Electric Bus Market Size

Electric Bus Market Size

Electric Bus Market size surpassed USD 45 billion in 2022 and is anticipated to register 12% CAGR from 2023 to 2032, attributed to the ongoing electrification of public transport worldwide

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The increasing focus on ensuring a cleaner environment by reducing hazardous emissions has boosted the development of electric public transport systems. Electrification of public transport systems is a crucial step toward mitigating the impacts of accelerating climate change by minimizing emission levels. To this end, several governments and private firms globally have been rolling out necessary initiatives and making significant investments focused on electrifying the existing public fleets

Moreover, the factor largely contributing to the electric bus market growth is the low maintenance costs associated with these buses. Electric motors involve much lower maintenance costs than traditional models as they have fewer moving parts that are far more efficient than conventional counterparts.

On the other hand, HEVs have more moving parts and a complicated design. Besides, CNG, diesel, and hybrid CNG buses have higher upkeep requirements such as filter replacements, frequent oil changes, exhaust system repairs, periodic tune-ups, and water pump, fuel pump & alternator replacements, etc., resulting in maintenance costs, thus favoring the electric bus market development. Since the technology is relatively new, electric buses are more expensive than traditional models. High upfront costs restrict several consumers in low and middle-income economies from buying electric vehicles, which may significantly impact industry performance by 2032.