Unlike a hybrid vehicle, which uses a combination of battery power and an internal combustion engine, an electric bus runs entirely on electricity. Electric buses are a recent alternate to more conventional buses as they are more fuel-efficient and cost-effective. Zhengzhou Yutong Bus Co., Ltd. (Yutong) is one of the leading electric bus manufacturers in the world. Electric buses are expected to make up a large portion of the worldwide EV fleet, as public transit electrification is accelerated by increased awareness of the environmental benefits of electric mobility and supported government actions to combat climate change. E-buses are quickly gaining popularity among cities, private transportation firms, and school districts engaged in EV technology. In wake of increased concerns about the impact of diesel emissions on children’s health, electric school buses are anticipated to witness a huge market in the future years. However, in most countries, coal-fired power plants provide the energy needed to charge electric automobiles which raises concerns amongst environmentalists and consumers. Due to institutional, technical, and financial challenges, e-bus adoption has not progressed as quickly as many had planned.
Hybrid electric buses to observe significant growth during the forecast period
In terms of revenue, the battery electric vehicle (BEV) category is likely to dominate the market. The battery-electric bus is an excellent choice for vehicles with low or no emissions. Battery electric buses are much easier and less expensive to charge than diesel or gasoline-powered buses. In comparison to regular e-buses, hydrogen fuel cell buses last longer and can be refueled quickly, hence the fuel cell electric vehicle segment is expected to increase rapidly during the projected period. During the projected period, the plug-in hybrid electric bus segment is expected to increase at a steady rate. These buses charge the battery by regenerative braking and hooking into an external electric power supply. The hybrid electric bus has an electric power system as well as an internal combustion engine. The hybrid-electric bus contributes to lower levels of greenhouse gas emissions and air pollution. The expanding government initiatives to reduce carbon emissions and ensure environmental safety are contributing to the segment’s growth. Furthermore, the electric bus growth prospects are supported by increasing technological advancements and the acceptance of advanced technologies.
The Asia Pacific is likely to dominate the global e-bus market, driven by China
The Asia Pacific electric bus market is expected to expand due to favorable laws for electric buses, cheaper electric and electronic components, and constantly increasing charging infrastructure. China is the leading manufacturer and consumer of e-buses in the world followed by India. The domination of the China and India e-bus markets can be linked to the region’s growth as it has huge sales volumes for electric buses, favorable government laws, and increasing use of electric buses in public transportation fleets. The government of India is aiming to electrify buses through the FAME-II program. The growing need to reduce pollution and global warming produced by diesel and gasoline cars is driving demand for electric vehicles such as buses for public transportation in Japan, which is supporting the country’s electric bus market. In 2018, the country set a goal of 15-20% EV sales in passenger light-duty vehicles (PLDVs) by 2020 and 20-30% by 2030, which is boosting the adoption of electric buses for public transportation in the country, which is hence driving the Japan electric bus market. The ability to travel further on a single charge, the reduction in charging time, and the growing number of charging stations around Australia are all factors driving up electric bus sales. In the coming years, Europe to show a boom in electric buses with Germany as the leader due to the government’s concern about the environment and its initiatives. BEV electric buses are expected to lead in the MEA market. Electric bus adoption has skyrocketed in the US, decreasing public transportation expenses and carbon emissions. Some nations, such as Qatar, the UAE, and Egypt, have made explicit promises to use clean fuel and electrify their transportation sectors.
Market Structure and Competitive Landscape
The global electric bus market is fragmented in nature with the presence of various players operating in the market. Some of the prominent players that contribute significantly to the market include BYD, Yutong, Blue Bird Corporation, CAF (Solaris), VDL Groep, AB Volvo, Daimler AG, Ankai Bus, NFI Group, Tata Motors, Golden Dragon, Blue Bus, Proterra, Zhongtong Bus Holdings Co., Ltd. among others. These companies use a variety of tactics to increase their market share and acquire a competitive advantage over their competitors. Key success factors observed in the global electric bus market include – technological advancement, rapid urbanization, government measures, rising oil prices, strict pollution prevention norms, measures to reduce carbon emissions, reduced battery prices, etc. Some of the key developments in the global electric bus market include,
- In April 2022, EKA, an Indian electric vehicle manufacturer, partnered with NuPort Robotics of Canada to provide AI-based driver assistance systems to its electric buses on Indian roads.
- In December 2021, Ebusco, an electric bus company announced that it will be producing e-buses using composite components.
- In 2021, the Virginia Department of Environmental Quality allocated Fairfax County a US$ 4.4 million state grant to obtain new all-electric buses, trash, and recycling trucks.
Key Market Segmentation
RationalStat has segmented the global electric bus market on the basis of seating capacity, end user, battery capacity, length of the bus, propulsion, power output, and region.
- By Seating Capacity
- Up to 30 Seats
- 30-90 Seats
- 90-120 Seats
- By End User
- By Battery Capacity
- Up to 400 kWh
- Above 400 kWh
- By Length of Bus
- Less than 9m
- Above 14m
- By Propulsion
- Battery Electric Vehicle (BEV)
- Fuel Cell Electric Vehicle (FCEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- By Power Output
- Up to 250 kW
- Above 250 kW
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents and Institute of Electric Innovation (IEI), Energy Information Administration (EIA).
- Industry and market-related documents are available in the public domain like IEA.
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for electric bus manufacturers, EV battery manufacturers and suppliers, educational organizations, regulatory agencies, market research firms, and research organizations among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The global Electric Bus Market is expected to grow at a CAGR of over 33% during the forecast period 2022-2028.
The global stock of electric buses was 670,000 units in 2021.
Supportive government policies to curb environmental pollution are one of the major growth drivers for the market.
The Asia Pacific is the leading region in the market.
Major companies operating in the global Electric Bus Market are BYD, Tata Motors, Blue Bird Corporation, and Daimler AG among others.