Bus Rapid Transit (BRT) Market Size, Share & COVID-19 Analysis, By Bus Type (Standard, Articulated, and Others), By Application (Urban Areas and Others), and Regional Forecasts, 2023-2030

The global Bus Rapid Transit (BRT) market size was valued at USD 1.79 billion in 2022. The market is projected to grow from USD 1.90 billion in 2023 to USD 3.12 billion by 2030, exhibiting a CAGR of 7.3% during the forecast period.

Bus Rapid Transit (BRT) is a bus transport system that offers fast, efficient, and comfortable public mobility solutions across the world in urban and rural areas. It is one of the most cost-effective mobility solutions compared to other forms of public transportation. BRT systems offer various conveniences to the customers, such as fast transportation through dedicated lanes, off-board fare collection, and alignment of stations & busways to the center of the roads. These features enable fast and frequent operations. They also offer safe and wide corridors for motor vehicles, pedestrians, and cyclists, reducing the risk of injuries and fatalities.

The growing demand for fast transportation services across metro cities is fueling the Bus Rapid Transit market growth. BRT systems are considered more reliable than metro and light rail systems. Therefore, increasing demand for road safety, passenger convenience, and comfort will drive the market growth in the upcoming years.

COVID-19 IMPACT

Low Demand for Public Transportation Services During Pandemic Hindered Market Growth

The COVID-19 outbreak negatively impacted the public transportation systems across the world. Government-enforced lockdowns and reduced daily commute owing to health and safety concerns severely hampered the market growth. Therefore, transit agencies could not continue their operations due to significant financial losses. For instance, during the first half of 2020, the Bay Area Rapid Transit (BART) operating in San Francisco, U.S. witnessed nearly 93% drop in ridership, severely impacting its profitability.

In emerging economies of Asia Pacific, such as India and China, bus transit systems are a major part of public transportation due to their cost-effectiveness and efficient transportation. However, the COVID-19 pandemic in these economies negatively impacted Bus Rapid Transit adoption. Relaxed government guidelines post-pandemic and gradual adoption of public transportation services as per the governments’ instructions fueled the market growth in 2022. Moreover, since the automotive sales came back on track, the production of BRT buses saw a steady rise during this period, which will accelerate the market growth during the forecast period.

LATEST TRENDS

Growing Trend of Emission-free Electric Buses to Fuel BRT Market Expansion

The ongoing global megatrend of automotive electrification has also influenced this market. The growing number of stringent government regulations for automotive emission control coupled with the low operating cost of electric vehicles is encouraging BRT fleet operators to adopt battery-powered buses for public transport. Moreover, a well-established charging station network in the developed economies across Europe and North America is accelerating the BRT system electrification efforts.

Furthermore, electric buses are equipped with advanced safety and comfort features such as cruise control, lane departure warning, air conditioning, and others. Therefore, the increasing preference for electric buses among commuters for safety, comfort, and environmental concerns will likely boost the electrification of bus rapid transit systems globally.

Various BRT system providers have already started taking various initiatives to increase their electric bus fleets to go green. For instance, in March 2021, Milwaukee County Transit System (MCTS), one of the largest transit agencies in Wisconsin, selected Nova Bus to supply 15 LFSe+ electric bus models to deploy in its transit system. Similarly, initiatives from other BRT system providers across the globe to convert their fleets into zero-emission are anticipated to boost the market growth in the upcoming years.

DRIVING FACTORS

Increasing Road Traffic Congestion to Drive Demand for Bus Rapid Transit Systems

The rising global population and increasing road traffic congestion will drive the demand for efficient public transportation to reduce the number of on-road vehicles and enable faster commutes. Asian countries, such as India and China are facing major issues of road traffic congestion due to surging population and rise in the number of on-road vehicles. Moreover, rapid urbanization and overburdened public transportation systems in these economies are anticipated to fuel the demand for efficient bus rapid transit systems for fast and comfortable commutes.

Positive Environmental Impact of Adopting BRT Systems to Augment Market Growth

Rapidly growing air pollution due to the emission of greenhouse gases and other harmful pollutants through vehicle exhausts is threatening public health. Cities with increasing traffic congestion also are threatened by air pollution. Therefore, the governments’ focus on encouraging the people to adopt public transit systems to reduce automotive emissions is anticipated to propel the market growth.

Moreover, governments’ policies to limit the sales and use of conventional vehicles have created significant uncertainty regarding the adoption of IC engine-powered vehicles. Therefore, rising consumer preference toward using public transit services instead of their own vehicles may drive the growth of this industry in upcoming years.

RESTRAINING FACTORS

High Implementation Cost of BRT Systems to Hinder Market Growth

Bus rapid transit systems are typically prevalent in urban areas where retrofitting these high-quality systems on an existing bus network is generally required. Retrofitting increases, the costs associated with the project. Additionally, the high initial cost of deploying an electric bus fleet in the BRT network is one of the major challenges in adopting the emission-free BRT network. The initial investments can hike the public transportation budgets of government authorities. Mass rapid transit systems, such as the metros, are still more popular in many developing countries due to fewer complexities associated with their implementation. These factors can impede the market progress.

SEGMENTATION

By Bus Type Analysis

 Increasing Demand for High Loading Capacity BRT Buses to Boost Adoption of Standard Buses

By bus type, the market is segmented into standard, articulated, and others.  

The standard segment dominated the market in 2022. Standard buses are easily available across various developed and underdeveloped economies. Additionally, standard buses are available at low cost. Therefore, their deployment is more economical for the BRT service provider. Moreover, as standard buses are economical to travel, significant number of consumers prefer standard buses across urban and rural areas. This further supports the dominance of the standard segment in the market. The standard buses segment is also expected to show good growth in the global market due to their greater affordability and better ability to maneuver in severely restricted spaces.

The need to accommodate large-volume loading and ballooning ridership has increased the demand for articulated buses, which would positively impact the growth of this segment. Additionally, articulated buses' advanced safety & comfort features are rapidly gaining popularity among the public.

By Application Analysis

Rapid Urbanization in Metropolitan Cities to Drive BRT Adoption in Urban Areas

By application, the market is classified into urban areas and others.

The urban areas segment held the largest global Bus Rapid Transit market share in 2022. Rapid urbanization and increasing road traffic congestion are expected to drive the demand for affordable and high-quality bus transportation services for efficient urban mobility. For instance, according to the Federal Transit Administration, BRT has advanced throughout the U.S. in the past decade. The BRT systems operate in major cities, such as Pittsburgh and Los Angeles and are rapidly growing in popular mid-sized metro areas, such as Oregon, Cleveland, and Eugene. Non-urban areas are also witnessing significant growth in BRT system adoption to cater to various transportation needs.

REGIONAL INSIGHTS

Road Traffic Congestion in Metropolitan Cities to Drive Market Growth in Rest of the World Segment

Regionally, the market is categorized into North America, Europe, Asia Pacific, and the Rest of the World.

The Rest of the World, which covers South America and the Middle East & Africa, held the largest market share in 2022. An increasing number of bus transit systems and daily commuters using BRT systems will drive the global market progress. According to the Global BRT Data, Latin America accounted for nearly 60% of the global Bus Rapid Transit passengers daily. The popularity of rapid transit system is growing considerably across major cities in Latin America such as Brazil, Colombia, and others. Therefore, an increasing number of BRT passengers in the region will likely boost the market growth in future.

Asia Pacific is expected to register the fastest growth rate during the forecast period. Increasing road traffic congestion, coupled with the government's focus on expanding public transport capability to reduce traffic congestion, is expected to accelerate the market growth in the region.

The market in North America is characterized by cities, such as Ottawa, that support Transport-Oriented Development (TOD) by emphasizing on land use policy to promote future growth as well as maintain and increase transit ridership. Another example is the transport system in Seattle, where dedicated bus tunnels have reduced surface street volumes by 20%. Also, buses using these tunnels recorded 40% fewer accidents than those in mixed-traffic operations. Therefore, the successful implementation of BRT in numerous cities is likely to fuel the market growth in this region.

In Europe, the cost per kilometer of BRT systems is similar to that of the other regions, such as Asia Pacific. However, the annual demand is substantially less due to this region's existing public transportation. Several cities in France operate multiple BRT lines, and the government provides significant financial support to expand these systems. Moreover, the high costs associated with light rail transit and heavy rail infrastructure will likely increase the popularity of a bus rapid transit system in Europe over the forecast period.

KEY INDUSTRY PLAYERS

AB Volvo, Tata Motors, and MAN are Leading Market Players

A large number of manufacturers in the market are producing BRT buses. Large systems, such as the Metrobus in Mexico City and TransMilenio in Bogota operate buses from various manufacturers, particularly Volvo, Scania, and Mercedes. AB Volvo produces special bi-articulated buses operating in Curitiba, and the company's South American bus manufacturing plant is also located in Curitiba.

BRT buses in China are often produced by Chinese manufacturers or through joint ventures (for example, MAN and Huanghai produce buses for the Dalian rapid transit). Tata Motors has largely consolidated the market in India. Furthermore, Chinese manufacturers including Xiamen-based Kinglong are branching out and designing buses for Zaozhuang, Lianyungang, Guangzhou, and Lima, Peru, besides Xiamen's sophisticated bus transit system. Hence, expanding manufacturing capabilities, particularly in developing countries, represents a significant opportunity for key vendors operating in this market to increase profitability over the forecast period.

LIST OF KEY COMPANIES PROFILED:

• AB Volvo (Sweden)


• Tata Motors (India)


• MAN (Germany)


• Ashok Leyland (India)


• Yutong (China)


• Marcopolo S.A. (Brazil)


• King Long (China)


• BYD Company Ltd. (China)


• Mercedes Benz (Germany)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 – Senegal’s capital Dakar announced its plan to deploy Africa’s first 100% e-bus fleet in its Bus Rapid Transit system. Dakar is focused on restructuring its transportation network by 2025 through a BRT project operated exclusively with e-buses.


• February 2023 – Mexico City’s transport authority, Metrobús introduced a fleet of 50 new articulated electric buses. The newly deployed fleet of e-buses will be incorporated into line 3 of Mexico City’s public transportation system.


• September 2022 – The Dar es Salaam Rapid Transit Agency (DART) deployed a new fleet of 95 buses on its Bus Rapid Transit network by the end of the year. With newly deployed buses, the total fleet of buses plying the first phase of the BRT project increased to 305.


• February 2022 – The Chicago Transit Authority (CTA) unveiled the details of its planning for Chicago’s bus system electrification. The CTA provided its roadmap for electrifying the agency’s BRT bus fleet, facilities, and infrastructure by 2040.


• March 2021 – Milwaukee County Transit System (MCTS), one of the largest transit agencies in Wisconsin, selected Nova Bus to supply 15 LFSe+ electric bus models to deploy in its transit system.

REPORT COVERAGE

The global market research report provides detailed market analysis and focuses on key aspects such as leading companies, bus types, design, and technology. Besides this, the report offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market’s growth in recent years.

Report Scope & Segmentation