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Growth Signals for the Motorcoach Industry in 2025

The 2024 Motorcoach Census, conducted by the American Bus Association Foundation (ABAF) in partnership with Tourism Economics, describes the motorcoach industry as both “resilient” and “essential.” The report highlights the sector’s growth, diversity, and its critical role in the travel and commuter markets.

Positive Industry Outlook for 2025

Reflecting optimism for the year ahead, over half of surveyed companies reported plans to expand their fleets by acquiring more motorcoaches, signaling ongoing investments in growth and modernization.

The 2024 Census revealed an increase in both operators and vehicles compared to the previous year:

  • United States and Canada combined:
    • 1,959 companies operating 48,667 motorcoaches.
  • United States:
    • 1,829 operators managing 47,348 motorcoaches.
  • Canada:
    • 130 operators with 1,319 motorcoaches.

Key Industry Insights

The 2024 Motorcoach Census also uncovered the following data:

  • Passenger Miles: The industry transported 40 billion passengers over 1.7 billion miles.
  • Employment Numbers: Approximately 75,859 jobs were supported across the U.S. and Canada.
  • Business Composition: Small companies, defined as having fewer than 25 motorcoaches, comprised a significant 87.1% of the industry.

“Motorcoaches move people safely, efficiently, and sustainably, supporting millions’ travel, tourism, and daily commuting needs,” said Lew Myers, ABAF’s Director of Research, Policy, and Impact. “This data affirms our industry’s vital role in America’s transportation ecosystem and its bright future.”

First Quarter Growth Indicators for 2025

The ABAF’s 2025 Motorcoach Builders Survey for Q1 revealed a promising increase in new vehicle sales. Participating manufacturers sold 457 motorcoaches, up from 425 in Q1 2024. This represents a 9.5% year-over-year increase for new coach sales, though sales of pre-owned vehicles dropped by 3%.

“A 10% year-over-year increase in new motorcoach sales is a clear sign that our industry is regaining strength and confidence,” said Fred Ferguson, ABA President & CEO. He emphasized that improving fleet sizes aligns with increased demand for group travel, but expressed concern over potential challenges such as tariffs on imported motorcoaches and parts, which could stifle future growth.

While new vehicle sales show signs of recovery, the industry is still trailing pre-pandemic levels. Early 2025 data indicate a 27.7% decline compared to Q1 2019. However, the 2025 numbers show a modest 5.1 percentage point improvement over Q1 2024.

The Environmental Edge of Motorcoaches

Results from the 2025 Motorcoach Sustainability and Innovation Report, produced by the ABAF and Oxford Economics, underscore the environmental efficiency of motorcoach travel. Key findings include:

  • Motorcoaches emerged as the most energy-efficient mode of transportation, consuming less energy per passenger mile than any other travel option.
  • Carbon dioxide emissions per passenger mile are significantly lower than other modes of transport, making coaches a top choice for eco-conscious travelers.

“This report recognizes what our industry has long known: motorcoaches are the most energy-efficient, lowest-emission mode of passenger transportation available today,” Ferguson stated. He also noted that coach travel results in an estimated savings of $2.7 billion in social costs associated with emissions.

“These outcomes aren’t just statistics. They’re the result of decades of innovation—from clean idle engine technology to sustainable manufacturing practices,” Ferguson added. “The motorcoach industry is proving every day that clean, connected travel is not only possible—it’s already here.”

Industry Resilience and Future Growth

Collectively, the data from the latest ABAF studies paint a picture of an industry that is steadily regaining momentum and contributing to sustainable transportation. Whether through increased fleet sizes, reduced emissions, or meeting rising demand for group travel, the motorcoach industry continues to play a vital role in the transportation landscape.

For more details, visit buses.org.

Source: Chauffeur Driven

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