GVR Report cover Canada Transit Buses Market Size, Share & Trends Report

Canada Transit Buses Market Size, Share & Trends Analysis Report By Propulsion Type (Diesel, Electric, Hybrid, Others), And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68040-111-0
  • Number of Pages: 60
  • Format: Electronic (PDF)
  • Historical Range: 2018 - 2021
  • Industry: Technology

Report Overview

The Canada transit buses market size was estimated at USD 126.5 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 12.2% from 2023 to 2030. The rising focus of bus operators and local government agencies in transitioning toward an electric fleet and the growing need for governments to establish a strong transit system in the rural areas of Canada are some of the key factors observed to be driving the growth of the Canadian transit bus market. Moreover, the growing awareness about eco-friendly batteries and the aggressive investments in lithium-ion battery packs by OEMs and government agencies are factors expected to propel the growth of the transit buses market in Canada over the forecast period.

Canada transit buses market size, by propulsion type, 2020 - 2030 (USD Million)

With the rising investment in infrastructure expansion activities, the government of Canada is equally putting a strong emphasis on reducing the levels of ozone-depleting substances and overall air pollution to fuel market growth. The growing opportunity for hydrogen fuel buses is further anticipated to impact the growth of the Canadian transit buses market positively.

Furthermore, the growing greenhouse gas emissions have prompted various initiatives to mitigate climate change, shifting policymakers' attention toward electric transit buses. As a result, the Canadian government agencies are investing heavily in research & development of electrification of transit bus systems, thereby aligning with their vision of a sustainable transport system.

Apart from electric buses and charging infrastructure, transit bus operators need major turn-key solutions that cover every aspect, from installing various bus components to maintaining the vehicles. As a result, the Canadian Urban Transit Research & Innovation Consortium (CUTRIC) is playing a vital role in supporting Canadian agencies in their transition process. The consortium aims to support the commercialization of different technologies associated with the electrification of transit buses through development, demonstration, and industry-led collaborative methods that could innovate the zero-emission smart mobility system.

For instance, in May 2023, the Canadian government and the City of Brampton joined forces to invest USD 807.3 million (CAD 1.1 million) in a comprehensive study on electrifying Brampton's transit system. This ambitious study will cover various crucial aspects, including assessing the financial implications and potential savings, strategically allocating resources, conducting a thorough risk analysis, exploring energy-as-a-service options, determining the necessary fleet and facility requirements, and utilizing advanced predictive modeling for optimal bus deployment. Additionally, this substantial investment aligns with Brampton's objective of achieving an impressive 80 percent reduction in greenhouse gas emissions by 2050, as outlined in the Zero Emission Bus Implementation Strategy and Rollout Plan.

The increasing awareness regarding environment-friendly batteries and substantial investments in lithium-ion battery packs are anticipated to create promising opportunities for market growth in the foreseeable future. The rising focus on generating energy from renewable sources to promote energy conservation and combat climate change further augments the market’s expansion well.

For instance, in November 2022, the Canadian government invested USD 20.2 million (CAD 27 million) in E3 Lithium Ltd., a lithium resource and technology company, to enable the company to construct and demonstrate a lithium production plant in the country. The company can produce up to 20 kilotons of electric vehicle battery-grade lithium through this production facility. Thus, government support for the growth of electric vehicles in the country has been a key aspect contributing to the market growth.

Rising concerns regarding the continuous depletion of natural resources and the detrimental impact of vehicular emissions on the environment are propelling the development of eco-friendly and sustainable transportation solutions. Fuel cell technology advancements are paving the way for another promising alternative to power buses, offering a potential solution to reduce environmental impact and promote greener mobility.

For instance, in January 2022, the Hydrogen Fuel Cell Bus Council Inc. announced the formation of a national alliance of public transit organizations, suppliers, and manufacturers, the first-of-its-kind, to advance hydrogen fuel cell technology and encourage its functions in public transportation. The ongoing initiatives and trials aimed at introducing innovative solutions using fuel cell technology are promising indicators for the growth of the Canadian transit bus market.

Propulsion Type Insights

Based on propulsion type, the diesel segment accounted for the largest share of over 73% in the Canada transit buses market in 2022. The segment’s growth can be attributed to the lower operating costs of diesel-powered buses. Also, several key players in Canada are investing aggressively in research and development to develop innovative, low-emission solutions that can potentially lower the volumes of nitrous oxide and particulate emissions from diesel engines. Moreover, the transition to electric fleets still requires a robust electric ecosystem that covers all the aspects of the bus, from installation of the components to maintenance and wear and tear of the vehicles.

Canada transit buses market share, by propulsion type, 2022 (%)

The electric segment is expected to expand at the fastest CAGR over the forecast period. The continued electrification of public fleets and the aggressive adoption of electric transit buses by public fleet operators in Canada is projected to offer growth prospects for the Canadian transit bus market. Several companies have also emphasized investing in the electric transit business, which is expected to further support the growth of the electric segment and the overall transit bus space in Canada. For instance, in August 2022, Alexander Dennis Ltd., a subsidiary of NFI Group, announced the launch of new electric bus solutions entirely developed and integrated in-house with its expertise, expanding its portfolio of zero-emission buses.

Key Companies & Market Share Insights

The Canadian market for transit buses is consolidated and characterized by the presence of large players. Key industry players such as AB Volvo, Daimler AG, Blue Bird Corporation, NFI Group, and Proterra Inc., among others, offer a wide range of electric mobility products for logistics & transportation, public transportation, micro-mobility, and shared mobility. These market players are also focused on manufacturing electric mobility products with a better range for the long haul. New product launches and upgradation of existing products have remained a key strategy of these players. Some of the prominent players in the Canada transit buses market include:

  • AB Volvo

  • Anhui Ankai Automobile Co., Ltd.

  • Blue Bird Corporation

  • Daimler AG (Mercedes-Benz Group AG)

  • Iveco S.p.A

  • Navistar, Inc. (Traton SE)

  • BYD Company Limited

  • Proterra Inc.

  • NFI Group

  • FirstGroup plc

  • Group Keolis SAS

  • Mobico Group

Canada Transit Buses Market Report Scope

Report Attribute


Market size value in 2023

USD 137.3 million

Revenue forecast in 2030

USD 307.2 million

Growth rate

CAGR of 12.2% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD million, volume in units, and CAGR from 2023 to 2030

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Propulsion type

Country scope


Key companies profiled

AB Volvo; Anhui Ankai Automobile Co., Ltd.; Blue Bird Corporation; Daimler AG (Mercedes-Benz Group AG); Iveco S.p.A; Navistar, Inc. (Traton SE); BYD Company Limited; Proterra Inc.; NFI Group; FirstGroup plc; Group Keolis SAS; Mobico Group

Customization scope

Free report customization (equivalent up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Canada Transit Buses Market Report Segmentation

This report forecasts revenue and volume growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Canada transit buses market report based on propulsion type:

  • Propulsion Type Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

    • Diesel

    • Electric

    • Hybrid

    • Others

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