Electric Bus Market Size to grow by USD 21.00 billion between 2024-2028
According to a research report “ Electric Bus Market” by Application (Intercity, Intra city) Type (Pure electric bus, Plug-in hybrid bus) Geography (APAC, Europe, North America, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 21.00 billion, at a CAGR of 16.3% during the forecast period. In the electric bus market, battery costs represent a substantial portion of the overall production expenses. The drive for enhancing efficiency has spurred battery manufacturers to introduce advanced technologies in electric bus batteries. For example, advancements in Lithium-ion (Li-ion) batteries have resulted in lighter electric buses, thereby extending their lifespan compared to buses utilizing conventional lead-acid and Valve-Regulated Lead Acid (VRLA) batteries. However, the upfront cost of an electric bus is approximately 30%-35% higher than that of a conventional bus. Consequently, any fluctuations in battery prices can significantly impact the total cost structure of electric buses.
Browse market data tables, figures, and in-depth TOC on “Electric Bus Market” by Application (Intercity, Intra city) Type (Pure electric bus, Plug-in hybrid bus) Geography (APAC, Europe, North America, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By Application, the Intercity segment is projected to dominate the market size in 2024
The pure electric bus segment is poised for substantial growth, outpacing plug-in hybrid buses, in the global electric bus market through the forecast period. Pure electric buses operate solely on electricity, which powers their electric motors. Due to the heavier loads they carry, these buses require larger battery packs. Favorable incentive programs and stringent air quality targets are propelling the pure electric bus segment's expansion. For instance, the Chinese Ministry of Finance's extension of subsidies for electric vehicle (EV) buyers in May 2022 has accelerated the adoption rate of electric buses in China, solidifying its leading position in the global market.
By Type, Pure electric bus segment is expected to hold the largest market size for the year 2024
The Indian government is spearheading the transition towards electric vehicles (EVs) by 2030, with a focus on establishing necessary infrastructure for EVs, particularly electric buses, in tier-1 and tier-2 cities. This shift presents a significant business opportunity for electric bus charging system manufacturers, who are planning to establish operations in India. China, a major player in the Asia Pacific electric bus market, is also actively promoting the adoption of electric buses to replace diesel buses, reducing vehicular emissions and aligning with their sustainability goals. In 2023, China accounted for a substantial market share in the APAC electric bus sector.
APAC is forecasted to hold the largest market size by region in 2024
The electric bus market in China is experiencing significant growth due to the increasing demand for public transportation, particularly bus rapid transit (BRT), in metropolitan areas. Consumbers are becoming increasingly aware of the advantages of electric vehicles, leading to a shift from traditional diesel buses to electric ones. This trend is a key driver for the electric bus market in China. With bus services being easily introduced and modified in every city that has a transit system, the push towards reducing traffic congestion and vehicle emissions by authorities is accelerating the adoption of public transportation over private transportation, thereby fueling the market's expansion.
The Electric Bus Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Electric Bus Market is witnessing significant growth as the transport sector shifts towards zero-emission vehicles to combat air pollution and reduce greenhouse gas emissions. Traditional diesel fueled buses are being replaced by BEVs (Battery Electric Vehicles), HEVs (Hybrid Electric Vehicles), and ICE based buses with lithium-ion batteries. These electric buses offer several advantages over conventional buses, including lower emissions, improved fuel efficiency, and reduced reliance on fossil fuels and ozone-depleting substances. Battery management systems and battery safety are crucial components of electric buses, ensuring optimal battery performance and ensuring the safe handling of lithium-ion batteries. Automobile manufacturers are investing in AI and fast charging infrastructure to enhance the efficiency and convenience of electric buses. Hydrogen fuel cell-powered buses are also gaining traction as an alternative to battery-electric buses. Governments and environmental organizations are setting zero-emission targets for public transportation, putting pressure on conventional bus fleets to adopt fuel-efficient and non-polluting alternatives. The shift towards electric buses is not only beneficial for the environment but also addresses the growing concerns of vehicle emissions and their impact on public health.
Market Research Overview
The Electric Bus Market is witnessing significant growth as the transportation sector shifts towards zero-emission vehicles to combat air pollution and reduce greenhouse gas (GHG) emissions. Traditional dieselfueled buses are being replaced by electric buses, including Plug-in Hybrid Electric Buses (PHEV), Fuel Cell Electric Buses (FCEV), and Battery Electric Buses (BEV). The ebus ecosystem includes charging stations, charging devices, and batteries, with Lead-acid and Lithium-ion batteries being commonly used. Fossil fuel prices and environmental concerns have accelerated the EV transition. Transit agencies and OEMs are investing in hydrogen power and lithium iron phosphate batteries for their high energy density and long charge duration. Fuel cell vehicles and plug-in hybrid buses offer a solution to the low battery efficiency of BEVs. Charging infrastructure is a crucial factor in the adoption of electric buses. Charging capacity and charging duration are essential considerations for transit agencies. The safety of electric vehicle batteries is also a concern, with advancements in AI and battery technology addressing these issues. The transport sector, including intracity and intercity buses, is under pressure to meet zero-emission targets. Hybrid buses and fuel-efficient buses are transitional solutions, but the goal is to fully electrify bus fleets. The use of PHEVs and FCEVs reduces the reliance on fossil fuels and eliminates vehicle emissions, while BEVs completely eliminate tailpipe emissions and ozone-depleting substances. The EV transition in the bus market offers significant benefits, including reduced fuel expenses, improved public health, and a cleaner environment. Automobile manufacturers are investing in the development of hydrogen fuel cell-powered buses and battery electric buses to meet the growing demand for zero-emission vehicles.
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