Freedonia Market Research Analyzes Global Bus Trends

Global demand for buses will advance 5.0 percent annually to over 400,000 vehicles in 2012 on the strength of high worldwide fuel prices. Demand for buses traditionally tends to be cyclical in nature and dependent on region-specific trends, such as demographics, income levels, relative spending levels on mass transit systems, per-capita passenger vehicle density, and others. However, with the dramatic rise in fuel prices experienced from 2006 to 2008, the market has achieved a new footing, as commuters in even light vehicle-saturated markets such as the United States increasingly choose mass transit. These and other trends, including market share and company profiles, are presented in World Buses, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Buses represent one of the most cost-effective methods for transporting passengers, and with ridership rising as much as 30 percent a year in some bus transit systems, demand will also increase as transit authorities, motor coach lines and other bus operators place orders to augment their current fleets. Higher fuel prices should also stoke demand as bus operators seek more efficient vehicles. Other forces that are expected to support bus demand include increasing traffic congestion levels in major metropolitan centers worldwide and the establishment of dedicated bus rapid transit systems (BRTs) and “busways” in key cities in Latin America and Asia.

Worldwide, China is both the largest market for and producer of buses, as well as the nation most responsible for supporting the forward momentum expected for bus demand. It will account for 41 percent of new demand between 2007 and 2012 and 47 percent of new production. The country is rapidly becoming a regional hub for bus production although most of its bus output so far has been focused on satisfying local demand.

The bus market in North America tends to be atypical among developed nations in a number of ways. The United States and Canada, for example, have thriving markets for specially designed school buses, which are not common in Europe or Japan. The US also lacks the dynamic passenger train, tram and subway (metro) systems so common in Europe and Japan, making bus travel the primary mass transit option in most US cities.  Furthermore, the large distances between cities and states provides a strong stimulus for sales of motor coaches, which are purpose-designed to move passengers long distances in comfort.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.