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Electric Bus Market To Reach USD 74.99 Billion By Year 2032

Electric Bus Market Size Was Valued at USD 21.3 Billion in 2023, and is Projected to Reach USD 74.99 Billion by 2032, Growing at a CAGR of 15.01 % From 2024-2032.

08-07-2024
Vishal Panchmukh
Automotive
Pristine Intelligence LLP

According to a new report published by Pristine Intelligence, titled, “Electric Bus Market by Type and Battery Capacity: Global Opportunity Analysis and Industry Forecast, 2024–2032,” Electric Bus Market Size Was Valued at USD 21.3 Billion in 2023, and is Projected to Reach USD 74.99 Billion by 2032, Growing at a CAGR of 15.01 % From 2024-2032.

Electric buses represent a significant advancement in transportation technology, employing electric motors instead of traditional internal combustion engines for propulsion. These vehicles primarily rely on onboard battery packs, distinguishing them as battery electric buses. They are celebrated for their environmental advantages, including reduced emissions and lower noise levels compared to conventional buses. Electric buses can draw power from stored energy or external sources, such as overhead lines, ground-level power supplies, or inductive charging systems. This versatility enables them to operate effectively across diverse urban and intercity transit networks.

Beyond transportation, the term "electric bus" holds relevance in various other fields. In computing, a bus facilitates communication between different components within a computer system. In electrical engineering, busbars are conductors utilized in substations to distribute power efficiently. The concept of a bus extends to audio engineering, where it denotes a point of signal mixing, often found at the output of mixing consoles. Additionally, a ground bus or earth bus serves as a crucial reference point for zero voltage in electrical systems, ensuring safety and stability by connecting to the ground.

According to the global Electric Bus market analysis, the Electric Bus Market is segmented into Type, Range, Battery Capacity, and region. By Type, the market is categorized into Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, and Fuel Cell Electric Vehicle. By Range, the market is categorized into Less than 200 Miles and More than 200 Miles. By Battery Capacity, the market is categorized into Up to 400 kWh and Above 400 kWh. By geography, it includes North America, Europe, Asia-Pacific, and LAMEA markets. Further, the report also covers the strategies adopted by key market players to sustain a competitive environment and increase their market share.

Electric buses offer a sustainable solution to urban transportation, significantly reducing air and noise pollution compared to traditional diesel buses. By emitting no harmful pollutants, they improve air quality and contribute to a quieter, more pleasant city environment. These buses require dedicated charging infrastructure and maintenance facilities, reflecting a shift in urban planning towards more sustainable transportation options. Government regulations and incentives worldwide are driving the adoption of electric buses, supported by advancements in battery technology and charging infrastructure, making them increasingly viable and cost-effective. These innovations ensure ongoing growth in the electric bus market, promoting healthier, more environmentally friendly cities globally.

Technological advancements such as pantographs for on-the-go charging and wireless recharging pads further enhance the efficiency and convenience of electric buses. These innovations reduce downtime, extend battery range, and minimize wear on charging equipment, making electric buses a practical choice for densely populated urban areas striving for sustainable mobility solutions.

Global Electric Bus Market, Segmentation

Electric Bus Market Segmented on the basis of Type, Range, Battery Capacity and Region.

Type:

The type segment is further classified into Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, and Fuel Cell Electric Vehicle. Among these, the Battery Electric Vehicle sub-segment accounted for the highest market share in 2023. Battery electric buses are gaining traction as eco-friendly alternatives, reducing CO2 emissions in urban transport. They use electric motors powered by lithium-ion batteries instead of diesel, improving air quality. Toshiba's SCiB™ technology enhances energy density and fast charging, overcoming space and cost challenges while maintaining passenger comfort. Regenerative braking further boosts efficiency by recovering 20-30% of daily energy use, extending range and cutting energy costs. Governments and transport authorities worldwide are prioritizing electric buses to meet climate goals and enhance urban living standards.

Battery Capacity:

The application segment is further classified into the Up to 400 kWh and Above 400 kWh. Among these, the up to 400 kWh sub-segment is anticipated to show the fastest growth by 2032. The electric bus market in Europe has seen significant growth, particularly in buses with battery capacities up to 400 kWh. Over the past four years, there has been a 34% increase in maximum battery capacity for 12-meter buses, driven by efforts to improve range and efficiency to meet urban emission standards. The number of bus models equipped with over 400 kWh has surged nine-fold, reflecting rapid technological advancements. Collaborations under Motus-E aim to accelerate electric bus adoption through innovation and policy advocacy, transforming urban transport towards cleaner, sustainable solutions.

Region:

The Electric Bus market in Asia-Pacific is projected to show the fastest growth by 2032. The electric bus market in the Asia-Pacific (APAC) region is thriving due to several key factors. These include proactive environmental policies by countries like China, India, and Southeast Asian nations, stringent emissions regulations, and ambitious goals for electric vehicle adoption. Urbanization and population growth have intensified concerns over air quality and congestion, prompting cities to embrace electric buses as cleaner, quieter alternatives to diesel vehicles. APAC's leadership in this market is bolstered by technological advancements and robust manufacturing capabilities, particularly in nations like China, leveraging economies of scale and advanced battery technology to drive growth.

Some of The Leading/Active Market Players Are-

  • BYD (China)
  • Yutong (China)
  • Proterra (US)
  • CAF (Solaris) (Spain)
  • VDL Groep (Netherlands)
  • AB Volvo (Sweden)
  • New Flyer Industries (Canada)
  • Daimler AG (Germany)
  • Scania AB (Sweden)
  • Iveco (Italy) and Other Active Players

Key Industry Developments

  • In May 2024, Olectra Greentech Ltd (OGL), a prominent electric bus manufacturer, achieved a significant milestone by surpassing 10,000 units in its e-bus order book. It became the first e-bus OEM in the country to reach this mark. Additionally, the company successfully extended its cooperation agreement with BYD, the Chinese EV giant competing with Elon Musk’s Tesla, until December 31, 2030, indicating a promising future for bus electrification in India.
  • In January 2024, Siemens AG completed the acquisition of Heliox, a Dutch-based company specializing in DC fast charging solutions. With approximately 330 employees, Heliox is renowned for its fast charging technologies tailored for electric bus and truck fleets, alongside passenger vehicles.

Key Findings of the Study 

  • By Battery Capacity, up to 400 kWh segment held the largest share of 45.71 % of the total Electric Bus market in 2023.
  • The APAC region is expected to continue to lead the market followed by North America during the forecast period.
  • Electric Bus Market Size Was Valued at USD 21.3 Billion in 2023, and is Projected to Reach USD 74.99 Billion by 2032, Growing at a CAGR of 15.01 % From 2024-2032.
Pristine Intelligence LLP

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