North America School Bus Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers the Largest School Bus Manufacturers in North America and is Segmented by Powertrain (IC Engine and Electric), Bus Type (Type C, Type D, and Other Types), and Geography (United States, Canada, and the Rest of North America). The Report Offers the Market Sizes and Forecasts in Value (USD) for all the Above Segments.

North America School Bus Market Size

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North America School Bus Market Summary
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Study Period 2019-2029
Base Year For Estimation 2023
Market Size (2024) USD 2.41 Billion
Market Size (2029) USD 3.04 Billion
CAGR (2024 - 2029) > 4.74 %
Market Concentration High

Major Players

North America School Bus Market Major Players

*Disclaimer: Major Players sorted in no particular order

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North America School Bus Market Analysis

The North America School Bus Market size is estimated at USD 2.41 billion in 2024, and is expected to reach USD 3.04 billion by 2029, growing at a CAGR of greater than 4.74% during the forecast period (2024-2029).

Over the long term, strict emission standards have increased the demand for alternative fuel-powered vehicles. The commercial vehicle segment's adoption of electric vehicles has influenced the school bus segment, which is expected to drive the North American school bus market during the forecast period. Various advantages of school buses, such as rollover protection, protective seating, etc., over other modes of transport, are also among the reasons that may help the growth of the market. Moreover, along with the major players, many schools in the North American region are also trying to replace their gasoline fleet with a fully or hybrid electric fleet. For instance,

In October 2022, Montgomery County Public Schools, one of the largest school districts in the United States, deployed the country's single-largest electric school bus fleet. During the previous school year, the district received its first 25 electric buses and installed electric infrastructure at one of its transportation depots. Montgomery County Public Schools (MCPS) plans to replace 326 diesel school buses with electric buses by 2025, and it hopes to have an entirely electric school bus fleet in 10 years.

School buses in North America are purpose-built vehicles distinguished from other types of buses by design features mandated by federal and state/provincial regulations. School buses, in addition to their distinctive paint color (school bus yellow), are outfitted with exterior warning lights to give them traffic priority and a variety of safety devices. School transportation is well-organized and has existed for many decades in major North American countries. As a result, demand has been stable in recent years and is expected to remain so during the forecast period.

North America School Bus Market Trends

The Industry’s Shift Toward the Adoption of Electric School Buses

School buses are an important part of the transportation network that transports students to school in the United States every day. Approximately 480,000 school buses travel nearly 3.5 billion miles each year to transport students in every state and municipality.

The majority of the North American aging fleet of school buses is powered by gasoline, diesel, or propane fuels, which emit dangerous criteria pollutants and greenhouse gases (GHGs) into the atmosphere. These pollutants not only contribute to anthropogenic climate change, but they can also have long-term health consequences for students who ride in and around school buses. Government support and the demand for emission-free public transportation have boosted the market share of electric buses in North America.

In May 2022, the Environmental Protection Agency (EPA) of the United States launched the Clean School Bus Program at an event. The Clean School Bus Program will invest USD 5 billion over the next five years to deploy zero-emission school buses across the country, with a focus on underserved communities.

Government agencies, school districts, and school bus manufacturers have begun to demonstrate electric school bus (ESB) technology to address the negative impacts of fossil fuel-powered school bus use. Continuous advancements in battery technology, as well as the introduction of an advanced electric bus, bode well for the business outlook. For example, Canada has increased its efforts to electrify its electric bus fleet areas, whereas the United States has been at the forefront of adopting eco-friendly mass transit solutions. Major players are also coming up in support of the government's green drive initiative to produce electric school buses. For instances,

In August 2022, GreenPower Motor Company Inc. opened its new manufacturing facility in South Charleston, West Virginia. The South Charleston manufacturing plant spans 80,000 square feet and will produce fully electric school buses to support GreenPower's customers on the US East Coast.

Electric buses are becoming a preferred option in place of conventional diesel buses. Electric buses generate zero emissions, and their annual operating cost is almost half a diesel bus. Hence, many cities and districts are exploring electric school buses. California has been at the forefront of the adoption of electric school buses.

As of December 2022, the adoption of electric school buses (ESBs) in the United States has seen a substantial increase, with a total commitment of 5,612 vehicles nationwide. California leads in this initiative with a commitment of 1,852 electric school buses, followed closely by Maryland with 361 ESBs. Virginia and New York are also noteworthy, having committed 253 and 310 ESBs, respectively. This trend underscores the expanding utilization of electric school buses across various states.

North America School Bus Market: Total Number of electric School Buses in USA From 2018-2021 (In Thousand Units)

United States is Expected to Grow at a High Rate

Buses are rapidly gaining traction in the United States market as a result of widespread adoption by school districts, municipal governments, and private partners. There were a total of 12,720 committed electric school buses in the United States as of June 2022. This amounts to about 2-3% of the total school bus fleet in the United States. 40 new school districts have committed to incorporating electric school buses into their fleets, bringing the total to 455. This is a 76% increase from the summer of 2022, but it is still a small portion of the total number of districts.

Furthermore, the government has taken positive steps to increase electric school bus demand in the United States. As one of the most important modes of transportation in the United States, the government has announced several plans to increase demand for electric school buses. For instance, in September 2022, in response to "overwhelming demand," the United States Environmental Protection Agency (EPA) announced that it is nearly doubling the amount of money available to states to purchase electric school buses. In May, the EPA made USD 500 million available for clean buses, but that amount has now been increased to USD 965 million for districts across the country.

There are 38 states with electric school buses, with the majority of buses belonging to districts or entities on the coasts and in the suburbs. California continues to lead the way in electric school bus adoption, with nearly 1,400 committed electric buses across the state, 41% of which have been delivered or are in service. This is more than four times the number of buses in the next largest state. Following California, Virginia gained the most commitments since March 2022, with 58 electric school bus commitments, largely due to funds from the Volkswagen Mitigation Trust.

Many regional manufacturers are working with technology companies to develop new and innovative products, driving the competition and market. For instance, in September 2022, California's Modesto City Schools ordered 30 Blue Bird All-American Type D electric school buses. The deal, Blue Bird's single largest order of electric school buses from a school district to date, allows the district to convert roughly 50% of its diesel-powered bus fleet to electric.

North America School Bus Market: Total Number of electric School Buses in USA, 2017-2021

North America School Bus Industry Overview

The North American school bus market is a consolidated one. The region is characterized by the presence of major school bus manufacturers who also cater to other countries. Blue Bird Corporation, IC Bus, and Thomas Built Buses Inc. are the three main players expected to occupy a major market share. Other major companies are Collins Bus Corporation, Micro Bird, and Lion Electric Company. Moreover, companies are introducing new product features to increase their market shares.

In April 2022, Blue Bird Corporation, the leader in electric and low-emission school buses, received an order for eight electric school buses from Orange Unified School District (OUSD) in California. Due to the purchase, the school district will more than double the size of its current Blue Bird electric school bus fleet.

North America School Bus Market Leaders

  1. Blue Bird Corporation

  2. Daimler AG (Thomas Built Buses)

  3. Collins Bus Corporation

  4. Lion Electric Company

  5. Navistar, Inc.

*Disclaimer: Major Players sorted in no particular order

North America School Bus Market Concentration
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North America School Bus Market News

  • October 2023: Blue Bird achieved a milestone by delivering its 1,500th electric, zero-emission school bus to Modesto City Schools in California. Recently, the company marked the inauguration of its Electric Vehicle (EV) Build-up Center in Georgia, aiming to boost its long-term production capacity to 5,000 electric school buses annually. This expansion underscores Blue Bird's commitment to advancing zero-emission school buses.
  • November 2023: The Lion Electric Company, a prominent manufacturer specializing in all-electric medium- and heavy-duty vehicles, has disclosed the acquisition of a provisional purchase order for 50 LionC all-electric school buses from Highland Electric Fleets. Highland, a key provider of Electrification-as-a-Service for school districts, governmental entities, and fleet operators across North America, is the ordering party.
  • November 2022: Lion Electric Co., a Canadian manufacturer of all-electric medium and heavy-duty vehicles, announced the production of its first zero-emission LionC school bus in its Joliet, Illinois, factory.
  • October 2022: Thomas Built Buses (TBB) delivered its 200th Proterra Powered Saf-T-Liner C2 Jouley battery-electric school bus to Monroe County Public Schools (MCCSC) in Indiana. Monroe became Indiana's first county to receive an electric school bus in the fall of 2020 and has since ordered 12 more, committing to electrifying all 85 primary bus routes with Jouley electric buses from TBB by 2028.
  • March 2022: Thomas Built Buses and Highland Electric Fleets, North America's leading provider of turnkey electrification services for school bus fleets, announced an expansion of their partnership to reduce upfront costs and accelerate the adoption of electric school buses.

North America School Bus Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Increasing Demand For Electric School Buses

    2. 4.2 Market Restraints

      1. 4.2.1 Uncertainty of The Global Pandemic

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in USD)

    1. 5.1 Powertrain

      1. 5.1.1 IC Engine

      2. 5.1.2 Electric

    2. 5.2 Bus Type

      1. 5.2.1 Type C

      2. 5.2.2 Type D

      3. 5.2.3 Other Types

    3. 5.3 Geography

      1. 5.3.1 United States

      2. 5.3.2 Canada

      3. 5.3.3 Rest of North America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share**

    2. 6.2 Company Profiles*

      1. 6.2.1 Blue Bird Corporation

      2. 6.2.2 Navistar Inc.

      3. 6.2.3 Daimler AG (Thomas Built Buses)

      4. 6.2.4 Collins Bus Corporation

      5. 6.2.5 Girardin Blue Bird

      6. 6.2.6 Starcraft Bus

      7. 6.2.7 Trans Tech

      8. 6.2.8 Lion Electric Company

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Use Of Advanced Fuel And Artificial Intelligence in The Vehicles

**Subject to Availability
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North America School Bus Industry Segmentation

A school bus is owned, leased, contracted to, or operated by a school or school district. It is regularly used to transport students to and from school or school-related activities, not including a charter bus or transit bus.

The North American school bus market is segmented by powertrain, bus type, and region.

By powertrain, the market is segmented into IC engine and electric. By bus type, the market is segmented into type c, type d, and other types. By region, the market is segmented into the United States, Canada, and the rest of North America. The report offers the market sizes and forecasts in value (USD) for all the above segments.

Powertrain
IC Engine
Electric
Bus Type
Type C
Type D
Other Types
Geography
United States
Canada
Rest of North America
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North America School Bus Market Research FAQs

The North America School Bus Market size is expected to reach USD 2.41 billion in 2024 and grow at a CAGR of greater than 4.74% to reach USD 3.04 billion by 2029.

In 2024, the North America School Bus Market size is expected to reach USD 2.41 billion.

Blue Bird Corporation, Daimler AG (Thomas Built Buses), Collins Bus Corporation, Lion Electric Company and Navistar, Inc. are the major companies operating in the North America School Bus Market.

In 2023, the North America School Bus Market size was estimated at USD 2.30 billion. The report covers the North America School Bus Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America School Bus Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

School Bus in North America Industry Report

Statistics for the 2024 School Bus in North America market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. School Bus in North America analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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North America School Bus Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)