Electric Bus Market Growth & Trends
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 and increase 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.
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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.
Electric Bus Market Report Scope
Market size value in 2023
USD 33.30 billion
Revenue forecast in 2030
USD 121.99 billion
CAGR of 20.4% from 2023 to 2030
Base year for estimation
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.
Electric Bus Market Segmentation
Grand View Research has segmented the global electric bus market based on vehicle type, battery type, application, end-use, and region:
Electric Bus Vehicle Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
- Battery Electric Vehicle
- Plug-in Hybrid Electric Vehicle
- Fuel Cell Electric Vehicle
Electric Bus Battery Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
- Lithium Nickel Manganese Cobalt Oxide
- Lithium Iron Phosphate
Electric Bus Application Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Electric Bus End-use Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Asia Pacific region held the highest market share of more than 80% in the electric bus industry in 2022. The growth can be attributed to the growing demand for eco-friendly transport and the presence of countries such as China, India, and Japan. China is a major player in the electric bus industry and home to leading manufacturing companies. For instance, In March 2022, in China, more than 421,000 e-buses were in operation, which amounted to about 99% of the total fleet globally. Furthermore, strict government mandates, environmental concerns, and growing charging infrastructure are further propelling the overall electric bus industry in this region.
Europe is anticipated to grow at a CAGR of 35.3% over the forecast period owing to the favorable policies of the government and the growing efforts in controlling vehicle emissions. Furthermore, governments in this region have started projects to make public transportation more sustainable by deploying green transportation technologies.
List of Key Players of Electric Bus Market
- BYD Company Limited
- AB Volvo
- Man Se
- Nissan Motor Corporation
- Ashok Leyland Limited
- Diamler Buses
- Zhengzhou Yutong Bus Co., Ltd.
- TATA Motors Limited
- Hyundai Motor Corporation
Authoritative Research: https://www.grandviewresearch.com/industry-analysis/electric-bus-market-report