|Fastest Growing Market:||North America|
|Largest Market:||Asia Pacific|
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The Electric Bus Market was valued at USD 35.81 billion in 2021, and it is expected to reach USD 98.7 billion by 2027, registering a CAGR of 12.44% during the forecast period (2022-2027).
The COVID-19 outbreak had a negative impact on most industries throughout the world. It had a mixed impact on the electric bus market. Initially, the market saw a reduction in passengers as consumers reduced their use of public transportation for fear of contracting the COVID-19 virus. Furthermore, the market experienced supply chain disruptions, which made it difficult to manufacture new buses.
However, since several nations exploited this sector to impose economic recovery, the market experienced a spike in registrations. Many rules have been implemented by countries such as China, India, and others to help support the booming electric bus market.
Oevr the long term, rapid urbanization, rising oil prices, rising air pollution, government efforts, and lowering battery prices all contributed to the worldwide electric bus market's growth. However, high development costs, limited battery capacity, and the rising popularity of natural gas-fueled buses are projected to limit market expansion. Factors driving the electric bus market include a rise in demand for fuel-efficient, high-performance, and low-emission buses, strict government emission norms and regulations, and lower battery prices.
Governments across nations-initiated changes in the public transportation systems by committing to electrify their bus fleets. Robust government support in the form of subsidies is helping bring the total cost of an electric bus below that of a similar diesel variant, resulting in increased adoption of electric buses across the world.
Further significant demand for electric buses in countries like China, Japan, South Korea, and India, the market in Asia-Pacific is expected to develop the quickest. Additionally, in order to minimize vehicle emissions, China has deployed a large number of electric buses.
Scope of the Report
An electric bus is any bus whose propulsion and accessory systems are powered exclusively by a zero-emissions electricity source. The electricity source can be onboard batteries, a hydrogen-fuel cell, overhead wires, like a trolleybus application, or ground-based non-contact conductors.
An electric bus market has been segmented based on vehicle type, consumer segment, and geography. By vehicle type, the market is segmented into battery electric bus, plug-in hybrid electric bus, and fuel cell electric bus. By consumer segment, the market is segmented into government and fleet operators.
By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle -East and Africa. For each segment, the market sizing and forecast have been done on the basis of value (USD billion) for all the above segments.
|By Vehicle Type|
|Battery Electric Bus|
|Plug-in Hybrid Electric Bus|
|Fuel Cell Electric Bus|
|By Consumer Segment|
Key Market Trends
Battery Electric Bus Segment to Play Prominent Role in the Market
Though diesel buses are majorly used across the world, electric buses especially battery electric buses. Moreover, these buses tend to be used majorly in cities with more populated density, and around these areas, air quality has already been degraded by other pollutants.
- In the United States, the EPA and NHTSA proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rule to be effective from 2021 to 2026. The rule may set the standards for corporate average fuel economy and greenhouse gas emissions for passenger and commercial vehicles. The Zero-emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV plan aims at putting 12 million ZEVs (including buses) on the road by 2030 in the country.
- The Government of India plans to electrify 30% of the overall vehicles sales by 2030. As a part of this plan, in phase two of the FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) program, the government announced an outlay of USD 1.4 billion through 2022. This phase focuses on the electrification of public and shared transportation through subsidizing 7090 electric buses across India.
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 expected to show high adoption rates of battery-electric buses during the forecast period, owing to their ongoing purchase orders for e-buses. For instance,
- The Bangalore Metropolitan Transport Corporation (BMTC), the largest public transit bus operator in India, has big plans for battery electric buses. It announced it would purchase as many as 1,800 of them in the next several years, and the Karnataka state government aims to transition all 6,500 of BMTC’s buses to zero-emission vehicles by 2030.
Not only are various cities adding electric buses to 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) and 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.
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Asia-Pacific Region Expected to Grow Significantly During the Forecast Period
Asia-Pacific region expected to hold key market share during the forecast period inwake of growing domestic demand supported by the national sales targets, favorable laws, supportive subsidies, and municipal air-quality targets. China is one of the key player in the global electric bus market and is home to 98 percent of the world's electric buses. China is anticipated to sustain its dominance during the forecast period.
- In March 2021, more than 421,000 electric buses were in use China, which amounts to about 99.0% of the global fleet. The keen focus on electrification of public transit with prevalent subsidies and national regulations is a major factor contributing toward the high market share of China in the global electric bus market.
The Indian government is looking at electric vehicles and is encouraging people to buy and use green energy vehicles. The state governments in the country are including electric buses in their fleet in order to convert their ICE fleet of buses and reduce the operational cost while also reducing carbon emissions and improving the air quality. For instance,
- In March 2021, the Delhi government approved a proposal to procure 300 new low-floor electric (AC) buses to increase the number of buses in the city. The upcoming buses will be inducted into the Delhi Transport Corporation (DTC). The first lot of 118 buses will arrive in October this year, while November will see an addition of 100 buses. As many as 60 buses will arrive in December, while the remaining 20 buses are expected to be received by January 2022.
Therefore, such developments and trends anticipated to support significantly the demand across major countries in the region during the forecast period.
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The market for electric buses is moderately consolidated, with the presence of major Chinese players that cater to the requirements global requirements. Some of the prominent players in the market are Yutong Bus Co. Ltd., BYD Auto Co. Ltd., CRRC Electric, Zhongtong Bus Holding Co. Ltd., King Long United Automotive. These companies adopt strategies such as new product developments, collaborations, contracts, and agreements to sustain their market position. For instance,
- In January 2022, BYD announced that it delivered 70,000 electric buses worldwide and announced plans of investment and expansion continue at BYD’s eBus factory in Hungary, supporting its principle of ‘Made in Europe for Europe’.
- In January 2021, The French state-owned public transport operator RATP has placed two orders for a total of 109 electric buses. The order was announced by Blue bus – a French electric bus manufacturer within the BolloréGroup who will be responsible for delivering the order. The buses are to be deployed throughout the Ile-de-France region, i.e., the Paris metropolitan area and will be powered by solid-state batteries.
- In May 2022, Daimler Buses aims to offer zero emission vehicles in every segment by 2030 (both battery and hydrogen-powered). Starting in 2023, the Mercedes eCitaro will be also equipped with a hydrogen-based fuel cell as a range extender. The first full electric intercity bus will be launched in 2025.
- In December 2021, Daimler partnered with Meritor to supply powertrain to electric buses. The intended agreement will span five years and is expected to start in January 2024.
- In November 2021, Anadolu Isuzu and Proterra Inc. announced a new collaboration to power the Anadolu Isuzu’s all-electric Citi VOLT public transportation buses with Proterra’s commercial vehicle battery technology. Under the collaboration, Anadolu Isuzu will incorporate Proterra’s battery technology into its new 12-meter and 18-meter zero-emission Citi VOLT electric bus models.
- In November 2021, Olectra Greentech Limited announced an investment into a fully automated manufacturing unit in India, with a capacity of 10,000 units of various electric bus models per year.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD billion)
5.1 By Vehicle Type
5.1.1 Battery Electric Bus
5.1.2 Plug-in Hybrid Electric Bus
5.1.3 Fuel Cell Electric Bus
5.2 By Consumer Segment
5.2.2 Fleet Operators
5.3.1 North America
220.127.116.11 United States
18.104.22.168 Rest of North America
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Daimler AG
6.2.2 Anhui Ankai Automobile Co. Ltd
6.2.3 BYD Co. Ltd
6.2.4 Iveco Bus
6.2.5 New Flyer Industries
6.2.6 Proterra Inc.
6.2.7 King Long United Automotive
6.2.8 Scannia AB
6.2.9 AB Volvo
6.2.10 Zhengzhou Yutong Bus Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Electric Bus Market market is studied from 2018 - 2027.
What is the growth rate of Electric Bus Market?
The Electric Bus Market is growing at a CAGR of 18.06% over the next 5 years.
What is Electric Bus Market size in 2018?
The Electric Bus Market is valued at 40 Billion USD in 2018.
What is Electric Bus Market size in 2027?
The Electric Bus Market is valued at 98 Billion USD in 2027.
Which region has highest growth rate in Electric Bus Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Electric Bus Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Electric Bus Market?
BYD Auto Co. Ltd, Yutong Bus Co., Ltd., CRRC Electric, Zhongtong Bus Holding Co., Ltd., King Long United Automotive are the major companies operating in Electric Bus Market.