A Strategic Analysis of the Bus Market, Indonesia, 2024 2035

Research Scope

Note: GVW = Gross vehicle weight 
T = metric tonnes

The Impact of the Top Three Strategic Imperatives on the LCV, MD, and HD Bus Industry

A Strategic Analysis of the Bus Market, Indonesia, 2024–2035

The Impact of the Top Three Strategic Imperatives on the LCV, MD, and HD Bus Industry

Industry Convergence 

WHY 

• Collaboration among original equipment manufacturers (OEMs), Tier I suppliers, and tech companies will help address common emissions, safety, and connectivity challenges. 
• Complementary efforts will allow stakeholders to develop innovative solutions faster, cut costs, and mitigate risks. 

FROST PERSPECTIVE 

• Partnerships between automotive and tech companies are already happening and will be more common. 

• The confluence of diverse ideas and expertise from auto companies and technology developers will define the coming decade, especially when it comes to bus operational efficiency.

Internal Challenges

WHY 

• The bus industry, dominated by legacy companies with old ideas and resistance to change, has attracted interest from tech-savvy start-ups in recent years. 
• These young companies are rewriting the rules of the game through high-level technology and artificial intelligence (AI). 

FROST PERSPECTIVE 

• The influx of innovative start-ups is challenging traditional players to adapt or risk obsolescence. 
• The integration of advanced technologies by these new entrants is likely to accelerate the transformation of the bus industry.

Transformative Megatrends

WHY 

• Connected and shared technologies in the form of telematics and digital freight brokerage are in a nascent stage, albeit already in deployment. 
• In the bus industry, the keywords are connected, autonomous, shared, and electric (CASE). Each of these aspects will contribute to a cleaner, safer, and more sustainable environment. 

FROST PERSPECTIVE 

• In the next 2 to 5 years, many new participants will enter the market, especially in electrification. 
• Numerous technology companies are interested in the bus industry and are working on improving connectivity, booking systems, and self-driving technology. 
• Autonomous mobility, green transportation, and new mobility models will shape our future world. 
• Electric buses will proliferate in the coming decade. 
• Depending on the level, autonomous driving is still 5 to 10 years away. 

Revenue forecast for Bus Market

Bus Market: Revenue Forecast, Indonesia, 2023–2035

CAGR, 2023–2035 = 4.23%
Revenue from bus sales in Indonesia will grow at a 4.23% CAGR between 2023 and 2035.