Electric buses run entirely on electric batteries providing emission free transportation. Their batteries can be charged through electric charging stations. As the batteries don’t require refuelling like diesel buses, electric bus operation is cheaper in the long run.
The Electric Bus Market is estimated to be valued at US$ 14,795.5 Mn or Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Stringent emission regulations around the world regarding vehicular emissions are expected to drive the growth of the electric bus market during the forecast period. Many countries and cities are incentivizing adoption of electric transportation including electric buses to reduce pollution. Subsidies and tax credit schemes for procurement of electric buses are encouraging transition from conventional diesel buses to electric buses. Furthermore, falling battery prices are making electric buses a more viable option for public transportation systems globally.
SWOT Analysis
Strength: Electric buses are economical to operate as they are cheaper than diesel buses in terms of fuel and maintenance costs. They are also more eco-friendly as they do not emit harmful exhaust gases.
Weakness: The upfront costs of electric buses are much higher than conventional diesel buses. The limited driving range of electric buses per single charge also restricts their operations to shorter routes. Battery replacement costs add to their lifetime expenses.
Opportunity: Increasing support from governments in the form of subsidies is boosting the adoption of electric buses. Many countries and cities are setting targets to replace existing fleets with zero-emission vehicles to curb air pollution.
Threats: The limited charging infrastructure can act as a roadblock for large-scale electric bus adoption. Dependency on raw material price volatility for batteries is also a concern. Technology upgrades by competitors can quickly make existing electric bus models obsolete.
Key Takeaways
The global electric bus market is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing government initiatives to curb air pollution from public transportation. Many countries have announced plans to shift their bus fleets to electric models in the coming years.
Regional analysis: China dominates the electric bus market currently due to the bulk procurement of electric buses by local governments and manufacturers based in the country. Several European countries are also emerging as high potential markets for electric buses due to stringent emission norms. Cities like London, Paris and Amsterdam are procuring electric buses in large numbers.
Key players operating in the electric bus market are AB VOLVO, CAF, CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES, S.A., ANKAI BUS, ZHONGTONG BUS HOLDINGS CO., LTD, BYD COMPANY LTD, PROTERRA, DAIMLER AG, YUTONG GROUP, NFI GROUP INC. and VDL GROEP BV. These players are focusing on expanding their product portfolios as well as sales and distribution networks globally to strengthen their positions in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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