Public transport is undergoing a significant technological shift. Much like smartphones revolutionized how we interact with technology, the automotive industry is experiencing a similar evolution — and buses are part of it. Fragmented systems and hardware add-ons are being replaced by fully integrated platforms driven by software, connectivity, and data.
This shift represents a fundamental change in how buses operate, are maintained, and are managed. The move from hardware-based vehicles to software-defined vehicles (SDVs) introduces the concept of buses as "smartphones on wheels."
The bus industry is smaller than automotive and trucking, which limits investment and slows innovation down. While trucking has adopted advanced technologies like driver assistance and automation, buses are being held back by legacy infrastructure. Without a shift in this mindset, buses risk being left behind.
Buses have long been built with essential mechanical parts like engines, steering, and brakes, with operators later adding ticketing systems, GPS devices, and driver consoles from various suppliers. This fragmented approach results in disconnected systems, siloed data, and manual updates that often require physical USB connections. Unlike cars, buses lack the advanced development of a unified "smart platform" for seamless software and hardware integration., forcing operators to customize technology for each new bus. This limits the adoption of plug-and-play software and delays the rollout of new tools.
Transitioning to software-driven buses also comes with significant costs, as operators must replace older buses and retrain staff to manage app-based platforms. Compounding this issue is a general lack of awareness and capability across both operators and agencies, making it difficult to manage software-driven platforms or request the right features from OEMs. As a result, adoption is slowed, and reliance on legacy systems continues.
The General Safety Regulation 2 (GSR2), effective from July 2024, introduces a range of mandatory safety features for vehicles, aiming to improve road safety across the EU. These include technologies like Intelligent Speed Assistance (ISA), Advanced Emergency Braking Systems (AEBS), and Blind Spot Information Systems (BSIS) for buses among others. Buses also now require additional safety measures such as Tire Pressure Monitoring Systems (TPMS) and cybersecurity protocols to safeguard against digital threats. These updates are part of the EU’s "Vision Zero" goal to eliminate road traffic fatalities by 2050, potentially preventing up to 140,000 serious accidents and saving over 25,000 lives by 2038.
As the bus industry works to catch up with technological advancements, regulations like GSR2 play a pivotal role in driving the shift toward safer, more connected vehicles.
The bus industry is shifting toward smarter, more connected vehicles, with fully integrated platforms where software takes center stage. This transformation echoes the evolution seen in smartphones, where apps and software updates drive functionality, rather than relying on physical upgrades.
One of the key trends driving this shift is the emergence of software-defined vehicles (SDVs). Rather than building buses with fixed, hardware-dependent systems, SDVs allow operators to control key functions via software.
According to PwC, SDVs are defined as “an ecosystem that continuously provides new value and experiences to users by updating features through software at its core, connecting both the inside and outside of mobility”.
In this model, buses move from "hardware-first" to "software-first," where operators can download and activate apps for tasks like passenger information, ticketing, and route optimization. This is similar to how iPhone users download apps to customize their devices.
Another emerging trend is the move toward standardized smart bus platforms. Instead of requiring operators to customize technology for each bus model, OEMs seem to focus on building buses with pre-installed sensors, dashboards, and operating systems. Similar to how Android phones operate on a shared platform, buses with standardized frameworks enable OEMs, operators, and software providers to create a more seamless, consistent experience.
Standardization also opens the door to create plug-and-play apps that work across multiple bus models, unlocking a marketplace for software tools and reducing the time and cost required for operators to introduce new features. By building buses with a "ready-to-run" platform, operators can add functionality as needed, rather than waiting for custom hardware or software solutions.
Connected data ecosystems are also shaping bus platforms. Buses are becoming "always online," able to send and receive real-time data with operators, control centers, and other buses in the fleet. This always-connected model creates an opportunity for smarter, data-driven decision-making.
With live GPS tracking and operational updates, operators can make more informed adjustments in real-time. For instance, buses can dynamically adjust speed, braking, and passenger information screens in response to traffic changes. Real-time connectivity also supports route optimization, allowing operators to update schedules and inform passengers of live arrival times. Passengers benefit from more accurate arrival information, while operators can manage capacity during peak travel times, reducing overcrowding and improving efficiency.
This connectivity-driven model creates a more agile bus network where operators can manage fleets more effectively, and passengers experience fewer delays and more reliable predictability in their travel experience.
The integration of AI, sensors, and automation is another key development in bus technology. By embedding sensors that detect driver fatigue, passenger volume, and road conditions, buses can automate responses to ensure safety and efficiency. Sensors are becoming essential tools for enabling intelligent automation on buses.
For example, if a driver becomes distracted or fatigued, sensors can trigger alerts or automatically slow the bus to prevent accidents. AI-based systems also learn from traffic data and previous journeys to optimize headways, reduce delays, and predict potential issues before they arise. Similar to the automatic braking systems found in modern cars, buses can use AI to ensure safer, more consistent journeys for both drivers and passengers.
Another example is Volvo Bus Safety Zone Management, which allows buses to automatically adjust driving behavior in designated zones, ensuring compliance with local regulations on speed, emissions, and noise. This improves safety and traffic flow, particularly in sensitive areas like schools and city centers, and works for both electric and diesel buses.
These AI-enabled capabilities create safer conditions for drivers and passengers while also enhancing operational efficiency. With automation, buses can dynamically adapt to conditions on the road, minimizing the risk of accidents and improving overall service reliability.
Finally, there is a growing trend toward the creation of a "bus app store." Inspired by the app ecosystems seen in smartphones, this marketplace would allow operators to browse, download, and install apps directly on their buses. OEMs could create centralized platforms where operators can access apps for real-time tracking, control, passenger information, and fare collection.
This simplifies operations, reduces reliance on aftermarket hardware, and allows for continuous upgrades over time. The ability to upgrade bus capabilities through software updates eliminates the need for costly, time-consuming hardware installations.
With a bus app store in place, operators would have the flexibility to customize and update their fleets on demand. This would accelerate the pace of innovation, allowing operators to test and adopt new features without the need for costly hardware changes.
The shift to fully integrated vehicle platforms isn’t just a vision — it’s already happening. For example, Volvo Group and Daimler Truck have created “a joint venture to develop a common software-defined vehicle platform and dedicated truck operating system, providing the basis for future software-defined commercial vehicles”.
As we look ahead, we can speculate that a similar transformation will soon take place in the bus industry. Just like with trucks, bus manufacturers and operators will likely adopt integrated vehicle platforms, unlocking new capabilities for fleet management and passenger experiences. With integrated bus hardware, operators will have the ability to access real-time navigation, passenger information, and media streaming—all from a single interface.
This shift will not only enhance operational efficiency but also improve the overall passenger experience, bringing buses into the era of fully connected, software-driven vehicles.
As the bus industry evolves towards more dynamic operations, the emphasis on delivering exceptional customer service while ensuring reliability, efficiency, and safety is growing. With vehicles becoming increasingly interconnected and intelligent, the opportunities to manage fleets in real-time are expanding. Software like Optibus empowers operators to make smarter, real-time decisions that directly improve customer outcomes, creating a more seamless and efficient public transport experience.
Given the potential widespread adoption of SDVs and the fact that buses can last up to 20 years, how do we begin to design for this future today? Should we be rethinking vehicle procurement, design, and desired functionalities?