July 14, 2024
Electric Bus Market

Electric Bus Market: Growing demand for sustainable transportation to drive market growth

The global electric bus market is estimated to be valued at US$14,795.5 million in 2021 and is expected to reach US$ million by 2022. This represents a CAGR of 13.4% over the forecast period of 2022-2030, according to a new report published by Coherent Market Insights.

Market Overview:

Electric buses are vehicles that run on electricity instead of traditional fossil fuels, offering several advantages over conventional buses. They are environmentally friendly and produce zero emissions, making them an ideal choice for reducing air pollution in urban areas. Additionally, electric buses are quieter, provide a smoother ride, and require less maintenance compared to traditional buses.

Market Key Trends:

One key trend in the electric bus market is the increasing adoption of electric buses by government authorities and public transport agencies. Governments around the world are implementing regulations and incentives to encourage the adoption of electric vehicles, including buses, as a means to tackle climate change and reduce dependence on fossil fuels. This has led to a significant increase in the procurement of electric buses, especially in densely populated cities. Furthermore, advancements in battery technology and infrastructure development for charging stations are further driving the growth of the electric bus market.

Note: Key players 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. However, this report does not cover information about key players.

Porter’s Analysis

Threat of New Entrants: The electric bus market is expected to face a low threat of new entrants due to high entry barriers. Factors such as high capital investment, strict government regulations, and the need for specialized technology and expertise act as barriers, deterring new players from entering the market.

Bargaining Power of Buyers: The bargaining power of buyers in the electric bus market is moderate. The increasing adoption of electric buses by various government bodies and public transportation authorities gives them some leverage in negotiations. However, the limited number of suppliers and the high cost involved in switching to alternative transportation options reduce their bargaining power to some extent.

Bargaining Power of Suppliers: The bargaining power of suppliers in the electric bus market is relatively high. Suppliers of key components such as batteries, electric motors, and charging infrastructure have a significant influence due to their limited availability. This allows them to dictate terms and prices, which can affect the profitability of bus manufacturers.

Threat of New Substitutes: The threat of new substitutes in the electric bus market is low. Electric buses offer significant advantages over traditional diesel buses, including lower operating costs, reduced emissions, and support for sustainability initiatives. The limited availability of viable alternatives makes it difficult for substitutes to pose a significant threat to the market.

Competitive Rivalry: The electric bus market is highly competitive, with several key players striving to increase their market share. Intense competition exists among major companies, leading to innovative product offerings, technological advancements, and strategic collaborations. This competition is expected to further intensify as the market continues to grow.

Key Takeaways

The global Electric Bus Market Share is expected to witness high growth, exhibiting a CAGR of 13.4% over the forecast period of 2022 to 2030. This growth is driven by increasing government initiatives to reduce greenhouse gas emissions, favorable policies promoting electric mobility, and the need for sustainable transportation solutions. Additionally, the rising concerns over air pollution and the growing adoption of electric vehicles are expected to fuel the demand for electric buses.

In terms of regional analysis, Asia Pacific is projected to be the fastest-growing and dominating region in the electric bus market. This can be attributed to the presence of major electric bus manufacturers, government incentives to promote electric mobility, and the high demand for public transportation in densely populated countries like China and India.

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 actively engaged in research and development activities, strategic partnerships, and product launches to gain a competitive edge in the market.

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