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

Published Date: Feb 2021  |  Report ID: GMI4959  |  Authors: Preeti Wadhwani, Prasenjit Saha

Report Format: PDF   |   Pages: 250   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Electric Bus Market size exceeded USD 28 billion in 2020 and is expected to grow at 11% CAGR between 2021 and 2027. The market is forecast to grow at an exponential rate due to the rapid increase in uptake of electric buses as a sustainable mode of transport.

Electric buses refer to buses that are powered via electricity. These vehicles use electricity from either on-board power sources or from external sources. Rising demand from intercity applications will propel electric bus market growth.

Electric buses are primarily operated by the integrated electric batteries. This also includes plug-in hybrid buses and fuel-cell electric buses.

Stringent emission regulations and directives imposed by governments across the globe will propel the adoption of electric buses. 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.

Electric Bus Market

Get more details on this report - Request Free Sample PDF

Electric buses are 100% eco-friendly as they operate on electrically-powered engines. They do not release smoke or toxic gases into the environment as they operate on a clean energy obtained from battery packs. Several benefits of electric buses, such as low maintenance costs and reduced pollution by emissions, are augmenting their representation in the market.

The increasing focus of several countries, such as India, China, and Canada, on promoting electrification of public transport is providing lucrative growth opportunities. Initiatives undertaken by several governments to reduce the carbon footprint of public transportation is boosting the electric bus market size through 2027.

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, hindering the market demand. The market is also hampered by the lack of adequate charging infrastructure.

The electric bus industry has been significantly impacted by 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. Industry players have faced challenges on account of shortage of capital and financial insecurities caused by the decline in revenues. However, the market is expected to witness steady growth subject to the revival of global economic conditions in 2021, supported by policy changes and government support.

Electric Bus Market Report Coverage
Report Coverage Details
Base Year:2020Historical Data for:2017 to 2020
Market Size in 2020:28 Billion (USD)Forecast Period:2021 to 2027
Forecast Period 2021 to 2027 CAGR:11%No. of Pages:250
2027 Value Projection:53 Billion (USD) Tables, Charts & Figures:481
Geographies covered (20):U.S., Canada, UK, Germany, France, Italy, Russia, Netherlands, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Chile, Saudi Arabia, UAE, South Africa
Segments covered:Type, Battery Capacity, Seating Capacity, Application
Growth Drivers:
  • Increasing focus on electrification of public transport across the globe
  • Low maintenance requirements of electric buses
  • Supportive government initiatives for development of charging infrastructure in North America
  • Growing investments by European OEMs in battery technologies
  • Rising demand for clean mobility and transportation solutions in Asia Pacific
  • Rising inclination towards alternative fuels in Latin America and MEA
Pitfalls & Challenges:
  • High initial cost of electric bus

Get more details on this report - Request Free Sample PDF

All-electric bus segment driven by improved charging infrastructure

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.

Capital investments by industry players will fuel the market revenue

Europe Electric Bus Market Size

Get more details on this report - Request Free Sample PDF

The 100-300 kWh segment is anticipated to observe an upward market trend during the forecast timeline impelled by its rapid adoption in electric buses. The Europe 100-300 kWh segment is estimated to expand at a CAGR of more than 25% through 2027.

Investments by various players in setting up new battery assembly plants will positively influence the electric bus market size till 2027. 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.

Improved passenger seating capacity will spur the 40 - 70 seats electric bus market

The 40-70 seats segment is likely to contribute significantly toward the market growth from 2021 to 2027 propelled by the improved passenger-carrying capacity. In 2020, the 40-70 seats buses segment in in Asia Pacific valued at USD 15 billion. New product launches in this segment are also contributing positively toward the market size through 2027.

Increasing demand for public transport will drive the demand from intracity application

The Europe intracity application is predicted to surge at a CAGR of over 24% from 2021 to 2027. 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 globally will fuel the demand for electric buses for intracity commute services.

The presence of prominent players will augment the market revenue in Asia Pacific

Asia Pacific Electric Bus Market Share

Get more details on this report - Request Free Sample PDF

The electric bus market in Asia Pacific surpassed USD 26 billion in 2020 due 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 players are majorly focusing on new product launches and strategic collaborations with other industry players.

Chinese e-bus suppliers are increasing their presence outside China with the rising electric bus deployment worldwide. 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. The proliferation of electric vehicles to mitigate CO2 emissions will support the market.

Players focusing on new product launches to enhance the market share

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, supporting its market representation.

The prominent players in the 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.

This market research report on electric bus 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


Frequently Asked Questions (FAQ) :

The global electric bus industry size had reached USD 28 billion in 2020 and is anticipated to register around 11% CAGR over the forecast period 2021-2027.
The market share in Europe from the 100-300 kWh capacity segment is projected to expand at over 25% CAGR between 2021-2027.
Europe electric bus industry share from intercity application segment is expected to record more than 24% CAGR up to 2027.
The APAC electric bus market size was more than USD 26 billion during 2020 with the presence of key manufacturers and strategies adopted by them, like collaborations and new vehicle launches.
APAC all-electric bus segment held nearly 65% of the market share during 2020 and will expand with government focus towards strengthening charging infrastructure.

Buy Now

Need a Discount? Get in touch with us for special pricing

Request Discount

 Connect with our sales team

Premium Report Details

  • Published Date: Feb 2021
  • Pages: 250
  • Tables: 455
  • Charts / Figures: 26
  • Companies covered: 19
  • Countries covered: 20

Get a report that explains COVID-19 impact on this market, request a free sample now

Benefits of Association

Data Coverage & Quality

GMI reports provide the most comprehensive coverage of any focus industry, ensuring a holistic and deep understanding of the market, along with actionable and granular data. We also take pride in our commitment to quality and strive to ensure that our clients get their moneys worth.

Client Trust & Security

GMI maintains strict code of conduct as a business and is committed to ensure that the privacy and trust of our clients are always maintained. As an organization, we also strive to be fully compliant with privacy laws, PCI and information security guidelines.

Customer Service

Our customers rely on us to produce accurate, reliable and timely information. Service orientation is a key mission for us as an organization; our process is guided by the desire to ensure that our clients are provided the best possible solutions in optimal timeframe. GMI stands by its commitment to service, providing timely assistance in both pre-sales and post-sales support for our clients.

GMIPulse, our report store

We have introduced ‘GMIPulse’, which is our report store; designed to offer clients a one-stop platform for all market research and business intelligence requirements. Clients can access reports, presentations, raw data excel sheets as well as detailed company profiles. GMIPulse allows you to track relevant industries and stay informed with latest innovation, competitive and regulatory developments to help design strategic framework.

Chat with us
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies. More info X