The global electric bus market is growing at 16.2% CAGR during the forecast period, with it’s the fleet size anticipated to reach 281.3 thousand units by 2024. The market is driven by supportive government initiatives and mounting alarm about environmental pollution. Different vehicle type including battery electric bus, hybrid electric bus, plug-in hybrid electric bus contributed to the electric bus market size, globally. The market has witnessed high demand for battery electric bus over the years due to the decreasing battery prices and least amount of carbon emissions.
Insight by Vehicle Type
The different vehicle type in the electric bus market is battery electric bus, hybrid electric bus, and plug-in hybrid electric bus. Of all vehicle type, battery electric bus accounted the largest share and is expected to grow at the fastest rate in the market, due to decreasing battery prices and least amount of carbon emissions.
Insight by Battery
On the basis of 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 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
On the basis of length, the market is subdivided into less than 10m and more than 10m. Among all lengths, the less than 10m accounted the largest share in the electric bus market due to preference of smaller than 10m buses by the transport authority.
GLOBAL ELECTRIC BUS MARKET HIGHLIGHT
Promising and strict government strategies and supports, mounting price of gasoline, mounting government plans for electrification of public transport and launch of novel technologies are the primary growth drivers for electric bus market.
In addition, increase in the requirement of efficient vehicle with zero carbon emission, strict regulations regarding vehicle emission, upsurge in air pollution, and mounting alarm about environmental pollution are also facilitating the growth of the market. For instance, according to World Health Organization (WHO), globally exposure of ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in place where air quality exceeds WHO guidelines limits.
Improving charging infrastructure, less noise and require less maintenance and reducing cost of lithium ion batteries are also facilitating the growth for the electric bus market.
Dearth of standardization, short lifespan of the battery, poor charging infrastructure, high manufacturing price of electric bus, and stringent rules for installation of charging stations are the major challenges for the growth of electric bus market.
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 masses.
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, 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 vehicle with zero carbon emission and large population base are also up surging growth of the Asia-Pacific electric bus market.
Major players in the electric bus market are catering the demand by collaborating with small players and investing on technologically advanced product portfolio across the globe. In October 2017, Proterra introduced DuoPower drivetrain for its Catalyst zero emission buses at 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.
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