PUBLISHER: IMARC | PRODUCT CODE: 1792505
PUBLISHER: IMARC | PRODUCT CODE: 1792505
The global ethanol bus market size reached USD 1,774.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 4,020.2 Million by 2033, exhibiting a growth rate (CAGR) of 9.04% during 2025-2033.
An ethanol bus is a passenger bus that uses ethanol as a fuel source. Ethanol is produced from agricultural feedstock, plant materials (switchgrass and wood pulp), starchy crops (corn, sorghum and barley) and sweet crops (sugarcane, citrus and sugar beets). In comparison to traditional diesel- and petrol-run buses, these vehicles are environment-friendly, cost-effective and reduce the overall dependency of fossil fuels. Owing to this, they are widely being adopted by public and government institutions for mass transportation.
The increasing adoption of green fuels, along with the introduction of environment-friendly automobiles, is one of the key factors driving the growth of the market. There is an increasing preference for first-generation biofuels (bioethanol) that are manufactured using sugars and oils found in crops, followed by second-generation biofuels, which are produced using lignocellulosic biomass or woody crops, agricultural residues, and waste. Furthermore, increasing environmental consciousness and the implementation of government initiatives to minimize air pollution level, are also providing a boost to the market growth. For instance, emerging nations, such as India, are launching ethanol buses on a large-scale to minimize carbon and greenhouse gas (GHG) emissions into the environment and offer a cost-effective mode of public transport. Additionally, various technological advancements in the manufacturing processes of ethanol and other biofuels are also creating a positive outlook for the market. The improvements in biomass and yeast performance have enhanced the efficiency of bioethanol production.
The competitive landscape of the industry has also been examined with some of the key players being AUDI AG, Fiat Chrysler Automobiles N.V., Ford Motor Credit Company LLC, General Motors Company, Isuzu Motors Limited, Jaguar Land Rover Limited, Deere & Company, Nissan Motor Company, Scania CV AB, Toyota Motor Corporation, and Volkswagen AG.