Electric Bus Market is Expected to Grow at a CAGR of 12.3% from 2022 to 2028

Electric Bus
  • Electric Bus Market

As stated in our extensive report; providing insights onPropulsion Type, Consumer, Application, Bus Type, Vehicle Range, Battery Capacity, Power Output, Battery type, Component (Qualitative), Seating Capacity and Autonomy;the Global Electric Bus Market accounted for USD 18.5 Billion in 2021.

An Electric Bus which is also known as an e-bus, works entirely on electricity instead of a standard internal combustion engine. An on-board electric motor is used to power the E-bus, which is further driven by on-board batteries or a set of batteries. Electric Buses are considered environmentally friendly because they emit no emissions and are also cost effective when compared to typical gasoline/diesel buses. Factors driving the Electric Bus market include an increase in demand for fuel-efficient, high-performance, and low-emission buses, strict government emission norms and regulations, and lower battery prices. Further, the increase in focus of countries on promoting electrification of mass transit solutions is also likely to fuel the growth of the market during the forecast period.

The increase in government support for electrification of public transport is anticipated to augment the growth of the Electric Bus Market during the forecast period. Governments across the globe have been offering lucrative fiscal incentives to promote shared mobility and clean transportation in order to drive the commitment to reduce greenhouse gas (GHG) emissions and improve air quality in metropolitan areas. Governments all over the world have introduced enticing efforts and schemes to encourage the usage of Electric Buses. Developed-country governments have started the tender process to expand the usage of Electric Buses in their cities. For example, out of a total bus fleet of 9,068, London had 3,884 hybrid buses, 485 Electric Buses, and two hydrogen buses operational as of March 2021, with intentions to raise this number to 9,200 Electric Buses by 2037. A move to sustainable energy for public transportation has numerous advantages. The introduction of e-buses will contribute to local emission reduction commitments. With the simultaneous greening of electrical generation in densely populated countries like China and India, the benefits would be much larger. The government of India's National Electric Mobility Mission Plan (NEMMP) 2020 aims to promote EV manufacturing and adoption in the country. Further, the industry is also growing owing to the increased deployment of electric charging stations around the world.

However, the high development cost and concerns over battery safety are limiting the market's growth. Moreover, the reduction in battery prices is likely to create opportunities for the growth of the market in near future. Furthermore, the rising demand for emission-free and energy-efficient mass transit solutions is also expected to support the growth of the market in near future.

Asia Pacific dominated the Global Electric Bus Market in 2021 and is likely to continue with the same trend during the forecast period. This is attributable to the increase in need to reduce urban pollution and dependency on fossil fuels in the region. Furthermore, the rising government's initiatives toward clean public transportation are also expected to fuel the regional growth of the market. Additionally, presence of major players companies such as BYD, Ankai, Yutong, and Zhongtong in the region is also expected to support the growth of the market in the region.

Some of the prominent players operating in the Global Electric Bus Market include BYD (China), Yutong (China), CAF (Solris) (Spain), VDL Groep (Netherlands), AB Volvo (Sweden) and others.