February 24, 2024

Electric Bus Market driven by government initiatives to adopt green mobility solutions

 

Electric buses offer eco-friendly transportation with zero direct emissions and lower operating costs compared to conventional diesel or CNG buses. Electric buses use electric motors powered by rechargeable battery packs for propulsion and have a quieter ride compared to diesel buses. The major advantages of electric buses include reduced noise and air pollution, lower fuel and maintenance costs over the lifespan of the bus. Growing concerns regarding the environmental impact of public transportation along with government support through subsidies and favorable policies have accelerated the adoption of electric buses across cities globally.

The global Electric Bus Market is estimated to be valued at US$ 14,795.5 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the electric bus market is the increasing demand for electric double-decker buses. Double-decker buses are primarily used in cities with high passenger traffic to increase passenger capacity per bus. Electric double-decker buses offer low-cost transportation with zero direct emissions. Several cities in Europe and Asia Pacific have introduced electric double-decker buses in their public transportation fleets. For instance, in 2021, BYD supplied 20 electric double-decker buses each to London Transport in the UK and Taipei City Transportation Bureau in Taiwan. With continued technology advancement, electric double-decker buses are becoming more efficient and economic viable over diesel or CNG double-decker buses. This rising demand for electric double-decker buses is expected to drive significant growth in the global electric bus market during the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the electric bus market requires huge investments for R&D, manufacturing setups and brand building. However, supportive government policies are encouraging new players to enter the market.
Bargaining power of buyers: The bargaining power of buyers is high as the market has several major bus manufacturers providing options to buyers. Buyers can negotiate on price and specifications.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers have established relationships with bus manufacturers. However, shortage of battery cells can increase suppliers’ bargaining power.
Threat of new substitutes: The threat of new substitutes is low as electric buses provide clean transportation solution with no direct substitutes. Hydrogen fuel cell buses are in early stages of adoption.
Competitive rivalry: The competitive rivalry is high among global bus manufacturers to gain market share through new product launches, partnerships and expansions. Manufacturers are investing heavily in R&D to develop advanced electric bus technologies.

Key Takeaways
The global electric bus market is expected to witness high growth over the forecast period supported by supportive government initiatives and policies promoting clean public transportation. The global Electric Bus Market is estimated to be valued at US$ 14,795.5 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific dominates the global electric bus market and is expected to maintain its lead owing to high electric bus adoption in China which is the largest producer and consumer. Europe is also an emerging market for electric buses due to stringent emission norms in the region.

Key players operating in the electric bus market are 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, and NFI GROUP INC. Major players are focusing on new product launches, partnerships and capacity expansions to strengthen their market position.

*Note:

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