Electric Bus Market By Propulsion (FCEV, BEV, PHEV,), By Seating Capacity (Up to 40 Seats, 40 to 70 Seats, Above 70 Seats), By Range (Up to 250 km, Over 250 km), By Battery Type (NCA, NMC, LFP), and by Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Electric Bus Market was valued at USD 17.7 billion in 2023-e and will surpass USD 50.6 billion by 2030; growing at a CAGR of 16.2% during 2024 - 2030.

The electric bus market is experiencing significant growth, driven by a global shift towards sustainable and eco-friendly transportation solutions. Increasing urbanization, stringent government regulations on emissions, and rising fuel prices are propelling the demand for electric buses. As cities strive to reduce their carbon footprint and improve air quality, electric buses have emerged as a viable alternative to conventional diesel buses.

Battery Electric Bus Segment is Largest Owing to Growing Demand for Zero-Emission Solutions

The battery electric bus (BEB) segment stands as the largest within the electric bus market, accounting for a substantial share of overall sales. The rising demand for zero-emission solutions, particularly in urban environments, has made BEBs a preferred choice for public transportation authorities. These buses utilize advanced lithium-ion batteries that offer longer ranges, lower operating costs, and reduced maintenance requirements compared to traditional buses. With increasing investments in charging infrastructure and advancements in battery technology, BEBs are poised for even greater adoption in the coming years.

Moreover, government initiatives and incentives aimed at promoting the transition to electric mobility have significantly contributed to the growth of the BEB segment. Many regions are offering subsidies and grants to municipalities for purchasing electric buses, thus accelerating fleet electrification. As a result, major cities worldwide are transitioning their fleets to battery electric buses, reinforcing their status as the largest subsegment in the electric bus market.

Plug-In Hybrid Electric Bus Segment is Fastest Growing Owing to Flexibility in Operation

The plug-in hybrid electric bus (PHEB) segment is the fastest-growing subsegment within the electric bus market, experiencing rapid expansion due to its flexibility in operation. PHEBs combine electric and conventional internal combustion engines, allowing them to operate on both electric and fossil fuel power. This hybrid approach provides transit authorities with the ability to reduce emissions while maintaining operational efficiency, especially in areas with limited charging infrastructure. As cities aim for a balanced approach to electrification, PHEBs are increasingly seen as an attractive option for fleet managers.

The growth of the PHEB segment is further fueled by advancements in hybrid technology, enhancing fuel efficiency and lowering operating costs. With a growing emphasis on reducing greenhouse gas emissions and improving air quality, transit agencies are integrating PHEBs into their fleets to bridge the gap between traditional buses and fully electric options. This trend is expected to continue as cities implement policies aimed at sustainable transportation, positioning the plug-in hybrid electric bus as a key player in the electric bus market.

Fuel Cell Electric Bus Segment is Fastest Growing Owing to Long Range Capabilities

The fuel cell electric bus (FCEB) segment is emerging as one of the fastest-growing areas within the electric bus market, primarily due to its long-range capabilities and rapid refueling times. Unlike battery electric buses, which rely solely on batteries, fuel cell buses generate electricity on board through a chemical reaction between hydrogen and oxygen. This allows them to achieve longer ranges, making them suitable for longer routes and heavy-duty applications. As infrastructure for hydrogen fueling continues to expand, FCEBs are gaining traction in regions with established hydrogen production capabilities.

The attractiveness of FCEBs lies not only in their range but also in their zero-emission operation. With increasing investments in hydrogen infrastructure and favorable government policies supporting hydrogen fuel development, FCEBs are positioned for significant growth. Transit agencies are increasingly adopting fuel cell buses as part of their efforts to meet stringent emissions targets while ensuring the reliability and efficiency of public transportation systems. This segment's growth is indicative of a broader trend towards diversified electric mobility solutions.

Electric Bus Market in North America is Largest Owing to Strong Government Support

North America is recognized as the largest region in the electric bus market, driven by robust government support and increasing investments in public transportation infrastructure. The United States and Canada are at the forefront of this growth, with various federal and state-level initiatives aimed at promoting electric mobility. Significant funding programs, such as the Federal Transit Administration's Low or No Emission Vehicle Program, have facilitated the procurement of electric buses, enabling transit agencies to modernize their fleets.

Moreover, major cities in North America are implementing ambitious sustainability goals, resulting in a rapid transition towards electric buses. This shift is complemented by advancements in charging infrastructure and battery technology, which enhance the operational efficiency of electric bus fleets. The combination of strong policy support and a commitment to sustainability positions North America as a leading region in the electric bus market, setting a precedent for other regions to follow.

Competitive Landscape of the Electric Bus Market

The electric bus market is characterized by intense competition, with several leading companies playing pivotal roles in shaping the industry. The top ten companies include:

1. BYD Company Ltd. – A global leader in electric vehicle manufacturing, BYD offers a wide range of electric buses known for their innovative technology and reliability.
2. Proterra Inc. – Renowned for its high-performance battery-electric buses, Proterra focuses on sustainability and efficient public transit solutions.
3. New Flyer Industries – A prominent manufacturer of transit buses in North America, New Flyer produces electric and hybrid buses to meet the evolving demands of public transportation.
4. Volvo Buses – With a strong commitment to sustainable transport, Volvo Buses offers a range of electric and hybrid models tailored for urban environments.
5. Mercedes-Benz (Daimler AG) – Mercedes-Benz is expanding its electric bus portfolio with innovative models designed for efficiency and passenger comfort.
6. Yutong Group – One of the largest bus manufacturers in China, Yutong produces a variety of electric buses catering to domestic and international markets.
7. Gillig LLC – A key player in the U.S. market, Gillig focuses on producing reliable and sustainable buses, including electric variants.
8. Tata Motors – An Indian automotive giant, Tata Motors is making significant strides in the electric bus market with its innovative models and technologies.
9. NFI Group – Known for its diverse portfolio, NFI Group manufactures a range of electric and hybrid buses, emphasizing environmental sustainability.
10. Alexander Dennis Limited – A leading bus manufacturer in the UK, Alexander Dennis is focusing on electric bus solutions to meet growing demand in urban transportation.

These companies are actively investing in research and development to enhance the efficiency, performance, and sustainability of electric buses. Strategic partnerships, technological advancements, and expansion into emerging markets are crucial strategies employed by these players to maintain their competitive edge. As the electric bus market continues to evolve, collaboration among manufacturers, government entities, and technology providers will be essential in addressing the challenges and opportunities within this dynamic industry.

Report Objectives

The report will help you answer some of the most critical questions in the Electric Bus Market. A few of them are as follows:

1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
2. What are the prevailing technology trends in the Electric Bus Market?
3. What is the size of the Electric Bus Market based on segments, sub-segments, and regions?
4. What is the size of different market segments across key regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa?
5. What are the market opportunities for stakeholders after analysing key market trends?
6. Who are the leading market players and what are their market share and core competencies?
7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope: