Automotive Electric Bus Market Size

Automotive Electric Bus Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The electric bus is the most important of the vehicles used by the railways, and is growing in importance in the United States, but not yet on a large scale. In Europe, the electric bus is still a rarity, and is only used in a few cities. The electric bus will increase at a rate of 36% CAGR in the forecast period. In view of the above, it can be said that the growth of electric buses is a reflection of a general trend towards sustainable transport solutions, which is driven by growing urbanization, stricter government regulations on emissions and a growing demand for public transport with low carbon emissions. There are also technological advances that drive the market, such as advances in battery technology, which increases the range and efficiency of electric buses. In addition, the integration of smart technology such as the Internet of Things and artificial intelligence optimizes the management and operation of the bus fleet. The industry's key players, such as BYD, Proterra and New Flyer, are investing in R & D, forming strategic alliances and launching new products to win market share. For example, BYD is expanding its global electric bus business, while Proterra is developing high-performance electric bus models for different cities. These initiatives show the competitiveness of the industry and the commitment of its key players to the transition to electric mobility.

Regional Market Size

Regional Deep Dive

The electric bus market is experiencing significant growth across various regions, owing to the growing urbanization, increasing concern about the environment, and technological advancements in batteries. The electric bus market is expected to be primarily driven by government initiatives to reduce the carbon footprint and promote sustainable public transport. Each region of the electric bus market has its own characteristics, which are influenced by the local regulations, economic conditions, and the cultural inclinations towards sustainable growth.

North America

• Moreover, the United States government has introduced the "Bipartisan Infrastructure Act", which allocates a large number of funds for electric vehicles, including electric buses, and promotes the development of the market.
• In the United States, Proterra and New Flyer are at the forefront of electric bus manufacturing. Proterra has recently unveiled a new battery that increases the range of its electric buses, making them a viable option for longer routes.
• The stricter emissions regulations in California and the decision to make all public transportation zero-emission by 2040 are driving the local government to buy electric buses and have a significant impact on the market.

Europe

• The Green Deal of the European Union aims to make Europe the first climate-neutral continent by 2050. The plan includes considerable investment in public transport running on electricity, which will in turn boost the market for electric buses.
• Germany and the Netherlands are leading in the field of electric buses. In the city of Amsterdam, the city government has subsidized the purchase of electric buses.
• And the London wireless charging system, which is being introduced in many other cities, will increase the efficiency of electric buses and encourage their use.

Asia-Pacific

• China is now the world's biggest manufacturer of electric buses, and BYD and Yutong have monopolized a large part of the market, supported by government subsidies and other forms of support.
• FAME, the Faster Adoption and Manufacturing of Electric Vehicles, is a programme to encourage the use of electric buses. The Indian capital of New Delhi plans to purchase several thousand buses in the coming years.
• A rapid development of batteries is taking place in the Middle East. The use of solid state batteries is expected to improve the performance and range of electric buses.

MEA

• In the United Arab Emirates, public transport is already being electrified, with the Roads and Transport Authority in Dubai aiming to have a quarter of its fleet electric by 2030.
• The African Development Bank is financing projects for the introduction of electric buses in cities such as Nairobi, thereby combining the problems of transport and the environment.
• In several countries of the Middle East and Africa, the regulatory framework is evolving to support the use of electric vehicles, and incentives are being offered to electric bus manufacturers and operators.

Latin America

• The electric bus market is gaining importance, and the city of So Paulo is launching a pilot project for reducing the city’s pollution by means of electric buses.
• Government policies, such as the commitment of Colombia to electrify its public transport, are driving investment in electric buses.
• Local manufacturers are beginning to enter the market, and companies such as Marcopolo are developing electric buses adapted to the needs and conditions of the region.

Did You Know?

“China accounted for more than 90% of the world's electric bus market in 2023, showing its dominance in the production and application of electric public transport.” — International Energy Agency (IEA)

Segmental Market Size

The electric bus plays an important role in the overall public transport sector, which is currently undergoing a strong growth phase due to growing urbanization and rising concerns over the environment. Besides the increasing demand for sustainable public transport solutions, the electric bus market is driven by the tightening of emission regulations, as well as the increasing efficiency and range of electric buses. Europe and North America lead the way in this market, with cities investing in electric bus fleets to meet climate goals and reduce air pollution.

The electric bus has now moved from the trial stage to the stage of mass production, and some cities have already taken the lead in introducing electric buses, such as Los Angeles and London. The main application is in urban public transportation, school buses, and shuttle buses in airports and company buildings. The trend of government policies to drive zero-emission vehicles and the development of sustainable development is driving the market. Also, the fast-charging system and the smart bus are promoting the development of the industry, and enabling more efficient operation and better integration with existing public transport systems.

Future Outlook

The electric bus market will experience considerable growth from 2024 to 2032, with a projected market value from $371.97 million to $4.5 billion. This translates into a CAGR of 36.56 percent, which indicates that there is a strong demand for electric buses as cities and transport authorities are increasingly looking for sustainable transport solutions. By 2032, electric buses will represent more than 25 percent of the total bus fleet in major cities, which is driven by both the need for sustainable public transport and the need to save costs.

The main technical advances, such as the improvement in the efficiency of batteries and the expansion of the charging network, will play a major role in the development of this market. The use of IoT and artificial intelligence in fleet management will improve the performance of the vehicles and reduce downtime. Also, government incentives to reduce carbon emissions and the introduction of subsidies will accelerate the development of the market. Also, the shift towards the electric bus, the development of hydrogen and fuel cell technology will reshape the competition, creating new opportunities for manufacturers and operators.