Industry Overview
The Global Electric Bus Market is growing at 17.2% CAGR during the forecast period, with its fleet size anticipated to reach 283.3 thousand units by 2030. The market is driven by supportive government initiatives and mounting alarm about environmental pollution. Different vehicle types including battery electric buses, hybrid electric buses, and plug-in hybrid electric buses contributed to the electric bus market size, globally. The market has witnessed high demand for battery electric buses over the years due to the decreasing battery prices and the low amount of carbon emissions.
Market Segmentation
Insight by Vehicle Type
The different vehicle types in the electric bus market are battery electric buses, hybrid electric buses, and plug-in hybrid electric buses. Of all vehicle types, battery electric buses accounted for the largest share and are expected to grow at the fastest rate in the market, due to decreasing battery prices and the least amount of carbon emissions.
Insight by Battery
Based on battery, the market is subdivided into lithium iron phosphate battery, lithium nickel manganese cobalt oxide, and others. Among all batteries, the lithium iron phosphate battery accounted for the largest share in the electric bus market, as it is cost-effective and safer. In addition, lithium nickel manganese cobalt oxide is expected to grow at the fastest rate in the market due to reducing price, and higher energy density.
Insight by Length
Based on length, the market is subdivided into less than 10m and more than 10m. Among all lengths, less than 10m accounted for the largest share in the electric bus market due to the preference for smaller than 10m buses by the transport authority.
Global Electric Bus Market Report Coverage
Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. XX Billion
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Revenue Forecast in 2030
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U.S.D. 283.3 Billion
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Growth Rate
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17.2%
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Segments Covered in the Report
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by Vehicle Type,by Battery,by Length
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America,Europe,Asia-Pacific (APAC),Rest of the World (RoW)
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Industry Dynamics
Growth Drivers
Promising and strict government strategies and supports, the mounting price of gasoline, mounting government plans for electrification of public transport, and the launch of novel technologies are the primary growth drivers for the electric bus market.
In addition, an increase in the requirement for efficient vehicles with zero carbon emission, strict regulations regarding vehicle emission, an upsurge in air pollution, and mounting alarms about environmental pollution are also facilitating the growth of the market. For instance, according to the World Health Organization (WHO), global exposure to ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in places where air quality exceeds WHO guidelines limits.
Improving charging infrastructure, less noise requiring less maintenance, and reducing the cost of lithium-ion batteries are also facilitating the growth of the electric bus market.
Challenges
The dearth of standardization, the short lifespan of the battery, poor charging infrastructure, the high manufacturing price of electric buses, and stringent rules for the installation of charging stations are the major challenges to the growth of the electric bus market.
Industry Ecosystem
Globally industry players are leveraging market growth through launching new products. Different players are investing in the development of new battery technology to lower the cost of electric buses to compete against gasoline buses in terms of price and performance. In the coming years, industry leaders are anticipated to significantly lower the cost of these vehicles and enhance the performance of these vehicles leading to adoption by the masses.
Geographic Overview
Geographically, Asia-Pacific is the largest electric bus market and is observed to witness the fastest growth in the market due to mounting government initiatives and support. In addition, the mounting population, upsurge in air pollution, reducing cost of batteries, mounting disposable income, rapid urbanization, mounting awareness of environmental safety, mounting price of gasoline, increase in the requirement of efficient vehicles with zero carbon emission and large population base are also up surging growth of the Asia-Pacific electric bus market.
Competitive Insight
Major players in the electric bus market are catering to the demand by collaborating with small players and investing in technologically advanced product portfolios across the globe. In October 2017, Proterra introduced the DuoPower drivetrain for its Catalyst zero-emission buses at the American Public Transit Association (APTA). Daimler AG, New Flyer Industries Inc., Zhengzhou Yutong Group, EBUSCO, King Long United Automotive Industry Co. Ltd., Shenzhen Wuzhoulong Motors, BYD Company Limited, Alexander Dennis Limited, and Proterra Inc. are the key players offering electric bus.
The Electric Bus Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- Vehicle Type
- Battery Electric Bus
- Hybrid Electric Bus
- Plug-In Hybrid Electric Bus
- Battery
- Lithium Iron Phosphate Battery
- Lithium Nickel Manganese Cobalt Oxide
- Others
- Length
- Less than 10m
- More than 10m24V
Geographical Segmentation
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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