively impacted the autonomous vehicles industry in 2020. Lack of availability of components and disruption in supply & logistics operation owing to travel restrictions impacted the manufacturing capabilities of electronic component providers. The shortage of skilled technicians due to global lockdown delayed the manufacturing of sensors and detection systems.
Browse key industry insights spread across 170 pages with 157 market data tables & 21 figures & charts from the report, “Autonomous Bus Market Size By Level of Autonomy (Level 1, Level 2, Level 3, Level 4), By Fuel (Diesel, Electric, Hybrid), By Application (Intercity, Intracity), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028”, in detail along with the table of contents:
Growing demand for Level 3 autonomous buses
Asia Pacific Level-3 autonomous bus market held over 20% of the revenue share in 2021 and is expected to witness a growing demand. Level 3 or conditional driving automation enables buses to manage and control major aspects of driving. The integration of sophisticated software, sensors, radars, hardware backups, into Level 3 automated buses will augment the industry statistics.
Lower maintenance costs of hybrid autonomous buses
The North America hybrid propulsion segment is anticipated to register 14% CAGR through 2028. The positive outlook can be contributed to lower maintenance cost, increased efficiency, and significantly reduced emission levels. Companies are also emphasizing on delivering hybrid autonomous bus models besides electric autonomous buses.
Growing traction for autonomous buses in European countries
The Europe autonomous bus market captured more than 25% share in 2021. Several European countries are testing autonomous buses with an aim to commercialize them. Furthermore, the EU’s stringent regulations to reduce pollution levels and become a carbon-neutral region by 2050 will provide robust opportunities for industry players.
The key players in the market include Robert Bosch GmbH, Volkswagen AG, Volvo, Daimler AG, Toyota Motor Corporation, Continental AG, Tesla, EasyMile SAS, Scania AB, Navya SAS, and Hyundai Motor Company. Industry players are emphasizing on partnerships for new product launches to gain high market share. For instance, in September 2021, EasyMile, driverless technology provider, in partnership with IVECO Bus, announced to develop fully-autonomous buses capable of operating under real conditions. The 12-meter long autonomous bus can carry up to 100 passengers comfortably and safely. Technologies incorporated into the bus include navigation software and safety controls.