March 2, 2024

Rising adoption of green mobility solutions to drive the growth of Electric Bus Market

 

Electric buses are zero-emission vehicles that run on electric motors powered by stored electricity, usually from batteries. They offer several advantages over conventional diesel or CNG buses such as reduced operating costs, lower greenhouse gas emissions and better performance. Various government initiatives to promote sustainable urban mobility and reduce air pollution are encouraging the adoption of electric buses globally. Several countries and cities around the world have implemented schemes to transition their existing bus fleet to electric models over the next decade.

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 key trends in the electric bus market is the increasing deployment of fast charging infrastructure to support longer range operations. Bus fleets require large batteries for greater mobility and routes, which increase vehicle costs and downtime for charging. Developing DC fast charging stations at bus depots and terminals enables faster top-up of batteries and reliable service. Another important trend is the integration of vehicle-to-grid (V2G) technology that allows electric buses to store excess energy and feed it back to the grid during peak demand hours. This earns additional revenue for transport authorities and helps balance renewable energy intermittency on the grid. Government incentives and subsidies remain a major driver spurring market growth by encouraging mass production of electric buses and better economies of scale.
Porter’s Analysis

Threat of new entrants: The high capital requirements for manufacturing and infrastructure development poses as a entry barrier for new players.

Bargaining power of buyers: Large fleet operators have significant bargaining power due to bulk buying. However, growing environmental concerns is increasing the demand for electric buses.

Bargaining power of suppliers: The presence of many battery manufacturers reduces the bargaining power of individual suppliers.

Threat of new substitutes: Alternative energy sources like hydrogen could emerge as substitutes in long-run.

Competitive rivalry: Intense competition exists among existing players to gain market share through product innovation.

Key Takeaways

The global electric bus market is expected to witness high growth, exhibiting CAGR of 13.% over the forecast period, due to increasing environmental regulations regarding vehicular emissions. The market size for electric buses was valued at US$ 14,795.5 Mn in 2023.

The Asia Pacific region dominates the global electric bus market, with China being the largest producer and consumer. The region accounts for over 80% of the global electric bus fleet, led by strong government support and investments in public transport infrastructure in China. Europe is also emerging as a major market for electric buses due to stringent emission standards and supportive FCEV policies of governments.

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. Major players are focusing on new product launches and expansion in global markets to gain competitive advantage.

*Note:

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