Electric Bus Market Will Grow Rapidly In Coming Years
Electric Bus Industry
The global electric bus market size is anticipated to reach USD 110.44 billion by 2030 and expanding at a CAGR of 12.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market growth is attributed to the rising demand from private transit agencies, city planners, and private institutions for alternatives to conventional buses and increase in production of cost-effective batteries are major factors driving the growth. Additionally, the rapid expansion of fast-charging infrastructure is significantly contributing to the growing adoption of electric buses globally.
Increased government support for electrifying public transportation is expected to propel the market’s growth. For instance, in March 2024, the New York City awarded a funding of USD 77 million from the federal Bipartisan Infrastructure Law to enhance the number of electric school buses and trucks in the city. The funding includes a grant of USD 61.1 million from the U.S. EPA’s Clean School Bus Grant Program, which will add 180 new electric school buses to the city’s fleet, effectively quadrupling the total number of electric school buses in New York City. Such initiatives are expected to bode well for the growth of the market.
Stringent environmental regulations and government emission standards are poised to open significant growth opportunities for the electric bus industry. Numerous government bodies have implemented pioneering pollution reduction programs that offer incentives to promote the adoption of electric buses in public transportation systems. Furthermore, the global transportation sector's growing focus on sustainability is driving customers to increasingly embrace alternative and innovative energy vehicles.
Furthermore, rising investment by the government to boost the battery charging infrastructure is expected to fuel the electric bus industry. For instance, in October 2023, the French government allocated funding to accelerate the deployment of electric vehicle charging points, ensuring that France remains on track to meet the ambitious targets set by the EU’s new alternative fuel infrastructure regulation. France aims to install over 400,000 electric vehicle charging points on its road network by 2030, with a specific target of 50,000 fast charging points.
Gather more insights about the market drivers, restrains and growth of the Global Electric Bus market
Electric Bus Market Segments Highlights:
- Based on type, the battery electric vehicle (BEV) segment dominated the market in 2023. Battery-powered electric buses can significantly mitigate the environmental and health hazards associated with diesel buses, while offering a reliable and cost-effective solution for cities and school districts. Advances in electric bus technology and a rapid decline in battery costs are driving the segment’s growth.
- Based on battery type, the lithium iron phosphate segment dominated the market in 2023. Lithium iron phosphate (LFP) battery packs have emerged as a preferred choice for electric buses due to their ability to provide high voltage, power density, extended life cycle, reduced heating, and enhanced safety compared to other battery technologies.
- In terms of application, the intercity segment is expected to grow at a fastest CAGR from 2024 to 2030. The growing demand for electric buses for long-distance transportation applications is boosting the segment’s growth.
- Based on end use, the public segment accounted for the largest market share in 2023. A surge in the adoption of electric buses for airport operations, in schools and for intercity and intracity services can be attributed to the segment’s growth.
- The North America region is expected to grow at the fastest CAGR from 2024 to 2030. The demand for electric buses in North America is experiencing a significant surge, driven by several key factors. The U.S. is leading country, with the highest sales of electric buses, followed by Canada and Mexico. The growth of electric buses in the region can be attributed to several factors, including growing population, demand for electric school buses and rising adoption of emission-free vehicles.
- In April 2024, NueGo, an electric bus brand of Greencell Mobility Private Limited introduced a long-haul, air-conditioned seater and sleeper intercity electric bus service in India which runs between Chennai and Bengaluru. The launch electric bus service represents a significant step towards decarbonizing India's public transportation sector and fostering a more sustainable ecosystem for intercity travel.
Electric Bus Market Report 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 Electric Bus Company Insights
- 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
Order a free sample PDF of the Electric Bus Market Intelligence Study, published by Grand View Research.
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