Electric Bus Market Size By Type (All-electric, PHEV, FCEV), By Battery Capacity (Below 100 kWh, 100 - 300 kWh, Above 300 kWh), By Seating Capacity (Below 40 Seats, 40 - 70 Seats, Above 70 Seats), By Application (Intracity, Intercity), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Industry Trends

Electric Bus Market size surpassed USD 28 billion in 2020 and is poised to grow at a CAGR of over 11% between 2021 and 2027. The market growth will be driven by rapid increase in uptake of electric buses as a sustainable mode of transport.
 

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Stringent emission regulations and directives imposed by governments across the globe will propel the adoption of electric buses. For instance, in 2019, France announced its 100% zero-emission vehicle target for 2040. As a part of the Paris Climate agreement, the country passed a law to ban ICE vehicle sales by 2040. Additionally, the European Commission (EC) has proposed about 1.3 million publicly accessible chargers by 2030 to enhance the market penetration of EVs.
 

One of the major factors hampering the market growth is the high initial purchase cost associated with the electric buses. The procurement of new hybrid and electric buses requires heavy down payments and large capital investments. Additional costs, such as interest on loans, licensing cost, insurance cost, taxes, and storage cost, further add to the total cost of ownership of these buses. Moreover, the market is also hampered by the lack of adequate charging infrastructure.
 

The electric bus market has been significantly impacted due to the prevailing situations of COVID-19. The manufacturing of electric buses has been affected and sales numbers also decreased because of mass quarantines and lockdown during the first two quarters of 2020. Electric vehicle industry players have faced challenges due to shortage of capital and financial insecurities caused by the decline in revenues.
 

All-electric bus segment dominates the market share

The all-electric bus type segment is poised to witness significant growth owing to increasing government focus on strengthening the charging infrastructure for electric vehicles. The Asia Pacific all-electric segment held around 65% of the electric bus market share in 2020. The European Commission (EC) has proposed about 1.3 million publicly accessible chargers by 2030 to enhance the market penetration of electric vehicles. Similarly, the France government has an objective to deploy over seven million charging stations across the country by 2030.
 

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In Asia Pacific, the all-electric bus market held over 65% revenue share in 2020 due to increasing government focus on strengthening the charging infrastructure for electric vehicles. Additionally, the increasing focus of several countries, such as India, China, and Canada, on promoting electrification of public transport is providing lucrative growth opportunities for the market. Initiatives undertaken by several governments to reduce the carbon footprint of public transportation will propel the market expansion.
 

Capital investments by industry players will fuel the electric bus market growth

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The 100-300 kWh battery segment in the European market will register around 25% growth rate through 2027 impelled by its rapid adoption in electric buses.
 

Investments by various industry players in setting up new battery assembly plants will positively influence the market size. For instance, in November 2020, Scania AB announced its investment worth USD 105.7 million for the construction of a new battery assembly plant. The initial step of the project is the development 18,000-square meter facility. Growing investments in the development of R&D and manufacturing facilities to support the increasing demand for electric buses will augment the market expansion.
 

Increasing demand for public transport will drive the intracity segment

The intracity segment in the Europe electric bus market is expected to surge at 24% CAGR during the forecast period. The adoption of e-buses for intracity transportation services helps in reducing traffic congestion and mitigating vehicular emissions. The growing awareness for shared mobility in several countries across the globe will propel the demand for electric buses for intracity commute services.
 

The presence of prominent players will boost the market expansion in APAC

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The Asia Pacific electric bus market size valued at USD 26 billion in 2020 attributed to the presence of several prominent OEMs such as Anhui Ankai Automobile Co., Ltd., BYD Company Limited, Zhongtong Bus Co. Ltd., and Yutong Bus in China. These companies are majorly focusing on new product launches and strategic collaborations with other industry players.
 

Chinese e-bus suppliers are increasing their market presence outside China with the rising electric bus deployment across the globe. For instance, in November 2020, Yutong Bus entered into an agreement with Mowasalat and Qatar Free Zones Authority (QFZA) to open a factory in Qatar to promote the development of its electric buses. The company will be providing e-buses for FIFA World Cup to be held in 2022.
 

Players focusing on new product launches to enhance the market share

The prominent players in the global electric bus market include King Long United Automotive Industry Co. Ltd., BYD Co. Ltd, AB Volvo, Proterra Inc., Daimler AG, Scania AG, Yutong, VDL Group, Ankai Bus, Zhongtong Bus Holdings Co., Ltd., and NFI Group Inc.
 

Market leaders are primarily focusing on new product launches and capital investments to enhance their product portfolio of e-buses. For instance, in September 2020, Scania announced an investment in Northvolt and partnered with the company to develop and commercialize battery cell technology for heavy commercial vehicles. This aided the company to enhance its technological competencies, augmenting its market representation.
 

The electric bus market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2021 to 2027 for the following segments:
 

Market, By Type:

• All-electric
• PHEV
• FCEV

Market, By Battery Capacity:

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

Market, By Seating Capacity:

• Below 40 seats
• 40-70 Seats
• Above 700 Seats

Market, By Application:

• Intercity
• Intracity

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• MEA
  • Saudi Arabia
  • UAE
  • South Africa