Driving Forces Behind the Semi-Autonomous And Autonomous Bus Market in 2025: Spotlight on Demand For 5G Vehicle Connectivity Driving Growth In Autonomous Bus Market Driver

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How has the semi-autonomous and autonomous bus market evolved, and where is it heading next?
The semi-autonomous and autonomous bus market size has grown rapidly in recent years. It will grow from $0.99 billion in 2024 to $1.16 billion in 2025 at a compound annual growth rate (CAGR) of 17.2%.  The growth in the historic period can be attributed to the increasing urban population, growing environmental awareness, regulatory support, the development of smart city infrastructure, increasing demand for convenient and comfortable public transportation options.

The semi-autonomous and autonomous bus market size is expected to see rapid growth in the next few years. It will grow to $2.22 billion in 2029 at a compound annual growth rate (CAGR) of 17.7%.  The growth in the forecast period can be attributed to the use of data analytics for route optimization, the globalization of the automotive industry, public-private partnerships, rise in digitalization, and changing consumer preferences. Major trends in the forecast period include electrification, advanced driver assistance systems (ADAS), connected vehicle technologies, level 4 autonomy, and data-driven decision making.

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What key drivers have fueled the semi-autonomous and autonomous bus market’s development over the years
The increasing demand for 5G technology for vehicle connectivity is expected to propel the growth of the semi-autonomous and autonomous bus market going forward. 5G technology for vehicle connectivity refers to the use of fifth-generation (5G) cellular network technology to enable high-speed, low-latency communication between vehicles (V2V) and between vehicles and infrastructure (V2X). 5G enables direct communication between vehicles, allowing semi-autonomous and autonomous buses to help improve road safety by enabling vehicles to alert each other about potential hazards and coordinate their movements to avoid accidents. For instance, according to the 5G Automotive Association (5GAA), a Germany-based cross-industry association for connected and autonomous vehicles, over 45 million annual 5G-connected passenger vehicles will be shipped globally by 2025. Therefore, the increasing demand for 5G technology for vehicle connectivity is driving the semi-autonomous and autonomous bus market.

What is the segmentation for the semi-autonomous and autonomous bus market?
The semi-autonomous and autonomous bus market covered in this report is segmented –
1) By Propulsion Type: Electric, Hybrid, Diesel
2) By Sensor Type: Ultrasonic, Camera, Lidar, Radar
3) By Level of Automation: Level 1, Level 2, Level 3, Level 4, Level 5
4) By Application: Shuttle, Intracity, Intercity

Subsegments:
1) By Electric Buses: Battery Electric Buses (BEB), Trolleybuses, Fuel Cell Electric Buses
2) By Hybrid Buses: Series Hybrid Buses, Parallel Hybrid Buses, Plug-In Hybrid Buses
3) By Diesel Buses: Standard Diesel Buses, Compressed Natural Gas (CNG) Buses, Biodiesel Buses

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Who are the most influential companies in the semi-autonomous and autonomous bus market?
Major companies operating in the semi-autonomous and autonomous bus market report are Bayerische Motoren Werke AG, Robert Bosch GmbH, Tesla Inc., Intel Corporation, Daimler Truck, ZF Friedrichshafen AG, ZF Press, AB Volvo, Denso Corporation, Qualcomm Inc., Continental AG, Uber Technologies Inc., Nvidia Corporation, Aptiv PLC, NXP Semiconductor Inc., Navya SAS, Waymo LLC, Proterra Inc., Local Motors, EasyMile

What are the top industry trends projected to impact the semi-autonomous and autonomous bus market?
Major companies operating in the semi-autonomous and autonomous bus market are focusing on strategic collaborations to provide reliable services to customers. A strategic collaboration is an agreement between two or more independents to work together towards mutually beneficial, long-term goals. For instance, in May 2023, Mobileye Global Inc., an Israel-based developer of autonomous driving technologies and advanced driver-assistance systems, collaborated with MAN Truck & Bus SE, a Germany-based provider of commercial vehicles, to bring autonomous city buses to the streets. The collaboration will specifically focus on integrating Mobileye's Drive technology into MAN's city buses, paving the way for automated public transit. Mobileye's proven experience in autonomous driving technology will be combined with MAN's expertise in bus manufacturing and infrastructure to create reliable and efficient autonomous solutions.

What are the major regional insights for the semi-autonomous and autonomous bus market, and which region holds the top position?
North America was the largest region in the semi-autonomous and autonomous bus market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the semi-autonomous and autonomous bus market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Does The Semi-Autonomous And Autonomous Bus Market Report 2025 Offer?
The semi-autonomous and autonomous bus market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.

Semi-autonomous and autonomous buses refer to public transportation vehicles that are equipped with advanced technologies to operate with varying degrees of autonomy. Both semi-autonomous and autonomous buses aim to revolutionize transportation by reducing accidents, improving traffic flow, and increasing mobility options. These technologies have the potential to transform public transportation systems by enhancing safety, accessibility, and sustainability.

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