Electric Bus Market Size - By Propulsion, By Battery Capacity, By Seating Capacity, By Service, By Fleet Ownership, By Charging Infrastructure, Growth Forecast, 2026 - 2035

Electric Bus Market Size

The global electric bus market was estimated at USD 54.1 billion in 2025. The market is expected to grow from USD 64.6 billion in 2026 to USD 255.1 billion in 2035, at a CAGR of 16.5%, according to latest report published by Global Market Insights Inc.

The electric bus market is undergoing significant transformation, driven by the increasing adoption of clean public transportation, advanced transit systems, and electrified urban mobility solutions. Modern electric buses are equipped with high-capacity batteries, energy-efficient drivetrains, advanced thermal management systems, and intelligent charging technologies. These features enable transit operators to achieve cost savings in fuel and maintenance, reduce emissions, enhance route efficiency, and improve passenger experience. Governments and municipal transport agencies are prioritizing electric buses to meet decarbonization goals, address urban air pollution, and upgrade public transit infrastructure.
 

Programs focused on public transport electrification, zero-emission bus mandates, and national clean mobility strategies are accelerating the deployment of electric buses across urban and intercity networks. Cities are implementing depot-based and opportunity charging models to ensure continuous operations with minimal downtime. Investments in smart depots, real-time energy management systems, and predictive maintenance technologies are helping operators optimize fleet performance, extend vehicle lifespans, and maintain reliable delivery service. This transition is reducing reliance on fossil fuels and improving the long-term economic viability of transit systems.
 

Strategic partnerships among bus manufacturers, battery suppliers, charging infrastructure providers, and digital mobility companies are driving the evolution of the electric bus ecosystem. Manufacturers are focusing on developing long-range electric buses with high-energy-density batteries, lightweight materials, and modular designs to meet diverse operational requirements. Charging solution providers are deploying high-power pantograph systems and fast-charging corridors to support high-frequency urban routes and intercity operations. Digital platforms are enabling route optimization, energy forecasting, and real-time fleet diagnostics, further enhancing operational efficiency.
 

In March 2025, Yutong Bus announced the deployment of 723 electric buses in Morocco to support transportation during a major international football tournament. This development highlights the growing adoption of electric buses in Africa. Public procurement processes are increasingly emphasizing lifecycle cost efficiency, emission reduction targets, and domestic manufacturing capabilities, further driving the adoption of electric buses globally.
 

The demand for electric buses is being propelled by rapid urbanization, increased public transport usage, stringent emission regulations, and the need to reduce total cost of ownership for transit operators. Electric buses offer significant cost advantages through reduced fuel consumption, fewer mechanical components, and lower maintenance requirements. Advanced telematics and fleet management systems are enabling operators to monitor vehicle performance, optimize energy usage, and improve scheduling efficiency across large fleets.
 

Electric bus applications are expanding beyond urban transit to include intercity travel, airport shuttles, school transportation, and tourism. Operators are deploying high-capacity electric buses equipped with digital fare systems, passenger information displays, and cloud-based control centers to ensure operational reliability and regulatory compliance. This integrated approach is enhancing service quality while supporting sustainable mass transportation initiatives.
 

Regionally, Europe and North America represent key markets due to strong regulatory frameworks, established public transit networks, and significant investments in charging infrastructure. Europe leads in zero-emission bus mandates and public procurement initiatives, while North America focuses on fleet electrification for city and school buses. The Asia-Pacific region offers substantial growth opportunities, driven by large-scale urban transit demand, cost-competitive manufacturing, and aggressive electrification policies. China remains the global leader in electric bus deployment, while India, Japan, and Southeast Asian countries are rapidly scaling up adoption across metropolitan and regional transport systems.
 

Electric Bus Market Trends

Transit authorities are increasingly adopting high-capacity electric buses to address the challenges of dense urban passenger demand. These buses are designed to operate on longer routes, accommodate more passengers, and enhance operational efficiency. The rise in urbanization and worsening congestion is driving cities to replace multiple smaller vehicles with fewer high-capacity electric buses, resulting in improved energy efficiency, reduced emissions, and lower traffic congestion.
 

For example, Hyundai announced in November 2025 its commitment to deliver 10 electric buses to Bali, Indonesia. This initiative represents the first deployment of electric buses in the region and highlights the growing potential of the Asia Pacific market.
 

Operators are implementing advanced charging solutions, such as pantograph systems and ultra-fast DC chargers, to minimize downtime and maximize fleet productivity. These technologies enable buses to recharge during short stops or layovers, extending their operational range and making them suitable for high-frequency and long-duty-cycle operations.
 

Electric bus fleets are increasingly leveraging telematics and AI-based systems to monitor battery health, vehicle performance, and energy consumption in real time. These tools facilitate predictive maintenance, optimize route planning, and streamline charging schedules. By improving data transparency, transit operators can enhance fleet availability, reduce operational costs, and make more informed decisions.
 

Original Equipment Manufacturers (OEMs) are expanding local manufacturing and assembly capabilities to meet domestic sourcing requirements and mitigate supply chain risks. This localization strategy reduces production costs, shortens delivery timelines, and supports job creation in regional markets. Additionally, government incentives promoting local manufacturing are accelerating the adoption of electric buses in domestic markets.
 

Electric Bus Market Analysis

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Based on propulsion, the market is divided into All-electric, PHEV, and FCEV. The All-electric segment accounted for around 89.5% share in 2025 and is expected to grow at a CAGR of more than 16.2% through 2035.
 

• The All-electric segment dominates the electric bus industry because of its zero tailpipe emissions, lower operating costs, and growing regulatory support for clean public transportation. Battery-electric buses (BEBs) are increasingly preferred by transit agencies as they help cities meet stringent emission standards, reduce urban air pollution, and comply with sustainability targets. Their simpler drivetrain design compared to hybrids or fuel-cell buses results in lower maintenance requirements and long-term cost savings, making them economically attractive for large-scale fleet deployment.
   
• In addition, advancements in battery technology, increased energy density, and expanding fast-charging infrastructure have enhanced the operational range and efficiency of all-electric buses. These improvements allow for longer routes and higher fleet utilization, reinforcing the dominance of the all-electric segment in urban and intercity public transport markets worldwide.
   
• For instance, in September 2025, JBM Ecolife Mobility, a subsidiary of JBM Auto, secured a USD 100 million long-term capital investment from the International Finance Corporation (IFC) to expand its electric bus operations in India, including deployment of 1,455 modern electric buses across Maharashtra, Assam, and Gujarat. The funding underpins large-scale e-bus rollout, enhanced infrastructure, and support for sustainable public transport electrification.
   
• The PHEV segment will grow at over 18.9% CAGR due to its ability to combine electric-only operation with extended range from internal combustion engines, offering flexibility for longer routes and limited charging infrastructure. Transit agencies and fleet operators favor PHEVs in regions where full electrification is challenging, allowing gradual transition to zero-emission transport while reducing fuel consumption and operational costs.
   

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Based on battery capacity, the electric bus market is segmented into below 100 kWh, 100 - 300 kWh, and above 300 kWh. The 100 - 300 kWh segment dominates the market accounting for around 50.3% share in 2025 and is expected to grow at a CAGR of over 16.6% from 2026 to 2035.
 

• The 100–300 kWh battery capacity segment dominates the market due to its optimal balance between driving range, operational efficiency, and cost-effectiveness. Buses within this battery range can efficiently cover urban and intercity routes without frequent charging, making them ideal for transit agencies managing daily schedules and route demands. The capacity provides sufficient range for most city operations while keeping vehicle weight and energy consumption manageable, ensuring lower total cost of ownership compared to higher-capacity alternatives.
   
• Additionally, the 100–300 kWh segment benefits from faster charging times, reduced infrastructure strain, and easier integration with existing depot facilities. Manufacturers prioritize this range to deliver reliable, economically viable electric buses that meet both environmental regulations and operational requirements, reinforcing their dominance in public transportation electrification globally.
   
• For instance, in September 2025, BYD unveiled its next-generation e-Bus Platform 3.0 and the new C11 electric bus in Hangzhou, featuring the industry’s first 1,000 V high-voltage architecture for buses.
   
• The above 300 kWh segment will grow at a higher rate of over 17.4% due to increasing demand for long-range electric buses in intercity and high-capacity urban routes. Larger battery capacities enable extended operational range, reduce the need for mid-day charging, and support heavy passenger loads. Transit agencies deploying long-distance or high-frequency routes prefer these buses to improve efficiency, reliability, and fleet utilization.
   

Based on seating capacity, the market is segmented into below 40 seats, 40 - 70 seats, and above 70 seats. The 40-70 seats segment dominates with around 60% share due to o its optimal balance of passenger capacity, operational efficiency, and route versatility.
 

• The 40–70 seats segment is the dominant segment in the electric bus market due to its ideal balance between passenger capacity, operational efficiency, and route flexibility. Buses within this seating range can efficiently serve both high-demand urban routes and medium-distance intercity services, making them suitable for a wide variety of public transport applications. They provide sufficient seating without significantly increasing energy consumption or operational costs, allowing transit agencies to maximize fleet utilization while maintaining service frequency and reliability.
   
• Additionally, this segment benefits from easier maneuverability in congested city streets compared to larger buses, and lower total cost of ownership than bigger capacity models. Manufacturers and operators favor the 40–70 seats range for its versatility, making it the preferred choice for electrified public transit fleets globally, driving market dominance.
   
• For example, in October 2025, MG Commercial debuted its first all-electric city bus, the iEV12, and the B12E chassis at BusWorld Brussels 2025, marking the brand’s entrance into the electric bus sector and expanding product offerings for urban transit fleets.
   
• The Above 70 seats segment is expected to grow with a CAGR of more than xx% due to rising demand for high-capacity electric buses in intercity, long-distance, and mass-transit corridors. These buses efficiently transport large passenger volumes, reduce per-passenger energy costs, and are ideal for routes with high ridership, driving increased adoption in urban and regional transit networks.
   

Based on application, the market is divided into Intercity, and Intracity.
 

• The Intracity segment dominates the electric bus market due to the high demand for zero-emission public transport in urban areas, where frequent stops, short routes, and high passenger turnover are common. Electric buses are particularly well-suited for intracity operations because they can recharge during off-peak hours, operate efficiently over shorter distances, and contribute significantly to reducing air pollution and greenhouse gas emissions in densely populated cities. Transit authorities are increasingly replacing diesel buses with electric alternatives to comply with stringent emission regulations and meet sustainability targets.
   
• Additionally, intracity electric buses benefit from established charging infrastructure at depots and strategic city locations, enabling reliable and cost-effective operations. Their maneuverability, energy efficiency, and lower operating costs make them an ideal choice for urban fleets, reinforcing the dominance of the intracity segment in the electric bus market.
   
• The Intercity segment is expected to grow at a CAGR of 22% through 2035, due to rising demand for long-distance, low-emission transportation and improving electric bus range and charging infrastructure. Advancements in high-capacity batteries, fast-charging corridors, and government support for green intercity mobility are enabling electric buses to operate efficiently on longer routes, driving accelerated adoption across regional and interstate transport networks.
   

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China dominated the electric bus market in Asia Pacific with around 65.5% share and generated USD 21.08 billion revenue in 2025.
 

• The Chinese government has consistently prioritized clean public transportation through national and municipal electrification mandates, generous subsidies, and low-emission urban transport targets. Major cities have rapidly replaced diesel bus fleets with electric alternatives to address air pollution and reduce carbon emissions. Large government-backed tenders and long-term fleet replacement programs have created sustained demand for electric buses across urban and intercity routes.
   
• In addition, China benefits from a highly integrated electric vehicle supply chain and strong domestic OEM presence. Leading manufacturers such as BYD and Yutong offer a wide range of electric bus models with competitive pricing, advanced battery technologies, and localized component sourcing. Continuous advancements in battery performance, charging infrastructure expansion, and fleet management technologies further strengthen operational efficiency, supporting widespread adoption across both metropolitan and regional transport networks.
   
• For instance, in October 2025, Chinese OEM Yutong delivered 400 electric buses to Pakistan under the Belt and Road Initiative, reflecting both domestic manufacturing strength and international expansion of Chinese electric bus technology and products.
   
• India is projected to grow at a significant CAGR in the electric bus market due to strong government-led procurement programs, rising urbanization, and increasing focus on clean public transportation. National initiatives such as PM e-Bus Sewa and PM E-Drive are driving large-scale fleet deployment, while state transport undertakings are actively replacing diesel buses. Falling battery costs, improving charging infrastructure, and public–private partnership models are further accelerating electric bus adoption across major Indian cities.
   

The electric bus market in Germany is expected to experience significant and promising growth from 2026-2035.
 

• Europe accounts for over 20% of the market in 2025 and is expected to grow at a CAGR of around 14% due to strict emission regulations, widespread zero-emission public transport mandates, strong government funding, advanced charging infrastructure, and the presence of leading electric bus manufacturers driving continuous fleet electrification across major urban and intercity transport networks.
   
• Germany is a strong electric bus market leader due to its stringent emission regulations, strong government funding mechanisms, and advanced public transport infrastructure. The country has implemented aggressive climate and clean mobility policies at both federal and municipal levels, encouraging transit authorities to rapidly replace diesel buses with zero-emission alternatives. Programs supporting electric bus procurement, charging infrastructure development, and battery innovation have significantly reduced adoption barriers. German cities are also early adopters of low- and zero-emission zones, accelerating fleet electrification.
   
• In addition, Germany benefits from a robust automotive and engineering ecosystem. Leading OEMs and technology suppliers are actively developing next-generation electric buses, power electronics, and charging solutions domestically. Strong R&D capabilities, public–private partnerships, and integration of smart mobility and grid solutions further enhance operational efficiency, reinforcing Germany’s leadership position in the electric bus market.
   
• For instance, in April 2025, Germany’s Federal Ministry reported that electric bus numbers increased more than fifteen-fold since 2018, with 1,489 electric buses and nearly 1,000 charging points deployed across 65 transport companies in 13 federal states.
   
• The UK is emerging as a strong growth market for Electric Buss due to ambitious government policies targeting zero-emission public transport, substantial subsidies for fleet electrification, and expanding charging infrastructure. Cities are rapidly replacing diesel buses with electric alternatives to meet clean air targets, reduce operational costs, and support sustainable urban mobility initiatives.
   

The electric bus market in US is expected to experience significant and promising between 2026 and 2035.
 

• North America accounts for over 15% share and is expected to grow at a CAGR of around 18.1% CAGR during analysis timeframe owing to strong government incentives, stringent emission regulations, and increasing adoption of zero-emission public transport solutions. Additionally, North America benefits from advanced charging infrastructure, robust OEM presence, and technological innovation in battery and powertrain systems.
   
• The US is the market leader in the Electric Bus market due to strong federal and state-level policies, substantial funding programs, and advanced technological capabilities. Government initiatives such as the Federal Transit Administration’s Low or No Emission Vehicle Program provide significant grants and incentives for electric bus procurement, enabling transit agencies to replace aging diesel fleets. Strict emission standards, clean energy targets, and city-level zero-emission mandates further drive the adoption of battery-electric buses across major metropolitan areas.
   
• In addition, the US benefits from a mature automotive and EV ecosystem, with leading OEMs like Proterra, New Flyer, and BYD supplying advanced electric bus models. Investments in charging infrastructure, fleet management technologies, and battery innovations support efficient operations, making the US a hub for large-scale deployment and ongoing innovation in the electric bus market.
   
• Canada is becoming one of the fastest-growing markets due to strong government incentives, provincial clean transit programs, and growing investments in charging infrastructure. Major cities are rapidly transitioning to electric buses to meet emission reduction targets, improve air quality, and support sustainable public transportation across urban and regional networks.
   

The electric bus market in Brazil is expected to experience significant and promising growth from 2026 to 2035.
 

• Latin America holds around 3% of the market share in 2025 and is growing steadily at a CAGR of around 13.5% due to rising urbanization, government-led electrification programs, and increasing investment in sustainable public transport. Countries like Brazil and Mexico are expanding electric bus fleets to reduce emissions, modernize transit, and lower operational costs.
   
• Brazil dominates the Electric Bus market in Latin America due to strong government initiatives, large-scale public transport electrification programs, and growing investments in clean mobility infrastructure. The Brazilian government has implemented national policies and incentive schemes to encourage electric bus adoption, including subsidies for fleet procurement and support for domestic manufacturing of electric vehicles. Major cities like São Paulo and Rio de Janeiro are actively replacing diesel buses with electric alternatives to reduce air pollution and greenhouse gas emissions.
   
• In addition, Brazil benefits from a developing local EV manufacturing ecosystem, with companies like BYD and Marcopolo supplying electric buses and associated charging infrastructure. Expanding charging networks, pilot projects, and collaboration with international OEMs further strengthen operational efficiency, reinforcing Brazil’s leadership in Latin America’s market.
   
• The electric bus market in Mexico is experiencing high growth due to government-backed clean transport initiatives, increasing urbanization, and rising environmental awareness. Mexico City and other major urban centers are investing in electric bus fleets to reduce air pollution, comply with emission regulations, and modernize public transit. Incentives, subsidies, and partnerships with OEMs are accelerating adoption, while expanding charging infrastructure ensures operational efficiency and supports sustainable mass transit solutions across the country.
   

The electric bus market in UAE is expected to experience significant and promising growth from 2026-2035.
 

• MEA holds around 3% of the market in 2025 and is growing steadily at a CAGR of around 12.6% due to increasing government investments in sustainable public transport, rising urbanization, and supportive policies for zero-emission vehicles. Countries in the region, including UAE, Saudi Arabia, and South Africa, are implementing fleet electrification programs, deploying charging infrastructure, and partnering with global OEMs to modernize urban transit systems, reduce carbon emissions, and improve air quality, driving steady market growth across the region.
   
• The UAE dominates the MEA Electric Bus market due to strong government initiatives, strategic investment in clean transportation, and the presence of advanced infrastructure for electric mobility.
   
• The country’s federal and emirate-level authorities, including the Roads and Transport Authority (RTA) in Dubai and the Department of Transport in Abu Dhabi, are aggressively promoting the transition to zero-emission public transport. Large-scale procurement programs, generous subsidies for electric bus purchases, and development of fast-charging networks have encouraged fleet electrification across urban and intercity routes.
   
• Additionally, the UAE has partnered with global OEMs like BYD, Yutong, and Mercedes-Benz to deploy modern electric buses and implement smart fleet management solutions. These efforts improve operational efficiency, reduce greenhouse gas emissions, and position the UAE as the regional leader in electric bus adoption.
   
• Saudi Arabia is expected to grow at the fastest CAGR in the MEA electric bus market owing to ambitious government initiatives, Vision 2030 sustainability goals, and large-scale investments in public transport electrification. The country is modernizing urban transit systems in Riyadh, Jeddah, and other major cities by introducing electric buses, developing charging infrastructure, and collaborating with international OEMs.
   

Electric Bus Market Share

• The top 7 companies in the electric bus industry are Volvo, BYD, MAN Bus, Scania, Daimler, Zhongtong Bus, and Tata Motors contributed around 62.7% of the market in 2025.
   
• Volvo focuses on full electrification of city and intercity bus portfolios, emphasizing modular electric platforms, energy-efficient drivetrains, and advanced safety systems. The company prioritizes long-term contracts with public transport authorities, integrated charging solutions, lifecycle service packages, and digital fleet management tools to reduce total cost of ownership and improve operational reliability.
   
• BYD leverages vertical integration across batteries, power electronics, and vehicle manufacturing to scale electric bus deployment globally. The company emphasizes high-capacity battery technology, long-range electric buses, and cost-competitive offerings. BYD’s strategy centers on large municipal tenders, localized manufacturing, and turnkey solutions covering vehicles, charging, and maintenance.
   
• MAN, bus focuses on expanding its zero-emission product lineup through battery-electric city and coach platforms. The company prioritizes modular battery architectures, improved energy efficiency, and compatibility with depot and opportunity charging. MAN emphasizes partnerships with transit operators, European compliance standards, and digital services for fleet optimization and predictive maintenance.
   
• Scania adopts a scalable electrification strategy using modular electric powertrains across urban and regional bus applications. The company emphasizes energy efficiency, flexible battery sizing, and integration with renewable energy solutions. Scania’s approach includes close collaboration with customers, tailored e-mobility solutions, and strong focus on lifecycle sustainability and circular economic principles.
   
• Daimler focuses on accelerating electric bus adoption through its Mercedes-Benz eCitaro and related platforms. The strategy centers on advanced battery systems, high safety standards, and digital connectivity. Daimler also emphasizes complete e-mobility ecosystems, offering consulting, charging infrastructure planning, and service contracts to support transit operators.
   
• Zhongtong Bus concentrates on expanding its electric bus footprint through cost-efficient models, large-scale production, and participation in government-backed public transport programs. The company emphasizes battery optimization, localized market adaptation, and export expansion. Its strategy includes supplying electric buses for urban transit, BRT corridors, and overseas infrastructure projects.
   
• Tata Motors focuses on strengthening its electric bus presence through indigenously developed platforms tailored for emerging markets. The company emphasizes affordability, local manufacturing, and government partnerships. Tata integrates electric buses with charging infrastructure, fleet management solutions, and long-term service agreements, supporting large-scale public transport electrification under national sustainability programs.
   

Electric Bus Market Companies

Major players operating in the electric bus industry are:
 

• Volvo
• BYD
• MAN Bus
• Scania
• Daimler
• Zhongtong Bus
• Tata Motors
• NFI Group
• Proterra
• Solaris Bus & Coach
  
   
• Manufacturers and solution providers in the electric bus market are increasingly leveraging digital engineering, connected vehicle architectures, and cloud-based fleet management platforms to improve operational reliability, energy efficiency, and asset utilization. Integration of onboard diagnostics, IoT sensors, real-time battery monitoring, GPS-based route tracking, and AI-driven analytics enables transit agencies to optimize charging schedules, predict maintenance needs, and minimize vehicle downtime. These digital capabilities support efficient fleet operations, extend battery life, enhance safety, and provide actionable insights for route planning, energy consumption, and total cost of ownership optimization.
   
• Strategic collaborations and ecosystem partnerships are reshaping the electric bus market landscape. Alliances between electric bus OEMs, battery suppliers, charging infrastructure providers, software companies, and public transit authorities are accelerating innovation and deployment. These partnerships enable integrated solutions covering vehicles, charging, energy management, and digital fleet platforms. Such ecosystem-driven approaches strengthen supply chains, improve interoperability, reduce deployment risks, and support large-scale electrification of public transport systems across urban and intercity networks globally.
   

Electric Bus Market News

• In April 2024, Omnicar, a 25-year-old German company previously specializing in bodyworks for Sprinter and Daily minibuses, introduced its first vehicles under its logo, unveiling the W-Smile S7 and W-Smile S6 at Bus2Bus in Berlin. These are battery-electric minibuses, with lengths of 6 and 7 meters respectively, manufactured in China.
   
• In March 2024, Volvo Buses, a subsidiary of AB Volvo, launched the Volvo 8900 Electric, an advanced low-entry electric bus designed for intercity, commuter, and urban operations. Available in both two- and three-axle configurations, the model enables operators to optimize fleet efficiency, sustainability, and overall operational profitability.
   
• In February 2024, Ashok Leyland, the flagship company of the Hinduja Group in India and a leading manufacturer of commercial vehicles in the country, held a groundbreaking ceremony for a new integrated commercial vehicle plant in Uttar Pradesh, with a focus on green mobility. The plant will primarily concentrate on manufacturing electric buses.
   
• In December 2023, Karsan, a Turkish commercial vehicle manufacturer, announced the launch of its e-JEST right-hand-drive electric minibus in Japan. Originally introduced in Europe in 2018, the e-JEST has since expanded to the U.S. and Canada, becoming the market’s first fully electric minibus.
   

The electric bus market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn), and shipment (Units) from 2022 to 2035, for the following segments:

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Market, By Propulsion

• All-electric
• PHEV
• FCEV

Market, By Battery Capacity

• Below 100 kWh
• 100-300 kWh
• Above 300 kWh

Market, By Seating Capacity

• Below 40
• 40-70
• Above 70

Market, By Service

• Intercity
• Intracity

Market, By Fleet Ownership

• Government
• Private Fleet
• Leasing & Rental
• Ride-hailing Operator
• Others

Market, By Charging Infrastructure

• Public Charging Network
• Private
• Hybrid

The above information is provided for the following regions and countries:

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Philippines
  • Indonesia
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA   
  • South Africa
  • Saudi Arabia
  • UAE