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Mega Cities Spark Growth Opportunities for Powertrain Technologies in the Latin American Bus Market

New emission standards prompt units renewal in bus rapid transit systems, finds Frost & Sullivan's Mobility team

BUENOS AIRES, Argentina, Dec. 1, 2016 /PRNewswire/ -- Electro mobility technologies such as hybrids, pure electric and plug-in powertrains are being widely deployed in bus rapid transit (BRT) systems in the Latin American (LATAM) heavy-duty transit bus segment. Transit and intercity buses will be critical for transportation in the region due to expanding mega cities and mega corridors, and greater demand for agile forms of daily transport. In this scenario, the LATAM bus market is at a significant advantage due to the lack of railroads and subways in the region.

"With escalating on-road traffic, the need for alternative powertrains that can reduce the carbon footprint is reshaping the bus market," said Frost & Sullivan Mobility Industry Analyst Hernán Cavarra. "Acknowledging this demand and the accelerated growth of BRT systems in LATAM, Chinese original equipment manufacturers (OEMs) are focusing on the electric bus segment, while European and American OEMs are targeting the natural gas powertrain segments as well as value bus units."

The recent Latin America Bus Market—Growth Opportunities 2016 to 2022 analysis is part of Frost & Sullivan's Commercial Vehicle/Transport/Logistics/Rail Growth Partnership Subscription. Other markets covered include medium- and heavy-duty truck steering system, hybrid-electric truck and bus, connected truck dashboard, commercial vehicle telematics, aerodynamics in heavy trucking and truck platooning.

Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan's thought leaders.

Governments in LATAM will struggle to keep pace with the adoption of new powertrain technologies because it requires a major infrastructure overhaul. Older bus fleets will need to be replaced with modern buses that comply with new emission policies. Furthermore, the new BRT systems will need 12-meter-long, heavy-duty units to make city transportation more comfortable and effective.

"Brazil and Mexico will continue to be the largest markets for transit and intercity bus segments in LATAM, accounting for more than 75 percent of the market," noted Cavarra. "The expansion of the BRT system will also place Peru and Argentina in enviable positions in the transit bus markets. These high-growth segments are expected to propel the total bus market to 51,000 units by 2022, at a compound annual growth rate of 5.9 percent."

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Latin America Bus Market—Growth Opportunities 2016 to 2022
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