Electric buses are mechanized transportation vehicles that use one or more electric motors for propulsion. They provide eco-friendly transportation while lowering operating costs compared to diesel or CNG buses. The growing focus on sustainable transportation and government initiatives to curb emission levels have propelled the adoption of electric buses. Technological advancements in battery packs have increased the driving range of electric buses, addressing a key barrier to adoption. Lithium-ion batteries now provide longer duration on a single charge and faster charging capabilities.
The global Electric Bus Market is estimated to be valued at US$ 14,795.5 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The technological advancements in battery technology is one of the major trends driving the growth of the electric bus market. Lithium titanate batteries provide higher power density, faster charging and longer life compared to traditional lithium-ion batteries. These batteries allow electric buses to travel longer distances without recharging, addressing the range anxiety associated with electric vehicles. They also enable ultra-fast charging capabilities within minutes. This improves the viability of electric buses for long-haul transportation. The development of high-performance, durable and cost-effective battery solutions is expected to boost the adoption of electric buses globally during the forecast period.
Electric buses can be segmented into battery electric bus and plug-in hybrid electric bus. The battery electric bus segment dominated the market in 2021 and is expected to continue its dominance during the forecast period. This is attributed to the zero emission and low operating cost benefits of battery electric buses over plug-in hybrid electric buses. Battery electric buses require lesser maintenance and have lower total cost of ownership as compared to conventional fuel buses.
The global electric bus market is expected to witness high growth. The market is projected to grow from US$ 14,795.5 Mn in 2024 to US$ 58,848.6 Mn by 2030, registering a CAGR of 13% during the forecast period.
Regional analysis: Asia Pacific dominated the electric bus market in 2021 and is expected to maintain its leading position during the forecast period as well. This is attributed to the growing initiatives of countries like China, India to adopt electric vehicles. For instance, China has deployed over 400,000 electric buses which account for nearly 99% of global electric bus fleet.
Key players: 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.BYD Company Ltd captured highest market share in 2021 owing to its dominance in China electric bus market. However, companies like AB Volvo, Daimler are expanding their electric bus market globally and expected to challenge BYD’s leadership position during forecast period.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it