PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1484691
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1484691
Key Highlights
The electric bus market generated a value of USD 18.8 billion in 2023, which will increase to USD 48.5 billion, with a 14.6% compound annual growth rate, by 2030.
The rising worries over GHG emissions are the major factor driving the industry growth.
The increasing concerns of environmental agencies and governments regarding air quality degradation because of the rising urban vehicular emissions have resulted in the formulation of strict environmental rules.
Presently, traditional diesel-driven buses are a major part of the public transport system, but they significantly contribute to GHG emissions.
Strict emission guidelines are being encouraged, which, along with the increasing environmental consciousness among individuals, promote the deployment of zero and low-emission transportation systems globally.
The arrival of autonomous buses is a major trend being observed in this industry.
The technological improvements in the areas of actuation & instrumentation and sensing technologies have resulted in the rise of semiautonomous and autonomous transport systems.
Autonomous buses are armed with features like LiDAR, GPS, computer-aided vision, and odometer, which help them notice their environments.
Sensory data is interpreted by advanced control systems to classify obstacles, appropriate navigation paths, and signage.
Automated driving has increased in popularity in this industry as the technology offers greater efficiency and decreased expenses.
Key Insights
APAC accounted for the largest share of the industry in 2023, of approximately 50%. China, among all nations, continues to remain the largest market for electric buses across the globe.
North America will propel at the fastest rate in the years to come. This is because manufacturers in the continent are heavily investing to produce and improve these vehicles.
Battery electric buses (BEBs) led the industry in 2023, with approximately 45% share, because of the rising government backing, in the form of subsidies and incentives, to increase their acceptance.
The lithium-iron phosphate (LFP) category will continue to lead the industry in the years to come.
Lithium-iron phosphate batteries are more robust compared to others and, thus, are ideal for heavy-duty electric buses.
The less than 10 meters category is leading the industry. This is because of the ease of driving smaller buses and the greater control the driver has over them.
Short-length buses can be controlled easily on a sharp turn like on congested roads and in hilly areas.
The more than 10 meters category will grow at the fastest rate, because of the surging population and rising transportation requirements in cities.
In 2023, the intracity category led the industry. This is because of the rising need for public transport and the growing count of schools, colleges, tourist places, and workplaces, accepting electric buses in their fleets.
The public category led the industry in 2023, with a share of approximately 70%.
The rising efforts of public transport operators to include electric buses in their fleets have largely profited the industry expansion in the public category globally.
Players are taking strategic steps to boost their position in the market. These strategic steps comprise mergers & acquisitions, partnerships, and business expansions.