Electric Bus Market Size, Share & Trends Analysis Report By Vehicle (Battery Electric Vehicle, Fuel Cell Electric Vehicle), By Battery, By Application, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global electric bus market size was valued at USD 40.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.5% from 2022 to 2030. Rising demand for non-polluting, air combating, and fuel-efficient buses is driving the demand for electric buses in the market. In addition, growing environmental concerns, strict regulations, and government initiatives to achieve zero emissions targets are propelling the growth of electric buses. Besides, efforts by automobile manufacturers to invest in the development of hydrogen fuel cell-powered electric bus is driving the demand. Additionally, increasing investment by battery manufacturers to produce cost-effective technologically advanced batteries is expected to boost demand for e-bus.

However, the COVID-19 pandemic has negatively impacted the growth of the industry. The pandemic disrupted the supply chain and halted vehicle production globally, which had a cascading effect on the industry growth. The market witnessed a sharp decline in sales with a Y-o-Y of approximately-8% in 2019 from 2018. In addition, the year 2020 witnessed a further decline of more than 30% from 2019. However, post-pandemic, the government provided various subsidiaries and incentives to encourage bus manufacturers to switch to producing electric buses over gasoline-powered buses. Thus, the market witnessed a quick recovery in the sales of electric buses in 2021.

The prominent players such as Pinnacle Mobility Solutions Private Limited are majorly focusing on investing heavily in research and development to develop and incorporate new technologies in electric buses. For instance, Pinnacle Mobility Solutions Private Limited (EKA) entered into a partnership NuPort Robotics to introduce ADAS of level 2 autonomy in its electric bus range. EKA will be testing a variety of autonomous features developed by NuPort. The level 2 ADAS is said to illustrate the improvement in existing safety standards, increase operational efficiency, and reduce carbon footprint. By leveraging NuPort expertise, EKA will be able to implement AI-enabled autonomous solutions in its electric buses’ platform. The incorporation of Artificial Intelligence (AI) is expected to improve operational efficiency and safety and reduce carbon emissions, impacting the overall industry growth.

The government is taking various initiatives to increase the adoption of e-buses across the globe. For instance, the European government has taken the Under Clean Vehicle Directive to register 45% of city e-buses with alternative power trains by 2025 and at least 65 percent by 2030. Besides, the Indian Government has launched FAME II scheme to increase the penetration of electric vehicles such as scooters, buses, bikes, and trucks. Moreover, the Swedish government wants to expand e-buses penetration to 15% by 2022. Thus, these initiatives taken by the governments are fueling the growth of the market.

High cost and low battery efficiency are key restraints to the growth of the industry. The total cost of ownership and maintenance cost of the e-bus is higher than traditional buses, which is discouraging consumers to buy gasoline-powered buses over the e-buses. In addition to this, the battery performance of e-buses is lesser than traditional buses due to low charging capacity, long charge duration, and limited range per charge. Besides this, lower performance of e-bus in colder climates and less battery charging performance lower the overall efficiency.

Vehicle Insights

The BEV segment dominated the market with a revenue share of more than 60.0% in 2021. The battery-powered bus is a great alternative to zero-emission or low-emission cars. The BEVs are quite effective when compared to conventional buses. The battery-powered bus allows faster driving as compared to buses powered by fuel or gasoline. Compared to diesel or gasoline-powered buses, BEVs are easier and less expensive to charge. Based on vehicle, the market is segmented into battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCEV).       

The FCEV segment is expected to register a lucrative CAGR of 15.1% in terms of volume over the forecast period. The FCEV contributes to a decrease in air pollution and greenhouse gas emissions. The segment is growing because of increased government initiatives to reduce carbon emissions and protect the environment. For instance, Germany is accelerating the adoption of fuel cell transit buses. The German government has invested $642 million in the manufacturing and installation of 150 hydrogen and 1400 electric transit buses in the country. Furthermore, the growing technological advancements and adoption of advanced technologies are creating a lucrative opportunity for the growth of the segment.

Application Insights

The intracity segment dominated the overall market and held a revenue share of more than 85.0% in 2021. The growth can be attributed to the rising demand for public transport and increasing number of people commuting to workplaces, schools, and universities throughout the world creating demand for intracity e-buses. Based on application, the market is segmented into intercity and intracity.

The intercity segment is anticipated to expand at a significant CAGR of 15.4% in terms of revenue during the forecast period. The growth of the segment is attributed to the increasing awareness among developing economies to reduce carbon emission levels and strict emission laws by the governments to adopt e-bus. For instance, in February 2020, the government of India launched its first intercity e-bus to run between Pune (India) and Mumbai (India). The e-bus has a seating capacity of 43 passengers and has a range of 300 kilometers on a single charge and would run twice a day from Pune to Mumbai.

End-use Insights

The public segment held the largest revenue share of more than 80.0% in 2021. The large share of the segment is attributed to the increasing transportation demand and introduction of several GHG emissions by governments to curb air and noise pollution and reduce dependency on fossil fuels. For instance, in January 2020, under the Trolebici project, Mexico added 63 electric trolley buses to its public transportation fleet, which involves an investment of about USD 35 million and aims to improve the transportation and commuting infrastructure in Mexico City. Based on end-use, the market is segmented into public and private.

The private segment is anticipated to expand at a volume-based CAGR of 11.8% during the forecast period. Several countries are taking initiatives for deploying e-buses within the countries, which is further propelling the growth of the market. For instance, GreenCell Mobility is deploying 50 e-buses in 4 areas of Gujrat. These luxury buses are equipped with Li-ion batteries and air conditioners and can travel up to 250 km on a single charge. Furthermore, the rising population, increasing greenhouse effect, and shifting consumer preference toward public transport are propelling the growth of the market.

Battery Insights

The lithium iron phosphate battery segment dominated the market with a revenue share of more than 90.0% in 2021. As compared to lead-acid batteries and other lithium batteries, lithium iron manganese battery offers a variety of benefits such as enhanced discharge, charge efficiency, longer life term, no maintenance, optimum safety, and lightweight. Although LiFePO4 batteries are not the most affordable in the market, they are the greatest long-term investment owing to their extended lifespan and lack of maintenance. Based on battery, the market is segmented into lithium nickel manganese cobalt oxide and lithium iron phosphate.

The lithium nickel manganese cobalt oxide is anticipated to expand at a volume-based CAGR of 14.8% over the forecast period. It is utilized as a cathode material in rechargeable lithium-ion batteries in batch quantities in powder form. This substance has an incredibly high thermal stability. The advantageous properties of nickel magnesium cobalt such as high cycle rate, capacity, and power and a low self-heating rate have increased its preference in the battery used for the e-buses.

Regional Insights

Asia Pacific held the largest revenue share of more than 85.0% in 2021. The growth can be attributed to the growing demand for eco-friendly transport and the presence of countries such as China, India, and Japan. China is a major player in the market and home to leading manufacturing companies. For instance, in March 2021, in China, more than 421,000 e-buses were used, which amounted to about 99% of the total fleet globally. Furthermore, strict government mandates, environmental concerns, and growing charging infrastructure are propelling the overall industry growth in this region.

North America is anticipated to expand at a significant CAGR of 20.3% in terms of revenue over the forecast period owing to the favorable policies of the government and the growing efforts in controlling vehicle emissions. Furthermore, governments in this region have started projects to make public transportation more sustainable by deploying green transportation technologies.

Key Companies & Market Share Insights

Key competitive factors in the market include presence of key manufacturers in regions, launch of new products, and pricing. For instance, in December 2021, Volvo Buses partnered with Zero Emission Bus Rapid-Deployment Accelerator (Zebra) aiming on increasing the speed of the implementation of zero-emission buses in Latin America. Furthermore, these companies adopt several strategies such as partnerships, mergers & acquisitions, and collaborations to strengthen their industry presence and gain profits. For instance, ABB Power Grids has signed a Memorandum of Understanding (MOU) with IIT Madras and Ashok Leyland for e-bus pilot run. The e-bus incorporates Hitachi ABB Power grid flash technology and Grid eMotionTM Flash will be provided by Ashok Leyland while IIT Madras will provide a flash charging system. With this partnership, both parties will be contributing to the electrification of Indian transportation. Some prominent players in the global electric bus market include:

• BYD Company Limited

• AB Volvo

• Proterra        

• Man Se

• Nissan Motor Corporation

• Ashok Leyland Limited

• Diamler AG

• Zhengzhou Yutong Bus Co., Ltd.

• TATA Motors Limited

• Hyundai Motor Company

Electric Bus Market Report Scope

Global Electric Bus Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electric bus market report based on vehicle, battery, application, end-use, and region:

• Vehicle Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • Battery Electric Vehicle

  • Plug-in Hybrid Electric Vehicle

  • Fuel Cell Electric Vehicle

• Battery Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • Lithium Nickel Manganese Cobalt Oxide

  • Lithium Iron Phosphate

• Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • Intercity

  • Intracity

• End-use Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • Public

  • Private

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Chile

  • Middle East and Africa