Bus Rapid Transit (BRT) Market Size & Outlook, 2026-2034

Bus Rapid Transit (BRT) Market Overview

The global bus rapid transit (BRT) market size is valued at USD 2.71 billion in 2025 and is estimated to reach USD 5.42 billion by 2034, growing at a CAGR of 8.2% during the forecast period. Consistent growth of the market is supported by increasing urbanization and traffic congestion, rising government investments in cost-effective mass transit systems, and the growing adoption of dedicated bus corridors, which improve operational efficiency, reduce travel time, and encourage cities to shift toward sustainable and scalable public transportation solutions.

Key Market Trends & Insights

• North America dominated the market with a revenue share of 36.8% in 2025,
• Asia Pacific is anticipated to grow at the fastest CAGR of 9.4% during the forecast period.
• Based on bus type, the Articulated BRT Buses segment held the highest market share of about 42.6% in 2025.
• By propulsion technology, the Battery Electric segment is estimated to register the fastest CAGR growth of approximately 11.1% during the forecast period.
• Based on infrastructure configuration, the Fully Dedicated BRT Corridors segment dominated the market in 2025, accounting for a market share of 44.3%.
• Based on application, the Urban Commuter is projected to grow at a CAGR of around 8.6% during the forecast period,
• The U.S. dominates the bus rapid transit (BRT) market, valued at approximately USD 0.96 billion in 2024 and reaching around USD 1.01 billion in 2025.

Source: Straits Research

Market Size & Forecast

• 2025 Market Size: USD 2.71 billion
• 2034 Projected Market Size: USD 5.42 billion
• CAGR (2026-2034): 8.2%
• Dominating Region: North America
• Fastest Growing Region: Asia Pacific

The global Bus Rapid Transit (BRT) market can be considered a broad spectrum of elevated capacity public transportation systems, including conventional BRT buses, articulated buses, and bi-articulated buses that can efficiently facilitate mass transportation. Such transportation systems can function under various propulsion modes, including diesel, CNG, hybrid electric, battery electric, and hydrogen fuel cell modes. Additionally, the global BRT market can be found functioning under various dedicated transportation infrastructures, including dedicated corridors, partially dedicated corridors, and shared transportation modes, and applied on various routes, including urban commuter transportation routes, inter-city transportation routes, airport transportation routes, and other logistics routes.

Market Trends

Transition From Mixed-Traffic Bus Services To Fully Integrated BRT Corridors

Urban transportation networks are undergoing a paradigm shift in their bus transit solutions, starting with mixed traffic bus operations and the development of Bus Rapid Transit networks that focus on speed, punctuality, and the optimal use of capacities. The old bus transport networks had the problem of traffic congestion, irregular timing, and the low flow of commuters, thus making the commuters less confident in the transport system. The new BRT systems focus on dedicated bus lanes, off-board ticketing, platforms, and priority treatment at traffic signals, thus allowing the bus transport system to function with the efficiency of the metro transport system at a cheaper cost. Metro-like efficiency at a cheaper rate makes BRT an appropriate alternative to the rail transport system in growing metropolitan cities.

Acceleration of Fleet Electrification Within BRT Networks

The current BRT ecosystem worldwide is experiencing an increasing shift towards electric or low-emission BRT bus fleets, synchronizing public transport systems with sustainable development strategies. Conventionally, diesel-powered BRT bus systems were predominant in terms of economic feasibility. But, despite increasing fuel costs, new emissions standards, and continuous developments in terms of battery efficiency, there has been an increasing demand for battery-powered BRT bus systems. Globally, electric BRT bus systems provide an advantage in terms of operating costs, noise decibel reduction, and minimal emissions, making them an attractive option for such routes that pass through highly populated areas.

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Market Driver

Development of Government-Based Urban Corridors

The development of public transit is becoming more and more driven by national and city-level administrations’ needs for high-capacity and economical mobility solutions to solve congestion on urban routes. More and more city administrations now provide dedicated capital budgets for Bus Rapid Transit corridors within a master plan for urban mobility over the long term, identifying BRT corridors as a quicker and more feasible alternative mode of transport compared to rail-based transit solutions. Within Government-Backed Corridor Programs. Government-backed corridor programs generally provide for the allocation of land for dedicated lanes, investments in station infrastructure, and operational assistance for the long term within the definition of a program and, therefore, have less risk and can be implemented more quickly.

Market Restraint

Limited Availability of Urban Road Space For Dedicated BRT Corridors

The most imperative constraints on the Bus Rapid Transit (BRT) market are the limited road space and the inability to dedicate completely separate corridors in densely populated urban areas. Transportation departments in urban areas have had difficulties in allocating road space for BRT systems since this affects the traffic patterns of other vehicles. In most major urban areas, urban planning departments have emphasized the fact that a significant proportion of the arterial road network is already close to full capacity, making it difficult to dedicate a completely separate corridor for BRT systems.

Market Opportunity

Integration of BRT Corridors and Transit-Oriented Urban Development

The increasing integration of Bus Rapid Transit corridors with Transit-Oriented Development patterns is opening up new vistas for growth. Presently, planners and real estate developers are of the opinion that mixed-use residential, office, and shopping districts should be developed along BRT nodes, thereby making optimal use of land resources and ensuring ease of access for commuters. In the past, BRT networks operated in isolation, having very little to do with what was happening in the real estate arena surrounding them. At present, an integrated approach from the BRT corridor perspective promotes density, non-fare revenue streams, and system viability. Commercial space leasing, retail space, and last-mile solutions for BRT nodes attract new customers and keep the system busy.

Regional Analysis

North America represented the largest share with a revenue of 36.8% in 2025 due to the maturity of transit planning models and the evolutionary shift from typical transit services to high-capacity and corridor-based transit networks. Cities in North America were focused on transit models based on performance measures to optimize travel times and transit corridors. In addition to these aspects, optimization of corridors on a long-term scale and data-driven transit routes helped enhance customer retention and further led to the adoption of BRT solutions across North American cities.

The market for Bus Rapid Transit Systems (BRT) in the United States is fueled by the initiatives taken by the cities towards optimizing corridor productivity and relieving congestion during peak hours. Many cities have implemented new designs for the BRT stops that feature level boarding, accessibility, and real-time transit information, which has led to an increase in the number of commuters using the services on a daily basis. In addition, the measurement of corridor performance based on the average speed and the number of users has encouraged the expansion of the BRT systems.

Asia Pacific Market Insights

Emerging demand in the Asia Pacific region is expected to record the fastest CAGR of 9.4% throughout the forecasting period due to the quick urbanization rate and the consequent requirement for a flexible mass transit solution that can efficiently cater to large urban populations. Cities in the Asia Pacific are resorting to the adoption of BRT systems in order to meet the capacity challenges while doing away with the extended time involved in the development of rail systems.

The Indian Bus Rapid Transit (BRT) market is growing through the redevelopment of corridors in major and rising cities, helping to optimize passenger movement speed through high-volume routes. Some cities are already registering enhanced average speeds and passenger carrying capacity through the establishment of organized BRT corridors, along with optimized stations and enhanced boarding/alighting mechanisms. Notably, there is also rising interest in optimizing BRT systems through feeder and last-mile solutions, making India a high-growth market in the Asia Pacific region.

Source: Straits Research

Europe Market Insights

The European market is experiencing an increased adoption of Bus Rapid Transit (BRT) systems. The trend is driven by developments aimed at promoting eco-friendly transportation options and changes taking place in bus networks within cities to improve capacity usage. Cities within Europe are showing interest in bus schemes based along corridors targeting metropolitan rail and tram systems. There has also been an emphasis within Europe on interconnected ticketing and travel solutions, which is bolstering public use of BRT systems.

The German market for BRT systems is picking up pace due to the increasing focus of cities on high-performance bus corridors with a view to improving connectivity between suburbs and cities. The transport companies in cities have already been using high-capacity buses with an articulated design for priority roads to deal with peak-hour traffic effectively. In addition, the integration of BRT lines with regional and city transportation nodes has increased the use of public transport.

Latin America Market Insights

The Latin America BRT industry remains growing due to upgrading in some of the oldest bus rapid transport corridors in the world. Latin America is also upgrading their BRT networks along the parameters of stations, passenger flow, and service, to make them efficient enough for the growing number of commuters. Further, Latin America is leveraging the flexibility offered by BRT networks to reach the unconnected areas of its cities, thereby ensuring the significance of BRT networks in Latin America's transport infrastructure.

The Brazilian Bus Rapid Transit (BRT) market is expanding as the metro regions are developing corridor networks and optimizing the buses for the efficient movement of commuters on a daily basis. Many other regions are also working on providing better accessibility and optimizing the boarding process for increased commuters at peak hours. In addition, the collaboration of BRT lines with buses is increasing the last-mile connectivity and consequently the use of the BRT systems.

Middle East and Africa Market Insights

The Middle East Africa Bus Rapid Transit Market is growing due to increasing demand in cities for a scalable mass transit system. Cities in the Middle East Africa region face congestion problems, which are being solved by adopting Bus Rapid Transit. The scalability of Bus Rapid Transit makes it popular, which reduces construction costs in contrast to Light Rail/ Metro.

The market for Bus Rapid Transit (BRT) in the United Arab Emirates is growing with the development of dedicated bus corridors that aim to facilitate mobility and tourist travel. Cities in this region are also focusing on enhancing punctuality, passenger comfort, and corridor operational efficiency to improve public transport. In addition, connecting BRT networks with developments in metro networks and zones of urban development also helps to establish the UAE as an emerging market leader in Africa/the Middle East.

Bus Type Insights

The Articulated BRT Buses segment accounted for approximately 42.6% of the market share in revenue in 2025. The segment is primarily driven by its high passenger-carrying capacity and operational suitability for congested urban corridors, where peak-hour demand requires efficient movement of large commuter volumes. It would enable the transport authorities to reduce fleet sizes while keeping headways at shorter lengths, thus enhancing corridor throughput and overall system efficiency.

The Bi-Articulated BRT Buses segment is expected to attain the fastest growth in the forecast period, at a CAGR of 9.1%. This range of growth is supported by the increasing deployment across megacities with exceptionally high ridership demand, where ultra-high-capacity vehicles help decrease congestion, improve operational productivity, and support scalable expansion of BRT networks.

Source: Straits Research

Propulsion Technology Insights

The Diesel segment led the way with a revenue share of 38.4% in 2025. This is because diesel-powered BRT fleets are common on most established corridors, with fueling infrastructure in place and their operational reliability well proven over long years for heavy-duty urban transit applications. Long range, ease of maintenance, and compatibility with legacy depots sustain the strong position of these buses in many transport authorities.

The Battery Electric segment is expected to see the fastest growth during the forecast period, with a projected CAGR of about 11.1%. This exponential growth is due to increasing commitments toward low-emission urban transport, an expanding charging infrastructure along BRT corridors, and a growing preference for quieter, energy-efficient buses that cater to passenger experience and reduce environmental impact.

Infrastructure Configuration Insights

The Fully Dedicated BRT Corridors accounted for a revenue share of 44.3% in the market in 2025 as they facilitate the uninterrupted flow of buses through dedicated lanes, off-board payment methods, and priority treatment at signals. The fully dedicated corridors have a definite edge as they have the capability to offer a mass transportation system like a Metro, along with a shorter execution period. This has further strengthened the leading position of fully dedicated corridors in the global BRT system market.

The Partially Dedicated BRT Corridors sector is anticipated to record the most rapid growth rate over the forecast period. Notably, this development is attributed to the adoption of flexible corridor designs by compact cities with narrow road networks, allowing faster implementations and a logical balance between operational efficiency and execution speed. These flexible designs are driving BRT adoption in such cities.

Application Insights

The Urban Commuter market is expected to record the fastest growth of 8.6% during the forecasting period, owing to increasing OD demand in urban regions and their eventual reliance upon high-capacity public transportation networks for their day-to-day commuting needs. With the increasing urban population and their need to travel for work-related concerns, metropolitan cities are giving utmost priority to BRT connectivity to handle the large OD demand for commuting and hence fueling the Urban Commuter BRT market.

Competitive Landscape

The global Bus Rapid Transit (BRT) Market can be considered to be moderately fragmented. This is because it comprises major players in the production of buses. Few players tend to cover a major chunk of the global Bus Rapid Transit Market due to their superior production capacity and the diverse product range that can support Bus Rapid Transit.

The key players that operate in the market include BYD Company Ltd., Volvo Group, Daimler Truck AG, among others. These players compete among each other to enhance their market stance through various means, such as the launch of the next generation of BRT buses, electric and alternative fuel offerings, long-term contracts for supply, and partnerships with the concerned agencies.

JBM Electric Vehicles: An emerging market player

JBM Electric Vehicles is an India-based mobility solution company that marks prominence in the BRT bus market by launching a suite of new electric buses designed for high-capacity urban and inter-city transit networks. The company differentiated itself in its launch by introducing multiple product variants targeted at varied transit requirements, including electric luxury buses, inter-city services, and special coaches suitable for BRT adoption.

• In January 2025, JBM Electric Vehicles launched four new electric bus models - Galaxy, Xpress, e-MediLife, and e-SkyLife - at the Bharat Mobility Global Expo 2025, highlighting strategic expansion into electric mass transit solutions and with the intent of serving emerging BRT deployments with advanced zero-emission buses.

Thus, JBM Electric Vehicles became a significant name in the global BRT market with diversified launches of electric vehicles by following product innovation to support public transportation networks high in capacity and sustainability.

List of key players in Bus Rapid Transit (BRT) Market

1. BYD Company Ltd.
2. Volvo Group
3. Daimler Truck AG
4. Scania AB
5. Tata Motors Ltd.
6. Ashok Leyland
7. Yutong Bus Co., Ltd.
8. Solaris Bus & Coach
9. MAN Truck & Bus SE
10. Iveco Group
11. VDL Bus & Coach
12. Zhongtong Bus Holding Co., Ltd.
13. New Flyer Industries
14. NFI Group
15. CAF Group (Solaris / Urbino BRT)
16. Marcopolo S.A.
17. Hino Motors, Ltd.
18. CRRC Corporation Limited
19. Alexander Dennis Limited
20. Proterra Inc.
21. Others

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Strategic Initiatives

• October 2025: Daimler Buses celebrated the world premiere of the Mercedes-Benz eIntouro at Busworld Europe 2025, the company’s first battery-electric intercity bus with up to 414 kWh battery capacity and an operational range of up to 500 km, signalling expansion into electrified corridor vehicles suitable for extended BRT network segments.
• October 2025: CaetanoBus presented its new generation of zero-emission city buses at Busworld 2025, which includes 8.5-metre, 12-metre, and 18-metre configurations, with the 18-metre model specifically engineered for Bus Rapid Transit (BRT) service with doors on both sides to support rapid boarding and alighting, underlining its product expansion into high-capacity mass transit.
• October 2025: Miami-Dade County Department of Transportation and Public Works launched the Metro Express Bus Rapid Transit (BRT) service, marking the nation’s longest all-electric BRT corridor that began service on October 27, 2025, linking Florida City to Dadeland South and transforming transit connectivity along one of the region’s busiest routes.
• March 2025: Volvo Buses launched the Volvo 7800 Electric articulated and bi-articulated buses in Mexico, designed to carry up to 300 passengers with a 250 kWh charging capacity, enhancing fleet options for BRT systems and supporting sustainable high-throughput corridors.