Global Bus Transmission System Market Revenue Grows at a CAGR of 6.5%

Straits Research published the report, “Bus Transmission System Market Size & Outlook, 2026–2034”. According to the study, the market size is valued at USD 13.2 billion in 2025 and is projected to expand to USD 22.7 billion by 2034, registering a compound annual growth rate (CAGR) of 6.5%.

Market Dynamics

The key factors stimulating growth in the market will include continued modernization of public transport fleets, increasing investment in low-emission and electric bus deployment, and shifting preference towards automatic and hybrid driveline systems over manual transmissions. Increasing urbanization, along with city-level mobility initiatives and a push for smart transit solutions, has been driving demand for advanced bus transmissions in municipal, private, and intercity operations.

Government incentives and policies pertaining to clean mobility through subsidies, emission norms, and fleet replacement programs in the U.S., China, Germany, and India act as drivers for growth in this market. New avenues are opening up globally for OEMs and transmission manufacturers through strategic investments in hybrid and electric transmission technologies integrated with intelligent control systems and predictive maintenance platforms.

Market Highlights

• Segmental Leadership: Automatic Transmission holds the largest share (42.15%), while Hybrid and Electric Transmission Systems record the fastest CAGR (9.31%).
• Design Outlook: Rear Engine Front Wheel Drive is projected to witness the highest CAGR (7.28%) during the forecast period.
• Bus Type Insight: The City Buses segment leads with over 38.94% market share, driven by urban transit upgrades.
• Application Insight: The Public Transit Operations segment is expected to grow at the fastest CAGR (7.15%) due to rapid urbanization and fleet upgrades.
• Regional Insights: North America dominates with over 34.78% share, supported by active fleet modernization programs and adoption of automated drivetrains.

Market Segments

1. By Transmission Type (2022-2034)
   1. Manual Transmission
   2. Automatic Transmission
   3. Automated Manual Transmission (AMT)
   4. Hybrid and Electric Transmission System
2. By Design (2022-2034)
   1. Rear Engine Front Wheel Drive
   2. Front Engine Rear Wheel Drive
   3. Mid-engine
3. By Bus Type (2022-2034)
   1. City Buses
   2. Coach Buses
   3. School Buses
   4. Shuttle Buses
   5. Articulated Buses
   6. Other Buses
4. By Application (2022-2034)
   1. Public Transit Operations
   2. Private Fleet Operations
   3. School Transportation
   4. Tourism & Intercity Transport