What Has Been the Growth Trajectory of the Electric Bus Market?
The electric bus market has seen considerable growth due to a variety of factors.
• There has been a swift expansion in the size of the electric bus market in the past few years. The market is set to increase from $36.68 billion in 2024 to $41.04 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 11.9%.
The growth observed in the past period stems from enhancements in manufacturing scale and production sophistication, increased public knowledge and outlook, advancements in charging infrastructure, greater economic viability and lower costs, and the multiplying levels of urbanization and congestion.
What Is The Projected Growth And Market Size For The Electric Bus
The electric bus market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, a swift expansion in the electric bus market size is anticipated. It is projected to reach $63.4 billion by 2029, experiencing a compound annual growth rate (CAGR) of 11.5%.
Factors contributing to this growth during the forecasted period encompass market acceptance and demand, advancements in charging infrastructure, reduction in manufacturing expenses, and an elevated demand for eco-friendly transportation. Key trends influencing this growth phase include governmental incentives and policies, breakthroughs in battery technology, growing urbanization and concerns over air quality, decrease in battery production cost, and the need for sustainable mobility solutions.
Which Factors Are Boosting Growth In The Electric Bus Market?
Electric bus market leaders are prioritizing several strategic government programs aimed at promoting e-bus usage and establishing attractive growth opportunities. Examples of these initiatives include transitioning towards electric city- and intercity passenger transport to enhance sustainability, lower carbon emissions, and facilitate public health improvement. This transition seeks to replace traditional fuel-based public transport with electric vehicles to strengthen environmental conservation, decrease carbon emissions and foster better public health. For example, Volvo Buses, a company based in Sweden known for manufacturing buses and coaches, introduced LUMINUS, a fully electric city bus in Mexico, to commemorate its 25th anniversary in May 2023. The LUMINUS, made locally, provides battery alternatives between 280 and 470 kWh and varying lengths ranging from 9.7 to 13 meters. It boasts superior safety features, a low entry point for easy access, and roomy interiors complemented by Wi-Fi and USB charging ports. Volvo Buses also offer comprehensive solutions that cover the buses, charging facilities, and funding, all committed to achieving zero-emission outputs.
What Are The Main Segments Of The Global Electric Bus Market?
The electric bus market covered in this report is segmented –
1) By Type: Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, Fuel Cell Electric Vehicle
2) By Battery Type: Lithium-Nickel-Manganese-Cobalt-Oxide, Lithium-Iron-Phosphate, Other Battery Types
3) By Vehicle Range: Less Than 200 Miles, Above 200 Miles
4) By Battery Capacity: Upto 400 kWh, Above 400 kWh
5) By Application: Intercity, Intracity
Subsegments:
1) By Battery Electric Vehicle (BEV): Standard Battery Electric Bus, Extended Range Battery Electric Bus
2) By Plug-In Hybrid Electric Vehicle (PHEV): Parallel Hybrid Bus, Series Hybrid Bus
3) By Fuel Cell Electric Vehicle (FCEV): Hydrogen Fuel Cell Bus, Hybrid Fuel Cell Bus
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What Emerging Trends Are Influencing The Growth Of The Electric Bus Market?
Technological progression plays a pivotal role in the development of the electric bus market. To ensure both economic feasibility and future sustainability, electric bus manufacturers are enhancing their technology to optimize passenger capacity and extend the operational duration of their vehicles. For example, the Valley Transportation Authority (VTA) embarked on a forward-thinking clean energy microgrid and electric vehicle (EV) charging infrastructure in January 2022 in line with California's objective to have a completely emission-free bus fleet by 2040. This pioneering project, costing $3 million, targeted the development of advanced charging systems, the reduction of expenses, and backed up VTA's holistic strategy for electrification of its bus infrastructure in the long term.
Who Are the Key Players in the Electric Bus Market?
Major companies operating in the electric bus market include:
• BYD Co. Ltd.
• Tata Motors Limited
• Zhengzhou Yutong Bus Co. Ltd.
• Scania AB
• Dongfeng Motor Corporation
• MAN Truck & Bus AG
• Sinotruk Hong Kong Limited
• Foton Motor Group
• VDL Groep
• Ashok Leyland Limited
• NFI Group Inc.
• Blue Bird Corporation
• Solaris Bus & Coach S.A.
• Gillig LLC
• New Flyer of America Inc.
• Eicher Motors Limited
• Alexander Dennis Limited
• JBM Auto Limited
• King Long United Automotive Industry Co. Ltd.
• Zhongtong Bus & Holding Company Limited
• Proterra lnc.
• Nanjing Golden Dragon Bus Manufacturing Co. Ltd.
• Ebusco
• The CAF Group incorporates
• GreenPower Motor Company Inc.
• The Volvo Group
• Deccan Auto Limited
• Daimler AG
• Higer Bus Company Limited
• Motiv Power Systems Inc.
• Zhuhai Guangtong Automobile Co. Ltd.
• Shenzhen Wuzhoulong Motors Co. Ltd.
• Olectra Greentech Limited
• Xiamen King Long United Automotive Industry Co. Ltd.
• Yaxing Motor Coach Co. Ltd.
What Is The Most Dominant Region In The Electric Bus Market?
Asia-Pacific was the largest region in the electric bus market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric bus market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
