Global Automotive Electric Bus Market Research Report- Forecast 2030

Electric Bus Market Research Report Information By Charging Technology (Autonomous and Non-Autonomous), By Vehicle Type (Heavy Duty Electric, Light Duty Electric, and Hybrid Electric Bus), and By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2030

ID: MRFR/AM/2311-HCR | 185 Pages | Author: Swapnil Palwe | May 2023         

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Global Electric Bus Market Overview:


Automotive Electric Bus Market Size was estimated at USD 12.65 billion in 2021. The industry is projected to grow from USD 14.35 billion in 2022 to USD 34.7 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 13.4% during the forecast period (2022 - 2030). The market is seeing a rise in demand for fuel-efficient buses, anti-air pollution, and non-polluting. Additionally, the development of electric transportation bus is fueled by government endeavors to meet zero emissions targets, tight restrictions, and growing environmental concerns, which is the key market driver enhancing market growth.


Global Automotive Electric Bus Market


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Electric Buses Market Trends


Various government initiatives to boost the market growth


As per the World Health Organization (WHO), air pollution has been a significant cause of mortality. Since vehicular discharge affects health generally and the environment, it could have dangerous effects. Governments from all around the world are actively investing in infrastructure improvements to reduce ozone-depleting compounds and reduce air pollution. President Biden signed the Infrastructure Investment and Jobs Act on November 15, 2021. It contains USD 7.5 billion in new funding for EV charging stations, qualifies EV charging infrastructure for additional Federal funding programs, and provides funding for several other EV-related initiatives. The growing number of such initiatives could be another factor driving the market revenue.


Fuel cell systems, controlled technology, and batteries are combined with an electric drivetrain to power hydrogen fuel cell buses. The hydrogen fuel cell bus offers flexible routing options and quick refilling. With these benefits, there is a tremendous increase in demand for hydrogen fuel cell buses. For instance, within the next several years, about 1000 hydrogen-powered buses will be launched throughout Europe. China has been a pioneer in this technology and is driving the market. Therefore, the trend of using hydrogen electric transportation bus has enhanced the market CAGR in recent years.


Figure1: Estimated number of hydrogen vehicles used worldwide from 2015-2021


Estimated number of hydrogen vehicles used worldwide from 2015-2021


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Market Segment Insights:


Electric Bus Charging Technology Insights


The market segmentation, based on fusion type, includes autonomous and non-autonomous. In 2021, the autonomous sector dominated the market revenue. More autonomous buses are being produced with extremely sophisticated technologies integrated with smartphones, opening the potential for market companies to attract customers due to increasingly strict government rules focusing on improving road safety. Hence, rising applications of autonomous buses positively impact market growth.



  • April 2021: Toyota Motor Corp. unveiled new Lexus LS and Toyota Mirai models in Japan, equipped with Advanced Drive features of a Level 2 autonomous system that aids in keeping the car in its lane, maintaining distance from other vehicles, assisting with lane changes, and providing advanced-driver assistance. This creation has further broadened the growth opportunity for the industry.


The second fastest-growing segment in the electric transportation bus industry is the non-autonomous sector. The automotive market for the non-autonomous sector is growing quickly due to rising environmental concerns and increasing government investments in fuel-optimization technologies and alternative fuel vehicles.


Electric Bus Vehicle Type Insights


The market segmentation has been bifurcated by vehicle type into light-duty electric, heavy-duty electric, and hybrid electric buses. In 2021, the light-duty electric bus dominated the market. With the high number of electric passenger buses utilized in the public transportation fleet, the light-duty electric transportation bus sector currently dominates the segment. Most public transportation fleets include E-Buses, particularly in China, which holds about 99% of the market.


Figure 2: Automotive Electric Bus Market, by Vehicle Type, 2021 & 2030 (USD Million)


Automotive Electric Bus Market, by Vehicle Type, 2021& 2030(USD Million)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


The second fastest-growing segment in the electric transportation bus data is the hybrid electric bus. One of the main causes favoring the adoption of HEVs is the rising levels of air pollution caused by vehicle exhaust emissions, together with the growing environmental consciousness among the public about rising pollution levels. This, in turn, is promoting the use of HEVs worldwide.


Electric Bus Regional Insights


By Region, the study provides market insights into Europe, North America, Asia-Pacific and the Rest of the World. Asia Pacific automotive electric bus market accounted for USD 5.6 billion in 2021 and is predicted to exhibit a significant CAGR of 44.6 percent growth during the study period. During the projected period, the Asia-Pacific region is anticipated to hold a significant market share because of rising domestic demand backed by national sales targets, advantageous regulations, helpful subsidies, and local air-quality targets. 98% of the electric transportation bus in the world are produced in China, one of the market's major participants. It is projected that China will maintain its leadership during the forecast period. More than 421,000 electric transportation bus, or over 99% of the fleet, were in China as of March 2021. China's significant position in the automotive electric bus market is mostly due to the country's intense focus on electrifying public transportation, which is accompanied by widespread subsidies and national legislation. Moreover, China's automotive electric bus market held the largest market share, and the Indian electric buses market was the fastest-growing market in the Asia-Pacific region.


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


Figure 3: AUTOMOTIVE Electric Buses MARKET SHARE BY REGION 2021 (%)


AUTOMOTIVE ELECTRIC BUS MARKET SHARE BY REGION 2021 (%)


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe's automotive electric bus market accounts for the second-largest market share. The primary element fostering this region's automotive electric bus market growth is the strict government regulations for automobile emissions. The Netherlands' Green Deal for Electric Transport runs from 2016 to 2020. To eliminate auto emissions by 2025 is the main goal of the green pact, which will be advantageous for the auto electric transportation bus sector. By using clean and green transportation technologies in this area, numerous governments have begun undertaking initiatives to make city public transportation sustainable. Further, the German electric buses market held the largest market share, and the UK automotive electric bus market was the fastest-growing market in the European region.


The North American automotive electric bus market is also predicted to see definite expansion in the market. The U.S. is expected to continue to grow steadily in this area. Additionally, the Federal Transit Administration (FTA) of the US Department of Transportation has pledged to provide 130 million USD in support for low- or no-emission cars by June 2020. In addition, new federal regulations to cut bus carbon emissions have resulted in a phenomenal increase in the automotive electric bus market in the US in recent years. To modernize and electrify America's buses, President Biden and the Federal Transit Administration (FTA) awarded USD 409.3 million to 70 projects in 39 states in 2022.


Key Market Players & Competitive Insights


As major market players make large R&D investments to diversify their product portfolios, the market for electric buses will continue to grow. In addition to significant market developments, including new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations, market participants are taking part in several strategic initiatives to enhance their positions globally. Competitors in the electric transportation bus industry who wish to expand and prosper in a market that is getting more competitive must offer products at competitive prices.


One of the primary business strategies the electric transportation bus industry employs to service clients and grow the market sector is local production to reduce operational costs. Recently, the electric transportation bus industry has given medicine some of its most significant benefits. electric transportation bus market major players, such as E-bus (Singapore), Daimler AG (Germany), Volvo Group (Sweden), Iveco (Italy), and others, are supporting R&D initiatives to boost market demand.


Volvo Buses is a pioneer in developing environmentally friendly public transportation solutions and one of the world's major producers of premium buses, coaches, and bus chassis. Volvo Buses sells its products in 85 countries and has a service network of over 1,500 dealerships and workshops. Europe, North America, South America, and Asia all have manufacturing plants. For instance, in July 2021, Volvo Buses is now offering its useable energy commitment as a business solution for ensuring e-bus availability and uptime. This means that Volvo Buses guarantees capacity for an agreed-upon amount of energy during the contract time. Volvo Buses' usable energy commitment necessitates a traffic operation analysis conducted jointly by Volvo and the operator.


Olestra Greentech Limited (Olestra) is India's largest Pune electric transportation bus manufacturer, with manufacturing facilities in Hyderabad. Olestra is India's first electric transportation bus manufacturer, having built and deployed all varieties of electric transportation bus in the country. Following its success in the commercial run of electric transportation bus, the business is expanding its product range in the e-mobility category to include 3-wheeler E-Bus and electric trucks. For instance, in March 2022, Olestra Greentech Limited (OLECTRA) added 150 new electric transportation bus to its fleet in Pune. Compared to any other city in India, Olestra’s fleet of 300 electric transportation bus in the Pune district is the highest in the segment.


Key Companies in the E-Bus market include



  • Daimler AG (Germany)

  • Anhui Ankai Automobile Co. Ltd.( China)

  • Volvo Group (Sweden)

  • Wright Enrichment Inc(U.S.)

  • Shandong Yi Xing Electric Auto Co.Ltd (China)

  • Zhongtong Bus Holding Co. Ltd.( China)

  • BYD Auto Co. Ltd ( China)

  • Iveco (Italy)

  • Ebus (Singapore)

  • Beiqi Foton Motor Co. Ltd.(China).


E-Bus Industry Developments


May 2022: Daimler Buses wants to deliver locally CO2-neutral vehicles based on batteries and hydrogen in every segment by 2030. The initial concentration will be on Europe and Latin America's core markets. Only locally CO2-neutral new vehicles will be marketed in Europe's core market by 2039. This will be the situation in the city bus market in Europe as early as 2030.


January 2022: BYD declared that it had delivered 70,000 electric transportation bus globally and plans for investment and development at BYD's bus factory in Hungary would continue, supporting its 'Made in Europe for Europe' ethos. This expansion increases production capacity, with a single shift's yearly output increasing to 400 electric transportation bus to meet Europe's growing demand for BYD E-Buses.


E-Bus Market Segmentation


E-Bus Charging Technology



  • Autonomous

  • Non-Autonomous


E-Bus Vehicle Type



  • Light Duty Electric

  • Heavy Duty Electric

  • Hybrid Electric Bus


E-Bus Regional Outlook



  • North America


    • US

    • Canada


  • Europe


    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe


  • Asia-Pacific


    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific


  • Rest of the World


    • Middle East

    • Africa

    • Latin America




Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 12.6 billion
Market Size 2022 USD 14.3 billion
Market Size 2030 USD 34.7 billion
Compound Annual Growth Rate (CAGR) 13.4% (2022-2030)
Base Year 2021
Market Forecast Period 2022-2030
Historical Data 2018 & 2020
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Charging Technology and Vehicle Type
Geographies Covered Europe, North America, Asia Pacific, and the Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Ebus (Singapore), Daimler AG (Germany), Volvo Group (Sweden), and Iveco (Italy)
Key Market Opportunities Government support for the electrification of public transport
Key Market Dynamics Increasing demand for emission-free and energy-efficient mass transit solutions Reduction in battery prices


Frequently Asked Questions (FAQ) :

The size of the market for automotive electric bus size was estimated at USD 12.6 billion in 2021.

The market is projected to grow at a CAGR of 13.4% during the forecast period 2022-2030.

The key players in the market are Ebus (Singapore), Daimler AG (Germany), Volvo Group (Sweden), and Iveco (Italy).

The autonomous category dominated the market in 2021.

Light-duty electric buses had the largest share of the market.

Key Questions Answered

  • ✅ Global Market Outlook
  • ✅ In-depth analysis of global and regional trends
  • ✅ Analyze and identify the major players in the market, their market share, key developments, etc.
  • ✅ To understand the capability of the major players based on products offered, financials, and strategies.
  • ✅ Identify disrupting products, companies, and trends.
  • ✅ To identify opportunities in the market.
  • ✅ Analyze the key challenges in the market.
  • ✅ Analyze the regional penetration of players, products, and services in the market.
  • ✅ Comparison of major players’ financial performance.
  • ✅ Evaluate strategies adopted by major players.
  • ✅ Recommendations
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