From the period of 2022 to 2028, the Global Electric Bus Market is expected to reach USD 37.1 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 12.3%.
Rapid urbanization, rising oil prices, rising air pollution, government initiatives, and lower battery prices all contributed to the growth of the Global Electric Bus Market. High development costs, limited battery capacity, and the growing popularity of natural gas-powered buses are expected to limit the market growth. A rise in demand for fuel-efficient, high-performance, and low-emission buses, strict government emission norms and regulations, and lower battery prices are driving the Electric Bus Market. Furthermore, technological advancements and aggressive government policies promoting the use of e-buses provide the industry with significant potential prospects. Because gasoline is a fossil fuel, it is not a renewable energy source and will eventually be depleted. Alternative fuel sources must be developed and used in order to support long-term growth. This necessitates the use of Electric Bus es, which are less expensive than regular buses because they do not consume fuel. These reasons raise demand for sophisticated fuel-efficient technologies, which in turn raises demand for travel on electrically powered buses.
Key Highlights from the Report
- On the basis of Vehicle range, the market is segmented into less than 200 miles and Above 200 miles. Due to lower total operating cost (TCO)/km and less recharging time, the segment of fewer than 200 miles accounted for the largest share of the market. During the forecast period, the segment of more than 200 miles is expected to have a higher Compound Annual Growth Rate (CAGR). Reduced battery costs, as well as improvements in energy consumption and mileage of new e-buses, will drive the growth of this segment.
- On the basis of Battery capacity, the market is segmented into up to 400 kWh and Above 400 kWh. In 2021, the segment of up to 400 kWh had the largest market share. Buses with battery capacities of up to 400 kWh are significantly less expensive, lighter, and more efficient because they can be quickly fast-charged at regular intervals. These factors are to blame for this segment's dominance. Because of the ability to travel longer distances on a single charge, the above 400 kWh segment is expected to grow steadily in the market.
- Asia Pacific is the fastest regional segment in terms of growth. China is the world's largest manufacturer and consumer of e-buses in Asia-Pacific. Domestic demand in the country has been bolstered by national sales targets, favorable laws, supportive subsidies, and municipal air-quality targets. China is a major player in the Electric Bus Market, and its dominance is expected to continue throughout the forecast period. With the increasing global deployment of Electric Buses, major Chinese e-bus suppliers are expanding their market presence outside of China. The Indian government sees electric vehicles as a solution to this problem and encourages people to purchase and use green energy vehicles.
Some of the key players in the Electric Bus Market include BYD (China), Yutong (China), CAF (Solris) (Spain), VDL Groep (Netherlands), AB Volvo (Sweden) and others.
Rising Demand for Hydrogen Fuel Cell Buses Will Drive Market Growth
An electric powertrain is combined with fuel cell systems, managed technology, and batteries to power hydrogen fuel cell buses. These buses are considered next-generation green transportation because they last longer than a standard e-bus. The hydrogen fuel cell bus has a quick refueling rate as well as route flexibility. With such benefits, the demand for hydrogen fuel cell buses is skyrocketing.
Government Emission Regulations Will Drive Market Growth
According to the WHO, air pollution is a major cause of death. Because vehicular discharge has an impact on general well-being and the environment, it may have a negative impact on the environment. Governments all over the world are investing heavily in infrastructure improvements to reduce ozone-depleting substances and lower air pollution levels. This is accomplished through the establishment of stringent government regulations governing vehicle emissions. These guidelines are fueling the market's expansion. These buses are environmentally friendly because they emit no harmful substances.
Europe is the second-largest market, and it is expected to grow at a healthy rate during the forecast period. The strict government policies for car emissions are the primary factor driving market growth in this region. Many governments in this region have begun projects to make city public transportation more sustainable by deploying clean and green transportation technologies. In this region, there is also a growing demand for fuel cell buses.