North America Electric Bus Market size to cross USD 4.69 Billion by 2034

Selbyville, DE. - North America electric bus market was estimated at USD 1.03 billion in 2024 and is expected to grow from USD 1.19 billion in 2025 to USD 4.69 billion by 2034, at a CAGR of 16.4%, according to the latest report published by Global Market Insights Inc.  

Federal and state-level programs such as the U.S. Federal Transit Administration’s Low or No Emission Vehicle Program are pushing public transit agencies toward fleet electrification by offering substantial grants, tax credits, and subsidies for electric buses and charging infrastructure.  

Key Insights:

Market Size & Growth:

• 2024 Market Size: USD 1.03 billion
• 2025 Market Size: USD 1.19 billion
• 2034 Forecast Market Size: USD 4.69 billion
• CAGR (2025–2034): 16.4%  

Regional Insights:

• Largest Market: U.S.
• Fastest Growing Market: Canada
• Emerging Countries: U.S.  

Key Growth Drivers:

1. Growing demand for sustainable public transportation: There is a strong push from cities and municipalities to reduce their carbon footprints.  
2. Rising fuel and maintenance cost savings: Electric buses offer significantly lower operating costs over time due to reduced fuel expenses and fewer moving parts, which result in less frequent maintenance.  
3. Expansion of charging infrastructure: Investment in EV charging networks, especially depot and on-route charging stations, is making it more feasible for agencies to operate electric buses efficiently.  
4. Technological advancements in battery and motor systems: Improved battery energy density, faster charging capabilities, and enhanced electric drivetrains extend the range, reliability, and performance of electric buses, making them a more viable alternative for long routes.  
5. Corporate and school fleet electrification initiatives: Beyond public transit, private companies and school districts are beginning to electrify their fleets, driven by ESG goals and student safety concerns.  

Key Players:

• Blue Bird Corporation is leading the market with over 17% share in 2024.  
• Some of the top players in this market include GreenPower Motor Company, BYD Motors, Blue Bird Corporation, NFI Group, and The Lion Electric Company, which together held a 65% share in 2024.  

Key Challenges:

1. High upfront costs: Electric buses generally have a higher purchase price compared to traditional diesel buses, which can strain transit agencies’ budgets despite lower operating costs over time.  
2. Charging infrastructure limitations: The lack of widespread, reliable charging stations at depots and along routes poses logistical challenges for fleet operators and can limit route flexibility.  
3. Battery life and range anxiety: Concerns about battery degradation over time and limited driving range can affect the operational efficiency of electric buses on longer or more demanding routes.  
4. Longer charging times: Even with advancements in fast charging, the time needed to recharge electric buses can disrupt scheduling and require additional buses to maintain service levels.  
5. Technical expertise and workforce training: Transitioning to electric buses requires specialized skills for maintenance and repairs, and workforce training is essential but can be costly and time-consuming.  

Browse key industry insights spread across 210 pages with 190 market data tables and figures from the report, “North America Electric Bus Market Size - By Bus, By Battery Capacity, By Seating Capacity, By Propulsion, By Service, Growth Forecast, 2025 - 2034” in detail, along with the table of contents:

https://www.gminsights.com/industry-analysis/north-america-electric-bus-market  

Increasing Demand for Mini-bus (up to 8 m)

The North America electric bus market from mini-bus (up to 8 m) segment held a notable share in 2024, owing to its versatility and suitability for last-mile transit, shuttle services, and paratransit applications. These compact electric buses offer the advantage of maneuverability in dense urban environments and smaller passenger capacities, making them ideal for routes with lower ridership or narrow streets. With growing demand for sustainable and efficient transit options, the mini-bus segment is expected to grow. Manufacturers are focusing on enhancing battery life and charging efficiency while maintaining cost-effectiveness to appeal to municipalities and private operators alike.  

Rising Adoption of 100 kWh

The electric buses segment below 100 kWh segment generated significant revenues in 2024 as a popular choice for short-route operations and shuttle services where frequent recharging is feasible. These smaller battery systems reduce vehicle weight and cost, improving overall efficiency and making electric buses more accessible to smaller transit agencies and private fleets. Despite the limited range, advancements in fast-charging technology are mitigating downtime, enabling these buses to maintain consistent schedules.  

U.S. to Emerge as a Propelling Region

U.S. electric bus market held sizeable growth in 2024, driven by federal funding initiatives, state-level clean energy mandates, and rising environmental consciousness among consumers and policymakers. As transit agencies seek to replace aging diesel fleets with zero-emission alternatives, investments in battery technology, charging infrastructure, and fleet management systems have surged. Key industry players are leveraging innovation, strategic partnerships, and government collaborations to meet diverse regional needs and regulatory requirements, solidifying their market position and accelerating adoption.  

Major players involved in the North America electric bus market are Gillig LLC, BYD Motors, Trans Tech Bus, The Lion Electric Company, Collins Bus Corporation, Van Hool, GreenPower Motor Company, Blue Bird Corporation, NFI Group, and Alexander Dennis (ADL).  

Companies in the North America electric bus market are employing a blend of technological innovation, strategic alliances, and customer-centric solutions to reinforce their market presence. Emphasizing advancements in battery efficiency, vehicle range, and charging speed, they aim to differentiate their offerings in a competitive landscape. Collaborations with public transit authorities, utility providers, and infrastructure developers are pivotal to ensuring seamless integration and reliable operations.