The global electric bus market size is expected to reach USD 121.99 billion by 2030, expanding at a CAGR of 20.4% from 2023 to 2030, according to a new report by Grand View Research, Inc. Rising demand from private transit agencies, city planners, and private institutions for alternatives to conventional buses andincrease in production of cost-effective batteries are main factors driving the growth. Additionally, increasing developments in the deployment of fast-charging infrastructures are further contributing to the adoption of electric buses in the global market.
Increased government support for electrifying public transportation will further propel the market growth. For instance, in March 2023, the Government of Canada announced an investment of USD 150,000 to conduct a feasibility study for electric buses and build a fleet transition plan for the city of Belleville. Furthermore, this initiative is expected to assess the city’s ability to transition to zero-emission buses. Several companies such as BYD, and AB Volvo have managed to penetrate the European market by providing electric buses in bulk quantity. For instance, in 2021, BYD secured the largest order from Europe for supplying 246 electric buses to the Netherlands.
Moreover,enacting stringent environmental and government emission standards will unleash the potential for the expansion of the electric bus industry. Several government entities have introduced innovative pollution reduction programs with incentives to encourage the use of electric buses for public transportation. In addition, customers are increasingly adopting alternative and innovative energy vehicles as a result of the global transportation sectors coupled with dwindling crude oil prices.
Rising investment by the government to boost the battery charging infrastructure is expected to fuel the electric bus industry. For instance, in February 2023, the U.S. government will be investing USD 7.5 billion for the development of the battery charging infrastructure and achieve the goal of installing about 500,000 chargers nationwide by 2030.
Asia Pacific region dominated the electric bus industry in 2022. China is the market leader both locally and internationally. China is renowned for having an enormous fleet of electric buses and taking major strides to achieve the goal of 20 million electric buses on roads by 2030. The Chinese government has established public transit zones for the usage of these vehicles. The region employs more battery-powered buses as a result of government initiatives. Additionally, the market's expansion in this area is being fueled by the presence of bus manufacturing giants and the rapid expansion of battery charging infrastructure is further fueling the growth of the market in this region.
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The electric bus industry is expected to exceed 265 units by 2030 and witness high pace growth during the forecast period
Government investments to boost existing battery charging infrastructure is expected to encourage potential bus purchasers to adopt battery-powered electric bus over the diesel buses in the market
Government-provided incentives, subsidiaries, and rebates to replace the existing bus fleet with the electric bus are expected to propel the growth of the electric bus industry
Rising demand for emission-free public transportation is expected to drive the electric bus industry growth during the forecast period
Growing concern for cost and fuel-effective commuting has fostered the growth of the electric bus industry
The electric bus manufacturers’ focus to develop technologically advanced buses is expected to drive electric bus industry growth during the forecast period 2023 to 2030.
Grand View Research has segmented the global electric bus market based on vehicle type, battery type, application, end-use, and region:
Electric Bus Vehicle Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Battery Electric Vehicle
Plug-in Hybrid Electric Vehicle
Fuel Cell Electric Vehicle
Electric Bus Battery Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Lithium Nickel Manganese Cobalt Oxide
Lithium Iron Phosphate
Electric Bus Application Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Electric Bus End-use Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Electric Bus Regional Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)
Middle East and Africa
List of Key Players of Electric Bus Market
BYD Company Limited
Nissan Motor Corporation
Ashok Leyland Limited
Zhengzhou Yutong Bus Co., Ltd.
TATA Motors Limited
Hyundai Motor Corporation
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