Africa Electric Bus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Africa Electric Bus Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Africa Electric Bus Market was valued at USD 872.89 million in 2021, and it is projected to reach USD 1548.44 million by 2027, registering a CAGR of 10.26% during the forecast period (2022-2027).

COVID-19 pandemic undoubtedly has an impact on the African electric bus market, as it has on almost every other industry in the market. Manufacturing units have been closed due to the region's electric bus market slowdown, with social distancing norms to follow and limited staff available to run production lines with all safety measures.

In the long term, the growing emphasis of countries on promoting electrification of mass transit solutions, as well as government support, is propelling the market growth. Several African countries are taking part in the growing electric-powered transportation wave. Increased use of electric vehicles is a strategy for decarbonizing transportation and improving air quality in African cities. However, there are a number of issues that African countries must address in order to reap the benefits of the electric vehicle movement.

However, Africa used vehicle imports and a growing vehicle fleet are driving up climate emissions and air quality impacts in the region. This might hamper the market growth during the forecast period. According to the United Nations Environment Programme’s Integrated Assessment of Short-lived Climate Pollutants in Africa and the Caribbean report, around 64,000 people prematurely die every year in Africa and the Caribbean due to air pollution that is caused by transportation.

Key Market TrendsBattery Electric Bus to Witness Growth

Urban transportation buses account for approximately 25% of the total emission by the transportation sector, and the preference in public transport is expected to increase by nearly 50% by 2030. This will result in an estimated additional 26,000 tons of carbon.As e-buses are becoming a commercially viable solution for public transport although it is still costlier to diesel buses and in addition to that they have zero exhaust emissions. E-buses are helping to reduce CO2 emissions only if the electricity is generated from a solar grid.

Battery electric buses are expected to lead in the market, as local government initiatives to reduce the emission and reduce the operational cost of public transportation. Various local startups are building their electric bus prototypes which will help the country to create local jobs in the coming future which will in turn boost their economy also. Whereas, global organization is helping African countries to support electric mobility. For instance, UN Environment is directly supporting twenty major cities in Africa, Latin America, and Asia to prepare plans for moving to low-emission public transport, with the adoption of electric buses over diesel.

• In January 2022, Opibus, a Swedish-Kenyan technology firm that develops, designs, and manufactures electric vehicles for the African continent, has just launched the country's first all-electric bus. The electric bus was designed and developed in Kenya by Opibus. This is the first major step toward the company's goal of producing a locally designed and developed electric bus for the pan-African market by the end of 2023. This is also a step toward Opibus' goal of electrifying Africa's public transportation system through the deployment of products tailored to the local use case

Government participation will drive the Electric Bus Market

African countries are in following the path of other developing countries for the adoption of electric buses. Local Governments along with various other partners are actively putting their plans for the adoption of electric buses in the future. For instance,

• In April 2022, The Ministry of Transport announced plans to test electric buses in Ghana as part of efforts to decarbonize and achieve net-zero emissions. As a result, the Ministry is importing ten electric buses to test in selected cities. Alhassan Tampuli, Deputy Minister of Transport, announced this at the national energy transition forum in Mole.
• Morocco’s integrated national policy for reducing the effects of climate change and reducing greenhouse gas emissions by 32% by the year 2030, and in 2016, the country came into partnership with a Chinese bank to manufacture electric buses in Morocco with a total investment of MAD 1.2 billion.
• Whereas UN Environment has designed the eMob Calculator for buses, which will enable the user to assess the potential of electric and other low emission buses to reduce energy consumption, CO2, and air pollution by the year 2050.

Competitive Landscape

The major players in the market studied include BYD, Yutong, Zhongtong Bus, and King Long, among others. The companies are expanding their presence by making strategic alliances, acquiring regional players, introducing new bus models, and making partnerships with governments. For instance,

• In November 2021, the startup received one million dollars in funding. BasiGo plans to launch electric buses with a range of 250 kilometers and seating capacities of 25 and 36 seats in the near future. These characteristics are tailored to the Nairobi public transportation environment.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.