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Electric buses are powered by electric motors instead of diesel or gasoline engines. They run on electricity stored in rechargeable battery packs, which are charged from an external electric power source such as plug-in charging stations. Electric buses provide advantages such as zero direct emissions, reduced noise and operational cost savings potential due to lower fuel and maintenance costs. They are increasingly used by public transit agencies and municipalities seeking greener transportation solutions to meet emission targets and reduced carbon footprint goals. The Global Electric Bus Market is estimated to be valued at US$ 14,795.5 Mn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Key Takeaways
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, NFI GROUP INC. and VDL GROEP BV. BYD Company Ltd is the market leader with over 50,000 electric buses sold globally till date.
The growing demand for environment-friendly public transportation solutions is expected to drive the growth of the electric bus market. Stringent emission norms by governments worldwide have prompted public transport agencies to replace existing fleets with zero-emission electric buses. Countries like China, India and several European nations are providing financial incentives and subsidies for adoption of electric buses.
The market is witnessing rapid global expansion with growing sales in emerging economies of Asia Pacific, Latin America, Middle East and Africa. China remains the global leader in electric bus adoption supported by strong policy push. Several cities in Europe and North America are also expanding their electric bus fleets. Launch of longer range electric buses with fast charging capabilities is supporting intercity and intracity expansion.
Market Key Trends
Development of autonomous electric buses is one of the key trends in the electric bus market. Major vehicle manufacturers are investing in autonomous driving technologies for public transportation buses. Autonomous electric buses can provide on-demand, flexible transportation services with potential to reduce operational costs for transport agencies. Ongoing pilot projects of autonomous electric buses in cities worldwide are gaining promising results. If commercialized at scale, autonomous electric buses could accelerate the adoption of electric buses globally.
Porter’s Analysis
Threat of new entrants: Low barrier for new EV manufacturers to establish. Bargaining power of buyers: Large fleet operators can negotiate better prices from OEMs. Bargaining power of suppliers: A few cell manufacturers supplying to electric bus makers. Threat of new substitutes: Rise of hydrogen fuel cell buses as an alternative. Competitive rivalry: Intense competition between global & local players to grab market share.
The geographical region where the value of the electric bus market is concentrated currently is Asia Pacific region. China leads the global EV bus deployment with over 400,000 units currently plying on city roads. Countries like India, South Korea and others are also actively promoting electrification of public transportation with pilot projects and supportive policies.
Europe is emerging as the fastest growing region for the electric bus market between 2023-2030. Stringent emission regulations coupled with push for clean city initiatives are driving large scale adoption of electric buses across major European nations. Countries like Germany, France, UK, Norway etc are adding thousands of electric buses each year with a vision to transition to zero emission fleets in the coming decade.
The geographical region where the value of the electric bus market is currently concentrated is Asia Pacific region, specifically China. China leads the global EV bus deployment with over 400,000 units currently plying on city roads. Other countries like India, South Korea are also actively promoting electrification of public transportation with pilot projects and supportive policies. Europe is emerging as the fastest growing region for the electric bus market between 2023-2030. Stringent emission regulations coupled with push for clean city initiatives are driving large scale adoption of electric buses across major European nations like Germany, France, UK, Norway etc. who are adding thousands of electric buses each year with a vision to transition to zero emission fleets in the coming decade.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
