Electric Bus Market Expected To Witness A Substantial Growth Of 1.99 Billion By 2030

Posted by Mrudula Anil Karmarkar on April 3rd, 2024

San Francisco, 03 April 2024: The Report Electric Bus Market Size, Share & Trends Analysis Report By Vehicle Type (Battery Electric Vehicle, Plug-in Vehicle), By Battery Type, By Application (Intercity, Intracity), By End-use, By Region, And Segment Forecasts, 2023 - 2030

The global electric bus market size is expected to reach USD 121.99 billion by 2030, expanding at a CAGR of 20.4% from 2023 to 2030, according to a new report by Grand View Research, Inc. Rising demand from private transit agencies, city planners, and private institutions for alternatives to conventional buses andincrease in production of cost-effective batteries are main factors driving the growth. Additionally, increasing developments in the deployment of fast-charging infrastructures are further contributing to the adoption of electric buses in the global market. 

Increased government support for electrifying public transportation will further propel the market growth. For instance, in March 2023, the Government of Canada announced an investment of USD 150,000 to conduct a feasibility study for electric buses and build a fleet transition plan for the city of Belleville. Furthermore, this initiative is expected to assess the city’s ability to transition to zero-emission buses. Several companies such as BYD, and AB Volvo have managed to penetrate the European market by providing electric buses in bulk quantity. For instance, in 2021, BYD secured the largest order from Europe for supplying 246 electric buses to the Netherlands.

Moreover,enacting stringent environmental and government emission standards will unleash the potential for the expansion of the electric bus industry. Several government entities have introduced innovative pollution reduction programs with incentives to encourage the use of electric buses for public transportation. In addition, customers are increasingly adopting alternative and innovative energy vehicles as a result of the global transportation sectors coupled with dwindling crude oil prices.

Rising investment by the government to boost the battery charging infrastructure is expected to fuel the electric bus industry. For instance, in February 2023, the U.S. government will be investing USD 7.5 billion for the development of the battery charging infrastructure and achieve the goal of installing about 500,000 chargers nationwide by 2030.

Asia Pacific region dominated the electric bus industry in 2022. China is the market leader both locally and internationally. China is renowned for having an enormous fleet of electric buses and taking major strides to achieve the goal of 20 million electric buses on roads by 2030. The Chinese government has established public transit zones for the usage of these vehicles. The region employs more battery-powered buses as a result of government initiatives. Additionally, the market's expansion in this area is being fueled by the presence of bus manufacturing giants and the rapid expansion of battery charging infrastructure is further fueling the growth of the market in this region.

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Rising demand for non-polluting, air-combating, fuel-efficient buses along with initiatives from major countries seeking alternatives to transform their existing conventional bus fleets with electric buses are some of the key factors driving the growth of the global electric bus industry. In addition, growing environmental concerns, strict regulations, and government initiatives to achieve zero emissions targets are triggering the adoption of electric buses.

Electric Bus Market Report Highlight

  • The electric bus industry is expected to exceed 265 units by 2030 and witness high pace growth during the forecast period
  • Government investments to boost existing battery charging infrastructure is expected to encourage potential bus purchasers to adopt battery-powered electric bus over the diesel buses in the market
  • Government-provided incentives, subsidiaries, and rebates to replace the existing bus fleet with the electric bus are expected to propel the growth of the electric bus industry
  • Rising demand for emission-free public transportation is expected to drive the electric bus industry growth during the forecast period
  • Growing concern for cost and fuel-effective commuting has fostered the growth of the electric bus industry
  • The electric bus manufacturers’ focus to develop technologically advanced buses is expected to drive electric bus industry growth during the forecast period 2023 to 2030.

Several initiatives by automobile manufacturers for investing in the development of hydrogen fuel cell-powered electric bus is further driving the demand for electric buses in the global market. Moreover, rising technological advancements in terms of increasing range of mobility & deployment of fast charging infrastructure are further anticipated to provide numerous opportunities to the stakeholders over the forecast period.

Several players in the global electric bus market are largely focused on investing heavily in research and development and the incorporation of new technologies in electric buses. For instance, in May 2022, electric vehicles and technology company, Pinnacle Mobility Solutions Private Limited (EKA) entered into a partnership with an autonomous driving company based in Canada. The partnership with NuPort Robotics aims to introduce ADAS of level 2 autonomy in its electric bus range in India. EKA will be testing a variety of autonomous features developed by NuPort.

Level 2 ADAS is said to further the improvement in existing safety standards, and operational efficiency and reduce carbon footprint. By leveraging NuPort's expertise, EKA will be able to implement AI-enabled autonomous solutions in its electric bus platform. The incorporation of Artificial Intelligence is expected to improve operational efficiency, and safety, and reduce carbon emissions, advancing the overall electric bus industry growth.

Several governments in Europe are undertaking a wide range of initiatives to increase the adoption of e-buses in the region. For instance, in August 2021, the European Commission announced the Under Clean Vehicle Directive which was aimed to procure 45% of the vehicles with zero emission buses by 2030 and 65% by 2030 in European countries. Besides, the Indian Government launched the FAME II scheme in April 2023 to increase the penetration of electric vehicles such as scooters, buses, bikes, and trucks.

Electric Bus Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 33.30 billion

Revenue forecast in 2030

USD 121.99 billion

Growth Rate

CAGR of 20.4% from 2023 to 2030

Base year for estimation

2022

Actual estimates/Historical data

2018 - 2021

Forecast period

2023 - 2030

Moreover, emerging players in the electric bus market are majorly focusing on expanding business footprint by introducing new buses in the emerging economies of the world. For instance, in January 2022, Swedish-Kenyan electric mobility company ROAM, has introduced electric bus in Kenya.

High cost and low battery efficiency are key restraints to the growth of the electric bus market. The total cost of ownership and maintenance cost of the electric bus is higher than conventional buses which is discouraging consumers to buy gasoline-powered buses over the electric bus. In addition to this, the battery performance of electric buses is lesser than traditional buses due to low charging capacity, long charge duration, and limited range per charge. Besides this, the lower performance of electric buses in colder climates and less battery charging performance lowers the overall efficiency.

List of Key Players of Electric Bus Market

  • BYD Company Limited
  • AB Volvo
  • Proterra
  • Man Se
  • Nissan Motor Corporation
  • Ashok Leyland Limited
  • Diamler Buses
  • Zhengzhou Yutong Bus Co., Ltd.
  • TATA Motors Limited
  • Hyundai Motor Corporation

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Mrudula Anil Karmarkar

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Mrudula Anil Karmarkar
Joined: July 2nd, 2020
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