Market Overview
Global Electric Bus Market reached US$ 53 billion in 2022 and is expected to reach US$ 920 billion by 2030, growing with a CAGR of 42.8% during the forecast period 2023-2030.
The Global Electric Bus Market has experienced exponential growth in recent years, fueled by a surge in environmental awareness and a shift towards sustainable transportation solutions. As the world embraces cleaner and greener modes of transport, the electric bus market emerges as a promising sector with immense potential. One key electric bus market trend is the increasing adoption of electric buses by public transportation authorities and companies globally.
Governments worldwide are prioritizing reducing carbon emissions and promoting the adoption of electric vehicles (EVs) in their public transport fleets. The individual fact has led to a significant electric bus market, as governments incentivize the purchase and deployment of electric buses through grants, subsidies, and favorable regulations.
According to the latest data, the electric bus market share has steadily increased across different regions. In Europe, for example, electric buses accounted for approximately 10% of the total bus sales in 2022, reflecting a substantial growth rate. Meanwhile, Asia-Pacific dominates the global electric bus market, with China leading the way.
Chinese cities have made significant strides in adopting electric buses, driven by ambitious government targets and substantial investments in charging infrastructure. Further , the electric bus market is gaining momentum in North America, with government initiatives aiming to replace diesel-powered buses with electric alternatives.
Market Dynamics
Growing Demand for Emission-Free and Energy-Efficient Public Transit Solutions
The Global Electric Buse Market is experiencing robust growth, driven by the increasing demand for emission-free and energy-efficient public transit solutions. The rising concern over air pollution and its detrimental effects on public health has prompted governments to seek environmentally friendly alternatives in the public transportation sector. Electric buses offer a viable solution by eliminating tailpipe emissions and significantly reducing carbon dioxide (CO2), nitrogen oxide (NOx), and particulate matter (PM) emissions.
According to International Energy Agency (IEA), the global transport sector accounts for approximately 24% of CO2 emissions, making adopting emission-free public transit crucial for mitigating climate change. Governments globally are recognizing the urgency of reducing carbon emissions and improving air quality, leading to a significant shift towards electric buses in public transportation fleets.
Several governments are using electric buses globally to make their metropolitan public transportation systems more sustainable and fuel-efficient. The Swiss government, for instance, expanded electric car penetration to 15% in 2022. The government has a Green Deal for Electric Transportation in place from 2016 to 2020.
In addition, the Federal Transit Administration (FTA) of the US Department of Transportation has announced financing of US$ 130 million for Low or No Emissions in June 2020. As a result, the growing demand for emission-free and energy-efficient public transit solutions boosts the demand for electric and hybrid-electric buses as alternatives to diesel-fueled buses, propelling the market forward.
Technological Advancements in Battery Technology and Desire to Lower Operating and Maintenance Costs
Advancements in battery technology have played a pivotal role in the growth of the electric bus market. Lithium-ion batteries, for instance, with their improved energy density and longer lifespan, have enabled electric buses to achieve longer ranges and faster charging times.
Similarly, in modernity, research and development into battery technology is necessary to advance the growth of electric buses. Governments and manufacturers are investing in research and development to further enhance battery technology, which is driving the market forward by addressing concerns related to range anxiety and charging infrastructure.
Further, electric buses offer significant cost advantages compared to their conventional counterparts. Electric drivetrains have lower operating costs due to reduced reliance on fossil fuels. Moreover, electric buses have fewer moving parts, resulting in lower maintenance requirements and reduced downtime. The cost-effectiveness makes electric buses attractive for public transportation authorities and fleet operators, further driving the market’s growth.
High Initial Costs and Insufficient Charging Infrastructure
The Global Electric Buses Market has witnessed remarkable growth in recent years, driven by the increasing demand for sustainable transportation solutions and government initiatives promoting clean energy. However, despite the positive momentum, the market faces significant restraints that hinder its full potential. One key constraint the electric buses market faces is the high initial costs associated with electric buses compared to their conventional counterparts.
While electric buses offer long-term cost savings through reduced fuel and maintenance expenses . However, the upfront investment required for electric buses remains a challenge for many transit agencies and operators. The respective financial barrier limits the adoption of electric buses, particularly in regions with limited financial resources.
Further, the availability of a robust and widespread charging infrastructure is crucial for the successful adoption of electric buses. However, the lack of adequate charging infrastructure continues to be a significant restraint. Governments and local authorities need to invest in establishing charging stations at bus depots, terminals, and along bus routes to ensure seamless operations and eliminate range anxiety for electric bus operators.
Despite progress in charging infrastructure development, the gap between demand and supply remains a hurdle for widespread electric bus deployment. Therefore, high initial costs and insufficient charging infrastructure are significant hurdles hamper electric bus market opportunities.
COVID-19 Impact Analysis
The COVID-19 pandemic has profoundly impacted various industries around the globe, and the Global Electric Buses Market has not been exempted from its effects. The outbreak of COVID-19 disrupted manufacturing operations and supply chains across the globe, impacting the production and sales of electric buses.
Lockdown measures, travel restrictions, and temporary factory closures led to a significant slowdown in manufacturing activities. Governments implemented social distancing protocols and stringent health and safety measures, further hampering production capacities. Consequently, the global production and sales of electric buses experienced a notable decline.
Despite the challenges faced by the industry, governments worldwide recognized the importance of sustainable transportation and continued their support for the adoption of electric buses. Many governments implemented stimulus packages, financial incentives, and subsidies to encourage the procurement and deployment of electric buses. Such measures are aimed to boost demand, revitalize the industry, and promote a green recovery post-pandemic.
Many countries have set ambitious targets for the electrification of public transportation, further driving the demand for electric buses in the coming years. Thus, government initiatives played a crucial role in mitigating the impact of COVID-19 on the electric buses market.
Russia-Ukraine War Impact Analysis
The ongoing conflict between Russia and Ukraine has far-reaching implications beyond the geopolitical landscape. One sector that is significantly affected is the global electric bus market. The Russia-Ukraine war has disrupted supply chains in the electric bus market. Russia and Ukraine play crucial roles in producing and supplying electric bus components, including batteries, motors, and other critical components.
Any disruption or instability in these regions can lead to delays or shortages in the supply of these essential parts, affecting the production and delivery of electric buses globally. Further, the Russia-Ukraine war has created a climate of instability and uncertainty, negatively affecting investor confidence and business decisions in the electric bus market. Due to the unpredictable geopolitical situation, companies may be hesitant to invest in new projects or expand their electric bus fleets.
The uncertainty can hamper market growth and slow down the adoption of electric buses in various regions, leading to a temporary setback for the electric bus market. The conflict has led to a regional market concentration of electric bus sales. With the disruption in supply chains and uncertainty in the region, neighboring countries and regions may turn to alternative markets for their electric bus procurement needs.
Segment Analysis
The Global Electric Bus Market is segmented based on propulsion, bus length, vehicle range, battery capacity, power output, battery, application, end-user and region.
Increasing Focus on Sustainable Transportation and the Need to Reduce Emissions
The Global Electric Bus Market has witnessed significant growth in recent years, driven by the increasing focus on sustainable transportation and the need to reduce emissions. Within this evolving landscape, the 9 to 14-meter bus length segment has emerged as a dominant force with over 2/3rd of the electric bus market share.
For instance, the Department of Transportation’s data reveals that within the European electric bus market, the 9 to 14 meter length segment witnessed a year-on-year growth of 30% in 2022, outpacing other segments. The 9 to 14 meter bus length segment has gained dominance primarily due to the growing demand for urban public transportation.
In densely populated cities, these medium-sized buses strike a balance between passenger capacity and maneuverability, making them ideal for navigating through narrow streets and congested traffic. With governments around the world emphasizing the development of sustainable urban transport systems, the demand for electric buses in this length range has witnessed a substantial upswing.
Another factor contributing to the dominance of the 9 to 14 meter bus length segment is the significant advancements in battery technology. Electric buses in this range have benefited from the continuous improvement in battery energy density and overall efficiency, allowing them to offer extended ranges on a single charge. The respective range has addressed one of the key concerns regarding the practicality of electric buses, thus boosting their adoption in urban transit systems.
Geographical Analysis
Robust Infrastructure growth and Supportive Government Initiatives that have Accelerated the Adoption of Electric Buses
Asia-Pacific has emerged as a dominant force among the various regions, exhibiting substantial market dominance and serving as a hotbed for electric bus adoption. Asia-Pacific boasts a robust infrastructure and supportive government initiatives that have accelerated the adoption of electric buses. Several regional countries, such as China, India, and South Korea, have implemented ambitious plans to combat pollution and reduce greenhouse gas emissions.
The aforementioned initiatives include the development of charging infrastructure, financial incentives, and policy frameworks to encourage the adoption of electric vehicles, including electric buses. Such comprehensive support from governments has created a conducive environment for electric bus manufacturers and operators in the region.
China, in particular, has played a pivotal role in the dominance of Asia-Pacific in the global electric bus market. The country has been the largest market for electric buses, driven by aggressive government policies and substantial investments in the sector. In recent years, China has witnessed numerous product launches of electric buses, further strengthening its market position.
According to government data released after 2020, China accounted for a significant portion of global electric bus sales, with an increasing share of new electric bus registrations. As governments continue to prioritize sustainable transportation, Asia-Pacific is expected to maintain its dominant position in the global electric bus market, presenting substantial opportunities for manufacturers, operators, and investors in the region.
Competitive Landscape
The major global players in the market include BYD, YUTONG, PROTERRA, VDL GROEP, AB VOLVO, DAIMLER AG, NFI GROUP, CAF, EBUSCO BV, KING LONG and KARSAN.
Why Purchase the Report?
• To visualize the Global Electric Bus Market segmentation based on propulsion, bus length, vehicle range, battery capacity, power output, battery, application, end-user and region, and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous electric bus market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.
The Global Electric Bus Market Report Would Provide Approximately 103 Tables, 103 Figures And 226 Pages.
Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies