Electric Bus Market Size By Type (All-electric, PHEV, FCEV), By Battery Capacity (Below 100 kWh, 100 - 300 kWh, Above 300 kWh), By Seating Capacity (Below 40 Seats, 40 - 70 Seats, Above 70 Seats), By Application (Intracity, Intercity) & Forecast, 2023 - 2

Electric Bus Market Size By Type (All-electric, PHEV, FCEV), By Battery Capacity (Below 100 kWh, 100 - 300 kWh, Above 300 kWh), By Seating Capacity (Below 40 Seats, 40 - 70 Seats, Above 70 Seats), By Application (Intracity, Intercity) & Forecast, 2023 - 2032

Electric Bus Market is anticipated to depict over 10% CAGR through 2032, as electric buses are among the fastest-growing parts of the EV market. With rapid urbanization, the sales of electric buses are set to grow exponentially. Ongoing technological innovations are also estimated to make batteries more powerful. The e-bus industry is expected to further be benefitted from the changing landscape as national and local policies steadily move towards lower emissions. Additionally, as costs drop, local governments with tight budgets will become more reliant on e-bus fleets.

Overall, the electric bus industry is segmented in terms of type, battery capacity, seating capacity, application, and region.

Based on type, the FCEV segment is anticipated to witness significant demand owing to its low operating cost and easy technical maintenance compared to EVs. In addition, the constant technological innovations across the hydrogen cells that reduce TCO by offering enhanced battery performance and surged fuel cell capacity will assist the segmental growth. Besides, FCEV buses run on hydrogen fuel cells that function as combustion engines. Increasing research and development studies in hydrogen fuel are further anticipated to fuel market demand for FCEV buses.

By battery, the below-100-KWh battery segment will grow considerably as electric buses under 100 kWh capacity have become most preferred choice for short-distance commutes, such as within a town or city. In addition, this battery segment is more affordable, which is anticipated to drive industry growth in the coming years.

In terms of the seating capacity, the below 40 seats bus segment will gain strong momentum in tourism transportation applications during the estimated timeframe. These kinds of electric buses are designed primarily for short-distance travel. Increasing use of below 40 seats buses by hotels and induvial organizations to offer an eco-friendly mode of transport for their staff is expected to drive the segment growth during the forecast period.

Considering the application, the intercity segment will showcase noticeable growth between 2023-2032. Increasing government investments in electric vehicles, emerging hotels, and public transportation authorities within various cities will drive the demand for electric buses in the intercity application.

Regionally, the North America electric buses industry will register strong growth during the forecast timeline. The increasing preference of using electric buses in the region to reduce traffic congestion and GHG emissions will influence market expansion.