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) & Forecast, 2024 – 2032

Electric Bus Market Size

Electric Bus Market size was valued at USD 18.3 billion in 2023 and is estimated to register a CAGR of over 14% between 2024 and 2032. The market growth is driven by rising partnerships and deals between leading companies. These collaborations signify a concerted effort to address environmental concerns and meet the growing need for sustainable transportation solutions. Companies like BYD, Proterra, and Volvo are forging strategic alliances with governments, transport agencies, and technology firms to accelerate the adoption of electric buses.
 

For instance, in April 2024, BMZ Poland and Daimler Buses, a leading battery systems expert within the BMZ Holding group, formed a strategic partnership to develop and supply the next generation of e-bus batteries. Collaborating with Daimler Buses, BMZ will enhance existing battery technology specifically tailored for electric buses' requirements.
 

These partnerships result in the development of advanced electric bus technologies, improved infrastructure, and enhanced service offerings. Moreover, such collaborations bring together expertise from various sectors, fostering innovation and driving down costs. As a result, the electric bus industry is witnessing unprecedented growth, poised to revolutionize urban mobility while significantly reducing carbon emissions.
 

The electric bus market is witnessing a significant surge in demand, largely driven by rising investments from leading players in the sector. Companies like Proterra, BYD, and Volvo are making substantial investments in electric bus technology, infrastructure, and manufacturing facilities. These investments are aimed at expanding production capacities, improving battery technology, and enhancing charging infrastructure to meet the growing demand for electric buses worldwide.
 

Additionally, government incentives and environmental regulations are further encouraging these investments. With the increasing focus on sustainability and reducing carbon emissions, electric buses have emerged as a viable solution for urban transportation. As a result, the electric bus market is experiencing rapid growth, promising a cleaner and more efficient future for public transit systems globally. For instance, in April 2024, Macquarie Asset Management, a division of Australia's Macquarie Group, planned to invest USD 1.5 billion (in India's electric vehicle (EV) sector through its newly established platform, Vertelo.
 

Electric buses offer significant long-term cost savings compared to conventional diesel buses. While the initial purchase price may be higher, electric buses have lower operating and maintenance costs. They require less maintenance due to fewer moving parts, no need for oil changes, and regenerative braking systems. Additionally, the cost of diesel fuel is generally higher than the cost of electricity, resulting in lower fueling costs. Over the lifespan of the vehicle, these savings can outweigh the higher upfront costs, making electric buses an attractive investment for transit operators.
 

Despite the significant growth of the electric bus market, several restraints hinder its full potential. One major challenge is the high initial cost of electric buses compared to traditional diesel counterparts. Although electric buses offer long-term cost savings, the upfront investment can be a barrier for transit agencies, especially in regions with limited budgets. Additionally, concerns about the range and charging infrastructure remain, particularly for operators requiring long-distance routes or lacking adequate charging facilities.
 

Furthermore, the lifespan and performance of batteries are still being improved to match the demands of heavy-duty transit operations. Moreover, the transition from established diesel infrastructure to electric infrastructure requires substantial investment and planning. Overcoming these challenges will be essential for the widespread adoption of electric buses in the global transportation landscape.
 

Electric Bus Market Trends

The electric bus industry is witnessing a notable trend fueled by rising support from government agencies and corporations. Governments worldwide are increasingly recognizing the environmental and economic benefits of electric buses and are implementing policies to encourage their adoption. Through initiatives such as grants, subsidies, and zero-emission mandates, governments are incentivizing transit agencies and private operators to invest in electric buses.
 

Additionally, government-owned corporations are leading by example, incorporating electric buses into their fleets and setting ambitious sustainability targets. Moreover, public-private partnerships are emerging to develop charging infrastructure and research innovative technologies. As a result, the electric bus industry is experiencing substantial growth, driven by the concerted efforts of government entities and corporations to create cleaner and more sustainable transportation systems. For instance, in April 2024, the Bengaluru Metropolitan Transport Corporation (BMTC) was gearing up to add air-conditioned electric buses to its fleet, with OHM Global Mobility, a subsidiary of Ashok Leyland, set to supply 320 of these buses to BMTC.
 

Electric Bus Market Analysis

Based on the propulsion, the market is categorized into all-electric, PHEV, and FCEV. The all-electric segment held a market share of over 45% in 2023. These vehicles are at the forefront of sustainable urban transportation, offering zero-emission solutions to combat air pollution and reduce carbon footprints. With advancements in battery technology, all-electric buses now boast longer ranges and faster charging times, making them more practical for mass transit systems.
 

Governments and municipalities worldwide are increasingly incentivizing the adoption of all-electric buses to meet climate goals and improve air quality in cities. As a result, the electric bus market is experiencing unprecedented growth, fueled by the shift towards cleaner and greener transportation solutions.
 

Based on the application, the electric bus market is categorized into intercity and intracity. The intracity segment held a market share of 85% in 2023. With growing urbanization, cities are seeking sustainable solutions to combat pollution and congestion. Electric buses offer a promising solution, providing zero-emission transportation for intracity routes. Their quiet operation and reduced environmental impact make them ideal for densely populated urban areas.
 

Moreover, advancements in battery technology have increased their range and efficiency, making them a viable alternative to traditional diesel buses. As a result, cities worldwide are increasingly investing in electric buses to modernize their public transportation systems, driving the demand in the intracity segment.
 

Asia Pacific dominated the global electric bus market with a major share of over 90% in 2023. With rapid urbanization and increasing environmental concerns, governments in countries like China, India, and South Korea are aggressively promoting electric vehicles, including buses, to tackle pollution and reduce dependence on fossil fuels. Moreover, supportive policies, such as subsidies and incentives, are encouraging both public and private transportation operators to transition to electric buses.
 

Additionally, advancements in battery technology and infrastructure development are enhancing the feasibility and attractiveness of electric buses. As a result, the market is experiencing robust growth, propelled by the region's commitment to sustainable transportation solutions.
 

In U.S., there is a growing demand for electric buses driven by environmental concerns and the need for cleaner transportation solutions. Federal and state incentives, along with environmental regulations, are encouraging transit agencies and municipalities to transition to electric buses. Companies like Proterra and BYD are leading the charge, offering advanced electric bus technologies with longer ranges and faster charging times. As a result, the U.S. market is experiencing a surge in demand, paving the way for a greener future in public transportation.
 

Electric Bus Market Share

Yutong and Traton held significant market share of over 20% market share in 2023. Yutong, a Chinese electric bus manufacturer, focuses on innovation and sustainability by developing advanced battery technologies and expanding its global presence through strategic partnerships. Traton, another prominent player, emphasizes product diversification and customer-centric solutions, offering a range of electric buses tailored to meet diverse transportation needs while prioritizing energy efficiency and environmental responsibility to stay competitive in the evolving electric bus market.
 

Manufacturers like Proterra and BYD are pioneering advanced battery technologies and efficient electric drivetrains, improving bus performance and range. Additionally, companies are partnering with governments and municipalities to develop charging infrastructure and offer financing options. These efforts, combined with rising environmental concerns, are boosting the demand for electric buses worldwide. As a result, the market is experiencing substantial growth, fueled by companies' targeted initiatives and innovations.
 

Electric Bus Market Companies

Major companies operating in the electric bus industry are:

• Anhui Ankai Automobile Co., Ltd
• BYD. Ltd.
• MAN Bus
• NFI Group
• Proterra
• Scania AB
• Solaris Bus & Coach
• VDL Bus & Coach
• Volvo
• Yutong Bus Co. Ltd.
• Zhongtong Bus Co. Ltd.
   

Electric Bus Industry News

• 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 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.
   

The electric bus market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) and shipment (Units) from 2021 to 2032, 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

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Belgium
  • Sweden
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Thailand
  • Vietnam
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Iran
  • Turkey
  • Rest of MEA