Electric Bus Market Size to Reach $105.8Bn, Globally, by 2028 at 20.2% CAGR with Battery Electric Bus Segment Driving Growth During 2021-2028 | Report by The Insight Partners
Asia Pacific held the largest market share of the global electric bus market, as valued at $26.37Bn in 2021 and is projected to reach $15.38Bn by 2028; it is expected to grow at a CAGR of 20.2% during the forecast period. The global electric bus industry growth is driven by increasing demand for hydrogen fuel bus and rising production of low-cost lithium ion-phosphate batteries.
Pune, India, July 27, 2023 (GLOBE NEWSWIRE) — The Insight Partners published latest research study on “Electric Bus Market Size Report, Share, Revenue, Growth Strategy, Industry Trends and Forecast to 2028 – COVID-19 Impact and by Vehicle Type, Hybrid Powertrain, Battery, End User and Geography”, the electric bus market was valued at $29.17 billion in 2021 and is expected to reach $105.80 billion by 2028; it is estimated to register a CAGR of 20.2% from 2021-2028. The reduction in the cost of electric vehicle batteries, and surge in product innovations and launches. However, the low fuel economy & serviceability is expected hinder the growth of the market.
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Various Government Initiatives Provides Lucrative Opportunities for Global Electric Bus Market:
Government initiatives in the electric bus market present a significant opportunity for market growth. Governments worldwide implement regulations and policies to reduce carbon emissions and promote sustainable transportation. These initiatives provide several benefits that contribute to the growth of the electric bus market. One key advantage is the financial support offered by governments. Incentives such as subsidies, tax benefits, and grants are provided to bus manufacturers and operators to offset the higher upfront costs associated with electric buses. These financial incentives make electric buses more affordable and attractive, encouraging their adoption in public transit systems and private fleets. Another crucial aspect is the development of charging infrastructure. Governments are investing in establishing a comprehensive charging network, including charging stations at bus depots, along routes, and in public spaces. This infrastructure development addresses the range of anxiety concerns of bus operators and ensures that electric buses have convenient access to charging facilities. A well-developed charging infrastructure is vital for the efficient operation and scalability of electric bus fleets.
Additionally, governments are incorporating electric buses into their sustainable urban mobility plans. By transitioning public transportation to electric fleets, governments aim to reduce air pollution, minimize noise levels, and improve cities’ overall quality of life. Electric buses offer significant environmental benefits, such as zero tailpipe emissions and quieter operation, aligning with governments’ goals of creating greener and more livable urban environments. Furthermore, government initiatives create a supportive regulatory framework for electric bus deployment. Governments are setting targets and implementing regulations to accelerate the adoption of electric buses in public transit systems. These measures create a stable and predictable market environment, giving bus manufacturers and operators confidence to invest in electric bus production and infrastructure.
China has emerged as the clear leader in the global electric bus market, setting itself apart from the rest of the Asia Pacific region. The dominance of China in the market is attributed to several distinct factors. Firstly, China has demonstrated unparalleled commitment and ambition in promoting electric buses to combat air pollution and reduce reliance on fossil fuels. The Chinese government has implemented comprehensive policies and regulations to accelerate the adoption of electric buses. This includes setting strict emissions standards for public transportation and implementing subsidies and financial incentives to encourage the purchase and operation of electric buses. China’s strong governmental support has created a conducive environment for the rapid growth of the electric bus market.
Secondly, China has a vast and highly developed manufacturing industry, allowing it to produce electric buses at a large scale and competitive prices. The country is home to numerous domestic electric bus manufacturers, benefitting from economies of scale and advanced manufacturing capabilities. China’s manufacturing process has enabled it to supply a significant portion of the global electric bus demand, meeting domestic and international market needs. Furthermore, China’s massive population and dense urban centers provide a substantial market for electric buses. The country’s urban areas face severe air pollution and traffic congestion, making electric buses an appealing solution. The high demand for clean and efficient transportation, coupled with the government’s supportive policies, has accelerated the deployment of electric buses across Chinese cities. This large-scale adoption has further solidified China’s position as the market leader. Moreover, China’s strong investment in research and development has propelled technological advancements in electric bus technology. The country’s manufacturers have focused on improving battery performance, charging infrastructure, and vehicle efficiency. Chinese electric buses now boast longer ranges, faster charging times, and enhanced reliability, contributing to their market dominance.
Additionally, China’s experience in mass transit systems has allowed for the seamless integration of electric buses into existing transportation networks. The country’s extensive bus fleet and established infrastructure have facilitated the rapid deployment and operation of electric buses across various cities and regions.
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Global Electric Bus Market Analysis: Competitive Landscape and Key Developments
King Long United Automotive Industry Co. Ltd; AB Volvo; Shenzhen Wuzhoulong Motors Co., Ltd; BYD Company Limited; Daimler; AGAlexander Dennis Limited; EBUSCO; Proterra Solaris Bus & Coach S.A; and NFI Group Inc are a few of the key companies operating in the electric bus market. The market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
In February 2023, AB Volvo signed an agreement with Belgian public transport operator Operateur de Transport de Wallonie (OTW) to deliver 97 Volvo 7900 S-Charge buses. Volvo 7900 S-Charge bus is now in operation in more than 25 countries.
In February 2022, VDL Groep BV & Pinnacle Mobility Solutions entered into a partnership & invested $24,175 in electric buses and e-mini trucks manufacturing to cater to the booming last-mile mobility space in India.
Global Electric Bus Market: Segmental Overview
Based on vehicle type, the market is segmented into battery electric bus, hybrid electric bus, and plug-in hybrid electric bus. The battery electric bus segment held the largest share of the market in 2020 and is anticipated to register the highest CAGR in the market during the forecast period. Based on hybrid powertrain, the market is segmented into series parallel hybrid, parallel hybrid, and series hybrid. The parallel hybrid segment held the largest share of the electric bus market in 2020, whereas series parallel hybrid segment is anticipated to register the highest CAGR in the market during the forecast period. Based on battery, the market is segmented into Lithium iron phosphate (LFP) and Lithium Nickel Manganese Cobalt Oxide (NMC). The Lithium iron phosphate (LFP) segment held the largest share of the market in 2020 and is estimated to register the highest CAGR in the market during the forecast period. Based on end user, the market is bifurcated into public and private. The public segment held the largest share of the market in 2020, whereas the private segment is estimated to register the highest CAGR in the market during the forecast period.
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