School Bus Market Updates

Global School Bus Market size was valued at USD 10.8 Billion in 2023 and is poised to grow from USD 11.45 Billion in 2024 to USD 18.25 Billion by 2032, growing at a CAGR of 6% in the forecast period (2025-2032). The school bus market is undergoing significant transformation, primarily driven by the growing demand for sustainability, safety, and technological advancements in transportation. Traditionally dominated by diesel-powered vehicles, the market is shifting toward greener solutions, with electric school buses leading the charge. This transition is largely fueled by government regulations and incentives, which encourage the adoption of electric vehicles to reduce carbon emissions and enhance energy efficiency.

In 2024, the global school bus industry remains highly competitive, with both traditional players and new entrants focusing on advancements in sustainability, electrification, and technological innovations. Leading players such as Forest River, Collins Bus Corporation, and Blue Bird Corporation continue to dominate, leveraging their established distribution channels and expertise in manufacturing traditional and electric buses. The competitive landscape has been marked by several strategic mergers and acquisitions, such as the sale of Collins Bus Corporation from REV Group to Forest River and the strategic partnership between Lion Electric and Thomas Built Buses to advance electric vehicle (EV) school buses. 'Mobico Group', 'Stagecoach Group', 'REV Group', 'Forest River', 'Collins Bus Corporation', 'Trans Tech Bus', 'Blue Bird Corporation', 'Thomas Built Buses', 'IC Bus', 'Lion Electric', 'Volvo Buses', 'Ebus'

Governments and educational institutions worldwide are enforcing stricter safety standards for school transportation, including features like GPS tracking, CCTV surveillance, and smart safety belts. This regulatory push has led to increased replacement of older fleets with modern, safety-compliant school buses, boosting market demand.

Integration of Telematics and Fleet Management Systems: Modern school buses are being equipped with telematics solutions that provide real-time data on vehicle location, driver behavior, fuel usage, and maintenance status. These smart systems allow school districts to monitor fleet operations more efficiently, improve route planning, reduce fuel consumption, and ensure student safety. Parents are also increasingly demanding mobile apps that track bus arrivals and departures, pushing for further digital transformation in school transport services.

How are Policies and Incentives in North America Accelerating the Adoption of Electric School Buses?