by The electric bus market has seen significant rise over the past few years owing to increasing technological advancements in battery capacity and growing awareness about environmental protection. Electric buses provide efficient transportation solutions while reducing dependency on fossil fuels. Key features of electric buses include zero tailpipe emissions, noise reduction, and lower operating and maintenance costs compared to diesel buses. The growing demand for public transportation with reduced environmental footprint has accelerated the adoption of electric buses across both developed and developing nations.
Electric Bus Market is estimated to be valued at US$ 36.98 Bn in 2024 and is expected to exhibit a CAGR of 16.5% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the electric bus market are AB Volvo, Alexander Dennis Limited,
Anhui Ankai Automobile Co. Ltd., Ashok Leyland Limited, Blue Bird Corporation, Bollor;
SE, BYD Company Limited, Daimler AG, Dongfeng Motor Company, Geely Automobiles
Holdings Ltd., Hyundai Motor Company, Iveco S.p.A., New Flyer Industries Inc., Nissan
Motor Corporation, Paccar Inc., Proterra Inc., Scania AB, Solaris Bus and Coach S.A., Tata Motors Limited, Toyota Motor Corporation, VDL Bus and Coach BV, Wrightbus Limited, Yutong Group, and Zhengzhou Yutong Bus Co., Ltd.
Electric Bus Market opportunities include key factors such as government initiatives and subsidies promoting the adoption of zero-emission vehicles, increasing investments in public transport infrastructure, and growing demand for electric fleet buses from regional transit agencies.
Advancements in battery technology focused on enhancing energy density and durability have improved the driving range of electric buses. Manufacturers are also developing innovative fast-charging solutions.
Market drivers
Stringent emission norms by regulatory bodies along with carbon emission reduction targets set by governments across nations are majorly driving the growth of the electric bus market. Growing environmental awareness among consumers has accelerated the replacements of conventional buses with electric alternatives in public transportation. Considering the total cost of ownership, electric buses provide significant savings on fuel and maintenance costs over diesel buses, thereby boosting their adoption rates.
The electric bus market is growing at a rapid pace across the globe. However, there are certain challenges that are restraining the growth of this market. One of the major challenges is the high upfront cost of electric buses as compared to diesel or CNG buses. The battery cost alone contributes significantly to the high price of electric buses. Developing affordable and high-performance battery technology is necessary to reduce the upfront cost. Another challenge is the limited driving range of electric buses. The existing battery technology allows electric buses to run only for 150–250 km on a single charge which limits their operations.
Improving battery capacity and efficiency is critical to increase the driving range.
Developing robust charging infrastructure is also a hurdle as it requires large investments. The lack of standardized charging solutions and protocols further complicates the infrastructure development. Ensuring reliability and safety of electric buses is also challenging given their complex powertrain systems.
SWOT ANALYSIS
Strength: Compared to diesel or CNG buses, electric buses are more environment-friendly with zero tailpipe emissions. They offer lower operating and maintenance costs over the lifecycle.
Weakness: High upfront costs of electric buses and batteries make them more expensive than conventional fuel buses. Limited driving range per charge due to battery constraints is also a weakness.
Opportunity: Electric Bus Market Challenges and Opportunities include growing government support in the form of subsidies and incentives, which is promoting increased adoption of electric buses. Developing widespread charging infrastructure can significantly drive future market revenues.
Threats: Dependency on battery supply chains exposes the market to raw material price volatility risks. Established diesel and CNG bus markets act as major barriers for electric bus adoption in some regions.
In terms of value, China dominates the electric bus market and hold over 80% share currently. Large-scale urbanization, government focus on emission reduction, technology advancements, and strong domestic EV industry are driving increased electric bus adoption in
China. India is also emerging as one of the fasted growing regional markets, supported by FAME-II subsidy scheme and metro expansion plans. Europe is another major regional market concentrated with Germany, France and UK accounting for majority share.
North America is projected to witness the fastest electric bus market growth during the forecast period. Presence of leading OEMs and EV infrastructure companies is supporting the growth. Major initiatives like California’s Innovative Clean Transit regulation are
accelerating the replacement of conventional buses with electric models in North America. Strategic partnerships between city transit agencies and bus manufacturers will further drive the electric bus deployment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
