United States (USA) Electric Bus Market Overview, 2029

United States (USA) Electric Bus Market Overview, 2029

Electric buses represent a fascinating intersection of technology, sustainability, and urban innovation, offering a multitude of benefits that extend far beyond their sleek design and whisper-quiet operation. These marvels of modern transportation not only reduce harmful emissions, mitigating the environmental impact of traditional fossil fuel-powered buses, but also contribute to cleaner air and healthier communities. With their advanced battery technology and regenerative braking systems, electric buses showcase the potential for energy efficiency and renewable energy integration in the public transportation sector. Moreover, their futuristic allure and cutting-edge features capture the imagination, inspiring cities and transit agencies to embrace a more sustainable vision for the future of urban mobility. As symbols of progress and environmental stewardship, electric buses not only transport passengers from point A to point B but also propel us towards a greener, more sustainable tomorrow. Geographically also the WEST COAST Regions of U.S. including California, Oregon, Washington; California emerged as a leader in the adoption of electric buses, driven by ambitious environmental policies, state incentives, and strong support from transit agencies. Cities like Los Angeles, San Francisco, and Sacramento have made significant investments in electric buses, with transit agencies aiming to electrify their entire fleets in the coming years. Oregon has also shown a commitment to sustainable transportation solutions, with cities like Portland and Eugene implementing electric bus pilot programs and incorporating electric buses into their transit systems. The NORTHEASTERN cities of the country, for example New York City has one of the largest public transit systems in the country and has been exploring electric buses as a way to reduce emissions and modernize its fleet. The electric bus market in the United States has also experienced significant growth in recent years, driven by factors such as environmental concerns, government incentives, technological advancements, and the desire to reduce reliance on fossil fuels.

According to the research report ""United States Electric Bus Market Overview, 2029,"" published by Bonafide Research, the United States Electric Bus market is expected to grow at more than 13% CAGR from 2024 to 2029. Transitioning to electric buses addresses pressing environmental concerns, particularly in densely populated urban areas where air pollution poses a significant threat to public health. By replacing conventional diesel buses with electric counterparts, cities can substantially reduce harmful emissions, including particulate matter, nitrogen oxides, and greenhouse gases, thereby improving air quality and mitigating the adverse effects of climate change. Furthermore, electric buses offer economic benefits that extend beyond reduced fuel and maintenance costs. While the initial investment may be higher, the long-term operational savings, coupled with potential incentives and grants, make electric buses a financially viable option for transit agencies and municipalities. Environmental benefits is a key driver for the adoption of electric buses in the cities, particularly in areas where air quality is an issue, but also in places with ambitious greenhouse gas [GHG] reduction targets. In addition, growing concerns of local governments and environmental agencies over air quality degradation due to increasing urban vehicular emissions have led to the formulation of stringent environmental policies. Consequently, the implementation of the robust policies along with the environmental awareness is being given preference to boost the operation of low and zero emission transport systems in the U.S. Although CNG- based public transportation system is still the most dominant alternative to fossil fuel based public transport systems, electric buses are gaining traction due to their zero- or low- carbon emissions. The U.S. Government initiatives also acted as a catalyst for the E-Bus markets in the U.S. Programs and projects such as National Fuel Cell Bus Program [NFCB] and the American Fuel Cell Bus [AFCB] Project have resulted in an increasing adoption of electric buses in the country. This is also paving the way for technology transfer, policy groundwork, and growth of related components manufacturers in the market for electric buses in the U.S.

The report has been segmented on the basis of different types of criteria including application, vehicle type and end-user. Talking about the technology and vehicle type, three main types of technologies are prominent in the U.S. market Battery Electric Buses [BEB], Hybrid Electric Buses [HEB] & Fuel Cell Electric Buses [FCEB]. Battery electric bus [BEB] is the largest category, with a share of 70% in 2023, and the category is also expected to witness the fastest growth in the coming years. This dominancy and growth are because due BEBs are widely used in the country, as they have become advanced, specifically with respect to batteries, along with the support of both government and private programs.

On the basis of application, the U.S. electric bus market reflects the diverse needs and priorities of different sectors within the transportation industry. One key application segment is urban transit, where electric buses are increasingly adopted by public transit agencies in major cities across the country. These agencies deploy electric buses on fixed routes within urban areas, offering passengers a clean, efficient, and sustainable alternative to traditional diesel buses. Another important application is airport transportation, where electric buses are used to shuttle passengers between terminals, parking lots, and other airport facilities, reducing emissions and improving air quality on airport grounds. Electric buses also find application in university and corporate campuses, providing employees, students, and visitors with eco-friendly transportation options for navigating large campuses. Additionally, electric buses are used for specialized purposes such as tourism, where they offer tourists a quiet and environmentally conscious way to explore popular destinations. As the demand for clean transportation solutions continues to grow, the electric bus market in the U.S. is expected to expand across various applications, driving innovation and sustainability in the transportation sector.

In the U.S. electric bus market, segmentation based on end users reveals a diverse landscape of consumers with varying needs and priorities. Public transit agencies represent a significant end user segment, encompassing municipal governments, regional transit authorities, and public transportation operators. These agencies procure electric buses to modernize their fleets, reduce emissions, and improve air quality in urban, suburban, and rural areas across the country. Private transportation companies also play a role in the market, operating electric buses for shuttle services, corporate transportation, and tourism purposes. Government agencies and institutions, such as federal departments, educational institutions, and healthcare facilities, are another important end user segment, leveraging electric buses to fulfil transportation needs for employees, students, and patients. Additionally, commercial and industrial complexes utilize electric buses to provide sustainable transportation solutions for employees, visitors, and customers within their premises. As the U.S. electric bus market continues to expand, understanding the diverse needs and preferences of these end user segments is essential for manufacturers and suppliers to tailor their products and services effectively.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Electric Bus market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle
• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

By Application
• Intercity
• Intra-city

By End-Use
• Private
• Public

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Bus industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.