Electric Buses Market: Current Analysis and Forecast (2022-2030)

Electric Buses Market: Current Analysis and Forecast (2022-2030)

An electric bus, also known as an electric transit bus, is a bus that is powered by electric motors instead of traditional internal combustion engines. These buses use electricity stored in batteries to power their motors and operate. They are considered to be a more environmentally friendly alternative to traditional diesel or gasoline buses as they produce zero tailpipe emissions and are a significant contributor to reducing air pollution.

The Military Airlift Market is expected to grow at a strong CAGR of 19.8% during the forecast period as countries strive to reduce carbon emissions, combat climate change, and improve urban air quality. Governments and public transportation authorities are actively promoting the transition to electric buses, leading to significant investments and product launches in the sector. For instance, in Europe, several countries have made ambitious commitments to electrify their bus fleets. Norway has been a leader in this transition, with electric buses accounting for a substantial portion of its public transportation system. In 2021, Volvo Buses launched its Volvo 7900 Electric Articulated model in Norway, catering to the growing demand for zero-emission buses. China, the world's largest electric bus market, has been a frontrunner in electric bus adoption. Chinese electric vehicle manufacturers, such as BYD and Yutong, have experienced significant success in both domestic and international markets. BYD launched its K12A, a 27-meter pure electric bi-articulated bus, which set a Guinness World Record for the longest electric bus in commercial operation.

• Based on propulsion type, the market is segmented into BEV, HEV, PHEV, and FCEV. Among these, HEV has a high market share in 2021 and will dominate during the forecast period. This is due to HEVs being seen as a more practical and convenient option for many drivers, especially those who may have concerns about range anxiety or access to charging infrastructure. HEVs combine a gasoline engine with an electric motor, allowing them to switch between the two power sources as needed, which means drivers do not need to worry about running out of battery power.
• Based on length, the market is segmented into <9m, 9-14m, and >14m. Among these, 9m-14m has a high market share in 2021 and will dominate during the forecast period. adoption of 9–14-meter electric buses has been gaining momentum as cities and transit agencies worldwide seek to transition to sustainable and zero-emission public transportation. Several key players in the automotive industry have launched electric bus models in this size range, driving the market forward. For instance, BYD, a leading electric vehicle manufacturer, introduced the BYD K9 electric bus, which has a length of 12 meters and offers a long driving range on a single charge.
• Based on range, the market is segmented into up to 150 miles, 151-300 miles, and above 300 miles. Among them, upto 150 miles category is to witness higher CAGR during the forecast period owing to the growing preference of public transportation for long as well as short distance. Moreover, the growing incentives by the government to reduce CHG emissions while introducing electric buses for the public.
• Based on battery capacity, the market is segmented into less than 100 kWh, 100-300 kWh, and more than 300 kWh. Among these, the less than 100 kWh segment has a high market share in 2021 and will dominate the market in the forecast period. As larger battery sizes allow for longer driving ranges, which is a key consideration for consumers when choosing an electric vehicle. A battery in this size range can typically provide a driving range of 200-300 miles on a single charge, which is comparable to the range of a traditional gasoline-powered vehicle
• For a better understanding of the market adoption of the Industrial Relay industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Korea, and Rest of Asia-Pacific), Rest of World. Asia-pacific will hold the largest share of the market in 2022. China is leading the way in the growing adoption of electric buses, with a robust and ambitious plan to transform its public transportation system. The Chinese government has been investing heavily in electric buses, aiming to replace its entire fleet of traditional buses with electric ones. In 2022, China's BYD Company, one of the world's largest manufacturers of electric vehicles, launched the K12A, a 27-meter-long electric bus capable of carrying up to 250 passengers. This groundbreaking product launch demonstrates China's commitment to innovation and sustainability in the transportation sector.
• Some of the major players operating in the market include AB Volvo; Anhui Ankai Automobile Co., Ltd; BYD Company Ltd; CAF, Construcciones y Auxiliar de Ferrocarriles, S.A; EvoBus GmbH; NFI Group; Proterra; YUTONG; Zhongtong Bus Holding Co., Ltd; VDL Groep.

The electric buses market is expected to grow at a strong CAGR of around 19.8% during the forecast period owing to the growing concern about the environment and increasing government incentives. An electric bus is a type of public transportation vehicle that runs on electricity instead of fossil fuels. It has several advantages, including reduced emissions, lower operating costs, reduced noise pollution, and improved air quality. The growth of the electric bus market is being driven by government regulations, increasing demand for zero-emission transportation, advances in battery technology, and investment in charging infrastructure.

Some of the major players operating in the market include AB Volvo; Anhui Ankai Automobile Co., Ltd; BYD Company Ltd; CAF, Construcciones y Auxiliar de Ferrocarriles, S.A; EvoBus GmbH; NFI Group; Proterra; YUTONG; Zhongtong Bus Holding Co., Ltd; VDL Groep. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Based on the propulsion, the market has been categorized as BEV, HEV, PHEV, and FCEV. Among them, the BEV segment held a considerable share of the market in 2022.”

Based on the propulsion, the market has been categorized as BEV, HEV, PHEV, and FCEV. Among them, the BEV segment held a considerable share of the market in 2022. A battery electric vehicle, or BEV, is a type of vehicle that runs solely on electric power. BEVs use only an electric motor powered by rechargeable batteries, these batteries are usually made of lithium-ion cells and can be charged by plugging the vehicle into an electric power source. Moreover, the batteries used in BEVs have a voltage ranging from 300-400 volts. Therefore, more adoption of BEVs will have a positive impact on the EV battery market. Several instances below are driving the growth of the market. For instance, On February 13, 2023, Toyota Is Finally Accelerating BEV Development Specifically, next-generation BEVs for the Lexus brand by 2026.

“Based on the length, the market has been categorized into <9m, 9-14m, and >14m. Among them, <9m segment held a considerable share of the market in 2022.”

Based on the length, the market has been categorized into <9m, 9-14m, and >14m. Among them, the <9m segment held a considerable share of the market in 2022. The market for electric buses under 9 meters in length has witnessed a surge in recent years to attain environmentally friendly transportation solutions. Various key players in the automotive industry have introduced electric bus models tailored to meet the specific requirements of smaller urban routes. For instance, European bus manufacturers e.GO Mobile AG unveiled the e.GO Mover, an electric minibus designed for urban mobility. The e.GO Mover's compact size, combined with its emission-free operation, makes it suitable for shuttle services and transportation within city centers. These instances highlight the investment and product launches in the electric bus market under 9 meters, emphasizing the industry's commitment to providing sustainable and efficient transportation options for urban environments with limited space and high demand.

“Europe will hold the 2nd highest share of the electric buses market in 2022.”

Europe has been at the forefront of adopting electric vehicles (EVs) as part of its commitment to achieving zero emissions. The region has set ambitious targets to transition away from traditional combustion engines and embrace cleaner transportation options. The European Union's Green Deal and the European Commission's "Fit for 55" package aim to reduce carbon emissions and promote sustainable mobility. As a result, many European countries have implemented policies to incentivize the purchase and use of electric vehicles, including electric buses.

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