Luxury Shuttle Bus Market Analysis

Luxury Shuttle Bus Market Overview

Luxury Shuttle Bus Market Size was valued at USD 3.8 billion in 2023. The Global Luxury Shuttle Bus industry is projected to grow from USD 4.12 Billion in 2024 to USD 7.32 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.43% during the forecast period (2024 - 2032). The growing popularity of luxury shuttle buses, Rising disposable income, and growing awareness regarding the benefits of using public transport are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Luxury Shuttle Bus Market Trends

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  Increasing the use of shuttle buses in amusement parks and airports is driving market growth

  
  

The tourism industry represents a significant opportunity for vendors in the worldwide luxury shuttle buses market. Although the COVID crisis slowed industry growth, various new initiatives aimed at revitalizing tourism have boded well for major regions. The employment of luxury shuttle buses to transport passengers between airport terminals has become a tenacious trend in the aviation sector. Luxury shuttle buses are also available at tourist destinations such as amusement parks and historical sites. The tourism business is trading ease and comfort as its primary differentiator, opening up new potential for vendors already operating in the luxury shuttle bus market. This factor drives the market CAGR.

Additionally, the demand for luxury travel has witnessed impressive growth worldwide. Although luxury travel is primarily equated with private yachts, private jets, and luxury sedans, luxury shuttle buses have garnered immense popularity among the masses in recent years- a trend that is expected to continue during the assessment period. In addition, the increasing awareness of the benefits of using public transportation is one of the primary factors that is set to boost the Luxury Shuttle Bus market revenue. Due to mounting environmental concerns, the adoption of electric and hybrid luxury shuttle buses worldwide has increased considerably. While China is anticipated to spearhead the growth of the Luxury Shuttle Bus Market, several prominent regions, such as Europe and North America, are gradually emerging as important markets for players operating in the current luxury shuttle bus market landscape. The number of luxury shuttle buses registered in these regions over the past couple of years has increased at an exponential rate- a trend that indicates the Luxury Shuttle Bus Market is likely to witness consistent growth in the forthcoming years.

Luxury Shuttle Bus Market Segment Insights

Luxury Shuttle Bus Seating Capacity Insights

Based on seating capacity, the Luxury shuttle Bus Market segmentation includes below 25 passengers, 25 to 40 passengers, and above 40 passengers. The above 40 passengers segment accounted for a major global market share in 2022. The segment will likely maintain its dominance during the forecast period, owing to increased demand for luxury buses with Above 40 Passengers capacity. Moreover, these seating capacity buses provide adequate legroom for occupants and are likely to gain higher popularity in the tourism and corporate sectors.

Figure 1: Luxury Shuttle Bus Market, by Seating Capacity, 2024 & 2032 (USD billion)

Luxury Shuttle Bus Propulsion Type Insights

Based on Propulsion Type, the Luxury Shuttle Bus Market segmentation includes diesel/gasoline, alternate fuels, battery electric buses, and hybrid electric buses. The alternate fuels segment held a key share of the global market, as alternative fuels such as CNG, LNG, and LPG are considered clean fuels and are highly popular among conventional fuels for buses. Moreover, buses owned by government authorities and large organizations mostly run on alternate fuels, leading the segment to hold a high global market share. The adoption of electric buses globally at a significantly high rate and the high production capacity of China-based manufacturers are likely to drive the market for electric luxury shuttle buses during the forecast period.

Luxury Shuttle Bus Application Insights

Based on Application, the Luxury Shuttle Bus Market segmentation includes corporate, government, school coach, airport shuttle, hospital & medical coach, tourist coach, and others. The tourist coach category is anticipated to dominate the market. The demand for luxury shuttle buses has been significantly high for longer routes, which tourists generally prefer. This contributed to the tourism coaches segment holding a major global market share. The market for luxury buses and coaches has been volatile; however, increasing focus on expanding the public transportation system and rising investment by government bodies to promote the public transport system is likely to propel the Luxury Shuttle Bus Market.

April 2023: Isuzu Motors India has updated its entire range of pick-up vehicles and SUVs to conform to the new BS-VI Phase II emission norms. It has refreshed its product portfolio by adding new features on select models, to deliver enhanced styling, safety, comfort, efficiency, and emission control. The ISUZU D-MAX V-Cross 4×2 AT variant now ups its style quotient. A vibrant new color 'Valencia Orange' has been added to the personal vehicle range's color palette.

April 2023: Toyota Kirloskar Motor (TKM) today announced the introduction of 'Wheels on Web' (WOW), an Online Retail Sales platform for the Bangalore region. This new platform offers customers a seamless virtual experience by enabling them to book, purchase and get delivery of their preferred Toyota models in the comfort of their homes.

Luxury Shuttle Bus Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific Luxury Shuttle Bus Market area will dominate this market. The high production of luxury buses and increasing preference for luxury shuttle buses over conventional buses in the area will boost the market growth in this Region. Moreover, China’s Luxury Shuttle Bus market held the largest market share, and the Indian Luxury Shuttle Bus market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Luxury Shuttle Bus Market Share By Region 2024 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Luxury Shuttle Bus market accounts for the second-largest market share due to the growing awareness regarding the benefits of using public transport and the growing popularity of luxury shuttle buses. Further, the German Luxury Shuttle Bus market held the largest market share, and the UK Luxury Shuttle Bus market was the fastest-growing market in the European Region.

The North American market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the number of luxury shuttle buses registered in these regions have expanded exponentially in recent years, indicating that the worldwide luxury shuttle bus market will likely continue to develop in the coming years. Customers' preference for luxury buses over ordinary buses will likely drive the market.

Luxury shuttle bus Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Luxury Shuttle Bus market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The luxury shuttle bus industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Luxury Shuttle Bus industry to benefit clients and increase the market sector. The Luxury Shuttle Bus industry has offered some of the most significant automobile advantages in recent years. Major players in the Luxury Shuttle Bus market, including ARBOC Specialty Vehicles, LLC, Daimler AG, Forest River Inc., Grech Motors, Isuzu Motors Ltd., LGE Coachworks, Proterra Inc., REV Group, Toyota Motor Corporation, CNH Industrial N.V., and others, are attempting to increase market demand by investing in research and development operations.

Isuzu Motors Ltd., commonly known as Isuzu, is a Japanese multinational automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. Its principal activity is producing, marketing, and selling Isuzu commercial vehicles and diesel engines. Isuzu Motors India has updated its entire range of pick-up vehicles and SUVs to conform to the new BS-VI Phase II emission norms. It has refreshed its product portfolio by adding new features on select models to deliver enhanced styling, safety, comfort, efficiency, and emission control. The ISUZU D-MAX V-Cross 4×2 AT variant now ups its style quotient. A vibrant new color 'Valencia Orange' has been added to the personal vehicle range's color palette.

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is one of the largest automobile manufacturers in the world, producing about 10 million vehicles per year. Today, Toyota Kirloskar Motor (TKM) announced the introduction of 'Wheels on Web' (WOW), an Online Retail Sales platform for the Bangalore region. This new platform offers customers a seamless virtual experience by enabling them to book, purchase and get delivery of their preferred Toyota models at home.

Key Companies in the luxury shuttle bus market include

• ARBOC Specialty Vehicles


• LLC


• Daimler AG


• Forest River Inc.


• Grech Motors


• Isuzu Motors Ltd.


• LGE Coachworks


• Proterra Inc.


• REV Group


• Toyota Motor Corporation


• CNH Industrial N.V.

Luxury shuttle bus Industry Developments

In April 2024, Blade, an American helicopter charter company, will launch a high-end transportation service connecting New York City and the Hamptons. Established a decade ago as a means to avoid congested roadways while commuting from New York City, Blade's helicopter seats presently transport passengers from Hamptons to eastern Long Island for a fare of $1,050 for a forty-minute journey. Presently, in an effort to strike a balance between luxurious air travel and the economical Hampton Jitney bus, the operator of the helicopter is enhancing the experience of ground transportation. Blade and Jet, an upscale coach service operating from New York to Washington, DC, have partnered to offer the new first-class transportation option.

October 2023: CharterUP, the first fully integrated marketplace for corporations, consumers, and operators to rent charter buses, announced today that its award-winning charter services platform now offers luxury sprinter vans in Los Angeles, Austin, Dallas, Houston, and San Antonio, with further markets to be added in the future. The inclusion of high-end sprinter vehicles in the CharterUP marketplace presents prospects for over 7,000 autonomous operators throughout North America who currently possess fleets that are not being fully utilized. Hundreds of high-end sprinter vehicles have been added to the CharterUP marketplace, which already operates a network of over 4,000 motorcoaches and minibuses, in order to accommodate the increasing demand for group transportation services of various scales. The charter services platform has augmented its fleet of 4,000 vehicles accessible via its coast-to-coast network by integrating numerous premium sprinter vans. At this time, reservations are being accepted for brand-new vehicles in five major markets: Austin, Dallas, Houston, Los Angeles, and San Antonio. Further locations are expected to follow.

Luxury Shuttle Bus Market Segmentation

Luxury shuttle bus Seating Capacity Outlook

• Below 25 Passengers


• 25 to 40 Passengers


• Above 40 Passengers

Luxury shuttle bus Propulsion Type Outlook

• Diesel/Gasoline


• Alternate Fuels


• Battery Electric Buses


• Hybrid Electric Buses

Luxury shuttle bus Application Outlook

• Corporate


• Government


• School Coach


• Airport Shuttle


• Hospital & Medical Coach


• Tourist Coach


• Others

Luxury shuttle bus Regional Outlook

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific

Rest of the World

• Middle East


• Africa


• Latin America