The global semi-autonomous & autonomous bus market revenue was US$ 791.2 million in 2022 and is projected to reach US$ 2,904.1 million by 2031. The market will register a CAGR (Compound Annual Growth Rate) of 11.2% during the forecast period from 14.6% from 2023 to 2031.
An autonomous bus is an electrically-powered, self-driving vehicle that transports twelve or more passengers. Autonomous buses are operated without a driver inside the vehicle, instead utilizing cameras, sensors, and remote controls to properly steer their way through traffic. In recent years, major developments in technology have opened the door for self-driving automobiles. Innovators are creating opportunities for passengers to experience travel in an entirely new way, and there are a few in particular that are leading the surge. Because the use of public transportation has steadily declined, there are hopes that the creation and implementation of automated buses will re-invigorate the industry in major cities.
Factors Affecting Market Growth
Autonomous vehicles help in reducing traffic congestion. Fuel consumption also reduces with the use of autonomous vehicles as fuel use increases when the vehicle slows down. Thus, reduction in traffic congestion and improved fuel efficiency are the factors that will drive the market growth.
Autonomous driving technology helps to reduce errors made by drivers. An autonomous vehicle also known as a self-driving vehicle uses artificial intelligence software, light detection & ranging, and cameras to sense the current environment and navigate by forming an active 3D map of that environment are the actors which will drive the market growth.
Development of smart cities, and supportive government regulations are expected to create an opportunity for the semi-autonomous & autonomous bus market in the near future which will drive the growth of the market.
Software failures associated with automotive sensors, high manufacturing costs, and data management challenges for autonomous vehicles are expected to hinder the market growth.
COVID-19 Pandemic Effect on Market Growth
During the COVID-19 pandemic, the global semi-autonomous & autonomous bus market was negatively impacted due to the lockdown in 2020, and automotive production and sales suffered severely which negatively impacted the market. Many governments trimmed their spending on other sectors and poured a hefty amount of investment into improving healthcare facilities to lessen the dangers of the pandemic which hampered the technological advancements in this sector. As the restrictions were lifted, travel recovered quickly leading to an increase in vehicle commutation, which is expected to boost the semi-autonomous & autonomous bus market. Moreover, companies across the globe are focusing on the development of autonomous vehicles and related technologies which is expected to drive the market.
Regional Analysis
Europe region is expected to dominate the semi-autonomous & autonomous bus market in revenue aspects. The rapid and vast development in infrastructure and connectivity is resulting in the readiness for accepting semi-autonomous & autonomous technology in developed regions such as North America and Europe.
Leading Competitors
Qualcomm
Intel
Scania
NXP
BMW
Aptiv
Nvidia
Daimler
2getthere
Local Motors
Proterra
EasyMile
Avaya
AB Volvo
Bosch
Continental
Denso
Others
Segmentation Analysis
The global semi-autonomous and autonomous bus market segmentation focuses on, the level of automation, mode of operation, application, propulsion type, and by region.
Segmentation based on the Level of Automation
Level 1
Level 2
Level 3
Level 4
Level 5
Segmentation based on Mode of Operation
Autonomous
Semi-Autonomous
Segmentation based on Application
Intercity
Intracity
Shuttle
Segmentation based on Propulsion Type
Hybrid
Electric
Segmentation Based on Region
North America
U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Europe

Asia-Pacific
China
India
Japan, South Korea
ASEAN
Rest of Asia-Pacific

Middle East & Africa (MEA)
Brazil
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America