Canada Transit Buses Market Insights Forecasts to 2033

• The Canada Transit Buses Market Size was valued at USD 141.7 Million in 2023.
• The Market Size is Growing at a CAGR of 11.96% from 2023 to 2033.
• The Canada Transit Buses Market Size is Expected to Reach USD 438.7 Million By 2033.

The Canada Transit Bus Market Size is Expected to Reach USD 438.7 Million by 2033, at a CAGR of 11.96% during the forecast period 2023 to 2033.

Market Overview

A transit bus is a large motor vehicle that transports people from one location to another within a city, town, or metropolitan area. It usually follows predetermined routes, with designated stops along the way. Passengers board and disembark at these stops, and the buses follow a regular schedule. A transit bus is also designed to accommodate people with disabilities, with low floors, wheelchair ramps or lifts, and designated seating for passengers with mobility issues. It is an essential component of public transportation systems, providing an affordable and convenient way for people to travel within urban and suburban areas. It also helps to reduce traffic congestion. Furthermore, the transit bus market in Canada has been constantly evolving in response to technological advancements, and market incumbents have been working hard to keep up with changing end-user preferences. The growing emphasis on safe and comfortable travel is expected to drive future technological developments. In addition, some of the key factors observed to be driving growth in the Canadian transit bus market include the increasing focus of bus operators and local government agencies on transitioning to an electric fleet, and also the growing need for governments to establish a strong transit system in rural areas of Canada. Furthermore, growing awareness of eco-friendly batteries, along with aggressive investments in lithium-ion battery packs by OEMs and government agencies, are expected to drive growth in Canada's transit bus market.

Report Coverage

This research report categorizes the market for the Canada transit buses market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada transit buses market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada transit buses market.

Driving Factors

The increasing availability of electric autonomous buses is currently having a positive impact on the growth of the transit bus market.  The growing emphasis on passenger comfort in public transportation is driving demand for efficient seating options in public buses. Aside from that, commuters and travelers are increasingly valuing comfort and convenience in their travels. As such, transit bus manufacturers and operators are constantly investing to enhance the passenger experience. Growing opportunities for hydrogen fuel buses are expected to have a positive impact on the growth of the Canadian transit bus market. Furthermore, rising greenhouse gas emissions have prompted several initiatives to combat climate change, focusing policymakers' attention on electric transit buses. As an outcome, Canadian government agencies are heavily investing in research and development of transit bus electrification, in line with their vision of a sustainable transportation system.

Restraining Factors

High initial costs are a significant barrier to transit bus market demand. In addition, limited funding hampers their ability to expand or upgrade fleets, preventing the adoption of advanced transit solutions. High costs discourage potential buyers, resulting in a slower replacement rate of older, less efficient buses, restricting the market's overall growth and modernization.

Market Segment

• In 2023, the diesel segment accounted for the largest revenue share over the forecast period.

Based on the type, the Canada transit buses market is segmented into diesel, electric, hybrid, and others. Among these, the diesel segment has the largest revenue share over the forecast period. Diesel buses have internal combustion engines that run on diesel fuel. Diesel engines are known for their durability and fuel efficiency, making them ideal for larger vehicles such as buses. They are designed to withstand the rigors of frequent use and are known for their durability when properly cared for. Transit buses frequently have high mileage requirements, making diesel engines ideal for these demanding conditions.

• In 2023, the 31-50 seats segment accounted for a significant revenue share over the forecast period.

Based on the application, the Canada transit bus market is segmented into 15-30 seats, 31-50 seats, and more than 50 seats. Among these, the into 31-50 seat segment accounted for a significant revenue share over the forecast period. Buses with 31-50 seats are commonly classified as mid-sized. These buses are widely used for a variety of purposes, including shuttle services, school transportation, smaller group outings, and public transportation in some areas. They have a capacity that falls between larger buses and medium buses, making them ideal for transporting medium-sized groups of passengers.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Canada transit buses market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• AB Volvo
• Anhui Ankai Automobile Co., Ltd.
• Navistar, Inc. (Traton SE)
• BYD Company Limited
• Proterra Inc.
• NFI Group
• FirstGroup plc
• Group Keolis SAS
• Mobico Group
• Blue Bird Corporation
• Daimler AG (Mercedes-Benz Group AG)
• Iveco S.p.A
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In April 2023, Nova Bus, an AB Volvo subsidiary, announced a partnership with Durham Region Transit (DRT) in Ontario to supply six LFSe+ electric buses. 

• In November 2022, The Canadian government invested USD 20.2 million (CAD 27 million) in E3 Lithium Ltd., a lithium resource and technology company, to enable it to build and demonstrate a lithium production plant in the country.

Market Segment

This study forecasts revenue at regional, and country levels from 2022 to 2033. Spherical Insights has segmented the Canada Transit Buses market based on the below-mentioned segments:

Canada Transit Buses Market, By Propulsion Type

• Diesel
• Electric
• Hybrid
• Others

Canada Transit Buses Market, By Seat Capacity

• 15-30 Seats
• 31-50 Seats
• More than 50 Seats