The electric bus market consists of battery electric buses and plug-in hybrid electric buses that provide efficient, durable, economic and environment-friendly public transportation. Electric buses utilize electric motors and rechargeable batteries to operate without emissions, reducing noise and air pollution. They provide numerous advantages over conventional diesel buses such as lower operating costs due to reduced fuel consumption, minimal maintenance requirements and reduced dependence on imported fuels. Furthermore, electric buses are more reliable with increased uptime and come equipped with advanced safety and connectivity features.
The Global electric bus market is estimated to be valued at US$ 14,795.5 Mn in 2024 and is expected to exhibit a CAGR of 13.% over the forecast period 2023 to 2030. Growing urbanization and rising pollution levels from public transportation have prompted governments worldwide to invest aggressively in electrifying bus fleets. Several cities have started deploying electric buses for intra-city transportation to reduce carbon footprint of commercial vehicles.
Key Takeaways
Key players operating in the electric bus market are AB VOLVO, CAF, CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES, S.A., ANKAI BUS, ZHONGTONG BUS HOLDINGS CO., LTD, BYD COMPANY LTD, PROTERRA, DAIMLER AG, YUTONG GROUP, NFI GROUP INC. and VDL GROEP BV. These players are focusing on new product developments and expansion strategies to gain competitive advantage. For instance, in 2021, Proterra launched its 40-foot electric transit bus with a range up to 350 miles on a single charge.
The key opportunities in the electric bus market include rising funding and initiatives for electric mass mobility by governments worldwide. Many countries have announced ban on diesel buses post 2025-2030, driving deployment of electric alternatives. Furthermore, deployment of fast charging infrastructure and standardization of charging systems will encourage fleet operators to switch from ICE to electric buses.
The global expansion of key players in the electric bus market is occurring through partnerships, joint-ventures and new manufacturing plants. For example, BYD has expansion plans across regions including EU, Americas, Southeast Asia through local partnerships. It aims to become a leading global manufacturer of electric buses.
Market Drivers
subsidies and incentives for procurement of electric vehicles by governments. Many regions provide up to 100% funds for electric bus acquisition and charging infrastructure to promote clean mobility. This makes electric buses more cost effective for operators.
Market Restrains
High upfront capital costs of electric buses is a major challenge limiting mass adoption. The battery and electric powertrain significantly increase initial bus price compared to diesel ones. Range anxiety is also a concern for long route commercial operations until battery technology advances further.
Segment Analysis
The electric bus market is dominated by battery electric bus sub-segment since battery electric buses have zero tailpipe emissions making them more environment-friendly. These buses are also cheaper to operate and maintain as compared to diesel or CNG buses. Within battery electric buses, low-floor buses captured major market share owing to their accessibility and ease of boarding for all passengers including wheelchair users and elderly people. Midi electric buses are growing rapidly due to increasing demand for feeder services in smaller cities and towns. However, high-floor battery electric buses still account for largest revenue share due to high passenger capacity and suitability for intercity transportation in major cities.
Global Analysis
Regionally, the electric bus market in Asia Pacific dominated with China being the fastest growing country because of strong government support for adoption of electric vehicles to curb rising pollution levels. In Europe, countries such as Germany, Netherlands and Norway have seen expansion due to strict emission norms and incentives for green transportation. North America is expected to witness steady growth due to growing environmental concerns. Government initiatives such as FAME Scheme in India and Green Transport promotion in China have accelerated adoption of electric buses in these regions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
