Minibuses and Shuttles Procurement Category Market Research Report Now Available from IBISWorld

Share Article

Growth in the cost of manufacturers’ inputs, such as steel, motors and interior materials, are primarily responsible for the moderate increase in minibus prices in the past three years; demand for minibuses has also grown and contributed to the trend. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Minibuses and Shuttles to its growing collection of procurement category market research reports.

IBISWorld procurement market research
Price increases will slow slightly due to decelerated price growth for manufacturers’ main inputs.

Minibuses and shuttles have a buyer power score of 3.9 out of 5, indicating that buyers have more leverage than suppliers in this market. Buyers benefit from low price volatility, says IBISWorld research analyst Hayden Shipp. “While price consistently rises at a low single-digit rate each year, low volatility reduces the threat of a major penalty stemming from delaying a purchase.”

The array of optional equipment available on minibuses and shuttles also enhances buyer power. Most minibuses are produced by second-stage manufacturers that use third-party chassis and mechanical components. Dealers often order new minibuses through such manufacturers to meet buyers' specs. Buyers have a range of options, which may include chassis, engine, floor plan, wheelchair positions, wheelchair ramps, interior fabrics and paint scheme. Adds Shipp, “Buyers can also reduce purchase price by buying a stock or used minibus and foregoing customization.”

Expansion of options is partly the result of increasing regulation. Environmental Protection Agency emissions requirements have spurred broader availability of more fuel-efficient and alternative-fuel engines. Such engines boost purchase price but reduce total cost of ownership; the operating costs of a minibus easily exceed its purchase price over the vehicle's life-span. Also, substitute vehicles such as conversion vans and standard buses expand buyers' choices while providing them with greater negotiating power than the dealers that do not sell these alternatives.

While the dealer segment of the market is fragmented, the manufacturing sector has undergone significant consolidation. High market share concentration among manufacturers reduces some of the benefits of fragmentation at the retail level; dealers get their minibuses from a fairly small group of suppliers, limiting variability in their costs of revenue and pricing. Current major vendors include Daimler AG, Navistart International Corp., Allied Specialty Vehicles, Blue Bird Corp., Forest River and more. For more information, visit IBISWorld’s Minibuses and Shuttles procurement category market research report page.

Follow IBISWorld on Twitter:!/IBISWorld.
Like IBISWorld on Facebook:

IBISWorld Procurement Report Key Topics

This report is intended to help buyers of minibuses, which shuttle passengers and have a capacity of about 10 to 20 people. Minibuses are frequently used by airports, healthcare providers, tour and charter companies, churches, schools, retirement centers and municipalities.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld Inc.
+1 (310) 866-5042
Email >
Visit website