Electric Bus Market to be Worth $100.39 Billion by 2031

Electric Bus Market Size, Share, Forecast, & Trends Analysis by Propulsion Type (Battery Electric, Hybrid, Fuel Cell), Battery Type (NMC, LFP, Others), Bus Length (Less than 9 m, 9 m-12 m, more than 12 m), Power Output, Sector (Public, Private) & Geography - Global Forecast to 2031

Meticulous Research^®—a leading global market research company, published a research report titled, ‘Electric Bus Market by Propulsion Type (Battery Electric, Hybrid, Fuel Cell), Battery Type (NMC, LFP, Others), Bus Length (Less than 9 m, 9 m-12 m, more than 12 m), Power Output, Sector (Public, Private) & Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research^®, the electric bus market is projected to reach $100.39 billion by 2031, at a CAGR of 23.4% from 2024 to 2031, while in terms of volume, the market is expected to reach 3,41,601 units by 2031, at a CAGR of 22.4% from 2024 to 2031. The growth of the electric buses market is driven by the increasing government focus on public transport electrification and leading automotive manufacturers’ increasing investments in the Electric Vehicle (EV) ecosystem. However, the high purchasing costs of electric buses and the difficulties in building charging infrastructure for electric buses are factors restraining the growth of this market.

Furthermore, the growth in smart city & infrastructure projects and the rising demand for electric buses in emerging economies are expected to generate growth opportunities for the stakeholders in this market. However, the range limitations of electric buses are a major challenge impacting market growth. Additionally, the increasing adoption of fuel cell electric buses is a prominent trend in the electric buses market.

Based on propulsion type, the global electric buses market is segmented into battery electric buses, hybrid electric buses, and fuel cell electric buses. In terms of value, in 2024, the battery electric buses segment is expected to account for the largest share of the global electric buses market. The segment’s large market share is mainly attributed to increasingly stringent emission standards, the rising need for increased fuel efficiency, the growing demand for zero-emission buses, and government initiatives supporting the adoption of electric buses for public transport. For instance, in August 2023, the Government of India launched the PM-eBus Sewa Scheme with the aim of augmenting bus operations by deploying 10,000 electric buses under the PPP model. The Government of India will be spending USD 2.4 billion to deploy and operate e-buses across up to 169 eligible cities. The buses will be deployed from 2024 to 2026.

However, the hybrid electric buses segment is expected to record the highest CAGR during the forecast period. The growth of this segment is mainly driven by the increasing need to reduce greenhouse gases, the growing demand for clean mobility & transportation solutions, and stringent government regulations to limit carbon emissions from conventional vehicles.

Based on bus length, the global electric buses market is segmented into less than 9 m, 9 m–12 m, and more than 12 m. In 2024, the 9 m–12 m segment is expected to account for the largest share of the global electric buses market. The segment’s large share is mainly attributed to the increasing orders of electric buses from this category for public transport and key market players’ increasing focus on the development of electric buses.

However, the more than 12 m segment is expected to record the highest CAGR during the forecast period. This segment's growth is mainly driven by the increasing focus on incorporating large electric buses into public transport and their potential to alleviate congestion by efficiently transporting a large number of passengers.

Based on battery type, the global electric buses market is segmented into lithium nickel manganese cobalt oxide (NMC) batteries, lithium iron phosphate (LFP) batteries, and other batteries. In 2024, the lithium iron phosphate (LFP) batteries segment is expected to account for the largest share of the global electric buses market. The segment’s large share is mainly attributed to the benefits of LFP batteries, such as long life span and reliable performance, and the growing use of LFP batteries in EV applications.

Moreover, the lithium iron phosphate (LFP) batteries segment is expected to record the highest CAGR during the forecast period. This segment's growth is mainly driven by its ability to provide long life and reliable performance under adverse conditions, the increasing use of LFP batteries in commercial electric vehicles, and the ease of recycling LFP batteries.

Based on power output, the global electric buses market is segmented into less than 200 kW, 200 kW to 400 kW, and more than 400 kW. In 2024, the 200 kW to 400 kW segment is expected to account for the largest share of the global electric buses market. The segment’s large share is mainly attributed to the growing adoption of electric buses across several countries and the increasing development and deployment of fast chargers.

Moreover, the 200 kW to 400 kW segment is expected to record the highest CAGR during the forecast period. The growth of this segment is mainly driven by key players’ increasing focus on the development of electric buses with power capacities between 200 kW to 400 kW.

Based on sector, the global electric buses market is segmented into the public sector and private sector. In 2024, the public sector segment is expected to account for the larger share of 81.9% of the global electric buses market. The segment’s large market share is mainly attributed to the rising need for increased fuel efficiency in public transport, the growing demand for zero-emission buses, and increasing government initiatives to incorporate electric buses in public transit systems.

Moreover, the public sector segment is expected to record a higher CAGR during the forecast period. The growth of this segment is mainly driven by the increasing adoption of electric buses in the public sector and the growing government focus on the development of charging infrastructure to support electric bus fleets. For instance, in November 2023, the Land Transport Authority (LTA) of Singapore awarded two contracts to procure a total of 360 electric buses and another two contracts for the deployment of charging systems at bus depots in Sengkang West, East Coast, and Gali Batu.

Based on geography, the electric buses market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In terms of value, in 2024, Asia-Pacific is expected to account for the largest share of 83.3% of the global electric buses market. The large market share of this segment is attributed to favorable government policies, environmental concerns, increasing incorporation of electric buses in public transportation, strong demand for sustainable transportation, and the presence of major electric bus manufacturers. In addition, many countries in the region are integrating electric buses into their public transportation systems to curb emissions. For instance, in February 2023, BYD Japan Co., Ltd. (Japan) delivered a batch of electric buses to Hokkaido, Japan, amid the region's electrification and carbon-neutral efforts.

Asia-Pacific is also slated to record the highest CAGR during the forecast period. Factors such as increasing investment by electric bus manufacturers in EV technology and collaborative efforts by the government and automotive manufacturers for favorable, environment-friendly transportation are expected to drive the growth of the electric bus market in the coming years.

Key Players:

Some of the key players operating in the electric buses market are BYD Company Limited (China), Yutong Bus Co., Ltd. (China), Volvo Group (Sweden), NFI Group Inc. (Canada), Solaris Bus & Coach sp. z o.o. (Poland), Daimler Truck Group (Germany), Tata Motors Limited (India), Hyundai Motor Company (South Korea), Ebusco B.V. (Netherlands), Olectra Greentech Limited (India), Xiamen King Long United Automotive Industry Co., Ltd (China), Anhui Ankai Automobile Co., Ltd. (China), Zhongtong Bus Holding Co., Ltd. (China), MAN Truck & Bus SE (Germany), and Switch Mobility Limited (U.K.).

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Key questions answered in the report-

Which are the high-growth market segments based on propulsion type, battery type, bus length, power output, and sector?
What was the historical market for electric buses?
What are the market forecasts and estimates for the period 2024–2031?
What are the major drivers, restraints, and opportunities in the electric bus market?
Who are the major players, and what shares do they hold in the electric bus market?
What is the competitive landscape like in the electric bus market?
What are the recent developments in the electric bus market?
What are the different strategies adopted by the major players in the electric bus market?
What are the key geographic trends, and which are the high-growth countries?
Who are the local emerging players in the global electric bus market, and how do they compete with the other players?

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