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Automotive Electric Bus Market Research Report Information By Type (Single-Decker, and Double-Decker), By Propulsion (BEV, PHEV, and FCEV), By Length (6 to 8 m, 9 to 12 m, and Above 12 m.), and By Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) โ€“Market Forecast Till 2032


ID: MRFR/AM/2311-CR | 128 Pages | Author: Swapnil Palwe| August 2023

Automotive Electric Bus Market Summary

As per Market Research Future Analysis, the Automotive Electric Bus Market was valued at USD 272,309.6 million in 2023 and is projected to reach USD 4,499,850 million by 2032, growing at a CAGR of 36.56% from 2024 to 2032. The market is driven by increasing government initiatives promoting electric bus adoption and the low operating costs associated with electric buses. The Asia-Pacific region dominated the market in 2022, accounting for approximately 85.1% of the total market share, primarily due to strong demand in countries like China, Japan, and India. The market is characterized by a competitive landscape with key players focusing on product development and technological advancements to meet rising consumer demand.

Key Market Trends & Highlights

The Automotive Electric Bus Market is witnessing significant growth driven by government initiatives and technological advancements.

  • Market size in 2023: USD 272,309.6 million.
  • Projected market size by 2032: USD 4,499,850 million.
  • CAGR from 2024 to 2032: 36.56%.
  • Asia-Pacific market share in 2022: 85.1%.

Market Size & Forecast

2023 Market Size: USD 272,309.6 million
2032 Market Size: USD 4,499,850 million
CAGR (2024-2032): 36.56%
Largest Regional Market Share in 2022: Asia-Pacific.

Major Players

Key players include MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI Group, EBUSCO, and Zhongtong Bus Holding.

Automotive Electric Bus Market Overview ย ย 

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

    • Government initiatives to encourage adoption of electric buses

Governments worldwide, including the US, China, and India, are taking initiatives to increase awareness regarding the use of electric vehicles to control the adverse impact on the environment and foreign exchange reserves. For instance, according to the International Council on Clean Transportation is working with the Zero Emission Vehicle regulation, progressive electric utility policies, greater model availability & marketing, consumer rebates, access to carpool lanes on congested highways, extensive electric vehicle charging infrastructure, access to high-occupancy vehicle lanes, and continued growth of local electric vehicle promotions.

In addition, electric buses reduce noise and pollution generated compared to conventional buses. Thus, electric bus manufacturing companies continuously invest in product development to cater to customers' increasing demand. Government initiatives are at a primary stage, as various countries are planning to introduce several regulations and initiatives to encourage the adoption of electric buses shortly.

For instance, the Indian government has launched several initiatives to promote electric vehicles; for instance, the GST on EVs has been reduced from 12% to 5% in the new GST system. The government of India has announced the exemption of registration fees for electric vehicles to promote eco-friendly vehicles in the country. The FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme has been the main incentive to push for electric vehicle adoption. Thus, government initiatives to encourage electric bus adoption are expected to propel the demand for electric buses from low to high during the forecast period.

Automotive Electric Bus Market Platform Segment Insights

Automotive Electric Bus Type Insights

Based on type, the Automotive Electric Bus Market is segmented into Single-decker and Double-decker. The Single-decker held the majority share in 2022, contributing around ~79.05% to the market revenue. Single-decker is segmented into school bus, trolley bus, midi bus, intercity bus, coaches, city bus, and others. A single-decker bus, often known as a single-decker bus, is a vehicle with only one passenger deck. The word single-decker bus usually refers to a typical two-axled rigid bus, as opposed to the term double-decker bus, which refers to a vehicle with two passenger decks and a staircase. Some other type of single-decker buses includes shuttle busses, low-floor buses, mini-coaches, minibuses, offroad buses, and police buses.

Figure1: Automotive Electric Bus Market, by Type, 2022 & 2032 (USD million )

Automotive Electric Bus Market, by Type, 2022 & 2032

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

Automotive Electric Bus Propulsion Insights

Based on propulsion, the Automotive Electric Bus Market is segmented into Battery Electric Vehicle (BEV), Plug-in hybrid electric vehicles (PHEV), and Fuel cell electric vehicles (FCEV). The Battery Electric Vehicle (BEV) segment held the majority share in 2022. Battery electric vehicles or BEVs are vehicle class with no supplementary source of propulsion, an electric vehicle (EV) that solely relies on chemical energy stored in rechargeable battery packs (e.g. hydrogen fuel cell, internal combustion engine, etc.). Internal combustion engines (ICEs) are replaced with electric motors and motor controllers in BEVs. They have no internal combustion engine, fuel cell, or gasoline tank because they get all their power from battery packs.

Automotive Electric Bus Length Insights

Based on length, the Automotive Electric Bus Market is segmented into 6 to 8m, 9 to 12m, and Above 12m. The 9 to 12m segment held the majority share in 2022. 9โ€“12-meter buses are large size buses and can carry anywhere from 40-90 people at the same time, these types of electric buses are used for intercity and long-distance travels, these buses are especially used as a passengers bus.

Automotive Electric Bus Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. The Asia Pacific automotive electric bus market accounted for around 85.1% in 2022. Due to the strong demand for electric buses in countries such as China, Japan, South Korea, and India, the market in Asia-Pacific is expected to develop the fastest. Furthermore, China has introduced many electric buses to reduce car emissions.

Chinese firms such as BYD, Yutong, Ankai, and Zhongtong dominate both the Chinese and global electric bus markets. Due to the availability of cheaper parts and components, these players have designed and delivered a wide range of electric bus models at reduced pricing. TMB (Transportes Metropolitanos de Barcelona) placed the first order for 25 new-generation 40-foot BYD electric buses in November 2021, with deliveries due between 2022 and 2024. This directive is part of a plan to phase out polluting diesel buses in Barcelona by 2025.

Figure1: Automotive Electric Bus Market, by Region, 2022 & 2032 (USD million )

Automotive Electric Bus Market, by Region, 2022 & 2032

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

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

Europe is the second-largest market, with healthy growth predicted during the forecast period. The strict government rules on automobile emissions are the primary driver of market growth in this region. In this region, many governments have begun programs to make municipal public transit more sustainable by implementing clean and green transportation technologies. In this region, demand for fuel cell buses is also increasing. Over the past decade, European cities have seen an increase in motorization, along with worsening air quality, prompting calls to encourage public transport as a way out of the jam.

Electric buses can play a constructive role in this context, as there are various advantages to switching from traditional diesel buses to electric buses in terms of local pollution, noise, and fuel consumption. The increase in transportation demand and motorization rates is far greater than the increase in infrastructure supply. This has resulted in vehicles using road space beyond the capacity (of certain highways), causing traffic congestion during peak hours.

The increasing concern about the depletion of fossil fuels and rising levels of environmental pollution is driving the expansion of the electric bus market in North America. With expanded governmental measures such as tariff waiver programs for electric bus operators, the USย has led the region's electric bus sector. The US is theย most promising market in the region, and it is likely to dominate e-bus demand over the projection period. There are already close to 650 electric buses (totaling 2255 zero-emission buses) operating in the US. Demand exceeds supply, with federal funding making it simple for transit operators to buy new units.

Almost every state in the US has a transit agency that owns or plans to operate modern electric buses. The expansion of the electric bus market in Canada is aided by government programs. Although Canada has electric bus firms like Lion Electric in Quebec and Green Power in Vancouver, the country's adoption rate has been moderate.

Automotive Electric Bus Key Market Players & Competitive Insights

The Automotive Electric Bus Market is characterized by the presence of many regional and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.

MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI group, EBUSCO, and Zhong tong Bus Holding are the major players in the market, competing in terms of a variety of applications in the Automotive Electric Bus Market and their components, as well as efficiency, reliability, affordability, and advanced technology. The primary focus of the players is to provide advanced products to aid in increasing adoption, which could help strengthen a country's growth. Although global players dominate the market, a few regional and other local players with a limited market share also have a prominent presence.

The major players would look to strengthen their global presence through mergers & acquisitions of local and regional players. They are expected to expand their presence and solutions in many countries during the forecast period. Therefore, vendors must develop new technologies to stay at par with emerging technology trends that could affect the competitiveness of their product lines in the market.

Key Companies in the Automotive Electric Bus Market include

    • MAN
    • Yutong
    • BYD
    • Proterra
    • VDL GROEP
    • Mercedes Benz AG
    • NFI Group
    • Zhong tong Bus Holding

Automotive Electric Bus Industry Developments

  • Q2 2024: BYD launches new generation electric bus platform in Europe BYD unveiled its latest electric bus platform for the European market, featuring improved battery technology and enhanced range, aiming to strengthen its position in the regionโ€™s growing zero-emission public transport sector.
  • Q2 2024: Volvo Buses and MCV sign partnership to produce electric buses in Egypt Volvo Buses entered a strategic partnership with Manufacturing Commercial Vehicles (MCV) to assemble and distribute electric buses in Egypt, targeting both domestic and export markets in Africa and the Middle East.
  • Q3 2024: Proterra secures $75 million in new funding to expand electric bus battery production Proterra announced a $75 million funding round to scale up its battery manufacturing capacity in the United States, supporting increased demand from transit agencies for electric buses.
  • Q3 2024: Tata Motors wins major electric bus contract from Delhi Transport Corporation Tata Motors secured a contract to supply 1,500 electric buses to the Delhi Transport Corporation, marking one of the largest single orders for electric buses in India to date.
  • Q4 2024: Daimler Buses opens new electric bus production facility in Mannheim, Germany Daimler Buses inaugurated a dedicated electric bus manufacturing plant in Mannheim, Germany, to meet rising European demand and accelerate the transition to zero-emission fleets.
  • Q4 2024: BYD and Castrosua announce joint venture for electric bus production in Spain Chinese EV giant BYD and Spanish bus bodybuilder Castrosua formed a joint venture to manufacture and market electric buses for the Spanish and Portuguese markets.
  • Q1 2025: MAN and BYD lead European electric bus registrations in H1 2025 MAN and BYD recorded the highest number of new electric bus registrations in Europe during the first half of 2025, reflecting strong demand and successful product rollouts in key markets.
  • Q1 2025: NFI Group announces delivery of 100 electric buses to Toronto Transit Commission NFI Group completed the delivery of 100 battery-electric buses to the Toronto Transit Commission, supporting the cityโ€™s goal to fully electrify its public transit fleet.
  • Q2 2025: Arrival delivers first batch of electric buses to Italian transit operator UK-based Arrival delivered its first series of electric buses to an Italian public transport operator, marking the companyโ€™s entry into the Southern European market.
  • Q2 2025: Yutong Bus secures export order for 500 electric buses to Chile Yutong Bus signed a contract to export 500 electric buses to Chile, supporting the countryโ€™s efforts to decarbonize its urban transport system.
  • Q2 2025: Lion Electric opens new electric bus manufacturing facility in Illinois Lion Electric inaugurated a new manufacturing plant in Joliet, Illinois, with the capacity to produce up to 20,000 electric buses and trucks annually for the North American market.
  • Q2 2025: Wrightbus wins contract to supply 60 hydrogen-electric buses to Berlin Wrightbus secured a contract to deliver 60 hydrogen-electric buses to Berlinโ€™s public transport operator, expanding its presence in the European zero-emission bus market.

Automotive Electric Bus Market Segmentation

Automotive Electric Bus Type Outlook

    • Single-Decker
    • Double-Decker

Automotive Electric Bus Propulsion Outlook

    • Battery Electric Vehicle (BEV)
    • Plug-in Hybrid Electric Vehicle (PHEV)
    • Fuel Cell Electric Vehicle (FCEV)

Automotive Electric Bus Length Outlook

    • 6 to 8 m
    • 9 to 12 m
    • Above 12 m

Automotive Electric Bus Regional Outlook

    • North America
      • US
      • Canada
      • Mexico
    • Europe
      • Germany
      • France
      • UK
      • Italy
      • Russia
      • Rest of Europe
    • Asia-Pacific
      • China
      • India
      • Japan
      • South Korea
      • Rest of Asia-Pacific
    • Middle East & Africa
      • South America
      • Brazil
      • Argentina
      • Rest of South America
Attribute/Metric Details
Market Size2023 USD 272309.6 million
Market Size 2024 USD 371974.91 million
Market Size 2032 USD 4499850 million
Compound Annual Growth Rate (CAGR) 36.56% (2024-2032)
Base Year 2023
Market Forecast Period 2024-2032
Historical Data 2019- 2023
Market Forecast Units Value (USD million )
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Propulsion, Length, and Region
Geographies Covered North America, Europe, Asia-Pacific, Middle East & Africa, and South America
Countries Covered The U.S, Germany, Canada, U.K., Italy, France, Spain, Japan, China, Australia, India, South Korea, and Brazil
Key Companies Profiled MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI group, EBUSCO, and Zhong tong Bus Holding.
Key Market Opportunities Developing EV Charging Infrastructure
Key Market Dynamics Government initiatives to encourage adoption of electric busesย Low operating cost


Frequently Asked Questions (FAQ):

The Automotive Electric Bus Market size is expected to be valued at USD 195585.6 million in 2022.

The global market is projected to grow at a CAGR of 36.56% during the forecast period, of 2024–2032.

Asia Pacific had the largest share of the global market.

The key players in the market are MAN, Volvo, Yutong, BYD, Proterra, VDL GROEP, Mercedes Benz AG, NFI group, EBUSCO, and Zhong tong Bus Holding.

The Single-decker type led the automotive electric bus market.

Battery Electric Vehicle (BEV) segment had the largest global market revenue share.

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