CHICAGO, May 23, 2023 /PRNewswire/ -- Electric Bus Market is projected to grow at a CAGR of 41.7% during the forecast period, from an estimated market size of USD 58.9 billion in 2023 to USD 678.3 billion by 2030, according to a new report by MarketsandMarkets™. Rising GHG emissions and the increasing need for sustainable mobility solutions influence the electric bus market growth. Furthermore, the transport sector is one of the largest contributors to GHG emissions globally. For these reasons, many countries worldwide focus on incorporating electric buses into their public transportation. Introducing electric buses is expected to change global mass transit in the coming years by improving air quality, reducing noise levels, and increasing fuel efficiency. However, the industry would face challenges such as high costs for developing charging infrastructures. Unlike many developed countries, insufficient charging infrastructure is one of the major challenges in the growth of the electric bus market in developing countries, including India, South Korea, and others.
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Browse in-depth TOC on "Electric Bus Market".
365 - Tables
72 - Figures
333 - Pages
Electric Bus Market Scope:
Report Coverage |
Details |
Market Size |
USD 678.3 billion in 2030 |
Growth Rate |
41.7% of CAGR |
Largest Market |
Asia Pacific |
Market Dynamics |
Drivers, Restraints, Opportunities & Challenges |
Forecast Period |
2023 - 2030 |
Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Propulsion, Battery Type, Consumer, Length of Bus, Seating Capacity, Level of Autonomy, Range, Application, Battery Capacity, Power Output, Component |
Geographies Covered |
Asia Pacific, North America, Europe, and the Rest of the World [RoW] |
Report Highlights |
Updated financial information/Company Evaluation Quadrant |
Key Market Opportunities |
Transition toward hydrogen fuel-cell electric mobility |
Key Market Drivers |
Rising GHG Emissions |
The 9-14 m is the largest electric bus segment.
Most public transport fleets worldwide have incorporated the 9–14 m buses. This is mainly because of this segment's relatively larger seating capacity. These buses can generally travel up to 350 km on a single charge, which suits the intracity applications. Furthermore, OEMs increasingly focus on this segment for product launches, and large supply orders are underway. The Asia Pacific region is expected to dominate the 9-14 m electric buses during the forecast period owing to the adoption of large volumes of demand from key countries such as China and India. China is expected to account for around 74% of the total electric buses in the world.
Furthermore, the government initiatives for incorporating electric buses in their public transportation in these countries would also aid the growth of 9–14 m segment buses. For instance, India has a vision of increasing the share of electric buses to 40% by 2030. Over 11,000 buses belonging to the Andhra Pradesh State Regional Transportation will be replaced by electric buses, and 100% of the public transport fleet of four cities and all government vehicles in this state are to be made electric by 2024. Most of the market leaders in the electric bus industry from this region, such as BYD (China), Yutong (China), King Long (China), CRRC Corporation (China), and Tata Motors (India) offer 9–14 m electric buses. Other global manufacturers; such as Proterra (US), CAF (Solaris) (Spain), VDL Groep (Netherlands), AB Volvo (Sweden); also offer this segment buses. Such a greater availability of models and wide incorporation of 9–14 m segment buses are the key reasons for the segment to dominate the electric bus market.
LFP is expected to be the fastest-growing battery type for electric buses.
The LFP batteries are low-priced and have higher thermal stability than NMC batteries. They are widely used in high-performance electric buses, offering a high current rate, optimum thermal stability, and long cycle life. These batteries are also preferred for long-haul buses as they can accommodate heavy battery packs built with low-density cells and offer the required range. In addition, these batteries show better efficiency at lower temperatures than the other battery types. The only challenge with this battery type is that they have lower energy density than NMC and NCA batteries. Considering the price-sensitive market, the Asia-Pacific is expected to be the most promising market for these batteries. Many Chinese OEMs are incorporating LFP batteries in their electric buses. Some of the examples are Yutong E12, BYD K9, Zhongtong Bus LCK6125EVG, King Long XMQ6127EVG, Tata Ultra, Ashok Leyland Circuit, Olectra BYD eBuzz K9, JBM ECO LIFE, and others. Considering the promising benefits offered by this battery chemistry and their low cost, this market is the fastest growing market.
The Asia Pacific Region is projected to account for the largest share during the forecast period.
Asia Pacific is expected to be the largest market for electric buses during the forecast period. The electric bus market in the region is driven by the need to reduce urban pollution and dependency on fossil fuels, along with growing government initiatives toward clean public transportation. Many of the leading players in the electric bus market, including BYD (China), Yutong (China), King Long (China), Zhongtong (China), Tata Motors (India), Ashok Leyland (India), JBM Auto Limited (India) and many others are from Asia Pacific. The region is expected to dominate the global electric bus market mainly because of the rapid expansion of the electric bus fleet in several countries in this region. Furthermore, since the cost of batteries and EVs is reducing while charging infrastructure is improving, there is a great opportunity for the growth of the electric bus market in this region. The Asia Pacific region is propelled by the dominance of countries, including China, South Korea, India, and Japanese markets, mainly due to their favorable government policies and mandates to reduce emissions and increase the use of green technology in public transportation.
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Electric Bus Market Dynamics:
Drivers:
- Rising GHG emissions.
- Increasing demand for emission-free vehicles.
Restraints:
- Safety concerns in EV batteries and high development cost.
Opportunities:
- Transition toward hydrogen fuel cell electric mobility.
Challenges:
- High cost of developing charging infrastructure.
Key Market Players:
The key players in the electric bus market BYD (China), Yutong (China), Proterra (US), CAF (Solaris) (Spain), VDL Groep (Netherlands), and AB Volvo (Sweden). The key strategies adopted by major companies to sustain their position in the market are expansions, contracts and agreements, and partnerships.
Recent Developments:
- In January 2022, the Valley Transportation Authority (VTA) in Santa Clara City, US, will install an innovative clean energy microgrid and EV fleet charging system with Proterra and Scale Microgrid Solutions. This project will showcase how clean energy paired with fleet-scale EV charging can enable the adoption of fully electric vehicle fleets. Expected to come online in late 2023, it will help VTA further reduce greenhouse gas emissions.
- In January 2023, Daimler received an order to supply 45 buses to VLP Transport for intercity transport.
- In September 2022, the Urbino 18 model is equipped with a modern hydrogen fuel cell, which aids long-distance commuting as it can cover 350 km in a single refill with a passenger capacity of 138 seats.
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