by The electric bus market offers products such as battery electric bus, hybrid electric bus that provides clean transportation solutions with zero tailpipe emissions. Electric buses provides long-term benefits over diesel or CNG buses in terms of energy efficiency, lower maintenance costs and reduced CO2 emissions. It helps public transportation authorities meet stringent emission regulations and gain support through subsidies and tax credit programs introduced by governments globally.
Electric Bus Market is estimated to be valued at US$ 36.98 Bn in 2024 and is expected to exhibit a CAGR of 16.5% over the forecast period 2024 To 2031.
Key players operating in the electric bus market are AB Volvo, Alexander Dennis Limited,
Anhui Ankai Automobile Co. Ltd., Ashok Leyland Limited, Blue Bird Corporation, Bollor
SE, BYD Company Limited, Daimler AG, Dongfeng Motor Company, Geely Automobiles
Holdings Ltd., Hyundai Motor Company, Iveco S.p.A., New Flyer Industries Inc., Nissan
Motor Corporation, Paccar Inc., Proterra Inc., Scania AB, Solaris Bus and Coach S.A., Tata Motors Limited, Toyota Motor Corporation, VDL Bus and Coach BV, Wrightbus Limited, Yutong Group, and Zhengzhou Yutong Bus Co., Ltd.
Growing demand
Electric Bus Market demand has increased due to rapid urbanization and strict emission regulations, driving the need for emission-free public transportation solutions. Many cities have committed to transition their existing fleet to electric buses by 2025–2030 timelines.
Global expansion: Major vehicle manufacturers are focusing on global expansion by localizing production or through joint-ventures in countries with strong government support for electrification of public transportation. China, Europe and North American markets are expected to dominate the demand.
Market key trends
One of the key trends in the electric bus market is the introduction of battery leasing models by OEMs to lower upfront capital costs for transit operators. This helps overcome budgetary constraints for large scale electric bus adoption. Bus manufacturers are collaborating with battery providers to offer pay-per-mile plans or guaranteed battery capacity retention for fixed annual fees. This is expected to accelerate the transition from conventional to electric fleets significantly.
Porter’s Analysis
Threat of new entrants: The electric bus market requires high initial investments in R&D, manufacturing facilities, and developing charging infrastructure which poses significant entry barriers for new companies.
Bargaining power of buyers: Electric Bus Market Challenges and Opportunities include buyers having moderate bargaining power due to the availability of several established manufacturers. However, switching costs are high for buyers since it requires investment in charging infrastructure.
Bargaining power of suppliers: Component suppliers have low to moderate bargaining power since key components such as batteries can be sourced from multiple suppliers globally.
Threat of new substitutes: Hybrid buses provide a potential substitution threat, but their adoption is limited due to constraints of both electric and diesel technology. Fuel cell buses are in nascent stages of commercialization.
Competitive rivalry: The market has few dominant players and regional bus manufacturers. Intense competition exists in areas of vehicle range, price, local manufacturing presence.
Geographical Regions
China dominates the electric bus market in terms of value, accounting for over 50% of global sales. Aggressive government incentives and massive spending on public transit have boosted China’s fleet. Europe is the second largest region with countries like Germany, UK, France, Netherlands supporting electrification through subsidies.
The Asia Pacific region excluding China is projected to experience the fastest growth during the forecast period. Countries like India are embarking on ambitious electric mobility missions while other Southeast Asian countries are incentivizing bus operators to replace aging fleets. Increased spending on urban transport infrastructure will support the electric bus uptake in developing Asian economies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn
