Global Automotive Manufacturing Low Floor Hybrid Bus Market Overview
As per MRFR analysis, the Automotive Manufacturing Low Floor Hybrid Bus Market Size was estimated at 3.92 (USD Billion) in 2022.
The Automotive Manufacturing Low Floor Hybrid Bus Market Industry is expected to grow from 4.26(USD Billion) in 2023 to 8.98 (USD Billion) by 2032. The Automotive Manufacturing Low Floor Hybrid Bus Market CAGR (growth rate) is expected to be around 8.63% during the forecast period (2024 - 2032).
Key Automotive Manufacturing Low Floor Hybrid Bus Market Trends Highlighted
The global automotive manufacturing low-floor hybrid bus market is driven by growing demand for sustainable and eco-friendly public transportation, coupled with government regulations promoting green initiatives. Opportunities exist in emerging economies with rapidly expanding urban populations and an increasing need for efficient public transportation systems. The rise of battery technology, advancements in hybrid powertrains, and the shift toward electrification offer significant growth potential. Additionally, partnerships between bus manufacturers and technology providers are accelerating innovation and driving the adoption of low-floor hybrid buses. Trends such as autonomous driving and connected vehicles are expected to further shape the market landscape in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Manufacturing Low Floor Hybrid Bus Market Drivers
Increasing Demand for Sustainable Transportation
Governments and consumers worldwide are becoming increasingly aware of the environmental impact of transportation, leading to a growing demand for sustainable public transportation options. Automotive manufacturing low floor hybrid buses offer a combination of reduced emissions, improved fuel efficiency, and lower operating costs compared to traditional diesel buses. As a result, cities and transit agencies are increasingly investing in low-floor hybrid buses to meet their sustainability goals.
The push towards net-zero emissions in major cities around the world is expected to drive the demand for low-floor hybrid buses even further in the coming years.
Growing Urbanization and Congestion
The rapid urbanization and population growth in major cities worldwide are leading to increased traffic congestion and pollution. Low-floor hybrid buses can help address these challenges by providing efficient and reliable public transportation options that can reduce the number of private vehicles on the road. The compact size and maneuverability of these buses make them well-suited for navigating congested urban environments.
Government Incentives and Regulations
Many governments around the world are implementing incentives and regulations to promote the adoption of low-floor hybrid buses. These incentives can include tax breaks, subsidies, and grants for the purchase and operation of these buses. Governments are also implementing regulations that mandate the use of low-emission vehicles in public transportation fleets. These incentives and regulations are expected to play a significant role in driving the growth of the Global Automotive Manufacturing Low Floor Hybrid Bus Market Industry.
Automotive Manufacturing Low Floor Hybrid Bus Market Segment Insights:
Automotive Manufacturing Low Floor Hybrid Bus Market Vehicle Type Insights
The Global Automotive Manufacturing Low Floor Hybrid Bus Market is segmented by Vehicle Type into Transit Buses, School Buses, Intercity Buses, and Shuttle Buses. Transit Buses accounted for the largest market share in 2023 and is projected to maintain its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for public transportation in urban areas, as well as government initiatives to promote the adoption of low-emission vehicles. School Buses are expected to witness significant growth over the forecast period, owing to the rising demand for safer and more efficient transportation solutions for school children.
Intercity Buses are also projected to experience steady growth, driven by the increasing popularity of bus travel for long-distance journeys. Shuttle Buses, which are primarily used for short-distance transportation, are expected to exhibit moderate growth over the forecast period. In terms of revenue, the Transit Buses segment is projected to generate the highest revenue over the forecast period. This can be attributed to the large number of transit buses in operation, as well as the high frequency of use. School Buses are expected to generate the second-highest revenue, followed by Intercity Buses and Shuttle Buses.
Overall, the Vehicle Type segment of the Global Automotive Manufacturing Low Floor Hybrid Bus Market is expected to witness significant growth over the forecast period, driven by the increasing demand for low-emission and efficient transportation solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Manufacturing Low Floor Hybrid Bus Market Powertrain Type Insights
The Global Automotive Manufacturing Low Floor Hybrid Bus Market is categorized by Powertrain Type into Series Hybrid, Parallel Hybrid, and Power Split Hybrid. The Series Hybrid segment had the highest market share in 2023, accounting for over 40% of the world market, and will continue to hold the highest market share due to the increased efficiency and lower emissions of series hybrid buses. The Parallel Hybrid segment will increase at a faster CAGR in the future, driven by the higher demand for parallel hybrid buses in urban areas. The Power Split Hybrid segment is expected to include a substantial market portion in the future because it boasts lower fuel consumption and performance characteristics.
Automotive Manufacturing Low Floor Hybrid Bus Market Battery Technology Insights
The Global Automotive Manufacturing Low Floor Hybrid Bus Market is segmented by Battery Technology into Nickel-Metal Hydride (NiMH), Lithium-Ion (Li-Ion), and Lithium-Iron-Phosphate (LiFePO4). In 2023, the Li-Ion battery segment held the largest market share, accounting for over 55% of the global market revenue. The high energy density and long cycle life of Li-Ion batteries make them ideal for use in hybrid buses, which require batteries that can deliver high power output over extended periods. The NiMH battery segment is expected to witness significant growth over the forecast period, owing to its low cost and long lifespan.
The LiFePO4 battery segment is also expected to experience growth due to its high safety and thermal stability.
Automotive Manufacturing Low Floor Hybrid Bus Market Applications Insights
The Applications segment of the Global Automotive Manufacturing Low Floor Hybrid Bus Market is projected to have a significant impact on the industry's growth. The rising demand for public transportation, corporate shuttles, school transportation, and airport transportation is driving the growth of this segment. In 2023, the public transit segment is expected to account for the largest share of the market, with a valuation of USD 1.98 billion. This growth is attributed to the increasing government initiatives to promote sustainable public transportation systems.
The corporate shuttles segment is also expected to witness substantial growth, with a projected valuation of USD 1.25 billion by 2032. This growth is driven by the increasing demand for cost-effective and environmentally friendly transportation solutions for businesses. The school transportation segment is expected to have a valuation of USD 0.87 billion by 2032, driven by the growing emphasis on student safety and the need for efficient transportation systems for educational institutions. The airport transportation segment is also poised for growth, with a projected valuation of USD 0.93 billion by 2032, attributed to the increasing passenger traffic and the need for seamless and efficient transportation solutions at airports.
Automotive Manufacturing Low Floor Hybrid Bus Market Regional Insights
The Global Automotive Manufacturing Low Floor Hybrid Bus Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC is expected to hold the largest market share in 2023, with a market value of 1.97 billion USD. This is due to the increasing demand for low-floor hybrid buses in countries like China and India, which are experiencing rapid urbanization and a growing need for public transportation. Europe is expected to be the second-largest market, with a market value of 1.23 billion USD in 2023. The growing environmental concerns and government initiatives to promote sustainable transportation are driving the demand for low-floor hybrid buses in this region.
North America is expected to be the third-largest market, with a market value of 890 million USD in 2023. The demand for low-floor hybrid buses is increasing in this region due to the increasing awareness of the benefits of these buses, such as improved accessibility and reduced emissions. South America and MEA are expected to be the smallest markets for low-floor hybrid buses, with market values of 120 million USD and 80 million USD, respectively, in 2023. However, these regions are expected to experience significant growth in the coming years due to the increasing demand for public transportation and the growing awareness of the benefits of low-floor hybrid buses.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive Manufacturing Low Floor Hybrid Bus Market Key Players And Competitive Insights:
The companies in the Automotive Manufacturing Low Floor Hybrid Bus Market are increasingly focusing on the development of new products and technologies in order to meet the growing demand for eco-friendly vehicles. The leading players in the Automotive Manufacturing Low Floor Hybrid Bus Market are investing in research and development to enhance the performance and efficacy of their products. The Automotive Manufacturing Low Floor Hybrid Bus Market industry is expected to develop significantly in the future years due to the rise in urbanization as well as the governments’ push for sustainable transportation.
A prominent player in the Automotive Manufacturing Low Floor Hybrid Bus Market is New Flyer Industries Inc. New Flyer Industries provides a diverse range of low-floor hybrid buses such as Xcelsior XE40 and Xcelsior HE40. The buses of New Flyer Industries have high reliability, durability, and utmost fuel efficiency. The company has a large customer base in North America and is establishing its presence in different regions of the world. New Flyer Industries is strongly dedicated to sustainable transportation and is working on the production of zero-emission buses.
New Flyer’s current competitor in the Automotive Manufacturing Low Floor Hybrid Bus Market is Proterra Inc. Proterra is the producer of electric, as well as hybrid buses, such as Catalyst E2 and Catalyst XR. The buses of Proterra are distinguished by long ranges and swift charging. Proterra is already well positioned in North America and is growing its activities in different regions across the world. The mission of Proterra is to provide a zero-emission transit. For that purpose, the company is working on the development of hydrogen fuel cell buses.
Key Companies in the Automotive Manufacturing Low Floor Hybrid Bus Market Include:
- Volvo
- Yutong Bus
- Ankai
- Solaris
- Daimler AG
- SAIC Motor
- BYD
- Scania
- Zhongtong
- Higer Bus
- IVECO
- Isuzu Motors Limited
- MAN
- Tata Motors
- Alexander Dennis Limited
Automotive Manufacturing Low Floor Hybrid Bus Market Industry Developments
The Global Automotive Manufacturing Low Floor Hybrid Bus Market is projected to reach USD 8.98 billion by 2032, exhibiting a CAGR of 8.63% during the forecast period (2024-2032). Rising environmental concerns and stringent government regulations to reduce carbon emissions are driving the demand for low-floor hybrid buses. Additionally, increasing urbanization and the need for efficient public transportation systems are further propelling market growth. Asia-Pacific is anticipated to dominate the market due to the presence of major automotive manufacturing hubs in China, Japan, and India. Key players in the market include BYD, Yutong, and Volvo. Recent developments include the launch of new low-floor hybrid bus models with advanced features such as improved battery capacity and enhanced passenger comfort.
Automotive Manufacturing Low Floor Hybrid Bus Market Segmentation Insights
Automotive Manufacturing Low Floor Hybrid Bus Market Vehicle Type Outlook
- Transit Buses
- School Buses
- Intercity Buses
- Shuttle Buses
Automotive Manufacturing Low Floor Hybrid Bus Market Powertrain Type Outlook
- Series Hybrid
- Parallel Hybrid
- Power Split Hybrid
Automotive Manufacturing Low Floor Hybrid Bus Market Battery Technology Outlook
- Nickel-Metal Hydride (NiMH)
- Lithium-Ion (Li-Ion)
- Lithium-Iron-Phosphate (LiFePO4)
Automotive Manufacturing Low Floor Hybrid Bus Market Applications Outlook
- Public Transit
- Corporate Shuttles
- School Transportation
- Airport Transportation
Automotive Manufacturing Low Floor Hybrid Bus Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
3.92(USD Billion) |
| Market Size 2023 |
4.26(USD Billion) |
| Market Size 2032 |
8.98(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.63% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Volvo, Yutong Bus, Ankai, Solaris, Daimler AG, SAIC Motor, BYD, Scania, Zhongtong, Higer Bus, IVECO, Isuzu Motors Limited, MAN, Tata Motors, Alexander Dennis Limited |
| Segments Covered |
Vehicle Type, Powertrain Type, Battery Technology, Applications, Regional |
| Key Market Opportunities |
Growing Urbanization Government Regulations Technological Advancements Increasing Demand for EcoFriendly Transportation Rising Fuel Prices |
| Key Market Dynamics |
Growing urbanization Government regulations Technological advancements Increasing fuel prices Rising consumer awareness |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Automotive Manufacturing Low Floor Hybrid Bus Market is expected to reach USD 8.98 billion by 2032, exhibiting a CAGR of 8.63% during the forecast period (2023-2032).
The Asia-Pacific region is expected to account for the largest market share due to the increasing demand for public transportation and government initiatives promoting green mobility.
Rising environmental concerns, increasing urbanization, and technological advancements in hybrid bus technology are the key factors driving market growth.
Major players include BYD, Yutong, Volvo, Daimler, and Proterra.
Low-floor hybrid buses are primarily used for public transportation, employee shuttles, and airport transfers.
The market is projected to grow at a CAGR of 8.63% from 2024 to 2032.
High initial investment costs, lack of charging infrastructure, and competition from conventional buses are key challenges.
Government incentives, technological advancements, and increasing demand for sustainable transportation present significant opportunities.
Government regulations promoting zero-emission vehicles and fuel efficiency standards are driving market growth.
Advancements in battery technology, autonomous driving features, and smart city initiatives are shaping the future of the market.
