Electric Bus Industry

The global electric bus market size was estimated at USD 49.81 billion in 2023 and is expected to grow at a CAGR of 12.1% from 2024 to 2030. An increasing adoption of electric buses owing to rising environmental concerns and government support has contributed to the growth of the electric bus market. Electric buses offer a significant advantage over traditional gasoline and diesel engines by producing zero tailpipe emissions. Additionally, they are generally cleaner and more environmentally friendly. Furthermore, electric buses also provide a quieter ride, significantly reducing noise pollution. This quiet operation enhances driver awareness and passenger comfort. Thus, increasing adoption of electric buses owing to their abovementioned benefits is expected to contribute to the market’s growth from 2024 to 2030.

The sales of electric buses, including all large- and medium-sized buses, are gradually increasing across the globe. According to a report published by the International Energy Agency (IEA), in 2023, China and several European countries such as Norway, Belgium, and Switzerland, achieved electric bus sales shares above 50%. Additionally, countries like Canada, the Netherlands, Chile, Finland, Portugal, Poland, and Sweden witnessed over one-fifth of their bus sales being electric. Furthermore, in 2023, nearly 50,000 electric buses were sold globally, accounting for 3% of total bus sales and increasing the global stock to around 635,000 units. Thus, the growing production and sales of electric buses across the globe are expected to contribute to the market’s growth.

Gather more insights about the market drivers, restrains and growth of the Global Electric Bus market

Electric Bus Market Segments:

Market Concentration & Characteristics

The industry's growth stage is high, and the pace of growth is accelerating. The electric bus industry can be characterized by a high degree of innovation. The latest electric buses are equipped with cutting-edge battery technologies that have significantly improved their performance. These advancements include increased range, faster charging capabilities, and enhanced energy density.

Type Insights

The Battery Electric Vehicle (BEV) segment dominated the global market and accounted for a revenue share of 67.6% in 2023. The battery-powered bus is a more efficient alternative to zero-emission or low-emission cars. The BEVs are more effective than conventional buses. The battery-powered bus allows for faster driving as compared to buses powered by fuel or gasoline. Compared to diesel or gasoline-powered buses, BEVs are easier and less expensive to charge. Such benefits of BEVs over conventional buses are boosting the segment’s growth.

Battery Type Insights

The lithium iron phosphate segment dominated the market in 2023. Lithium-iron-phosphate batteries, which are widely used in electric school buses, exhibit superior thermal stability compared to other lithium batteries. This enhanced thermal stability ensures that the battery structure remains intact for a more extended period, even under high temperatures, thereby reducing the chances of fires spreading. Thus, the adoption of lithium-iron-phosphate batteries is growing in electric buses, as they are safer, charge faster, last longer, perform better at high temperatures, have higher power density, and are cost-effective.

Application Insights

The intracity segment dominated the market in 2023. Electric buses are particularly well-suited for intracity application due to their zero-emission operation, lower operating costs, and suitability for short-to-medium distance routes. The growth of the segment can be attributed to the growing urbanization and demand for sustainable solutions to combat air pollution within the city. In addition, the increasing need for public transport and the adoption of electric buses by workplaces, schools, colleges, and tourist places further boosts the segment’s growth.

End Use Insights

The public segment dominated the market in 2023. The high share of the segment is attributed to the increasing transportation demand, and governments introducing several initiatives to curb GHG emissions, reduce noise & air pollution, and reduce dependency on fossil fuels. For instance, in March 2023, a Belgium-based manufacturer of buses, coaches, trailers, and trolley buses signed a contract with Netherlands-based company Qbuzz to supply 54 battery electric buses. These 15-meter e-buses are expected to be used by Qbuzz as regional public transport in Groningen and Drenthe. Such initiatives are expected to contribute to the segment’s growth.

Regional Insights

The electric bus market in North America is expected to witness significant growth from 2024 to 2030. In North America, the U.S. and Canadian governments are actively devising plans to establish robust charging infrastructure across the region. The U.S. is expected to continue to grow steadily in this area, driven by technological advancements, a focus on sustainable transportation, and the nation's commitment to reducing carbon emissions.

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• The global electric vehicle market size was estimated at USD 1,070.77 billion in 2023 and is anticipated to grow at a CAGR of 33.6% from 2024 to 2030.
• The global cobalt market size was estimated at USD 15.97 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030.

Key Electric Bus Company Insights

Some of the players operating in the market include BYD Company Limited, AB Volvo, Nissan Motor Corporation, Daimler Truck AG, Hyundai Motor Company, and TATA Motors Limited.

• AB Volvo is a manufacturer of trucks, buses, construction equipment, and marine and industrial engines. The company also offers comprehensive financing and service solutions, catering to the diverse needs of its customers worldwide.
• TATA Motors Limited, an automobile manufacturer, provides an extensive portfolio of integrated, smart, and e-mobility solutions, including utility vehicles, cars, buses, and trucks. The company operates through five business segments: Commercial Vehicles, Passenger Vehicles, Electric Vehicles, Jaguar Land Rover, and Tata Motors Finance.

Proterra, MAN, Ashok Leyland Limited, Zhengzhou Yutong Bus Co., Ltd., and others are some of the emerging companies in the electric bus market.

• Proterra is a prominent company in the development and production of heavy-duty, zero-emission electric transit vehicles, providing environmentally friendly and quiet transportation solutions to local communities across North America.
• Zhengzhou Yutong Bus Co., Ltd. is a manufacturer of commercial vehicles, particularly electric buses. The company provides city buses, long-distance coaches, commuters, school buses, tourist coaches, and special mobility vehicles.

Key Electric Bus Companies:

The following are the leading companies in the electric bus market. These companies collectively hold the largest market share and dictate industry trends.

• BYD Company Limited
• AB Volvo
• Proterra
• MAN
• Nissan Motor Corporation
• Ashok Leyland Limited
• Daimler Truck AG
• Zhengzhou Yutong Bus Co., Ltd.
• TATA Motors Limited
• Hyundai Motor Company

Segments Covered in the Report

Grand View Research has segmented the global electric bus market based on type, battery type, application, end use, and region:

Electric Bus Type Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

Electric Bus Battery Type Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)

• Lithium Nickel Manganese Cobalt Oxide
• Lithium Iron Phosphate

Electric Bus Application Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)

• Intercity
• Intracity

Electric Bus End Use Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)

• Public
• Private

Electric Bus Regional Outlook (Revenue, USD Million; Volume, Units, 2018 - 2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
• Middle East & Africa
  • UAE
  • Kingdom of Saudi Arabia
  • South Africa

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