Australia Bus Market

Australia Bus Market Overview:

The Australia bus market size reached USD 1.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.5 Billion by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033. Rising public transportation demand, urban population growth, government investments in sustainable mobility, school transport needs, tourism expansion, and fleet modernization are some of the factors propelling the growth of the market. Electrification trends and emission regulations further accelerate demand for electric and hybrid buses across cities and regional transit networks.

Australia Bus Market Trends:

Focus on Affordable Urban Mobility

Affordability is becoming a central focus in shaping public transportation use across Australia. Reduced fare schemes are driving higher ridership, particularly across bus networks, as commuters respond to more budget-friendly options. These pricing strategies are not only easing daily travel costs but are also encouraging a shift from private vehicles to public transit. By making regular commuting more accessible, authorities are promoting widespread adoption of shared mobility services. This shift is influencing route planning, service frequency, and capacity enhancements to accommodate growing demand. As fare incentives continue to gain traction, public transport systems are being positioned as reliable, cost-effective alternatives, strengthening their role in urban mobility and contributing to broader goals around congestion relief and sustainable city planning. For example, in November 2024, the Queensland Government made the 50-cent public transport fares permanent across all Translink networks. This initiative, part of the Crisafulli Government's 100-Day Plan, aims to provide cost-of-living relief and has led to increased public transport usage. Since the introduction of the reduced fares, commuters have saved over USD 110 million, with notable increases in patronage across buses, trains, trams, and ferries.

Push toward Cleaner Public Transport in Australia

Australia is seeing a growing shift toward cleaner transportation in its bus sector. Public authorities are increasingly adopting policies that favor low or zero-emission vehicles, aiming to reduce environmental impact and modernize transit systems. This change is influencing procurement priorities, with future fleet additions expected to focus on electric or alternative fuel models. Alongside vehicle upgrades, there’s rising attention to necessary infrastructure improvements such as charging stations and maintenance facilities. These developments reflect a broader push for sustainable urban mobility and long-term emission goals. As public and private operators align with these emerging requirements, the bus market is gradually evolving toward more energy-efficient and environmentally responsible solutions across both metropolitan and regional routes. For instance, in November 2024, the Victorian Government published the Zero Emission Bus Transition Plan, detailing the pathway for transitioning to a cleaner, smarter bus fleet. The plan aligns with Victoria's goal of achieving net-zero emissions by 2045 and includes commitments to purchase only zero-emission buses for public transport from July 2025 onward.

Australia Bus Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on type, fuel type, seat capacity, and application.

Type Insights:

• Single Deck
• Double Deck

The report has provided a detailed breakup and analysis of the market based on the type. This includes single deck and double deck.

Fuel Type Insights:

• Diesel
• Electric and Hybrid
• Others

A detailed breakup and analysis of the market based on the fuel type have also been provided in the report. This includes diesel, electric and hybrid, and others.

Seat Capacity Insights:

• 15-30 Seats
• 31-50 Seats
• More than 50 Seats

The report has provided a detailed breakup and analysis of the market based on the seat capacity. This includes 15-30 seats, 31-50 seats, and more than 50 seats.

Application Insights:

• Transit Bus
• Intercity/Coaches
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes transit bus, intercity/coaches, and others.

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Bus Market News:

• In January 2025, the Australian government introduced a new Australian Design Rule (ADR 68/01) mandating that all new buses and coaches be equipped with seatbelt-wearing monitoring technology. This initiative aims to enhance passenger safety by ensuring seatbelt usage through visual and audio alerts. The regulation will apply to new bus models from November 1, 2026, and to all existing models from November 1, 2027.
• In November 2024, BYD unveiled two new electric bus models tailored for the Australian market and announced an upgraded facility in Melbourne to support its zero-emissions focus. This initiative aims to enhance the adoption of electric buses in Australia, contributing to the country's sustainable transportation goals.

Australia Bus Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia bus market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia bus market on the basis of type?
• What is the breakup of the Australia bus market on the basis of fuel type?
• What is the breakup of the Australia bus market on the basis of seat capacity?
• What is the breakup of the Australia bus market on the basis of application?
• What are the various stages in the value chain of the Australia bus market? 
• What are the key driving factors and challenges in the Australia bus?
• What is the structure of the Australia bus market and who are the key players?
• What is the degree of competition in the Australia bus market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia bus market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia bus market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia bus industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.