Electric buses are environmentally friendly vehicles that use electric motors and batteries instead of an internal combustion engine. They provide sustainable public transportation options for cities looking to reduce their carbon footprint. Features such as zero tailpipe emissions, less noise pollution than diesel buses, and lower fuel and maintenance costs make electric buses an attractive solution for dense urban areas.
The global Electric Bus Market is estimated to be valued at US$ 14,795.5 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:
Increasing urbanization and rising pollution levels are driving demand for electric buses globally. According to UN projections, over 68% of the world population will live in urban areas by 2050 compared to 55% currently, increasing traffic congestion and emissions in cities substantially if no corrective action is taken. Electric buses produce zero direct emissions and can help cities lower their carbon footprint. Urban communities are recognizing this advantage and supporting initiatives to replace traditional diesel buses with electric versions. Subsidies and funding for electric bus procurement and developing charging infrastructure are encouraging public transport agencies to transition to clean mobility solutions and relieve citizens from deteriorating air quality issues brought upon by urbanization.
Strength: Electric buses have lower operating and maintenance costs than conventional diesel buses due to minimal fuel costs and reduced brake wear. They also produce zero direct emissions, providing environmental benefits.
Weakness: High upfront capital cost of electric buses compared to diesel buses remains a hurdle for widespread adoption. Limited operating range per charge is also a concern.
Opportunity: Stringent emission regulations on commercial vehicles and push for sustainable transportation provide growth opportunities for electric buses. Rising environmental awareness among consumers and governments promotes the electric bus market.
Threats: Undeveloped charging infrastructure poses range anxiety issues. Dependency on imported battery technologies increases susceptibility to global supply chain disruptions.
The global electric bus market is expected to witness high growth over the forecast period of 2023 to 2030. The global Electric Bus Market is estimated to be valued at US$ 14,795.5 Mn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Asia Pacific currently dominates the market accounting for over 60% of global sales in 2024. Increased government investments to expand public transportation networks and replace aging fleets with emission-free vehicles are driving the region’s electric bus market. China has emerged as the global leader with the largest electric bus fleet size globally.
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 focused on expanding production capacities and service networks to tap into opportunities arising from fleet electrification initiatives worldwide. They are also investing in battery technologies to improve bus ranges.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it