Minibus Market size was USD 10.7 billion in 2024 and is estimated to reach USD 18.4 billion by the end of 2037, expanding at a CAGR of 4.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of minibus is assessed at USD 11.1 billion.
The minibus market is primarily driven by the exponential growth in the commercial passenger vehicle (CPV) segment. Motor vehicle production grew by 29% in 2022 in the European Union and the U.S. observed a 10% rise in the same year, as per the International Organization of Motor Vehicle Manufacturers (OICA) statistics. This has led to a subsequent rise in overall energy consumption. The U.S. Department of Transportation states that the 2023 energy consumption in transportation amounted to 27.96 quadrillion British thermal units (Btu), signifying an increase from 24.45 quadrillion Btu in 2020.
The alarming rise in passenger vehicle tailpipe emissions of 8,887 grams of CO2/gallon and a yearly footprint of 4.6 metric tons of CO2 per vehicle has resulted in a shift toward PHEV minibuses in the CPV segment. Several governments across the world are implementing strict regulations on carbon emissions, which is driving the adoption of electric vehicles including minibuses. E-buses are emerging as the most eco-friendly mode of mobility for public transportation, which substantially aids in mitigating carbon footprint. European countries such as Norway, Belgium, Switzerland, and China are witnessing high adoption of city bus electrification.
For instance, the International Energy Agency (IEA) revealed that in 2023, China, Norway, Belgium, and Switzerland collectively accounted for 50% of electric bus sales. Also, in Chile, the Netherlands, Finland, Portugal, Poland, Sweden, and Canada over one-fifth of sales were of electric buses. These statistics highlight the increasing adoption of electric buses for transportation, which also aids in estimating how lucrative opportunities are present for e-minibus manufacturers.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.3% |
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Base Year Market Size (2024) |
USD 10.7 billion |
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Forecast Year Market Size (2037) |
USD 18.4 billion |
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Regional Scope |
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Seating Capacity (Below 10 Seats, 10-20 Seats, Above 20 Seats)
In minibus market, 10-20 seats segment is projected to capture revenue share of over 41.1% by 2037. The demand for 10-20 seat minibuses is high as they are affordable travel options for individuals. Taxes and private cars can increase the travelling cost to short distances, whereas minibuses are a practical choice for commuters who want to split minibuses. Thus, to align with this trend many transport service providers adopt 10-20 seat minibuses.
Furthermore, industrial companies that offer travel services to their employees often invest in 10-20 seat minibuses. These buses are affordable, fuel-efficient, low-maintenance, flexible and can easily carry medium-sized passenger loads. This makes 10-20 seat minibuses a preferred choice to industrial companies, aiding them to cut operational and investment costs associated with large buses.
Apart from this, innovative vehicle manufacturing companies are investing heavily in R&D to produce next-gen public transportation solutions such as minibuses and vans. For example, Tesla is concentrating on developing next-gen fleet autonomous vehicles such as ROBOVAN. This vehicle can be used for cargo hauling purposes or mass transit of around 20 persons.
Propulsion (ICE, Electric, Hybrid)
By 2037, ICE segment is set to account for minibus market share of around 75.2%. ICE minibuses are more cost-effective than their electric or hybrid counterparts. ICE minibuses require low production costs, as don’t necessitate expensive battery technology, which increases their adoption rate in developing markets. Another factor that contributes to the sales of ICE minibus is that even if the fuel prices fluctuate, they don’t go higher than electricity costs. The simple propulsion design also reduces the maintenance cost of the ICE minibuses. As ICE are well-established model, the availability of spare parts is also quick and affordable. Thus, durability, reliability, and cost-effectiveness are major factors augmenting the sales of ICE minibuses.
Our in-depth analysis of the minibus market includes the following segments:
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Seating Capacity |
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Propulsion |
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Application |
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Asia Pacific Market Forecast
By the end of 2037, Asia Pacific minibus market is set to hold over 47.8% revenue share. The supportive government policies on public transportation, infrastructure development projects such as smart cities, and strict regulations on greenhouse gas emissions are fuelling the sales of minibuses in the region.
In India, the government’s increasing investment in the electrification of vehicles is pushing the demand for e-minibuses. According to the India Brand Equity Foundation report, around 36.5 million people in the country make use of public transport services daily. In 2022, an estimated 5,60,493 electric vehicles were sold in India, out of which 0.2% were e-buses. Even if the share of e-buses is minor, they are substantially aiding the country in achieving its target of reducing carbon intensity by 45% by 2030.
China’s high investment in enhancing the public transportation service and strict regulations on carbon emissions are driving the sales of electric minibuses. For instance, according to the report by the International Council on Clean Transportation around 1,38,00 electric buses were sold in China, in 2022. In the same year, the country exported more than 6,17,000 e-buses across Egypt, Peru, Chile, Ecuador, and Vietnam. These statistics underscore the high production and sales of China-made e-buses including large, medium, and minibuses.
North America Market Statistics
The North America minibus market is foreseen to expand at a high pace during the projected period. The strong presence of auto manufacturers, continuous advancements in autonomous vehicle technologies, and high adoption of electric vehicles are pushing the sales of minibuses. The U.S. is anticipated to hold a major share of the North America minibus market, while the minibus sales in Canada are expected to increase at a swift CAGR through 2037.
In the U.S., the government is focusing on strengthening its transit manufacturing industry and for that, it is investing heavily in the production of American-made buses. For instance, in July 2024, the U.S. Department of Transportation's Federal Transit Administration (FTA) announced an investment of USD 1.5 million to support 117 projects, which are aimed at enhancing public transportation in 47 states. Such investments are opening profitable opportunities for minibus manufacturers in the country to maximize their revenues.
In Canada, the presence of top tourist destinations and high tourist visits are increasing the use of minibuses for travelling purposes including sightseeing, airport transfers, and guided tours. Tourists from Asia and Europe often travel in a group and book minibuses to travel across all destinations. Thus, the rising tourist activities are augmenting the use of minibuses in Canada.
Key players in the minibus market are employing several organic and inorganic marketing strategies to earn high profits. They are investing heavily in research and development activities to introduce minibuses with innovative features. The integration of advanced technologies such as IoT, advanced diver-assistance systems, and improved battery technology are enhancing the capabilities of their minibuses. Industry giants are also collaborating with other players to increase minibus market reach. Furthermore, mergers & acquisitions, and regional expansion tactics are aiding to cater to a larger audience base.
Some of the key players include in minibus market:
Author Credits: Saima Khursheed
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