SOURCE: Freedonia Group, Inc.
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September 21, 2006 09:09 ET
World Bus Demand to Exceed 350,000 Vehicles in 2010
CLEVELAND, OH -- (MARKET WIRE) -- September 21, 2006 -- Worldwide demand
for buses is forecast to advance 4.2 percent annually to over 350,000
vehicles in 2010. Demand for buses tends to follow a cycle that depends on
region-specific trends, such as demographics, income levels, per-capita
passenger vehicle density, and others. Rising fuel prices worldwide should
boost demand for buses. Other forces expected to support bus demand
include increasing congestion levels in major metropolitan centers
worldwide, the establishment of dedicated bus rapid transit systems and
"bus ways" in key cities in Latin America and Asia. These and other
trends including market share, market leaders, market size and
company profiles are presented in "World Buses," a new study from The
Freedonia Group, Inc., a Cleveland-based industry research firm.
The bus market in North America tends to be atypical among developed
nations in a number of ways. The United States and Canada have thriving
markets for specially designed school buses, which are not common in Europe
or Japan. The US also lacks the dynamic passenger train, tram and subway
(metro) systems so common in Europe and Japan, making bus travel the
primary mass transit option in many US cities. Furthermore, the large
distances between cities and states provide a strong stimulus for sales of
motor
coaches. Western Europe and Japan will experience slower growth in bus
demand than the United States due to stagnant, aging populations and the
prevalence of other mass transit options such as light rail.
Worldwide, China is both the largest market for and producer of buses, as
well as the nation most responsible for supporting the forward momentum
expected for bus demand. The country could become a regional hub for bus
production although most of its bus output so far has been focused on
satisfying local demand. Currently, Chinese
bus manufacturers lack the global brand strength of leading producers
in western countries, but the cost advantages of Chinese buses would appear
to point toward an increased emphasis on exports. Other key bus-producing
nations include Brazil, India, Japan, Russia and Turkey, which supply
products to meet both regional and global demand. In addition, there
exists a robust global market for used buses, with many of these shipped
from developed to emerging markets.