Electric Bus Market size worth over $53 Bn by 2027
Published Date: March 1, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Electric Bus Market size is set to be over USD 53 billion by 2027, according to a new research report by Global Market Insights, Inc.
Increasing government support toward the adoption of e-buses to mitigate vehicular emissions will contribute to the surging market for electric buses. Several initiatives, such as Electric Vehicles Initiative (EVI), EVI Global EV Pilot City Program (EVI-PCP), and [email protected] campaign, is likely to propel the demand in the electric bus market.
The positive outlook of the tourism industry globally will provide robust market growth opportunities. Increasing presence of manmade tourist attractions accessible by road will augment the demand for electric buses for intercity and intracity transport services.
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Analyst view: “Increasing demand for electric mobility services across the globe will accelerate the market growth. Growing acceptance of electric bus to reduce vehicular emissions in the global market will propel the industry share.”
Requirement of robust charging infrastructure for e-buses is posing as a challenge to the global electric bus market. Limited number of charging ports with low charging capacity in regions including Latin America, Asia Pacific, and parts of Europe will hamper the wide-scale adoption of electric buses for public transportation. However, supportive government initiatives will contribute to the growing demand for electric buses. For instance, in February 2020, the Canadian government announced its plan to invest USD 8 million to expand 160 fast chargers at 73 different locations for electric vehicles.
The sales of electric buses witnessed a steady decline in 2020 owing to the escalating spread of COVID-19 pandemic in various countries across the globe. Manufacturers in this industry have faced numerous challenges including shortage of raw materials and suspension of production activities. Increasing financial insecurities and restriction on movement of people impacted the market statistics during the first half of 2020. Furthermore, the market will witness a significant growth with gradual leniency in the containment measures by 2021.
Demand for FCEV will proliferate during the forecast timeline
The Europe FCEV segment held around 3% of the electric bus market share in 2020. The market is anticipated to observe surging demand for hydrogen fuel cell buses due to their enhanced efficiency compared to internal combustion engine (ICE) buses. Hydrogen fuel cells are more efficient and cleaner in terms of emissions compared to conventional combustion-based engines. Hydrogen fuel cell helps in reducing greenhouse gas emissions. Industry players are focused on R&D initiatives to enhance their product portfolio and enhance their market representation.
Browse key industry insights spread across 250 pages with 455 market data tables & 26 figures & charts from the report, “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” in detail along with the table of contents:
Growing demand for above 300 kWh battery capacity to enhance range
In 2020, over 12,000 units of electric buses with the battery capacity above 300 kWh were sold in Asia Pacific. The growth can be attributed to the increasing adoption of these batteries to provide better range in terms of kilometers covered. The higher capacity of charge stored by battery is proportional to the kilometer covered by the bus. Market players, such as Volvo, Daimler, Scania AB, and Yutong, are increasingly focusing on integrating their electric buses with high capacity battery packs.
Rising government initiatives to support electric vehicles in Europe
The Europe electric bus market size is projected to grow at over 20% CAGR during 2021 to 2027 driven by the increasing government initiatives toward the adoption of e-buses in the region. For instance, in January 2019, the Italian government introduced a plan of action to support transition to gas fueled and electric and buses. The government is investing around USD 4.14 billion over the period of 2019 - 2033.
The presence of several players including AB Volvo, Daimler AG, Alexander Dennis Limited, Scania AB, Solaris, and VDL Bus and Coach in the region will further augment the market expansion in Europe. These players are focusing on enhancing their business operations by expanding their production facilities. Companies are laying emphasis on new product launches, and merger & acquisition strategies to gain a competitive edge in the market.
The key players operating in electric bus market include Scania AG, VDL Group, BYD Co. Ltd, NFI Group Inc., Proterra Inc., AB Volvo, Daimler AG, Zhongtong Bus Holdings Co., Ltd. Yutong, and Ankai Bus.