Autonomous Bus Market

By Type;

Fully- Autonomous and Semi-Autonomous

By Powertrain;

Electric, Hybrid, and Internal Combustion Engine (ICE)

By Level of Autonomy;

Level 1: Driver Assistance, Level 2: Partial Automation, Level 3: Conditional Automation, Level 4: High Automation, and Level 5: Full Automation

By Application;

Public Transportation, Employee Transportation, Campus Transportation, First-Mile/Last-Mile Transportation, and Tourism & Leisure

By Geography;

North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)
Report ID: Rn168001989 Published Date: August, 2025 Updated Date: September, 2025

Autonomous Bus Market Overview

Autonomous Bus Market (USD Million)

Autonomous Bus Market was valued at USD 3,417.54 million in the year 2024. The size of this market is expected to increase to USD 15,318.38 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 23.9%.


Autonomous Bus Market

*Market size in USD million

CAGR 23.9 %


Study Period2025 - 2031
Base Year2024
CAGR (%)23.9 %
Market Size (2024)USD 3,417.54 Million
Market Size (2031)USD 15,318.38 Million
Market ConcentrationLow
Report Pages308
3,417.54
2024
15,318.38
2031

Major Players

  • AB Volvo
  • Continental AG
  • Daimler AG
  • Easymile SAS
  • Navya SA

Market Concentration

Consolidated - Market dominated by 1 - 5 major players

Autonomous Bus Market

Fragmented - Highly competitive market without dominant players


The Autonomous Bus Market is experiencing rapid momentum as cities and operators seek smart and efficient mobility options. Around 40% of transport systems are already testing or adopting automated services, reflecting a strong shift toward modernized public transit. These vehicles are designed to cut delays, optimize capacity, and deliver reliable service for passengers.

Technological Enhancements in Automation
Breakthroughs in AI-driven software, LiDAR, radar, and advanced sensor technologies are accelerating adoption. Close to 55% of innovation efforts are now dedicated to improving automation and safety frameworks. These systems provide real-time mapping, precise traffic response, and predictive maintenance, strengthening the reliability of autonomous transit.

Eco-Friendly and Energy-Saving Solutions
Integration of electric and hybrid platforms is reshaping the market by supporting environmental priorities. More than 50% of active projects in the autonomous bus space feature clean energy solutions. This shift not only reduces pollution but also improves cost-efficiency, combining sustainable energy with automation-driven benefits.

Passenger Safety and Travel Comfort
The inclusion of automated braking, lane assistance, and smart connectivity tools is enhancing rider trust and comfort. Reports show that nearly 60% of pilot programs emphasize improved safety as the primary achievement. These advancements make autonomous buses more attractive as a dependable public transport solution.

Strategic Partnerships and Market Growth
Growing alliances and investments are fueling wider integration of autonomous buses into smart city projects. Approximately 45% of collaborations aim to align transit automation with connected infrastructure. Such combined efforts are laying the foundation for a new era of mass mobility that prioritizes safety, efficiency, and sustainability.

  1. Introduction
    1. Research Objectives and Assumptions
    2. Research Methodology
    3. Abbreviations
  2. Market Definition & Study Scope
  3. Executive Summary
    1. Market Snapshot, By Type
    2. Market Snapshot, By Powertrain
    3. Market Snapshot, By Level of Autonomy
    4. Market Snapshot, By Application
    5. Market Snapshot, By Region
  4. Autonomous Bus Market Dynamics
    1. Drivers, Restraints and Opportunities
      1. Drivers
        1. AI for smarter route planning
        2. Smart cities push autonomous bus use
        3. Rise of on-demand transit
        4. Improved access for elderly and disabled
      2. Restraints
        1. Infrastructure gaps like charging stations
        2. Challenges in complex traffic scenarios
        3. Weather-related reliability concerns
        4. Labor opposition to job losses
      3. Opportunities
        1. Integrating with existing transit
        2. Extending services to remote areas
        3. Expanding trials in cities
        4. Strengthening charging and connectivity
    2. PEST Analysis
      1. Political Analysis
      2. Economic Analysis
      3. Social Analysis
      4. Technological Analysis
    3. Porter's Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of Substitutes
      4. Threat of New Entrants
      5. Competitive Rivalry
  5. Market Segmentation
    1. Autonomous Bus Market, By Type, 2021 - 2031 (USD Million)
      1. Fully- Autonomous
      2. Semi-Autonomous
    2. Autonomous Bus Market, By Powertrain, 2021 - 2031 (USD Million)

      1. Electric

      2. Hybrid

      3. Internal Combustion Engine (ICE)

    3. Autonomous Bus Market, By Level of Autonomy, 2021 - 2031 (USD Million)
      1. Level 1: Driver Assistance
      2. Level 2: Partial Automation
      3. Level 3: Conditional Automation
      4. Level 4: High Automation
      5. Level 5: Full Automation
    4. Autonomous Bus Market, By Application, 2021 - 2031 (USD Million)
      1. Public Transportation
      2. Employee Transportation
      3. Campus Transportation
      4. First-Mile/Last-Mile Transportation
      5. Tourism
      6. Leisure
    5. Autonomous Bus Market, By Geography, 2021 - 2031 (USD Million)
      1. North America
        1. United States
        2. Canada
      2. Europe
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Nordic
        7. Benelux
        8. Rest of Europe
      3. Asia Pacific
        1. Japan
        2. China
        3. India
        4. Australia & New Zealand
        5. South Korea
        6. ASEAN (Association of South East Asian Countries)
        7. Rest of Asia Pacific
      4. Middle East & Africa
        1. GCC
        2. Israel
        3. South Africa
        4. Rest of Middle East & Africa
      5. Latin America
        1. Brazil
        2. Mexico
        3. Argentina
        4. Rest of Latin America
  6. Competitive Landscape Analysis
    1. Company Profiles
      1. AB Volvo
      2. Continental AG
      3. Daimler AG
      4. Easymile SAS
      5. Navya SA
  7. Analyst Views
  8. Future Outlook of the Market