Automotive Electric Bus Market Analysis

Automotive Electric Bus Market Overview

The Electric Bus Market size was valued at USD 272309.6 million in 2023. The Electric Bus industry is projected to grow from USD 371974.91 million in 2024 to USD 4499850 million by 2032, exhibiting a compound annual growth rate (CAGR) of 36.56% during the forecast period (2024–2022). Increasing government initiatives to encourage adoption of electric buses & low operating cost are some of the key market drivers boosting the growth of the automotive electric bus market. 

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

Automotive Electric Bus Market Drivers

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  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 )

Source: Secondary Research, Primary Research, MRFR 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. 9–12-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 )

Source: Secondary Research, Primary Research, MRFR 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. 

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 US has led the region's electric bus sector. The US is the 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


• Volvo


• Yutong


• BYD


• Proterra


• VDL GROEP


• Mercedes Benz AG


• NFI Group


• EBUSCO


• Zhong tong Bus Holding

Automotive Electric Bus Industry Developments

• In April 2022, Volvo Buses launches Volvo Connect which is a new customer portal. With the connected services in one place, together with services for workshop efficiency, Volvo's customers will have a new set of tools to increase uptime and productivity and improve safety.


• In February 2022, MAN and ABB E-mobility rev up for the next phase of electromobility in long-haul trucking. A special technical feature of the trailblazing electric commercial vehicle, which will be launched on the market in 2024, is its capacity for future megawatt charging. ABB E-mobility, a leading global provider of charging solutions for electric vehicles, aims to bring megawatt charging technology to market maturity in the next three years.


• In January 2022, BYD introduces an innovative and safe type of battery-electric school bus with v2g technology. It is a zero-emission school bus that combines design, performance, and safety together in a package built to meet the needs of students and administrators.


• In February 2022, the fastest-growing programmable logic firm in the world, GOWIN Semiconductor Corp., announces a new strategic alliance by selecting WPG EMEA, a division of WPG Holdings, the biggest semiconductor distributor in the world, as a pan-European distributor. 


• In December 2021, Zhongtong Bus Holding Co., Ltd., has expand the availability of its low-emission bus and engine goods to key cities across the world. Where fuel quality and distribution channel conditions allow, Zhongtong promises that buses powered by "soot-free" engine technology will be available for purchase in 20 megacities by 2022.

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