Semi-Autonomous & Autonomous Bus Market Expected to Reach $2,904.1 million by 2035—Allied Market Research

According to a new report published by Allied Market Research, titled, “Semi-Autonomous & Autonomous Bus Market," The semi-autonomous & autonomous bus market is expected to be valued at $791.2 million in 2025, and is estimated to reach $2,904.1 million by 2035, growing at a CAGR of 14.6% from 2026 to 2035.

Europe region is expected to dominate the semi-autonomous & autonomous bus market in terms of revenue, followed by North America, Asia-Pacific and LAMEA. The rapid development in infrastructure and connectivity is leading to the readiness to adopt semi-autonomous & autonomous technology in developed regions such as North America and Europe.

There are prominent key factors that drive the growth of the semi-autonomous & autonomous bus market, such as improved safety coupled with reduction in traffic congestion, development of intelligent transport system, and growth of connected infrastructure. Moreover, growth of mobility as a service, reduction in accidents caused due to driver’s error and reduction of hazardous gas (CO2) in autonomous vehicle, and stringent government regulations regarding safety are expected to drive the semi-autonomous and autonomous bus market during the forecast period.

The semi-autonomous & autonomous bus market is segmented on the basis of level of automation, mode of operation, application, propulsion type, and region. By level of automation, it is divided into Level 1, Level 2, Level 3, Level 4, and Level 5. By mode of operation, it is segmented into semi-autonomous, and autonomous. By application, it is divided into shuttle, intracity, and intercity. By propulsion type, the market is divided into electric, and hybrid. By region, the market is analyzed across North America, Europe, Asia-Pacific and LAMEA.

COVID-19 Impact Analysis

• The COVID-19 impact on the automotive industry is unpredictable, and is expected to remain in force for a few years.  The COVID-19 outbreak forced governments across the globe to implement stringent lockdowns and ban import–export of essential raw material items for most of 2020, and few months in 2021. This led to sudden decline in availability of important raw materials for vehicle components.
• As a result of interrupted supply chains and production schedules caused by the COVID-19 pandemic, automotive production and sales suffered severely, which, in turn, negatively impacted the market for semi-autonomous & autonomous bus market.
• To prevent the spread of the COVID-19 virus, governments across the globe implemented strict lockdowns and made social distancing mandatory. The COVID-19 pandemic not only affected operations of the automotive and transportation industry, but the economic crisis also led to reduction in expenditure on next-generation technologies, for instance, semi-autonomous and autonomous buses.
• Many governments trimmed their spending on other sectors and poured a hefty amount of investment in improving healthcare facilities to lessen dangers pertaining to the pandemic.
• Before COVID-19, the automotive industry witnessed continuous growth. Governments all around the globe were focusing on supporting for autonomous vehicles and related technologies. However, adverse impacts of the COVID-19 pandemic have resulted in interruption in activities and initiatives regarding development of autonomous vehicles. However, vaccination enabled lowering of barriers to economic activity, as well as domestic and international travel.
• As the restrictions lifted, travel recovered quickly leading to increase in vehicle commutation, which is expected to boost the semi-autonomous & autonomous bus market. Moreover, companies across the globe are focusing on development of autonomous vehicles and related technologies which is expected to drive the market. For instance, in May 2022, Stagecoach, a transportation group, Alexander Dennis, a bus building company and Fusion Processing Ltd, an autonomous driving technology provider have demonstrated Europe’s first full-sized autonomous bus.

KEY FINDINGS OF THE STUDY

• By level of automation, the Level 4 segment is expected to register a significant growth during the forecast period.
• By mode of operation, the autonomous segment is projected to lead the global semi-autonomous & autonomous bus market
• By application, the shuttle segment is projected to lead the global semi-autonomous & autonomous bus market
• By propulsion type, the electric segment is projected to lead the global semi-autonomous & autonomous bus market
• Region-wise, Europe is anticipated to register the highest CAGR during the forecast period.

The key players that operate in this semi-autonomous & autonomous bus market are AB Volvo, Aptiv, BMW, Continental Ag, Denso Corporation, EASYMILE, Intel Corporation, MERCEDES-BENZ GROUP AG, NAVYA Group, NVIDIA Corporation, NXP Semiconductors, PROTERRA, Qualcomm Technologies Inc., Robert Bosch GmbH, Scania, Teague, and ZF Friedrichshafen AG.