Electric Bus Market Size, Share & Industry Analysis, By Propulsion Type (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, and Fuel Cell Electric Vehicle), By Range (Less than 200 Miles and More than 200 Miles), By Battery Capacity (Up to 400 kWh and Above 400 kWh), and Regional Forecast, 2024-2032

The global electric bus market size was valued at 246,089 units in 2023 and is projected to grow from 279,236  Units in 2024 to 1,064,250 units by 2032, exhibiting a CAGR of 18.2% during the forecast period. By propulsion type, the battery electric vehicle segment has contributed 91.1% electric bus market share in 2023. The growth is attributed to factors such as growing urbanization, government regulations, environmental concerns & technological advancements EV industry.

An electric bus is a public transportation vehicle powered by electricity rather than traditional fossil fuels, such as diesel or gasoline. Electric buses utilize electric motors and batteries to propel the vehicle, producing zero tailpipe emissions during operation. These buses are part of the broader movement toward electrification in the transportation sector, aimed at reducing air pollution, greenhouse gas emissions, and dependency on finite fossil fuels.

Many governments worldwide offer financial incentives, subsidies, tax credits, and grants to promote the adoption of electric buses. These policies aim to accelerate the electrification of public transit fleets and support the development of charging infrastructure. This development drives the market growth during the forecast period.

The COVID-19 pandemic severely affected e-bus rollouts. Several public transit systems around the globe are facing extreme revenue losses due to a decline in transit ridership during the pandemic. According to the American Public Transportation Association (APTA), a decline of 80% was observed in April 2020 in public transit usage, and ridership levels for the rest of 2020 also declined by more than 60% compared to 2019.

Latest Electric Bus Market Trends

Environmental Benefits of e-Buses to Drive Market Growth

Vehicle emissions are exclusively liable for discharging 29% of ozone-depleting substances that bring about air pollution and are dangerous for the atmosphere. The consumption of unrefined petroleum and rising fuel costs have brought about an ascent in fame and demand for vehicles that are less harmful to nature and utilize electric energy. This has additionally prompted an expansion in the adoption of these buses to lessen the reliance on petroleum fuels. Furthermore, due to fewer moving parts, electric vehicles are light in weight and more productive than conventional modes of transport. As a result, there is a lesser requirement for vehicular maintenance, and overall these vehicles are beneficial for the environment. Owing to these drivers, therefore, the market is expected to grow substantially over the electric bus market forecast period.

Electric Bus Market Growth Drivers

Rising Demand for Hydrogen Fuel Cell Bus to Boost Market

Hydrogen fuel cell buses are powered by combining an electric powertrain with fuel cell systems, managed technology, and batteries. These buses are considered next-generation green transport as they have a more prolonged life than a standard e-bus. The hydrogen fuel cell bus has a speedy refueling pace and route flexibility. With such advantages, the demand for the hydrogen fuel cell bus is growing enormously. For instance, in Europe, approximately one thousand hydrogen buses will be introduced in the next few years. China has been a frontrunner in this technology and is propelling the battery-electric powered market.

Stringent Government Emission Regulations to Drive Market Growth

As indicated by the World Health Organization (WHO), a significant reason for deaths has been air contamination. Since vehicular discharge affects general wellbeing and the environment may lead to a hazardous effect on the environment. Governments around the world are robustly putting resources into infrastructural advancements to diminish ozone-depleting substances and lower air pollution levels. This is being achieved through the framing of stringent government norms over vehicle emissions. These guidelines are fueling the expansion of this market. These buses are environment-friendly as they don't discharge any harmful substances. Additionally, e-buses are proficient and give clean urban transportation, providing urban communities with an alternate track to the maintainability of clean air. In response, many urban areas are increasingly accepting E-transport systems in certain nations such as China and the U.S.

RESTRAINING FACTORS

High Cost of Battery Buses May Restrain Market Growth

E-buses are eco-friendly and are also low in maintenance. However, the initial cost of these buses is higher compared to conventional buses. This is a major hindrance for several governments and administrations for the implementation of e-buses in the public transportation sector. Furthermore, governments are providing subsidies for the purchase of private electric vehicles, which may lead to a positive effect on this market for those who are willing to purchase commercial fleets. Moreover, even standard e-buses cost more than double their conventional counterparts, which may hamper the growth of the market.

Electric Bus Market Segmentation Analysis

By Propulsion Type Analysis

Battery Bus Segment to Dominate Market due to Presence of Huge Number of Battery e-Buses

Based on type, the market is segmented into fuel cell electric vehicles, plug-in hybrid electric vehicles, and battery-electric vehicles.

The battery-electric vehicles segment dominated the market with a share of 91.1% in 2023. Battery-electric powered buses store electricity onboard in the high-capacity battery sets. These buses are made to utilize the benefits of those batteries to run the electrical motor and onboard all electronics. The fuel cell electric vehicle segment is likewise estimated to grow exponentially during the forecast period as hydrogen fuel cell buses last longer and have speedy refueling capability as compared to the regular e-buses. The plug-in hybrid electric vehicle segment is predicted to witness constant growth in this market during the forecast period. These buses can charge the battery with the aid of both plugging inside the external electric strength supply and regenerative braking.

By Range Analysis

Less than 200 Miles Segment Held Largest Share in Market Due to Lower TCO

Based on range, the market is segmented into less than 200 miles and more than 200 miles.

The less than 200 miles segment accounted for the largest share of the market owing to lower total operating cost (TCO)/km and less recharging time. The more than 200 miles segment is anticipated to exhibit a higher CAGR during the forecast period. Factors such as decreasing battery costs and improvement in energy consumption and mileage of new e-buses will drive the growth of this segment.

By Battery Capacity Analysis

Up to 400 kWh Segment to Dominate Market due to Being Lightweight and More Efficient

Based on battery capacity, the market is segmented into up to 400 kWh and above 400 kWh.

The up to 400 kWh segment held the largest share of the market in 2023. Buses with a battery capacity of up to 400 kWh are considerably cheaper, more lightweight, and more efficient as they can be swiftly fast-charged at timely intervals. These factors are responsible for the dominance of this segment. The above 400 kWh segment is expected to show steady growth in the market owing to the ability to cover longer distances on a single charge.

REGIONAL INSIGHTS

Asia Pacific region dominated the global market and was valued at 242,133 units in 2023. China is leading the regional market and also globally on account of having the biggest market in terms of quantity. The Chinese government has developed its public transportation zones for the use of these type of buses. The tasks taken by the government have boosted the adoption of battery-operated buses in the region. Moreover, the presence of the marketplace leader BYD is further fueling the growth of the market in this region. Additionally, the speedily growing charging infrastructure in this region is auguring well for the regional market. Japan and South Korea also are contributing to the booming sales of these type of buses in this region.

Europe is the second-biggest market and is expected to show healthy growth over the forecast period. The stringent government policies for car emissions are the main factor promoting the market rise in this region. Many governments have started taking projects to make city public transport sustainable by deploying clean and green transportation technologies in this region. The demand for fuel cell buses in this region is likewise growing.

North America is also anticipated to show defined growth in the global market. The U.S. is predicted to show steady growth in this region. The stringent emission guidelines in this country are likely to boost the market in the coming years.

Competitive Landscape

BYD is Leading Player of Market Owing to Extensive Product Portfolio and R&D Capabilities

BYD is the leading player in the market owing to its high vertical integration ability, independent R&D, and advanced battery technology. The company is the world's largest rechargeable battery manufacturer and offers the longest battery warranty in the industry. Hence, these factors have enabled BYD to rapidly gain a larger share of the global market beyond China. For instance, in January 2021, BYD won the largest order outside China for 1,002 battery-electric buses from TRANSMILENIO S.A. in Bogota, Colombia.

LIST OF KEY COMPANIES PROFILED:

• BYD Co., Ltd (Shenzen, China)


• Proterra, Inc. (Burlingame, California, U.S.)


• AB Volvo (Gothenburg, Sweden)


• New Flyer Industries (Winnipeg, Canada)


• Daimler AG (Stuttgart, Germany)


• Scania AB (Södertälje, Sweden)


• Iveco (Turin, Italy)


• Yutong (Zhengzhou, China)


• Ebusco (Deurne, Netherlands)


• Xiamen King Long United Automotive Industry Co., Ltd. (Fujian, China)


• VDL Groep bv (Eindhoven, Netherlands)

LATEST DEVELOPMENTS IN ELECTRIC BUS INDUSTRY:

• In March 2024, Yutong announced that the company delivered 10 Ice12 pure electric buses to Palermo, Sicily, Italy. Ice12 pure electric bus boasts Yutong's leading electric technology and an efficient battery system, excelling in range performance. Ice12 pure electric bus masters in both inter-city long-distance travel and rural-to-urban transportation scenarios.


• In March 2024, Volvo introduced The new Volvo 8900 Electric is an electric low-entry bus for city, intercity, and commuter operations. It is offered in two- and three-axle configurations, with a capacity of up to 110 passengers on the longest version, where up to 57 seats can be mounted. The 12-meter capacity is up to 88 passengers (43 seated).


• In May 2023, Volvo Buses signed an agreement with MCV to manufacture bodies for the Volvo 7900 Electric and Volvo 7900 Electric Artic and, later, an electric bus for intercity traffic. Production is expected to start in 2024, and the first electric buses with chassis from Volvo and bodies from MCV will be on the market in 2025.


• In January 2023, Volvo Eicher Commercial Vehicles introduced the country’s first 13.5 m electric bus for intercity public transport. The company’s presence at the 2023 Auto Expo was also marked by the Eicher Pro 2049, a 4.9-ton GVW electric truck for last-mile connectivity purposes.


• In October 2023, The Bengaluru Metropolitan Transport Corporation (BMTC) announced that it plans to replace most of the airport's Volvo buses with electric AC buses. The corporation aims to roll out 320 low-floor AC electric buses, each measuring 12 meters, at an estimated cost of USD 6.01 million under the Gross Cost Contract (GCC) model.

REPORT COVERAGE

The global electric bus market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market forecast and trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation