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    Automotive Electric Bus Market

    ID: MRFR/AM/2311-CR
    128 Pages
    Swapnil Palwe
    August 2023

    Automotive Electric Bus Market Research Report Information By Type (Single-Decker, and Double-Decker), By Propulsion (BEV, PHEV, and FCEV), By Length (6 to 8 m, 9 to 12 m, and Above 12 m.), and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) –Market Forecast Till 2032

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    Automotive Electric Bus Market Summary

    As per Market Research Future Analysis, the Automotive Electric Bus Market was valued at USD 272,309.6 million in 2023 and is projected to reach USD 4,499,850 million by 2032, growing at a CAGR of 36.56% from 2024 to 2032. The market is driven by increasing government initiatives promoting electric bus adoption and the low operating costs associated with electric buses. The Asia-Pacific region dominated the market in 2022, accounting for approximately 85.1% of the total market share, primarily due to strong demand in countries like China, Japan, and India. The market is characterized by a competitive landscape with key players focusing on product development and technological advancements to meet rising consumer demand.

    Key Market Trends & Highlights

    The Automotive Electric Bus Market is witnessing significant growth driven by government initiatives and technological advancements.

    • Market size in 2023: USD 272,309.6 million.
    • Projected market size by 2032: USD 4,499,850 million.
    • CAGR from 2024 to 2032: 36.56%.
    • Asia-Pacific market share in 2022: 85.1%.

    Market Size & Forecast

    2023 Market Size USD 272,309.6 million
    2032 Market Size USD 4,499,850 million
    CAGR (2024-2032) 36.56%

    Major Players

    Key players include MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI Group, EBUSCO, and Zhongtong Bus Holding.

    Automotive Electric Bus Market Drivers

    Market Growth Projections

    Government Initiatives and Incentives

    Government initiatives and incentives play a pivotal role in the Global Automotive Electric Bus Market Industry. Many countries are implementing policies that promote the adoption of electric buses, including subsidies, tax breaks, and grants. For instance, the United States has allocated substantial funding to support the transition to electric public transportation. This financial backing not only reduces the initial investment burden on municipalities but also encourages manufacturers to innovate and expand their electric bus offerings. As a result, the market is projected to reach 372.0 USD Billion in 2024, reflecting the effectiveness of these government strategies in stimulating growth.

    Rising Fuel Prices and Operational Costs

    Rising fuel prices and operational costs are compelling transit authorities to consider electric buses as a cost-effective alternative in the Global Automotive Electric Bus Market Industry. The volatility of fossil fuel prices has led to increased operational expenses for traditional diesel buses. In contrast, electric buses offer lower energy costs and reduced maintenance requirements, making them an attractive option for public transport operators. As fuel prices continue to rise, the economic advantages of electric buses become more pronounced, encouraging further investment in electric public transport solutions. This trend is likely to accelerate market growth as operators seek to optimize their budgets.

    Urbanization and Public Transport Demand

    Rapid urbanization is significantly influencing the Global Automotive Electric Bus Market Industry. As cities expand, the demand for efficient and sustainable public transportation solutions intensifies. Electric buses are emerging as a viable alternative to traditional vehicles, offering reduced operational costs and lower emissions. Urban planners are increasingly integrating electric buses into their transportation networks to meet the needs of growing populations. This trend is evident in cities like Shenzhen, China, which has transitioned its entire fleet to electric buses. The increasing urban population is expected to drive the market's growth, aligning with the broader shift towards sustainable urban mobility.

    Environmental Concerns and Sustainability

    Growing environmental concerns and the push for sustainability are driving the Global Automotive Electric Bus Market Industry. Urban areas are increasingly recognizing the detrimental effects of traditional diesel buses on air quality and public health. Consequently, cities worldwide are transitioning to electric buses to reduce greenhouse gas emissions and improve urban air quality. This shift aligns with global sustainability goals, as electric buses produce zero tailpipe emissions. The demand for cleaner public transport solutions is expected to propel the market significantly, with projections indicating a remarkable growth trajectory, potentially reaching 11459.6 USD Billion by 2035.

    Technological Advancements in Battery Technology

    Technological advancements in battery technology are transforming the Global Automotive Electric Bus Market Industry. Innovations such as solid-state batteries and improved lithium-ion technologies are enhancing energy density, reducing charging times, and extending the operational range of electric buses. These advancements not only improve the overall efficiency of electric buses but also make them more appealing to transit authorities and operators. As battery costs continue to decline, the economic feasibility of electric buses becomes increasingly attractive. This trend is likely to contribute to a compound annual growth rate of 36.56% from 2025 to 2035, underscoring the importance of technology in market expansion.

    Market Segment Insights

    Automotive Electric Bus Market Platform Segment Insights

    Automotive Electric Bus Type Insights

    Based on type, the Automotive Electric Bus Market is segmented into Single-decker and Double-decker. The Single-decker held the majority share in 2022, contributing around ~79.05% to the market revenue. Single-decker is segmented into school bus, trolley bus, midi bus, intercity bus, coaches, city bus, and others. A single-decker bus, often known as a single-decker bus, is a vehicle with only one passenger deck. The word single-decker bus usually refers to a typical two-axled rigid bus, as opposed to the term double-decker bus, which refers to a vehicle with two passenger decks and a staircase.

    Some other type of single-decker buses includes shuttle busses, low-floor buses, mini-coaches, minibuses, offroad buses, and police buses.

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Automotive Electric Bus Propulsion Insights

    Based on propulsion, the Automotive Electric Bus Market is segmented into Battery Electric Vehicle (BEV), Plug-in hybrid electric vehicles (PHEV), and Fuel cell electric vehicles (FCEV). The Battery Electric Vehicle (BEV) segment held the majority share in 2022. Battery electric vehicles or BEVs are vehicle class with no supplementary source of propulsion, an electric vehicle (EV) that solely relies on chemical energy stored in rechargeable battery packs (e.g. hydrogen fuel cell, internal combustion engine, etc.). Internal combustion engines (ICEs) are replaced with electric motors and motor controllers in BEVs.

    They have no internal combustion engine, fuel cell, or gasoline tank because they get all their power from battery packs.

    Automotive Electric Bus Length Insights

    Based on length, the Automotive Electric Bus Market is segmented into 6 to 8m, 9 to 12m, and Above 12m. The 9 to 12m segment held the majority share in 2022. 9–12-meter buses are large size buses and can carry anywhere from 40-90 people at the same time, these types of electric buses are used for intercity and long-distance travels, these buses are especially used as a passengers bus.

    Get more detailed insights about Automotive Electric Bus Market Research Report- Forecast 2032

    Regional Insights

    By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia Pacific automotive electric bus market accounted for around 85.1% in 2022. Due to the strong demand for electric buses in countries such as China, Japan, South Korea, and India, the market in Asia-Pacific is expected to develop the fastest. Furthermore, China has introduced many electric buses to reduce car emissions.

    Chinese firms such as BYD, Yutong, Ankai, and Zhongtong dominate both the Chinese and global electric bus markets. Due to the availability of cheaper parts and components, these players have designed and delivered a wide range of electric bus models at reduced pricing. TMB (Transportes Metropolitanos de Barcelona) placed the first order for 25 new-generation 40-foot BYD electric buses in November 2021, with deliveries due between 2022 and 2024. This directive is part of a plan to phase out polluting diesel buses in Barcelona by 2025.

    Figure1: Automotive Electric Bus Market, by Region, 2022 & 2032 (USD million )

    Automotive Electric Bus Market, by Region, 2022 & 2032

    Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

    Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil. 

    Europe is the second-largest market, with healthy growth predicted during the forecast period. The strict government rules on automobile emissions are the primary driver of market growth in this region. In this region, many governments have begun programs to make municipal public transit more sustainable by implementing clean and green transportation technologies. In this region, demand for fuel cell buses is also increasing. Over the past decade, European cities have seen an increase in motorization, along with worsening air quality, prompting calls to encourage public transport as a way out of the jam.

    Electric buses can play a constructive role in this context, as there are various advantages to switching from traditional diesel buses to electric buses in terms of local pollution, noise, and fuel consumption. The increase in transportation demand and motorization rates is far greater than the increase in infrastructure supply. This has resulted in vehicles using road space beyond the capacity (of certain highways), causing traffic congestion during peak hours.

    The increasing concern about the depletion of fossil fuels and rising levels of environmental pollution is driving the expansion of the electric bus market in North America. With expanded governmental measures such as tariff waiver programs for electric bus operators, the US has led the region's electric bus sector. The US is the most promising market in the region, and it is likely to dominate e-bus demand over the projection period. There are already close to 650 electric buses (totaling 2255 zero-emission buses) operating in the US.

    Demand exceeds supply, with federal funding making it simple for transit operators to buy new units.

    Almost every state in the US has a transit agency that owns or plans to operate modern electric buses. The expansion of the electric bus market in Canada is aided by government programs. Although Canada has electric bus firms like Lion Electric in Quebec and Green Power in Vancouver, the country's adoption rate has been moderate.

    Key Players and Competitive Insights

    The Automotive Electric Bus Market is characterized by the presence of many regional and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.

    MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI group, EBUSCO, and Zhong tong Bus Holding are the major players in the market, competing in terms of a variety of applications in the Automotive Electric Bus Market and their components, as well as efficiency, reliability, affordability, and advanced technology. The primary focus of the players is to provide advanced products to aid in increasing adoption, which could help strengthen a country's growth. Although global players dominate the market, a few regional and other local players with a limited market share also have a prominent presence.

    The major players would look to strengthen their global presence through mergers & acquisitions of local and regional players. They are expected to expand their presence and solutions in many countries during the forecast period. Therefore, vendors must develop new technologies to stay at par with emerging technology trends that could affect the competitiveness of their product lines in the market.

    Key Companies in the Automotive Electric Bus Market market include

    Industry Developments

    • Q2 2024: BYD launches new generation electric bus platform in Europe BYD unveiled its latest electric bus platform for the European market, featuring improved battery technology and enhanced range, aiming to strengthen its position in the region’s growing zero-emission public transport sector.
    • Q2 2024: Volvo Buses and MCV sign partnership to produce electric buses in Egypt Volvo Buses entered a strategic partnership with Manufacturing Commercial Vehicles (MCV) to assemble and distribute electric buses in Egypt, targeting both domestic and export markets in Africa and the Middle East.
    • Q3 2024: Proterra secures $75 million in new funding to expand electric bus battery production Proterra announced a $75 million funding round to scale up its battery manufacturing capacity in the United States, supporting increased demand from transit agencies for electric buses.
    • Q3 2024: Tata Motors wins major electric bus contract from Delhi Transport Corporation Tata Motors secured a contract to supply 1,500 electric buses to the Delhi Transport Corporation, marking one of the largest single orders for electric buses in India to date.
    • Q4 2024: Daimler Buses opens new electric bus production facility in Mannheim, Germany Daimler Buses inaugurated a dedicated electric bus manufacturing plant in Mannheim, Germany, to meet rising European demand and accelerate the transition to zero-emission fleets.
    • Q4 2024: BYD and Castrosua announce joint venture for electric bus production in Spain Chinese EV giant BYD and Spanish bus bodybuilder Castrosua formed a joint venture to manufacture and market electric buses for the Spanish and Portuguese markets.
    • Q1 2025: MAN and BYD lead European electric bus registrations in H1 2025 MAN and BYD recorded the highest number of new electric bus registrations in Europe during the first half of 2025, reflecting strong demand and successful product rollouts in key markets.
    • Q1 2025: NFI Group announces delivery of 100 electric buses to Toronto Transit Commission NFI Group completed the delivery of 100 battery-electric buses to the Toronto Transit Commission, supporting the city’s goal to fully electrify its public transit fleet.
    • Q2 2025: Arrival delivers first batch of electric buses to Italian transit operator UK-based Arrival delivered its first series of electric buses to an Italian public transport operator, marking the company’s entry into the Southern European market.
    • Q2 2025: Yutong Bus secures export order for 500 electric buses to Chile Yutong Bus signed a contract to export 500 electric buses to Chile, supporting the country’s efforts to decarbonize its urban transport system.
    • Q2 2025: Lion Electric opens new electric bus manufacturing facility in Illinois Lion Electric inaugurated a new manufacturing plant in Joliet, Illinois, with the capacity to produce up to 20,000 electric buses and trucks annually for the North American market.
    • Q2 2025: Wrightbus wins contract to supply 60 hydrogen-electric buses to Berlin Wrightbus secured a contract to deliver 60 hydrogen-electric buses to Berlin’s public transport operator, expanding its presence in the European zero-emission bus market.

    Future Outlook

    Automotive Electric Bus Market Future Outlook

    The Automotive Electric Bus Market is projected to grow at a 36.56% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing urbanization.

    New opportunities lie in:

    • Develop advanced battery technologies to enhance range and reduce costs.
    • Implement smart charging infrastructure to optimize energy use and reduce downtime.
    • Expand partnerships with public transport agencies for fleet electrification initiatives.

    By 2035, the market is expected to achieve substantial growth, establishing electric buses as a dominant mode of public transport.

    Market Segmentation

    Automotive Electric Bus Type Outlook

    • Single-Decker
    • Double-Decker

    Automotive Electric Bus Length Outlook

    • 6 to 8 m
    • 9 to 12 m
    • Above 12 m

    Automotive Electric Bus Regional Outlook

    North America
    • US
    • Canada
    • Mexico

    Automotive Electric Bus Propulsion Outlook

    • Battery Electric Vehicle (BEV)
    • Plug-in Hybrid Electric Vehicle (PHEV)
    • Fuel Cell Electric Vehicle (FCEV)

    Report Scope

    Attribute/Metric Details
    Market Size2023 USD 272309.6 million
    Market Size 2024 USD 371974.91 million
    Market Size 2032 USD 4499850 million
    Compound Annual Growth Rate (CAGR) 36.56% (2024-2032)
    Base Year 2023
    Market Forecast Period 2024-2032
    Historical Data 2019- 2023
    Market Forecast Units Value (USD million )
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Type, Propulsion, Length, and Region
    Geographies Covered North America, Europe, Asia-Pacific, Middle East & Africa, and South America
    Countries Covered The U.S, Germany, Canada, U.K., Italy, France, Spain, Japan, China, Australia, India, South Korea, and Brazil
    Key Companies Profiled MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI group, EBUSCO, and Zhong tong Bus Holding.
    Key Market Opportunities Developing EV Charging Infrastructure
    Key Market Dynamics Government initiatives to encourage adoption of electric buses Low operating cost

    Market Highlights

    Author
    Swapnil Palwe
    Team Lead - Research

    With a technical background as Bachelor's in Mechanical Engineering, with MBA in Operations Management , Swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the Automotive/A&D domain. Swapnil has worked on major projects in verticals such as Aerospace & Defense, Automotive and many other domain projects. He has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.

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    FAQs

    How much is the automotive electric bus market?

    The Automotive Electric Bus Market size is expected to be valued at USD 195585.6 million in 2022.

    What is the growth rate of the automotive electric bus market?

    The global market is projected to grow at a CAGR of 36.56% during the forecast period, of 2024–2032.

    Which region held the largest market share in the automotive electric bus market?

    Asia Pacific had the largest share of the global market.

    Who are the key players in the automotive electric bus market?

    The key players in the market are MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI group, EBUSCO, and Zhong tong Bus Holding.

    Which type led the automotive electric bus market?

    The Single-decker type led the automotive electric bus market.

    Which propulsion had the largest market share in the automotive electric bus market?

    Battery Electric Vehicle (BEV) segment had the largest global market revenue share.

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