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Electric Bus Market worth over $75 billion by 2028

  • Published Date: March 11, 2022

Electric Bus Market size is set to exceed USD 75 billion by 2028, according to a new research report by Global Market Insights, Inc.

Considerable urbanization, increasing air pollution, and innovations in electric batteries are contributing to the expanding market for electric buses worldwide. 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 anticipated to provide significant growth opportunities for the market. Increasing government focus on establishing sustainable tourism ecosystem will fuel the demand for electric buses.

Global Electric Bus Market Size, By Type

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The global electric bus industry 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 expected to propel e-bus demand.

Electric bus sales experienced a slight decline in 2020 due to the significant transmission of COVID-19 virus across the globe. The industry was challenged in the first two quarters of 2020 owing to 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 statistics. However, the market is estimated to witness a significant growth post pandemic owing to heavy investments by industry participants to increase the e-bus efficiency as well as government high focus on clean transportation service.

Easy maintenance and low operating costs are creating a demand for FCEV buses

The FCEV segment is forecast to grow at a CAGR of over 5% in terms of unit shipments through 2028, due to its 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 globally.

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), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:

Above 300 kWh batteries are witnessing a high demand owing to their enhanced range and high-power capacity

Buses with above 300 kWh batteries held a market share of over 25% in 2021, 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 size is predicted to witness over 18% growth during the forecast timeframe. European countries are focusing on providing incentives on electric buses, cars, and bikes to accelerate the adoption, contributing toward 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 upto USD 9,456.2 on their new EVs, supporting the market trend.

The key players operating in this market 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 fuel the sale of electric buses.

Authors: Preeti Wadhwani, Prasenjit Saha