South America Electric Bus Battery Pack - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

South America Electric Bus Battery Pack - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The South America Electric Bus Battery Pack Market size is estimated at 9.76 million USD in 2023, and is expected to reach 28.62 million USD by 2029, growing at a CAGR of 19.63% during the forecast period (2023-2029).

• In many of the countries falling under the South America region, buses are one of the main modes of public transit. Old traditional buses emit a lot of carbon dioxide due to ICE engines, therefore during the recent years, demand for electric buses has gradually grown in various South American countries such as Brazil, Chile, colombia etc. The demand for electric buses increased by xx% in 2021 over 2017 due to growing government's imposition of strict EV regulations, promotion of EVs through subsidies and rebates, rise in green transportation to cut down the carbon emission. As a result, the demand for battery packs for battery electric buses and plug in hybrid electric buses also increased by xx% in 2021 over 2017 throughout the region.
• Electric buses are gradually increasing in countries under the region. As of 2022 in South America, Chile has one of the highest demands of various type of electric buses and battery packs to power them. Chile has more than 800 buses being the major contributor to the battery market, some of the other countries such as Brazil, Colombia, Peru is also contributing to the growth of battery packs owing to the growing demand for electric buses in these countries gradaully. As a result, the region has witnessed a growth in the demand of electric buses by xx% in 2022 over 2021.
• Various companies are getting orders of electric buses from different countries falling under the region. In November 2022, the Chinese automaker BYD has announced to deliver 100 electric buses chassis in Sap Paulo, Brazil by the 1st half of 2023. These chassis will be further assembled to electric buses, which will also increase the demand of the battery packs for various types of buses such as battery electric and PHEB. Such developments are expected to enhance the demand for the battery packs during the forecast period in South America.

South America Electric Bus Battery Pack Market Trends

Growing Demand and Government Incentives Drive Electric Vehicle Market in South America

• Various countries falling under the South America region such as Brazil and Argentina etc. have great potential for the automobile market, and the South American vehicle industry has experienced substantial growth over the past few years. In recent years, the demand for electric vehicles, primarily passenger cars, has increased in the region owing to the factors such as rising awareness of electric vehicles, growing environmental concern, governmental push towards the adoption of electric vehicles. These factors are gradually shifting consumers to electric vehicles and the sales of the EVs have grown to 17.95% in 2022 over 2021.
• South America has various potential electric vehicle markets and Brazil holds potential demand for electric buses as the country is focusing on the adoption of more renewable power generation, which may utilize the country’s large niobium and lithium reserves, a crucial factor for EV batteries’ development. Moreover, In December, 2022, Sao Paulo bans the purchasing of diesel buses and has announced to deploy 2600 electric buses by the end of 2024. Similar factors in other countries are expected to boost the electrification of vehicles in the South America during the forecast period.
• The electrification of vehicles in South America is anticipated to be fueled by the policies and incentive programs implemented by the governments of the various countries in the region. Tax benefits are the main motivation, as the Government of Colombia is using incentives and subsidies to reach an ambitious goal of 600,000 EVs on the road by 2030 to address the carbon emission issues. As a result, similar factors in other countries in South America is anticipated to increase the sales of the EVs during the forecast period.

South America Electric Bus Battery Pack Industry Overview

The South America Electric Bus Battery Pack Market is fragmented, with the top five companies occupying 0%. The major players in this market are (sorted alphabetically).

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