Green Mobility Revolution: Exploring the Electric Bus Market and its Transformation of Public Transportation

Posted by Pramod Arya on May 25th, 2023

The main factors accountable for the industrial growth include the increasing ecological apprehensions because of GHG emissions, decreasing cost and improving the working efficiency of batteries, and lasting cost aids of e-buses.

Battery electric buses had the highest demand in the recent past, and they will dominate the industry of electric buses in the future as well. This will be because of the growing support of the government like incentives, subsidies, and further monetary benefits, to endorse their acceptance. In addition, major makers are concentrating on the addition of BEBs to their portfolios, which is boosting the sales of these alternates over the world even more.

Private buses will have a higher growth rate in the coming years in the industry. With the constant decrease in the prices of the lithium-ion battery, the cost of e- buses will decrease, which, in line, will cut their total cost of ownership in the near future. The declining TCO, in line, will entice private transport operators, thus resulting in faster industrial growth in the future.

Asia-Pacific had the largest demand for e-buses, which can be primarily because of the high sales in China. This is chiefly because of the favorable policies of the government, like financial incentives, for replacing the traditional fuel-based buses with alternate-fuel variants. Quite a few countries in APAC target to convert a major part of their bus fleet to electric variants by the year 2030, this is the reason why they are backing EVs full-throttle.

The North American electric bus market will observe the fastest growth in the future, because of the stringent emission norms. The U.S. has larger demand for BEBs, plug-in hybrid e- buses, and hybrid electric buses. In addition, the grants, financial incentives, and tax credits by the federal and state administrations pushed the sales of electric bus sales in the U.S. recently. Various other initiatives have also been initiated by the federal government to inspire the acceptance of e-buses, like toll charges exemption and, emission tests.

Progressions in instrumentation and actuation and sensing technologies led to the advent of automatic and semi-automatic transportation systems. Autonomous buses have features like light detection and ranging, odometer, GPS, and computer-aided vision, which help in perceiving the environs. Autonomous driving has become popular in the industry of e-bus because the technology offers improved efficiency and reduced costs. Due to all these benefits, OEMs like Navya SAS, Easy Mile SAS, AB Volvo, and SB Drive, are accepting automatic driving and working on developing autonomous bus shuttles.

Experts say that the average cost of Li-ion battery packs for large orders decreased from around 0 kWh in 2015 to around 0/kWh in the year 2020. As the battery is around 40% of the manufacturing cost of an e-bus, any decline in the price of the battery would help OEMs cut down the cost of the vehicles, therefore increasing their sales.
Due to growing environmental concerns, and the constantly declining prices of the batteries, the requirement for e-buses is on a constant rise.

Browse detailed report on Electric Bus Market Size, Business Strategies, and Regional Outlook

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Pramod Arya

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Pramod Arya
Joined: February 21st, 2019
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