Electric Bus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Electric Bus Market is segmented by Vehicle Type (Battery Electric Bus, Plug-in Hybrid Electric Bus, and Fuel Cell Electric Bus), Consumer Segment (Government and Fleet Operators), and Geography.

Market Snapshot

electric bus market-overview
Study Period:

2018 - 2026

Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific


11.63 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The electric bus market was valued at USD 14.03 billion in 2020 and is anticipated to reach USD 24.34 billion by 2026 at a CAGR of about 11.63%, during the forecast period (2021-2026).

The outbreak of COVID-19 and the subsequent shutdowns have affected the e-bus market in several countries. The negative impacts of the pandemic are visible in the global supply chains as several orders get delayed. Hence, the reduction in production rate at the start of the year due to the pandemic-induced disruptions affected the market last year. However, the market regained its growth by the end of 2020.

The growth of the electric bus market has been attributed to the increasing concerns about the depletion of fossil fuels and environmental pollution. In order to tackle the aforementioned issues, many governments across the world have initiated changes in the public transportation systems, by replacing heavy-duty diesel and gasoline-run buses with zero-emission electric buses.

Asia-Pacific has been leading the electric bus market, with increased government initiatives in countries, like India, China, and Japan. Currently, China is the most promising market for electric buses, globally, and this is likely to lead the e-bus demand over the forecast period. Moreover, the overall bus purchases in the country is expected to remain stable, with more than 400,000 new purchases by 2025.

Electric bus purchases are expected to increase, supported by the continuous government initiatives to promote e-mobility, and the overall e-bus adoption is likely to reach 40% of new bus purchases, globally, by 2040

Scope of the Report

Electric buses, which primarily run by consuming electrical energy, have been considered under the scope of the market. Electric buses are being operated in two modes, electric-only and hybrid (electrical energy may be the primary fuel, thus, consuming less petroleum), which can be recharged from a standard electrical outlet.

The study on electric bus market covers the vehicle type and consumer segment. The market is also segmented by geography. For each segment, the market sizing and forecasts have been done on the basis of value (USD billion)

By Vehicle Type
Battery Electric Bus
Plug-in Hybrid Electric Bus
Fuel Cell Electric Bus
By Consumer Segment
Fleet Operators
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
South America
Rest of South America
Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

Report scope can be customized per your requirements. Click here.

Key Market Trends

Battery Electric Bus to Witness Growth

Transit agencies across various countries have been significantly promoting the adoption of electric buses for public transportation. Among the regions, Asia-Pacific and North America are likely to show high adoption rates of battery-electric buses during the forecast period, owing to their on-going purchase orders for e-buses. For instance,

  • In September 2020, the city of Bodö of Norway placed an order for 31 electric Volvo buses. In the 31 electric buses, 17 are of the 12-meter Volvo 7900 Electric model and the remaining 14 are high-capacity Volvo 7900 Electric Articulated buses. These buses have a capacity of up to 120 passengers.
  • In June 2020, VyBuss AB ordered 49 high-capacity Volvo 7900 Electric Articulated buses. The new buses, which are scheduled to enter operation in Jönköping, Sweden in summer 2021.

Not only various cities are adding electric buses in their fleet, but major investment has been seen by the governments for research and development of these buses. For instance, in February 2020, Canada launched North America’s first research cluster for researching fuel cell and battery-electric buses. The Canadian Urban Transit Research and Innovation Consortium (CUTRIC), along with seven other partners, are contributing USD 4.2 million to support the National Academic Committee on Zero-Emission Buses (NAC-ZEB), along with additional federal funding of USD 551,000. CUTRIC will support research in electric and hydrogen bus modeling and simulation tools, cybersecurity of electric buses, battery, and fuel cell electric bus performance visualization for batteries, motors, powertrain, fuel cell stack optimization, etc.

key market trend 1

To understand key trends, Download Sample Report

Asia-Pacific Dominates the Electric Bus Market

In Asia-Pacific, China is the largest manufacturer and consumer of e-buses in the world. The country’s domestic demand has been supported by the national sales targets, favorable laws, supportive subsidies, and municipal air-quality targets.

During the forecast period, China may continue to witness growth in the adoption of electric buses, as more than 30 Chinese cities have made plans to achieve 100% electrified public transit by the start of 2021, including Guangzhou, Zhuhai, Dongguan, Foshan, and Zhongshan in the Pearl River Delta, along with Nanjing, Hangzhou, Shaanxi, and Shandong.

Major Chinese e-bus suppliers are expanding their market presence outside China with the increasing electric bus deployment around the world. In 2020, Chinese bus makers sold around 61,000 new energy buses, whereas the total bus production in China accounted for around 150,000 units. For instance,

  • In November 2020, Yutong Bus signed an agreement with Qatar Free Zones Authority (QFZA) and Mowasalat to establish a KD factory in Qatar. Company will be supplying 741 units of e-buses for FIFA World Cup 2022.
  • In January 2021, -BYD announced that it has bagged a cumulative order to supply 1,002-unit pure-electric buses to Bogota, Colombia. These buses are scheduled to be delivered during 2021 and into the first half of 2022 and will be put into operation on 34 bus routes across five regions of the city.
key market trend 2

To understand geography trends, Download Sample Report

Competitive Landscape

The market for electric buses is slightly consolidated, with the presence of major Chinese players that cater to the requirements global requirements. Some of the prominent players in the Volvo Group, Daimler AG, BYD Auto Co., Ltd, and Zhengzhou Yutong Bus Co., Ltd. among others. Owing to the increasing number of orders for its electric buses from the domestic and international markets the competition in the market is growing, For instance,

In June 2020, Link Transit in Wenatchee, Washington, received the delivery of 10 new all-electric 35-ft K9S buses, with a range of up to 215 miles (346 km) and seating for up to 32 passengers. 

Recent Developments

In January 2021, Volvo Buses announced that its subsidiary Nova Bus, has been awarded a contract for 15 LFSe+, Nova Bus’ electric buses, by TransLink, Metro Vancouver's transportation network.

In December 2020, in India, the Indian Oil Corporation (IOC) announced that it will buy 15 that hydrogen fuel buses. The oil company has invited bids to procure 15 polymer electrolyte membrane (PEM) fuel cell buses., and it will also be setting up a facility for research and development (R&D) centre to produce hydrogen to run the buses. 

In September 2020, in Sweden, Svealandstrafiken ordered ten electric buses from Volvo. The first batch of the new buses will enter into operation in Västerås city in summer 2021.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Vehicle Type

      1. 5.1.1 Battery Electric Bus

      2. 5.1.2 Plug-in Hybrid Electric Bus

      3. 5.1.3 Fuel Cell Electric Bus

    2. 5.2 By Consumer Segment

      1. 5.2.1 Government

      2. 5.2.2 Fleet Operators

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Russia

        6. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle East & Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle East & Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Daimler AG

      2. 6.2.2 Anhui Ankai Automobile Co. Ltd

      3. 6.2.3 BYD Co. Ltd

      4. 6.2.4 Iveco Bus

      5. 6.2.5 New Flyer Industries

      6. 6.2.6 Proterra Inc.

      7. 6.2.7 Ryobi Bus

      8. 6.2.8 Scannia AB

      9. 6.2.9 AB Volvo

      10. 6.2.10 Zhengzhou Yutong Bus Co. Ltd


**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Automotive Electric Bus Market market is studied from 2018 - 2026.

The Automotive Electric Bus Market is growing at a CAGR of 11.63% over the next 5 years.

The Automotive Electric Bus Market is valued at 14.03 Billion USD in 2018.

The Automotive Electric Bus Market is valued at 24.34 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • Volvo Group
  • Daimler AG
  • Zhengzhou Yutong Bus Co. Ltd
  • Anhui Ankai Automobile Co. Ltd
  • BYD Auto Co., Ltd.

Are the major companies operating in Automotive Electric Bus Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!