In 2025, the North American transit bus supply continued its slow, steady pace toward stabilization. Overall volumes increased slightly by 5%, and the tier one component suppliers have more or less stabilized, save for the passenger seat segment, which still exhibited issues in 2025.

 Most notably, zero-emission equipment became the predominant powertrain for deliveries in 2025, with volumes almost doubling from 2024 and representing a 35% share of overall volumes.

New OEMs Enter as Costs Climb and Zero-Emission Momentum Slows

Two major OEMs (New Flyer and Gillig) remain dominant, but two additional OEMs are expected to enter the market in 2026 — Solaris and ENC.

Solaris will begin deliveries of some of its low-volume orders as it enters the U.S. market, and ENC will begin low-volume deliveries as it transitions from the prior REV ownership to the new Rivaz ownership group.

Beyond the volumes and propulsion changes in 2025 that will be discussed below, pricing, tariff impacts, and lead times for new buses tended to dominate the discussion during the year.

Pricing for new buses has reached all-time highs across all propulsion types, with hybrid and zero-emission variants well over $1 million. CNG bus prices are approaching or exceeding $1 million, while diesel units are well into the $700,000 to $800,000 range. These prices are 30% to 40% higher than they were just five years ago.

The U.S. tariff merry-go-round was a minefield for both OEMs and transit agencies in 2025 as major swings and rate changes dominated the landscape throughout the year.

Given the reduced number of OEMs in the market, lead times for new buses remain in the two-year-plus range, up from the traditional 12 to 18 months that typified lead times when there were more suppliers.

The entrance of additional OEMs, as noted above, may impact this situation in the coming few years as the market returns to a more traditional three to four OEMs serving it.

Zero-emission propulsion bus procurements began to pause or retrench in 2025, as operational issues, costs, and funding prompted many transit agencies to reconsider their zero-emission plans in favor of more stable powertrain choices.

Recent Lo-No grants from the federal government allocated no funding to zero-emission buses, indicating the new administration's direction to favor more traditional, reliable propulsion types in its funding priorities. 

Notably, New Flyer announced the largest recall in recent memory for its battery-electric buses, requiring replacement of the energy storage or battery systems on model year 2019-2025 buses at a cost of $230 million.

We’ll see how this dynamic plays out, as zero-emission equipment is currently the highest-volume segment of deliveries in 2025.

Overall Assessment: Transit Bus Market Rebounds but Remains Below Historic Norms

The following is our analysis of 2025 transit bus deliveries in North America.

Overall, bus deliveries increased by 243 units, from 4,447 in 2024 to 4,690 in 2025, for a 5% year-over-year increase, making 2025 the third consecutive year of market-delivery increases.

Notwithstanding, the market is still lagging the historical long-term average annual delivery levels of 5,500 units. As additional OEMs enter the market in the coming few years, we expect delivery levels to exceed 5,000 units and approach the long-term market average.

Transit Vehicle Length Assessment

• Overall, 35- to 40-foot units made up the majority of deliveries in 2025, which was a repeat of prior years, with 4,090 units delivered representing 87% of all deliveries. This compares with 83% of total deliveries in this length segment in 2024, indicating the operating agencies' preference for standard-length vehicles.
•  30-foot and under units experienced another year of decline, with only 110 units being delivered, down from 160 units in 2024 and 214 units in 2023. This sharp decline raises questions about the segment's viability, as it now represents only 2% of total deliveries.
• 45-foot units experienced a 65% increase in 2025 from 2024 to a total of 165 units vs. 100 units in 2024.  
• 60-foot units exhibited a decrease of 156 units in 2025 to 325 units vs 481 units in 2024.  Again, with only two OEMs offering this option and only a subset of agencies operating articulated buses, the segment is traditionally expected to account for only 5% to 10% of total deliveries. 

Propulsion Segmentation Assessment

As noted above, many agencies paused some of their zero-emission plans, but 2025 deliveries showed a marked increase in zero-emission equipment, with volumes almost doubling from the prior year, primarily due to the OEMs' order backlog from procurements over the past two to three years.

We will see whether the trend toward zero-emission deliveries continues in 2026, despite some agencies retreating from this powertrain option. Notwithstanding, 2025 is the first year in history in which zero-emission propulsion was the largest-volume segment, outpacing diesel propulsion.

•  Diesel propulsion deliveries decreased substantially from 2,090 units in 2024 to 1,584 units in 2025, representing a 24% decline.
•  Hybrid propulsion saw only a minor decline in 2025 vs. 2024, reaching 697 units. This was a 63-unit, or 8%, reduction from 2024’s volume of 760 units.
•  Natural gas fuel propulsion had a nominal 5% increase, moving from 732 units in 2024 to 772 units in 2025. Natural gas variants still accounted for a stable 16% of overall market volumes, unchanged from 2024.
•  Zero-emission buses (comprising battery electric and fuel cell buses) were 1,637 units in 2025 vs 865 units in 2024, representing a massive increase of 865 units or 89%. As noted above, this is the first year in history where zero-emission equipment was the market propulsion leader.

Transit Bus Market Poised for Growth Amid Funding Uncertainty

In calendar year 2025, transit bus deliveries increased by 5%, with zero-emission variants accounting for the largest share of deliveries for the first time in history. Market volumes still lag the long-term average, but with new OEMs entering the market and supply bases stabilizing, 2026 may well see the market exceed 5,000 units for the first time in six years.  

The funding landscape for transit agencies is one of the biggest unknowns, with the U.S. administration having a “hot-cold’ relationship with public transit, including the preference for more traditional powertrain choices over zero-emission buses.

Further, virtually all agencies are facing critical budget shortfalls, casting doubt on their ability to support future bus purchases.  

As the industry moves into the second half of the decade, conditions appear to be stabilizing, though notable uncertainties remain. How those forces play out in 2026 will help determine whether this period of relative stability becomes the new normal.

**Source: METRO Magazine, based on numbers reported by participating suppliers, with some numbers projected.