Electric Bus Market worth over $53 billion by 2027
Published Date: January 3, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Electric Bus Market size is set to exceed 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 market revenue growth. Several initiatives, such as Electric Vehicles Initiative (EVI), EVI Global EV Pilot City Program (EVI-PCP), and [email protected] campaign, will propel the market demand.
The positive outlook of the tourism industry globally will provide robust growth opportunities for the electric bus market. Increasing presence of manmade tourist attractions accessible by road will augment the demand for electric buses for intercity and intracity transport services. According to the market data by the Italian Government Tourist Board in 2019, the country recorded more than 96 million travelers. Developments in the mobility services and public transport infrastructure will further assist the industry expansion.
Requirement of robust charging infrastructure for e-buses is posing as a challenge to the global electric bus industry. 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.
Demand for FCEV will proliferate during the forecast timeline
The Europe FCEV segment accounted for a market share of around 3% in 2020. The market is anticipated to witness a 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 share. For instance, in August 2020, Beiqi Foton announced the establishment of its hydrogen fuel cell commercial vehicle industry innovation center. The establishment aided the company to enhance its R&D initiatives for the development of fuel cell electric buses.
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 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 will observe a growth of over 20% till 2027. The growth can be credited to 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 drive the market size in Europe. These players are focusing on enhancing their business operations by expanding their production facilities. For instance, in October 2019, VDL Bus and Coach announced the opening of its new factory in Roeselare, Belgium. The expansion assisted the company to cope up with the changing market trends.
The key companies operating in this 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. Companies are laying emphasis on new product launches, and merger & acquisition strategies to gain a competitive edge in the market. For instance, in April 2019, BYD Company Limited announced the launch of K12A27-meter pure electric bus. K12A has a passenger capacity 250 and can travel at a maximum speed of 70 km/h. The launch aided the company to expand its e-bus portfolio.