Electric Bus Market size is set to cross USD 75 billion by 2028, according to a new research report by Global Market Insights Inc. The industry shipments are estimated to be around 150,000 units by 2028.
Considerable urbanization, increasing air pollution, and innovations in batteries will support the electric bus industry growth. Fleet operators’ inclination toward zero-emission mobility solutions is creating robust market opportunities for e-buses. The proliferating tourism industry in the MEA and Europe is positively influencing the electric bus industry. Increasing government focus on establishing sustainable tourism ecosystem will fuel the demand for electric buses.
The global electric bus market expansion is challenged due to the lack of charging infrastructure. Limited number of charging & battery swapping stations as well as low capacity of charging stations in Asia Pacific, Africa, and Latin America region is hampering the e-buses adoption. However, rising governments investments in e-mobility charging infrastructures are predicted to propel e-bus demand. For instance, in September 2021, the South Korea government announced an investment of USD 10.3 billion for the e-mobility sector that includes EV charging stations establishment across the country.
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Analyst view: “The growing demand for eco-friendly mobility solutions and supportive government initiatives are driving the electric bus market. Manufacturers are making significant investments in R&Ds and distributor network expansion to increase market share.”
Electric bus sales experienced a slight decline in 2020 on account of the significant transmission of COVID-19 virus across the globe. The industry was challenged in the first two quarters of 2020 impelled by higher lead times and severe disruptions in the supply chain. Rise in health & safety concerns has driven consumers away from public transport and toward personal mobility solutions for everyday commute, affecting the market demand. However, the industry is estimated to witness a significant growth post pandemic by heavy investments by companies to increase the e-bus efficiency as well as government high focus on clean transportation service.
Browse key industry insights spread across 300 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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Easy maintenance and low operating costs of FCEV buses
The fuel cell electric bus market is forecast to grow at a CAGR of over 5% in terms of unit shipments through 2028 led by higher efficiency and silent operations as compared to conventional diesel-powered buses. Furthermore, FCEV buses’ low operating costs and easy technical maintenance are playing a vital role in improving their market representation. Industry players are focusing on partnering with fleet operators to increase the sales of their FCEV buses and to achieve higher profitability from this potential market.
Above 300 kWh batteries are witnessing a high demand
Buses with above 300 kWh battery capacity held more than 25% of the market share in 2021. These buses are widely used in intercity electric buses owing to their high capacity suitable for longer range. Development in lithium-ion batteries such as extended battery life, low costs, and recyclability will provide a positive market outlook. Battery manufacturers are enhancing their production facilities to attract potential market players.
Availability of advanced technology equipped electric buses in Europe
The Europe electric bus market is poised to witness growth at approximately 18% through 2028. European countries are focusing on providing incentives on electric buses, cars, and bikes to accelerate the adoption, contributing toward growing market revenues. For instance, in October 2021, the government of Italy announced to add USD 118.2 million to its EV subsidy scheme to increase the sale of EVs in the region. As per this scheme, EV owners can get discount up to USD 9,456.2 on their new EVs.
The key electric bus market players include Zhengzhou Yutong Bus Co., Ltd., AB Volvo, VDL Bus & Coach B.V., Volkswagen AG, Anhui Ankai Automobile Co., Ltd., Toyota Motor Corporation, Beiqi Foton Motor Co., Ltd., Tesla, Inc., BMW AG, Tata Motors, BYD Company Ltd., SCANIA AB, Daimler AG, Nissan Motor Corporation, Ford Motor Company, NFI Group Inc., General Motors, Honda Motor Co., Ltd., Mitsubishi Motors Corporation, Hyundai Motor Company, MAN SE, Irizar S.C., and Iveco SpA. The companies are adopting different business strategies to enhance the sale of electric buses.