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), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028

Industry Trends

Electric Bus Market size surpassed USD 40 billion in 2021 and is expected to grow at a CAGR of over 10% between 2022 and 2028. The shifting focus of commercial transport companies toward sustainable transportation is creating a positive traction for e-buses worldwide.
 

Electric buses emit zero or low emission as compared to conventional buses that are powered by diesel or gasoline engines, supporting the industry trend. Significant focus of various countries on promotion of electric transit solutions will improve the market statistics.
 

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Governments are focusing on accelerating the adoption of electric buses to enhance their contribution toward establishing a sustainable environment. For instance, in January 2021, the Government of Germany received funds of around USD 354 million from European Commission for purchasing new electric buses in the region.
 

The increasing popularity of e-buses is encouraging industry participants to invest in R&Ds for new product innovations. The companies, such as Letenda, VDL Bus & Coach B.V., and Scania Ab, are focusing on developing models as per regional needs.
 

The key factor restricting the market expansion is high initial costs associated with electric buses. Electric bus and PHEV bus procurement requires heavy capital investments and large down payments. Furthermore, the additional charges, such as storage costs, taxes, loan interests, costs of insurance, and licensing, are adversely impacting the e-bus demand.
 

The outbreak of novel COVID-19 negatively impacted the electric bus market during the first half of 2020. Majority of governments adopted strict safety measures to contain the virus. Companies faced several challenges such as shutdown of manufacturing facilities, ban on global import & export, and shortage of factory workers. However, the market experienced significant growth in late 2020 owing to government initiatives to revive the pandemic-affected economy and significant investments by industry players in R&Ds.
 

High demand for all-electric bus due to their low operation sound & vibration

The all-electric bus segment accounted for nearly 90% of market share in 2021 led by their advanced multiple features and strict government regulations against fuel-powered buses, globally. For instance, in March 2021, the Government of UK announced to ban all types of diesel buses sales in the region from 2030 as a part of government initiatives to tackle air pollution and climate changes. The governments also invested about USD 4.12 billion under the National Bus Strategy plan to boost the adoption of e-buses.
 

Significant investments in the 100-300kWh e-bus battery segment

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The 100-300kWh battery capacity segment is estimated to experience an upward market trend fueled by rising demand for electric buses and OEMs’ focus on expanding their dealer networks. The segment is poised to witness growth rate of above 12% through 2028.
 

The 100kWh-300kWh battery-powered electric buses are majorly used in government public transport, colleges & universities, and hotel sectors. Companies are focusing on developing batteries for e-buses to enhance their revenues.
 

Robust seating comfort and availability of various models

40–70-seater bus segment captured over 60% of the electric bus market share in 2021 due to its better seating comfortability than 40 seaters and maximum capability of long-distance public transportation. Transport service providers are placing orders for 40–70-seater e-buses to minimize the ticket fares and to increase their consumers.
 

Rising public transport demand is driving intracity segment growth

Intracity application is projected to register 10% gains till 2028. Increasing commuters for schools, colleges, and offices across the globe are creating a demand for intracity e-buses.
 

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The Asia Pacific electric bus market valued at USD 35 billion in 2021. The significant share in the region can be attributed to the presence of established market participants such as BYD Co., Ltd., Tata Motors, Anhui Ankai Automobile Co., Ltd., Zhongtong Bus Holding Co. Limited., and Ashok Leyland Limited and their initiatives to increase their electric bus sales.
 

E-bus OEMs focus on improving their market shares as well as brand value

Industry leaders high emphasis on significant investments in R&Ds for new innovations to attract potential business clients. For instance, in July 2021, Arrival, a commercial EV company, announced to build e-bus for Anaheim city using its AI-enabled manufacturing facility in California.
 

The prominent electric bus market players include AB Volvo, Anhui Ankai Automobile Co., Ltd., Beiqi Foton Motor Co., Ltd., BMW AG, BYD Company Ltd., Daimler AG, Ford Motor Company, General Motors, Honda Motor Co., Ltd., Hyundai Motor Company, Irizar S.C., Iveco SpA, MAN SE, Mitsubishi Motors Corporation, NFI Group Inc., Nissan Motor Corporation, SCANIA AB, Tata Motors, Tesla, Inc., Toyota Motor Corporation, Volkswagen AG, VDL Bus & Coach B.V., and Zhengzhou Yutong Bus Co., Ltd.
 

This market research report on electric bus includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2022 to 2028 for the following segments:

Market, By Type:

• All-electric
• PHEV
• FCEV

Market, By Battery Capacity:

• Below 100 kWh
• 100-300 kWh
• Above 300 kWh

Market, By Seating Capacity:

• Below 40 seats
• 40-70 Seats
• Above 700 Seats

Market, By Application:

• Intercity
• Intracity

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Chile
• MEA
  • UAE
  • Saudi Arabia
  • South Africa