Asia-Pacific Electric Bus Market Size

Asia Pacific Electric Bus Market Analysis

The Asia-Pacific Electric Bus Market size is estimated at USD 44.74 billion in 2024, and is expected to reach USD 73.88 billion by 2029, growing at a CAGR of 10.55% during the forecast period (2024-2029).

The Asia Pacific Electric Bus market suffered a big decline during the COVID-19 pandemic due to manufacturing shutdowns, lockdowns, and trade restrictions. Furthermore, the fall in automotive production restrictions on travel in public transport, and lack of labor significantly impacted the market. As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.

Over the long term, increasing investments in production capacity by major industry players, as well as various policies announced by the governments of China and India to completely electrify the public transport in their respective countries by 2030 , adoption of stringent automotive emission norms like Bharat Stage 6 norms in India and announcement by major countries like China, India, Japan and South Korea to ban sales of new ICE engine vehicles by 2040 are creating demand in the electromobility industry with a surge in sales of electric buses in the region. Higher purchasing price of electric buses than diesel/CNG buses, lack of charging infrastructure and prominence of diesel buses in markets like Japan and ASEAN are likely to be the major restraints for the growth of electric buses in Asia-Pacific.

Key players in the market are entering new markets to cater to the increased demand for electric buses. For instance, in May 2022 BYD announced the launch of its electric buses in Japan and announced the target of selling 4000 electric buses in Japan by 2030. Also in August 2022 CATL and Zhengzhou Yutong Bus Co. Ltd. extended their cooperation for electric batteries till 2032.

China is the largest market for electric buses due to the presence of large number of electric bus manufacturers and the government plan to decarbonise the public transport in the country before 2030. India is the fastest growing market for electric buses in the region largely due to government initiatives like allocation of USD 10 billion to purchase 50000 electric buses to make all the public transport in the country carbon neutral by 2030. Thus electric bus sales in Asia-Pacific are anticipated to grow at a healthy CAGR due to the confluence of the above factors.