July 18, 2024
Electric Bus Market

Electric Bus Market Is Estimated To Witness High Growth Owing To Environmental Concerns And Government Initiatives

The electric bus market is estimated to be valued at US$ 14,795.5 Mn in 2021 and is expected to exhibit a CAGR of 13.4% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Electric buses are gaining prominence in the global transportation sector due to their benefits such as reduced emissions, noise pollution, and operational costs. They offer a sustainable solution to curb the increasing carbon footprint and promote clean energy. These buses are powered by electricity, which can be obtained from renewable sources, making them an eco-friendly alternative to conventional buses. Electric buses find applications in various sectors, including public transportation, schools, and tourism, among others. The growing awareness regarding environmental concerns and the implementation of stringent government regulations to reduce pollution levels are driving the demand for electric buses globally.

Market Dynamics:

 

The growth of the electric bus market is primarily driven by the increasing need for sustainable transportation solutions and the rising adoption of electric vehicles to reduce greenhouse gas emissions. Government initiatives and support, such as tax incentives, subsidies, and favorable regulations, are further propelling the market growth. Additionally, the advancement in battery technology, which enables longer travel range and faster charging time, is also contributing to the increased adoption of electric buses. However, the high initial cost of electric buses compared to conventional buses and the lack of charging infrastructure are expected to hinder market growth to some extent. Nonetheless, the growing focus on reducing carbon footprint and investments in infrastructure development are anticipated to create lucrative opportunities for the electric bus market in the coming years.

Segment Analysis:

The electric bus market can be segmented based on vehicle type, battery type, and application. Among these segments, the battery electric bus sub-segment dominates the market. This is primarily due to the increasing demand for zero-emission transportation solutions and the growing focus on reducing carbon emissions in the transportation sector. Battery electric buses are powered solely by electricity, eliminating the need for fossil fuels and reducing pollution. Additionally, advancements in battery technology have improved the range and efficiency of electric buses, making them a viable alternative to traditional diesel or gasoline-powered buses. As a result, the battery electric bus segment is expected to experience significant growth in the forecast period.

PEST Analysis:

Political: Government initiatives and policies promoting sustainable transportation are driving the growth of the electric bus market. Many countries have implemented regulations and subsidies to encourage the adoption of electric buses and reduce greenhouse gas emissions.

Economic: The economic benefits of electric buses, such as lower operating costs and reduced fuel consumption, are driving their adoption. Electric buses offer long-term cost savings due to lower maintenance and fuel expenses compared to traditional buses.

Social: Increasing awareness about environmental issues and the need for sustainable transportation solutions has led to a positive perception of electric buses among consumers. People are increasingly concerned about air pollution and are supportive of initiatives that reduce emissions from public transportation.

Technological: Technological advancements, particularly in battery technology, have improved the performance and range of electric buses. Additionally, the development of fast-charging infrastructure is addressing the issue of limited charging options, further driving the growth of the electric bus market.

Key Takeaways:

The global Electric Bus Market Share is expected to witness high growth, exhibiting a CAGR of 13.4% over the forecast period, due to increasing government initiatives and growing environmental concerns. The Asia Pacific region is the fastest-growing and dominating region in the market, driven by the strong demand for electric buses in countries like China and India. The region is investing heavily in electric bus infrastructure and has implemented supportive policies and subsidies. Key players operating in the electric bus market include AB Volvo, CAF, Construcciones Y Auxiliar De Ferrocarriles, S.A., Ankai Bus, Zhongtong Bus Holdings Co., Ltd, BYD Company Ltd, Proterra, Daimler Ag, Yutong Group, NFI Group Inc., and VDL Groep BV. These companies are focused on developing advanced technologies and expanding their product portfolios to meet the growing demand for electric buses.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it