The electric bus market has gained significant traction in recent years due to the growing need for public transportation and focus on reducing emissions. Electric buses are equipped with electric powertrains which enable them to operate on electricity. They provide various advantages over traditionally used diesel or CNG buses such as lower operating costs, zero tailpipe emissions, and reduced maintenance over the lifespan of the vehicle. The silent operation of electric buses also enhances commuting experience.
Electric Bus Market is estimated to be valued at US$ 36.98 billion in 2024 and is expected to exhibit a CAGR of 16.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the electric bus market are AB Volvo, Alexander Dennis Limited,
Anhui Ankai Automobile Co. Ltd., Ashok Leyland Limited, Blue Bird Corporation, Bollor;
SE, BYD Company Limited, Daimler AG, Dongfeng Motor Company, Geely Automobiles
Holdings Ltd., Hyundai Motor Company, Iveco S.p.A., New Flyer Industries Inc., Nissan Motor Corporation, Paccar Inc., Proterra Inc., Scania AB, Solaris Bus and Coach S.A., Tata Motors Limited, Toyota Motor Corporation, VDL Bus and Coach BV, Wrightbus Limited, Yutong Group, and Zhengzhou Yutong Bus Co., Ltd.
Electric Bus Market opportunities include various prospects for original equipment manufacturers and technology providers in terms of the development of advanced powertrain solutions, electric vehicle components, and energy storage systems. Governments across regions are providing subsidies and incentivizing the adoption of electric buses to reduce pollution levels.
Leading companies in the market are expanding their global footprint by partnering with local players in Asia Pacific, Europe, and Latin America to leverage the growing demand for sustainable public transportation solutions.
Market Drivers
Stringent emission norms by regulatory bodies worldwide regarding vehicular emissions is a major factor propelling the demand for electric buses. As compared to diesel/CNG buses, electric buses help cities lower their carbon footprint and achieve sustainability goals. Growing investments by governments in electric vehicle charging infrastructure development are also expected to boost the adoption of electric buses over the forecast period.
PEST Analysis
Political: Electric Bus Market Challenges and Opportunities include government support for the adoption of electric buses through subsidies and favourable regulations to lower carbon emissions from public transportation. Additionally, some countries have announced plans to replace their existing fleet of fossil fuel buses with electric buses in the coming years.
Economic: The total cost of ownership of electric buses is decreasing rapidly compared to diesel buses as battery prices are falling. Electric buses also have lower maintenance and fuel costs which is attracting more city transport authorities to procure electric buses.
Social: People are increasingly concerned about air pollution and carbon emissions from vehicles. This has boosted the social acceptance of electric vehicles including electric buses. Passengers also find electric buses to offer a quieter and more comfortable ride compared to diesel buses.
Technological: Improvement in battery technologies is leading to higher energy density and reduced charging times of electric buses. Several cities are also installing solar-powered charging infrastructure to strengthen their electric bus fleets. Telematics solutions allow transport operators to monitor electric buses remotely and optimize fleet maintenance.
Geographical regions
Asia Pacific currently has the largest share of the global electric bus market in terms of value due to the strong government support and aggressive procurement plans in China. China was an early adopter of electric buses and dominated over 90% of global sales until 2019. Other major Asian markets include India and Japan which are also witnessing significant deployments.
Europe is the fastest growing regional market for electric buses propelled by favorable regulations and subsidies. Countries like Germany, France, Britain are actively replacing their fleet of fossil fuel buses with electric alternatives. While the market is relatively nascent in North America and Latin America, these regions are expected to pick up pace in the coming years led by policies in the US and Brazil.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile