“The Electric Bus Market value was US$ 17 Billion in 2023 and is likely to grow at a robust CAGR of 7.8% in the long run to reach US$ 37.5 Billion in 2032”.
Market Dynamics
Introduction
A vehicle powered entirely by electric motors and batteries, designed to transport passengers without using fossil fuels. It operates silently and emits no tailpipe pollutants, contributing to reduced air and noise pollution in urban environments. Electric buses require regular recharging through plug-in or fast-charging infrastructure and offer improved energy efficiency and lower maintenance compared to conventional diesel buses.
Recent Market JVs and Acquisitions:
A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:
- In February 2024, Ashok Leyland Limited from India planned to construct a new factory in Uttar Pradesh for manufacturing electric buses. The company has envisaged spending INR 1000 crores over the next few years to set up and develop this facility.
- In January 2024, Solaris Bus & Coach sp. Polish firm z o. o., supplying 19 Fuel cell buses to Essen in Germany after signing a deal with Ruhrbahn GmbH. These buses will incorporate hydrogen built-in fuel cells that produce power inside and second-generation ADAS (Advanced Driver Assistance Systems). This new transport will be from 2024 and 2025, and the Essen transport market is new to Solaris.
- In January 2024 the Spanish carrier the Transports Metropolitans de Barcelona (TMB) awarded a contract to Solaris Bus & Coach sp. from the Polish Solaris Bus & Coach, a member of the Slovak company Solaris Bus & Coach, s. r. o. for 38 Solaris zero-emission buses. Solaris will supply 36 Urbino 12 and two hydrogen buses for articulated ones which will be delivered to the city in 2024.
Recent Product Development:
- In March 2024, Solaris made a new generation of the Urbino 12 electric bus, and a new propulsion scheme and batteries have been designed. This latest model has performance parameter improvements.
- In November 2023, Alexander Dennis, a subsidiary of NFI Group Inc., and a company recognized as one of the ultimate global bus makers introduced the next-generation battery-electric small bus and double-decker models for the United Kingdom and Ireland markets as Enviro100EV and Enviro400EV.
- In May 2023, Daimler Truck & Bus AG of Germany laid out for production of the Mercedes eCitaro at the plant in Ligny-en-Barrois in France. This is in line with the group’s strategy to incur about USD 54. To increase the production of electric buses at the manufacturing site by 1 million (EUR 50 million) by 2030.
Market Segments' Analysis
Segmentations
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List of Sub-Segments
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Segments with High Growth Opportunity
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Propulsion-Type Analysis
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BEV and FCEV
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BEV is anticipated to contribute the largest share of the electric bus market, whereas FCEV are likely to grow at the fastest rate in the coming years.
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Battery -Type Analysis
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LFP, NMC, and NCA
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LFP is anticipated to contribute the largest share of the electric bus market.
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Length -Type Analysis
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Less Than 9m, 9-14, and More than 14m
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The 9-14 m segment is projected to dominate the global electric bus market during the forecast period.
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Application -Type Analysis
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City, Coach, Midi, and School
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City buses are the largest market segment by application and are expected to remain the dominant segment during the forecasted period.
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Region Analysis
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North America, Europe, Asia-Pacific, and Rest of the World
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The Asia-Pacific is expected to maintain its reign over the forecast period, whereas North America is likely to grow at the fastest rate.
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By Propulsion Type
“BEV is expected to remain dominant, whereas FCEV will be the fastest-growing aircraft type in the market during the forecast period”.
- The propulsion electric bus market is segmented into BEV and FCEV.
- The segment’s large market share is mainly attributed to increasingly stringent emission standards, the rising need for increased fuel efficiency, the growing demand for zero-emission buses, and government initiatives supporting the adoption of electric buses for public transport.
- FCEVs are the fastest-growing due to rapid advancements in hydrogen technology, increased investment in hydrogen infrastructure, and the global push towards zero-emission vehicles.
By Battery Type
“LFP battery segment is expected to capture the largest market share of the global electric buses market during the forecast period”.
- The market is segmented into LFP, NMC, and NCA.
- The LFP battery segment is expected to record the largest share and highest CAGR during the forecast period. This segment's growth is mainly driven by its ability to provide long life and reliable performance under adverse conditions, the increasing use of LFP batteries in commercial electric vehicles, and the ease of recycling LFP batteries.
- Lithium-iron-phosphate batteries, which are widely used in electric school buses, exhibit superior thermal stability compared to other lithium batteries.
By Length Type
“The 9-14 meter segment is projected to dominate the global electric bus market during the forecast period.”.
- The market is segmented into Less Than 9m, 9-14, and More than 14m.
- The segment's substantial share is largely due to the rising number of orders for electric buses in this category for public transportation, as well as the growing emphasis from key market players on developing electric buses.
- The segment for buses over 14 meters is anticipated to achieve the highest CAGR during the forecast period. This growth is primarily driven by the growing emphasis on integrating large electric buses into public transportation systems and their ability to reduce congestion by efficiently carrying a substantial number of passengers.
By Application Type
“City buses are the largest market segment by application and are expected to remain the dominant segment during the forecasted period.”.
- The market is segmented into City, Coach, Midi, and School.
- The City buses application segment is expected to record the largest share and highest CAGR during the forecast period. The high demand for this application is largely driven by its suitability for urban settings, shorter travel distances, and fixed routes. Local governments are incentivizing and mandating the use of electric buses within their public transportation systems.
- Regulatory pressures have motivated companies like Volvo, BYD, and Daimler to design electric buses specifically for urban environments, incorporating improvements in maneuverability, seating capacity, and accessibility features.
Regional Analysis
“The Asia-Pacific is expected to remain the largest market for Electric Bus during the forecast period”.
- In terms of countries, China is expected to remain the largest market for electric buses during the forecast period.
- China is leading both regionally and globally due to its largest market size in terms of volume. The Chinese government has established public transportation zones specifically for electric buses, and its initiatives have significantly accelerated the adoption of battery-operated buses in the region. Japan and South Korea also contribute to the booming sales of these types of buses in this region.
- However, North America is projected to be the fastest-growing market during the forecast period. In this region, government incentives, the involvement of private investors, and technological advancements are fuelling the growth of the electric bus market, with the US leading the way.
Key Players
The market is highly fragmented, with the presence of over 100 players across the region. Most of the major players compete in some of the governing factors, including price, service offerings, regional presence, etc. The following are the key players in the Electric Bus market. Some of the major players are highly integrated in the market.
Here is the list of the Top Players (Based on Dominance)
- BYD Co., Ltd
- Proterra, Inc.
- AB Volvo
- New Flyer Industries
- Daimler AG
- Scania AB
- Iveco
- Yutong
- Ebusco
- Xiamen King Long United Automotive Industry Co., Ltd.
- VDL Groep bv
Note: The above list does not necessarily include all the top players in the market.
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Report Features
This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The global Electric Bus market is segmented into the following categories.
Electric Bus Market, by Propulsion Type
- BEV (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- FCEV (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Electric Bus Market, by Battery Type
- LFP (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- NMC (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- NCA (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Electric Bus Market, by Length Type
- Less Than 9m (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- 9-14 (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- More Than 14m (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Electric Bus Market, by Application Type
- City (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Coach (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- Midi (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
- School (Regional Analysis: North America, Europe, Asia-Pacific, and RoW)
Electric Bus Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Electric Bus market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
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Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
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