Canada Transit Buses Market (By Propulsion Type: Diesel, Electric, Hybrid, Others) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The Canada transit buses market was size valued at USD 137.34 million in 2023 and it is predicted to surpass around USD 435.79 million by 2033 with a CAGR of 12.24% from 2024 to 2033.

Key Pointers

• By Propulsion Type, the diesel segment accounted for the largest share of over 75% in 2023.
• By Propulsion Type, the electric segment is expected to expand at the fastest CAGR from 2024 to 2033.

Canada Transit Buses Market Overview

The transit bus market in Canada stands as a vital component of the country's public transportation infrastructure. With a focus on efficiency, sustainability, and passenger comfort, the sector plays a crucial role in facilitating urban mobility and reducing environmental impact. 

Canada Transit Buses Market Growth Factors

The growth of the transit bus market in Canada is driven by the population growth and urbanization have led to increased demand for efficient and sustainable transportation solutions, spurring investments in public transit infrastructure. Additionally, government initiatives aimed at improving accessibility, reducing traffic congestion, and mitigating environmental impact have bolstered the growth of the transit bus market. Moreover, advancements in technology, such as the adoption of electric propulsion systems and hybrid engines, have enhanced the efficiency and eco-friendliness of transit buses, further fueling market expansion. Furthermore, rising awareness of environmental issues and the importance of sustainable mobility solutions have prompted transit agencies and operators to prioritize the adoption of greener transportation alternatives. 

Report Scope of the Canada Transit Buses Market

Canada Transit Buses Market Trends:

• Autonomous Driving Capabilities: The integration of autonomous driving technologies is gaining traction, with advancements in sensors, AI algorithms, and connectivity enabling safer and more efficient bus operations.
• Mobility-as-a-Service (MaaS): The emergence of MaaS platforms is revolutionizing the way people access and use public transportation, offering integrated, seamless, and personalized mobility solutions that incorporate various modes of transit, including buses.
• Sustainable Fuel Options: Transit agencies are exploring alternative fuel options such as hydrogen fuel cells, biofuels, and renewable natural gas to reduce dependency on fossil fuels and achieve ambitious sustainability targets.
• Digitalization and Connectivity: The implementation of onboard connectivity and digital amenities is enhancing the passenger experience, with features such as real-time information, Wi-Fi connectivity, and mobile ticketing becoming increasingly common.
• Flexibility and Adaptability: Transit operators are seeking flexible and adaptable bus designs that can accommodate changing passenger demands, route configurations, and operational requirements, driving innovation in modular and customizable bus platforms.
• Integration with Urban Planning: Transit bus networks are increasingly being integrated with urban planning efforts to optimize routes, improve accessibility, and support sustainable development goals, fostering collaboration between transportation agencies, city planners, and policymakers.

Propulsion Type Insights

Based on propulsion type, the diesel segment accounted for the largest share of over 75% in the Canada transit buses market in 2023. The segment’s growth can be attributed to the lower operating costs of diesel-powered buses. Also, several key players in Canada are investing aggressively in research and development to develop innovative, low-emission solutions that can potentially lower the volumes of nitrous oxide and particulate emissions from diesel engines. Moreover, the transition to electric fleets still requires a robust electric ecosystem that covers all the aspects of the bus, from installation of the components to maintenance and wear and tear of the vehicles.

The electric segment is expected to expand at the fastest CAGR over the forecast period. The continued electrification of public fleets and the aggressive adoption of electric transit buses by public fleet operators in Canada is projected to offer growth prospects for the Canadian transit bus market. Several companies have also emphasized investing in the electric transit business, which is expected to further support the growth of the electric segment and the overall transit bus space in Canada. For instance, in August 2023, Alexander Dennis Ltd., a subsidiary of NFI Group, announced the launch of new electric bus solutions entirely developed and integrated in-house with its expertise, expanding its portfolio of zero-emission buses.

Canada Transit Buses Market Key Companies

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

Canada Transit Buses Market Segmentations:

By Propulsion Type 

• Diesel
• Electric
• Hybrid
• Others