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The Global Electric Bus Market size is forecast to increase by USD 21.00 billion, at a CAGR of 16.3% between 2023 and 2028. The electric bus market is experiencing rapid growth globally due the reduction in battery prices of electric buses, technological improvements to reduce downtime with fuel-efficient buses, and government initiatives promoting sustainable transportation and reaching the zero emissions target driving the electric buses market.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, market trends and analysis, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Technological improvements to reduce downtime are notably driving market growth. The buses carry more load when compared with electric passenger cars, which necessitates the use of large battery capacity. The market is driven by advancements in battery technology and government initiatives promoting sustainable transportation. The higher the load capacity and charging infrastructure requires for optimal vehicle downtime. Various charging system manufacturers are working to meet the high demand for fast bus charging station used in e-buses. For instance, in 2021, fast charging stations for buses were installed in Milan, Italy, which would power the ATM electric bus fleet.
Moreover, as commercial vehicles such as electric buses have a limited driving range with a larger capacity, they take more time to get recharged without any fast-charging technology. In this case, battery swapping options help in reducing the downtime for e-buses. These technologies and methods for reducing bus downtime for charging will drive the market during the forecast period.
The rising trend of retrofitted e-buses is an emerging trend shaping the market development. Some of the major challenges that deter transit companies from adopting buses are their high cost and the limited possibility of replacing them with conventional buses, as there is a need for skilled drivers to adapt to the new changes in buses. The option for converting conventional buses to retrofitted buses will bring the cost down.
In addition, Ebus, a California-based company, has a pre-engineered conversion kit that can convert fossil fuel buses and compressed natural gas (CNG) buses known for zero emission and eco-friendly. This reduces the initial cost of procuring electric buses. The commonality of parts simplifies technician training and spare parts management. This trend of electrification of buses will positively impact the market during the forecast period.
The declining number of public transport users is a significant restraint hindering market growth. As a result, transit agencies are becoming reluctant to replace their existing conventional buses with expensive e-buses. The increasing production of passenger cars, public transport and Volvo buses in line with the increasing demand is posing a major challenge to the penetration of e-buses in many regions. The demand for public transportation services is reducing with the growing demand for passenger cars.
However, due to the increasing affordability of private cars and the comfort of personal vehicles, many people are shifting toward the personal mode of transport. Additionally, the increasing popularity of personalized taxis, car rental, and car leasing services are also posing a challenge to the E-bus market. Such factors are expected to hamper the growth of the market during the forecast period.
The buses are powered by electricity instead of traditional fossil fuels. The buses contribute to reducing greenhouse gas emissions and improving air quality in cities. Many countries are actively transitioning their public transportation systems to electric buses.
The market research report includes the adoption lifecycle of the market research and market growth analysis, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, key manufacturers and suppliers, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers Volvo's first electric bus that is equipped with a full load-carrying chassis with high energy density batteries, an efficiency energy-saving motor, an integrated intelligent electronic control system, an auxiliary system controller, a power steering pump, and energy saving electric air conditioning system.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The intercity segment is estimated to witness significant growth during the forecast period. The Government of India is encouraging the use of electric vehicles to replace internal combustion engine vehicles by 2030./'.ljuhytrewThe plan focuses on building infrastructure for electric vehicles, including electric buses, throughout the tier-1 and tier-2 cities. Various charging system manufacturers are planning to start business operations within India due to the market growth and trends opportunities presented by the rising E-bus in the country.
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The intercity segment was the largest and was valued at USD 7.64 billion in 2018. Moreover, In 2023, China was the major market APAC. The government of China is actively encouraging the replacement of diesel buses to curb vehicular emissions caused by diesel engine buses proclaiming as zero-emission. The majority of electric buses depend on battery-swapping methods for recharging in a short time. Technology regarding the charging in China is slow and involves a large amount of time. Such investments and initiation will drive the intercity segment in the market during the market forecast period.
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APAC is estimated to contribute 87% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand in China is expected to grow steadily owing to the rising need for public transportation such as bus rapid transit (BRT) in metro cities. High awareness about the benefits of electric vehicles among consumers is leading to the rapid transformation of buses from traditional diesel. This is a crucial driver for the E-bus in China. Every city that has a transit system operates buses, and bus services are easy to introduce and modify. With the rising focus on reducing traffic congestion and vehicle emissions, authorities in China are pushing the adoption of public transportation over private transportation, which constitutes higher adoption among all modes. There has been a growing adoption of electric school buses in China to reduce carbon footprints.
Additionally, countries such as India have adopted public transport due to growing concern about reducing air pollution caused by vehicular emissions. For instance, in June 2021, the Maharashtra State Road Transport Corporation (MSRTC) board cleared the proposal for 100 new electric buses in Maharashtra, India. Also, JBM Group, a leading manufacturer, handed over 50 electric buses to Ahmedabad BRTS in May 2021. Thus, the growing adoption of electric buses in the country will boost the growth of the regional market during the forecast period.
The environmental concerns, original equipment manufacturers (OEMs) are focusing on Fuel Cell Electric Vehicles (FCEVs) and Battery Electric Vehicles (BEVs) to revolutionize mass transitbuses. Electric buses contribute to reducing greenhouse gas emissions and improving air quality in cities. The electric bus market is driven by advancements in battery technology and government initiatives promoting sustainable transportation.These vehicles offer superior performance while maintaining a commitment to an eco-friendly, clean and sustainable future. With advancements in technology, concerns related to vehicle maintenance are mitigated, making electric innovation appealing for both operators and passengers. As the automotive industry embraces electrification, the synergy between clean energy and efficient performance positions FCEVs and BEVs as key players in the evolution of transportation, paving the way for a greener and more sustainable mass transit landscape.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Electric Bus Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.3% |
Market Growth 2024-2028 |
USD 21.00 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.55 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 87% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, BKM.BY, Bollore SE, BYD Co. Ltd., CNH Industrial NV, Complete Coach Works, Eletra, GreenPower Motor Co. Inc., Hyundai Motor Co., Jiangsu Alfa Bus Co. Ltd., Mercedes Benz Group AG, NFI Group Inc., Proterra Inc., Tata Motors Ltd., and Tecnobus Industries srl |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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