Electric Bus Market To Grow Substantially At A CAGR Of 12.1% From 2024 To 2030
Electric Bus Industry Overview
The global electric bus market size was estimated at USD 49.81 billion in 2023 and is expected to grow at a CAGR of 12.1% from 2024 to 2030.
An increasing adoption of electric buses owing to rising environmental concerns and government support has contributed to the growth of the electric bus market. Electric buses offer a significant advantage over traditional gasoline and diesel engines by producing zero tailpipe emissions. Additionally, they are generally cleaner and more environmentally friendly. Furthermore, electric buses also provide a quieter ride, significantly reducing noise pollution. This quiet operation enhances driver awareness and passenger comfort. Thus, increasing adoption of electric buses owing to their abovementioned benefits is expected to contribute to the market’s growth from 2024 to 2030.
Gather more insights about the market drivers, restrains and growth of the Electric Bus Market
The sales of electric buses, including all large- and medium-sized buses, are gradually increasing across the globe. According to a report published by the International Energy Agency (IEA), in 2023, China and several European countries such as Norway, Belgium, and Switzerland, achieved electric bus sales shares above 50%. Additionally, countries like Canada, the Netherlands, Chile, Finland, Portugal, Poland, and Sweden witnessed over one-fifth of their bus sales being electric. Furthermore, in 2023, nearly 50,000 electric buses were sold globally, accounting for 3% of total bus sales and increasing the global stock to around 635,000 units. Thus, the growing production and sales of electric buses across the globe are expected to contribute to the market’s growth.
In recent years, various governments have made significant announcements regarding funding for electric and zero-emission buses. Government initiatives and support to promote the adoption of electric buses are increasing across the globe. For instance, the Clean School Bus Program of the U.S. Environmental Protection Agency (EPA) offers funding to eligible applicants such as school districts, local and state government programs, non-profit organizations, federally recognized Indian tribes, and qualified contractors, to replace existing school buses with alternative fuel, clean or zero-emission buses. Furthermore, in January 2024, EPA announced the selection of 67 applicants to receive nearly USD 1 billion in funding through its Clean School Bus Program Grants Competition. Thus, increasing government investments and initiatives in the electric bus sector boosts the market’s growth.
Furthermore, several electric bus manufacturers are developing electric buses to gain a competitive edge in the global market, which, in turn, drives the market’s growth. For instance, in November 2023, Alexander Dennis, a prominent global bus manufacturer and a subsidiary of NFI Group Inc., introduced its latest generation of battery-electric buses for the U.K. and Ireland. The Enviro400EV double-decker and Enviro100EV small bus models are designed to cater to the growing demand for eco-friendly public transportation in these countries. Such initiatives are expected to bode well for the growth of the market.
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- The global electric vehicle market size was estimated at USD 1,070.77 billion in 2023 and is anticipated to grow at a CAGR of 33.6% from 2024 to 2030.
- The global lithium iron phosphate (LiFePO4) battery market size was estimated at USD 8.25 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 10.5% from 2024 to 2030.
Electric Bus Market Segmentation
Grand View Research has segmented the global electric bus market based on type, battery type, application, end use, and region:
Electric Bus Type Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)
- Battery Electric Vehicle
- Plug-in Hybrid Electric Vehicle
- Fuel Cell Electric Vehicle
Electric Bus Battery Type Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)
- Lithium Nickel Manganese Cobalt Oxide
- Lithium Iron Phosphate
Electric Bus Application Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)
- Intercity
- Intracity
Electric Bus End Use Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)
- Public
- Private
Electric Bus Regional Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Latin America
- Brazil
- Middle East & Africa
- UAE
- Kingdom of Saudi Arabia
- South Africa
Key Companies profiled:
- BYD Company Limited
- AB Volvo
- Proterra
- MAN
- Nissan Motor Corporation
- Ashok Leyland Limited
- Daimler Truck AG
- Zhengzhou Yutong Bus Co., Ltd.
- TATA Motors Limited
- Hyundai Motor Company
Key Electric Bus Company Insights
Some of the players operating in the market include BYD Company Limited, AB Volvo, Nissan Motor Corporation, Daimler Truck AG, Hyundai Motor Company, and TATA Motors Limited.
- AB Volvo is a manufacturer of trucks, buses, construction equipment, and marine and industrial engines. The company also offers comprehensive financing and service solutions, catering to the diverse needs of its customers worldwide.
- TATA Motors Limited, an automobile manufacturer, provides an extensive portfolio of integrated, smart, and e-mobility solutions, including utility vehicles, cars, buses, and trucks. The company operates through five business segments: Commercial Vehicles, Passenger Vehicles, Electric Vehicles, Jaguar Land Rover, and Tata Motors Finance.
Proterra, MAN, Ashok Leyland Limited, Zhengzhou Yutong Bus Co., Ltd., and others are some of the emerging companies in the electric bus market.
- Proterra is a prominent company in the development and production of heavy-duty, zero-emission electric transit vehicles, providing environmentally friendly and quiet transportation solutions to local communities across North America.
- Zhengzhou Yutong Bus Co., Ltd. is a manufacturer of commercial vehicles, particularly electric buses. The company provides city buses, long-distance coaches, commuters, school buses, tourist coaches, and special mobility vehicles.
Recent Developments
- In March 2024, Volvo Buses, a subsidiary of AB Volvo, introduced the Volvo 8900 Electric, a cutting-edge electric low-entry bus designed for intercity, commuter, and city operations. This innovative bus is available in both two- and three-axle configurations, allowing operators to optimize their fleet for efficient, sustainable, and profitable traffic management.
- In December 2023, Karsan is a Turkish commercial vehicle manufacturer announced the launch of its e-JEST right-hand drive minibus in Japan. The e-JEST electric minibus was first introduced in Europe in late 2018. Since then, it has expanded its global reach, being launched in the U.S. and Canada as the market’s first electric minibus.
Order a free sample PDF of the Electric Bus Market Intelligence Study, published by Grand View Research.
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