Global Low-floor Hybrid Bus Market 2016-2020

Overview of the global low-floor hybrid bus market

Market research analysts at Technavio predict that the global low-floor hybrid bus market will grow steadily during the next four years and post a CAGR of almost 16% by 2020, in terms of units. This market research analysis identifies the benefits of hybrid buses such as reduced cost, reliability, and increased comfortability as one of the primary factors for the growth of this market. Though hybrid buses require massive initial investment, fuel savings, and reduced maintenance costs make up the cost difference in the long run. In cases of hybrid electric buses, the cost of charging the battery is much lesser than fuel costs. Moreover, the adoption of fixed ratio planetary reduction gear in the hybrid electric bus eliminates the need for a shifting transmission, which minimizes vibrations.  This makes the journey more comfortable and also reduces the need for maintenance, further reducing operational expenses.

With the growing demand for low-floor hybrid buses, the market will soon witness the emergence of alternative fuel vehicle (AFV) that will use hydrogen fuel cells as the power source. Though companies such as Hino Motors, Toyota Motors, and Daimler have already introduced and successfully operated hydrogen fuel cell buses, they did not commence mass production due to the lack of hydrogen filling stations in several regions. However, due to the advantages such as 100% reduction in fuel emission and a noise-free drive, companies and governments across the world, especially Japan, have started promoting the use of hydrogen fuel cell buses.

Competitive landscape and key vendors

The market consists of a considerable number of hybrid bus manufacturers and is highly competitive. The increased focus of governments across the world to make public transport cleaner and greener will drive the demand for more hybrid buses from governments and public sectors. This, in turn, will intensify the level of competition among key market players. Vendors with a huge market presence dominate the market. The huge volume sales in the Chinese market has helped the regional vendors gain maximum revenue. However, they lack global presence and companies such as Volvo, Daimler, and MAN, dominate the market due to their presence across several regions. To gain a competitive edge, vendors have the need to improve their global presence and enhance their product portfolios.

The leading vendors in the market are -

• Daimler
• Volvo
• Wuzhoulong
• Yutong

The other prominent vendors in the market are King Long, New Flyer, Alexander Dennis Limited, Foton Motors, FAW, and GILLIG.

Segmentation by hybrid powertrain and analysis of the low-floor hybrid bus market

• Parallel hybrid bus
• Series hybrid bus
• Series-parallel hybrid bus

During 2015, the parallel hybrid market segment accounted for the major shares and dominated this market. This is mainly due to the small battery pack incorporated in parallel systems that reduces the total cost of parallel hybrid buses. Analysts predict that the expected decrease in battery costs during the next four years will reduce hybrid powertrain costs, which, in turn, will boost the demand for parallel hybrid buses.

Geographical segmentation and analysis of the low-floor hybrid bus market

• Americas
• APAC
• EMEA

Due to the presence of a large number of hybrid bus manufacturers, APAC was the major revenue contributor to the market during 2015. China and Japan were the key market contributors, where the presence of the major bus makers and significant infrastructure development, fueled market growth. Initiatives by the governments of countries such as China, Japan, South Korea, and India to promote the adoption of hybrid electric vehicles will drive the growth of the market in this region in the coming years.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global low-floor hybrid bus market?
• What are the key market trends impacting the growth of the global low-floor hybrid bus market?
• What are the challenges to market growth?
• Who are the key vendors in the global low-floor hybrid bus market?
• What are the market opportunities and threats faced by the vendors in the global low-floor hybrid bus market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global low-floor hybrid bus market?

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