Electric bus market share is forecast to showcase a profitable growth trajectory through 2028 subject to the alarming concerns being raised by growing GHG emissions from the transportation sector, in tandem with the growing trend of sustainable transportation. According to a recent study by the World Resource Institute, buses release an average of 0.66 kilograms of carbon dioxide per passenger mile, while long-distance buses making journeys longer than 20 miles produce 0.18 kgs of toxic CO2 per passenger mile.

Several governments are making transition in mobility services in the current era with launch of advanced EVs and buses. For instance, in 2020, the NSW government announced rolling out 120 electric buses in 2021 ahead of full transition.

Global electric bus industry share is divided in terms of types, battery capacity, seating capacity, applications, and the regional outlook.

With regard to types, the market is classified into all-electric buses, PHEV buses, and FCEV buses. The segment is considered to be highly dominant across the electric bus market, in terms of the valuation.

Considering the battery capacity, the electric bus market is bifurcated into below 100 kWh, 100-300 kWh, and above 300 kWh segments. Out of these, the market share from 100 kWh segment is projected to record for strong growth owing to the rising intracity commute, given the rapid urbanization.

Based on the seating capacity, the buses are categorized into below 40 seats, 40-70 seats, and above 70 seats. Among these, the above 70 seats electric bus industry segment is anticipated to grow substantially in the forthcoming years. This can be backed by the shifting focus of IT firms, government offices, and academic institutions on above 70-seater buses for their enhanced seating capacity.

In terms of the application spectrum, the market growth is substantially characterized by the intercity segment. Electric bus market size, from the intercity application segment, is touted to grow at a rate of 4.5% through 2028. This can be supported by the rising availability of charging infrastructure across the states in North America, Europe, and China.

Industry experts claim that Europe would house nearly 1.3 million public charging stations by 2025 while the count is likely to surge to 2.9 million by 2030. In fact, implementing another 2.7 million public charging points in the continent by 2030 end would call for an investment of 1.8 billion euros.

From regional point of view, the electric bus industry is diversified into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The MEA electric bus market size is probable to foresee a CAGR of 5.5% through 2028, driven primarily by the thriving tourism sector and escalating penetration of global players.