Electric Bus Charging Infrastructure Market

Government policies and subsidies are driving the market growth

To reduce the negative impact on the environment and foreign exchange reserves, governments and state governments in several nations are establishing charging stations to stimulate the adoption of electric vehicles. In several nations, efforts are underway to plan and deploy large-scale interconnected EV charging stations along several major transportation corridors. Digitalization, interoperability, and charging network roadmaps are all important concerns to be addressed in the planning process. In several cases, stimulus packages are augmenting the funding for EV infrastructure.

In the European Union, the Alternative Fuel Infrastructure Directive (AFID) is the main measure directing the roll-out of publicly accessible EV Charging stations. Members of the EU are required to set deployment targets for publicly accessible EV chargers for the decade to 2030, with a suggestive ratio of one charger per ten electric cars. China proposed a USD 1.4 trillion digital infrastructure public spending initiative like large-scale investments in Europe, including EV Charging stations funding. Hence, due to government policies and subsidies, the Electric Bus Charging Infrastructure Market's CAGR growth is expected to gain traction throughout the forecast period.

Additionally, the intense rivalry among fleet owners has resulted in adopting measures that increase profit margins. Electric vehicles can be critical in reducing fuel expenses and increasing profit margins, requiring very little maintenance with few moving parts. Thus, they minimize the total cost of ownership further. The fleet owners are looking for new developments, technologies, and trends to improve the business case for hybrid-electric buses and drive increased Electric Bus Charging Infrastructure market revenue. Manufacturers have begun investing in the development of electric buses, primarily focused on the fleet requirement, to meet future demand for electric buses among fleets.

For instance, in 2018, VDL Bus & Coach supplied 100 electric buses to Connexxion for the Amstelland Meerlanden concession in Amsterdam, Europe, making it the world's largest electric bus fleet. More than 160 electric buses have struck the streets of Groningen-Drenthe, a new European concession, in 2019. As a result, the increased demand for electric buses, particularly among fleets, creates attractive prospects for players operating in the Electric Bus Charging Infrastructure Market.

The Global Electric Bus Charging Infrastructure Market Industry is projected to experience substantial growth in the coming years. With a market value of approximately 3.89 USD Billion in 2024, it is anticipated to reach around 51.3 USD Billion by 2035. This growth trajectory suggests a robust expansion, driven by factors such as increasing electric bus adoption, supportive government policies, and technological advancements in charging solutions. The expected CAGR of 26.45% from 2025 to 2035 further emphasizes the market's potential, indicating a significant shift towards electric public transportation solutions.

Government initiatives play a pivotal role in the expansion of the Global Electric Bus Charging Infrastructure Market Industry. Various countries are introducing policies and funding programs aimed at promoting electric vehicle adoption, including electric buses. For example, the U.S. government has allocated significant funds for the development of charging infrastructure as part of its broader environmental strategy. Such initiatives not only enhance the availability of charging stations but also encourage private investments in the sector. As a result, the market is projected to grow substantially, potentially reaching 51.3 USD Billion by 2035, driven by these supportive policies and funding mechanisms.

Urbanization and population growth are critical factors influencing the Global Electric Bus Charging Infrastructure Market Industry. As urban areas continue to expand, the demand for efficient public transportation systems increases. Electric buses are becoming a preferred choice for city planners aiming to reduce congestion and pollution. Cities like Beijing and New Delhi are investing heavily in electric bus fleets, which necessitates the development of extensive charging networks. This trend indicates a growing market, as urban centers recognize the need for sustainable transport solutions. The increasing urban population is likely to further accelerate the demand for electric bus charging infrastructure.

Rising fuel prices and operational costs are driving the transition to electric buses, thereby impacting the Global Electric Bus Charging Infrastructure Market Industry. As traditional fuel prices fluctuate, public transport operators are seeking cost-effective alternatives. Electric buses offer lower operational costs, particularly in terms of fuel and maintenance. This economic advantage is prompting many transit authorities to invest in electric bus fleets and the necessary charging infrastructure. The shift towards electric buses is expected to contribute to the market's growth, as operators recognize the long-term savings associated with electric vehicles.

The Global Electric Bus Charging Infrastructure Market Industry is witnessing a surge in demand for sustainable public transport solutions. Governments worldwide are increasingly prioritizing the reduction of greenhouse gas emissions, leading to the adoption of electric buses. For instance, cities like Los Angeles and London are implementing extensive electric bus fleets, necessitating robust charging infrastructure. This trend is expected to drive the market value to approximately 3.89 USD Billion in 2024, as municipalities invest in charging stations to support their electric bus operations. The shift towards eco-friendly transportation options is likely to bolster the growth of the electric bus charging infrastructure.

Technological advancements are transforming the Global Electric Bus Charging Infrastructure Market Industry, enabling more efficient and faster charging solutions. Innovations such as ultra-fast charging stations and wireless charging technologies are being developed to meet the increasing demands of electric bus fleets. For instance, companies are now offering charging solutions that can recharge buses in under 30 minutes, significantly reducing downtime. This technological evolution not only enhances operational efficiency but also attracts more operators to switch to electric buses, thereby expanding the charging infrastructure. The anticipated growth rate of 26.45% CAGR from 2025 to 2035 underscores the importance of these advancements in driving market expansion.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American electric bus charging infrastructure market will dominate due to increased demand for electric vehicles; strategic initiatives by major players and government policies will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Electric Bus Charging Infrastructure Market Share By Region 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Electric Bus Charging Infrastructure market accounts for the second-largest market share. The growth can be attributed to Tier-1 players in this Region and the increasing number of electric bus charging infrastructure manufacturers. Further, the German Electric Bus Charging Infrastructure market held the largest market share, and the UK Electric Bus Charging Infrastructure market was the fastest growing market in the European Region.

The Asia-Pacific Electric Bus Charging Infrastructure Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to various factors such as the upsurge in demand for low-emission commuting and increasing investments by governments for charging and hydrogen fueling stations and zero-emission vehicles through subsidies & tax rebates. Moreover, China’s Electric Bus Charging Infrastructure market held the largest market share, and the Indian Electric Bus Charging Infrastructure market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the electric bus charging infrastructure market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The electric bus charging infrastructure industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Electric Bus Charging Infrastructure industry to benefit clients and increase the market sector. In recent years, the Electric Bus Charging Infrastructure industry has offered some of the most significant advantages to the automotive industry.

Major players in the Electric Bus Charging Infrastructure market, including Siemens AG (Germany), SCHUNK Group (Germany), ABB (Switzerland), Bombardier Inc (Canada), Kempower OY (US), Daimler AG (Germany), Proterra (US), ChargePoint, Inc (US), EFACEC (Portugal), Shijiazhuang Tonhe Electronics Technologies Co., Ltd (China), Kehua Hengsheng Co., Ltd (China), XCharge Inc (Germany), Alpitronic GmbH (Italy), JEMA ENERGY (Spain), Ekoenergetyka (Poland)., and others, are attempting to increase market demand by investing in research and development operations.

ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company's solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered, and operated.ABB's ~105,000 employees are committed to driving innovations that accelerate industrial transformation.ABB partnered with Basel as a partner for Switzerland's largest infrastructure projects. Basel selected ABB's charging technology for sustainable e-bus operations during the forecast period. The contract is part of Basel Public Transport's (BVB) efforts to convert its entire bus fleet to battery-electric operations.

Custom Bus is an Australian bus-body building, having produced its first vehicle in 1955. Custom has a reputation for producing sophisticated city buses for government and route services, designed for a 25-year life cycle. Products range between the  CB80 low-floor city bus and the SB50 school bus products (12.5m, midi, front/rear engine, articulated, cargo variants). Custom Denning, one of Australia's leading bus manufacturers, selected Siemens AG's electric bus Charging stations and digital depot management solution for its fleet of fully Australian-designed and built Element electric buses.

These charging stations will help the bus manufacturer prototype electric buses and will be available for future e-Bus orders from its customers.