Electric Bus Market Forecasts to 2030 - Global Analysis By Propulsion Type, Battery Type, Component, Level of Autonomy, Range, Battery Capacity, Vehicle Type, Length, Seating Capacity, Application and By Geography

According to Stratistics MRC, the Global Electric Bus Market is accounted for $58.9 billion in 2023 and is expected to reach $745.2 billion by 2030 growing at a CAGR of 43.7% during the forecast period. An electric bus, often known as an e-bus, is a bus that runs entirely on electricity rather than a conventional internal combustion engine. An on-board electric motor that runs on either on-board batteries or a combination of batteries powers an e-bus. Electric buses are said to be environmentally beneficial because they don't emit any pollutants and are more cost-effective than conventional gasoline or diesel buses. In addition, the market share of electric buses accounts for almost 80% of the total industry contribution of electric commercial vehicles.

According to the United Nations Environment Program (UNEP), city buses are the cause of large amounts of black carbon emissions in the transportation sector. Therefore, the UNEP is providing technical and policy support to 20 cities in Asia, Latin America, and Africa to develop and map low-emission transportation routes for the public by including e-buses

Market Dynamics:

Driver:

Demand for buses that are high-performing, low-emission, and fuel-efficient is rising

Electric buses are utilized since they are more cost-effective than traditional buses and don't require gasoline. Gas-powered buses can only convert roughly 17-21% of the energy stored in fuel, whereas electric buses can convert more than 50% of the electrical energy from the grid into electricity at their wheels. Because the cost of gasoline and diesel oil has been rising recently, there has been a greater need for fuel-efficient buses. The depletion of fossil fuel reserves and the growing inclination of firms to maximize profits from these oil reserves are the causes of this. Consequently, these factors raise the need for electric coaches by necessitating the use of cutting-edge fuel-saving technologies.

Restraint:

Complexity and high expense of investing in advanced systems operation

The automobile industry's transition to electrification and the incorporation of cutting-edge technologies in cars may impede market expansion due to the high production costs and intricate workings of these sophisticated systems. The majority of automakers' research efforts are directed toward creating novel bus technologies. The cost of manufacturing vehicles is ultimately driven up by substantial capital expenditures, software installs, and the high cost of lithium-ion batteries used in buses. These devices may increase the calculated risk of malfunction or failure, which may impede market expansion in the year of forecast because of these factors, the industry is anticipated to increase significantly during the course of the electric bus market projection period.

Opportunity:

Environmental benefits

The only source of air pollution, ozone depletion, and climate-damaging material emissions is automobile exhaust. Vehicles that use electrical energy and are less hazardous to the environment are becoming more and more popular due to the rising costs of gasoline and the consumption of crude petroleum. In an effort to lessen reliance on fossil fuels, more of these e-buses are being introduced. Furthermore, compared to conventional forms of transportation, electric cars are lighter and more efficient due to their reduced number of moving parts. Because of this, cars need less maintenance and are generally better for the environment.

Threat:

Concerns about EV batteries' safety

Because they go through numerous testing before being utilized, the majority of electric vehicle (EV) batteries used in electric buses are regarded as safe. The group has also said that overcharging, extreme rain, and temperature swings were the main causes of the EV battery fire. Manufacturing firms are required to prioritize ongoing observation of battery safety, health, and performance in a number of nations, including the US, China, Japan, and the EU. Limiting chemical spillage from batteries, securing batteries after an accident, and separating the chassis from the high-voltage system to prevent electric shock are the main regulations particular to electric buses.

COVID-19 Impact:

The automotive sector experienced a precipitous decline in investment and demand. A sudden and widespread cessation of economic activity, including orders for workers to stay at home, a breakdown in supply networks, and factory closures, also plagued the car industry. Sales of electric vehicles rose globally in 2020 and 2021 as a result of the expanding global trend of vehicle electrification. Thus, the pandemic had less of an impact on this industry. In a similar vein, the demand for electric buses declined during the first half of 2020 before rising again.

The battery electric vehicle (BEV) segment is expected to be the largest during the forecast period

The battery electric vehicle (BEV) segment is estimated to have a lucrative growth, due to over the course of the projection period; BEVs are anticipated to dominate the electric bus market. This is primarily due to the effectiveness of lithium-ion batteries being demonstrated. This category is growing because many OEMs are funding research and development efforts to create innovative, high-performing battery technologies. Government policies that support BEVs would also have a favourable effect on the market. Many countries intend to switch to electric public fleets from the current ones. Different governments are likely to offer attractive subsidies and tax breaks, which would cause the sales volume of sophisticated pure electric buses to expand tremendously.

The intracity segment is expected to have the highest CAGR during the forecast period

The intracity segment is anticipated to witness the highest CAGR growth during the forecast period, as clean mobility solutions are now essential due to the increase in urbanization. The requirement for widespread urban transportation-which has enormous promise for electric mobility would be driven by the expanding urban population. Moreover, a wide range of top OEMs now include electric buses in their product lineup for intracity use. Many nations in the area have made the decision to integrate sustainable mobility into their public transportation systems. For instance, the Maharashtra State Road Transport Corporation is one of the Indian cities that have used electric buses. Over the course of the forecast period, the market's expansion is anticipated to be propelled by such initiatives in this area.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the dominant position in the global market, with a valuation of 167,000 units. Because it has the largest market in terms of quantity, China is leading both the regional and worldwide markets. These kinds of buses can be used in the public transit zones that the Chinese government has established. The government's initiatives have increased the region's use of battery-operated buses. In addition, the market leader BYD's presence in this area is contributing to the market's expansion. Furthermore, the rapidly expanding charging infrastructure in this area bodes well for the local market. South Korea and Japan are also major factors in the region's record-breaking bus sales.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the strict government regulations pertaining to vehicle emissions. In this region, a number of governments have initiated programs aimed at implementing clean and green transportation technology to ensure the sustainability of public transportation. In this area, there is also an increasing need for fuel cell buses.

Key players in the market:

Some of the key players profiled in the Electric Bus Market include: NFI Group Inc., Daimler AG, Construcciones y Auxiliar de Ferrocarriles, AB Volvo, VDL Groep BV, Anhui Ankai Automobile Co.,Ltd, Zhongtog Bus Holding, Proterra, YUTONG, CAF, Ashok Leyland, King Long United Automotive Industry Co. Ltd., Tata Motors Limited, Scania AB, New Flyer Industries and Iveco

Key Developments:

In August 2023, NFI Group Inc. announces delivery of the 1,500th electric bus from the BYD-Alexander Dennis partnership, The 1,500th BYD-Alexander Dennis electric bus is one of nearly 300 joining Go-Ahead London this year for routes in the capital. Allocated to Merton Garage with fleet number SEe199, it has been in service on Transport for London routes 163 and 164 since May.

In June 2023, Volvo Group partners with Heidelberg Materials to reduce emissions in construction industry, the partnership will see several Volvo Group's customized electric product and service solutions put to work across much of Heidelberg Materials' Northern European operations, starting this year.

In June 2023, Volvo Autonomous Solutions expands its footprint and starts operations in Texas,t o prepare for commercial launch, V.A.S. has also started to haul loads with trucks using drivers for key customers like DHL and Uber Freight to test aspects of the transport solution and establish frameworks and procedures for safe and reliable operations.

Propulsion Types Covered:

• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)
• Battery Electric Vehicle (BEV)
• Other Propulsion Types

Battery Types Covered:

• Nickel Manganese Cobalt (NMC) Batteries
• Lithium Iron Phosphate (LFP) Batteries
• Lithium Nickel-Cobalt-Aluminum Oxide (NCA) Batteries
• Other Battery Types

Components Covered:

• AC/DC Chargers
• Batteries
• Battery Cooling Systems
• Battery Management Systems
• DC-DC Converters
• EV Connectors
• Fuel Cell Stacks
• Inverters
• Motors

Level of Autonomies Covered:

• Semi-Autonomous
• Autonomous

Ranges Covered:

• Less than 200 Miles
• More than 200 Miles

Battery Capacities Covered:

• Up to 400 kWh
• Above 400 kWh

Vehicle Types Covered:

• Light Duty Electric Bus
• Heavy Duty Electric Bus
• Hybrid Electric Bus
• Other Vehicle Types

Lengths Covered:

• Less than 9 meters
• 9-14 meters
• Above 14 meters

Seating Capacities Covered:

• Below 40 Seats
• 40-70 Seats
• Above 70 Seats

Applications Covered:

• Intercity Electric Bus
• Intracity Electric Bus

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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