South Korea Automotive Electric Bus Market Research Report By Type (Single-Decker, Double-Decker), By Propulsion (BEV, PHEV, FCEV) and By Length (6 to 8 m, 9 to 12 m, Above 12 m)- Forecast to 2035

South Korea Automotive Electric Bus Market Overview

As per MRFR analysis, the South Korea Automotive Electric Bus Market Size was estimated at 10.48 (USD Billion) in 2023. The South Korea Automotive Electric Bus Market Industry is expected to grow from 14.32(USD Billion) in 2024 to 55.13 (USD Billion) by 2035. The South Korea Automotive Electric Bus Market CAGR (growth rate) is expected to be around 13.037% during the forecast period (2025 - 2035).

Key South Korea Automotive Electric Bus Market Trends Highlighted

The South Korea Automotive Electric Bus Market is experiencing significant growth driven by a shift towards sustainable transportation. The government's commitment to reducing carbon emissions and promoting green technology underpins this market trend, as policies favor electric mobility and support the development of electric buses. Additionally, increasing awareness of air quality issues in urban areas has spurred public acceptance and demand for electric buses as a cleaner alternative to traditional diesel buses. 

South Korea’s ongoing investment in charging infrastructure plays a pivotal role in facilitating the adoption of electric buses, making them a more viable option for public transportation.Factors such as government subsidies given for the purchase of electric vehicles and local electric vehicle manufacturing also aid in supply chain optimization are key South Korean market drivers. South Korea’s public transport expansion plan aims to integrate electric buses into the system in order to alleviate environmental issues as well as urban traffic congestion. 

Some unexplored opportunities include prospective partnerships between local players and foreign automotive manufacturers around innovative strategies for cost-effective battery technology. There is also a possibility in electric buses for advanced forms, autonomous control, and other systems that could improve the efficiency of the operation and the experience for the passengers.

Trends in recent times highlight the increasing partnerships among municipalities and electric vehicle manufacturers to pilot electric bus projects, promoting real-world applications and gathering data to refine future designs and operations. Furthermore, there is a growing focus on research and development initiatives aimed at advancing the performance and durability of electric bus batteries. As South Korea further aligns itself with global sustainability goals, these trends will shape the landscape of the automotive electric bus market, positioning the nation as a leader in eco-friendly public transportation solutions.

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

South Korea Automotive Electric Bus Market Drivers

Government Initiatives and Support

The South Korean government is actively promoting the adoption of electric buses through various initiatives and incentives. With the strong push towards green energy, the government aims to increase the share of electric vehicles in public transportation. 

According to the South Korean Ministry of Environment, the government plans to replace 50% of the public bus fleet with electric buses by 2025, translating to approximately 3,700 electric buses.This initiative is expected to significantly boost the South Korea Automotive Electric Bus Market Industry, as it propels both production and infrastructure development in the sector. Furthermore, the Green New Deal, which invests heavily in renewable energy and sustainable transport, has allocated significant funding aimed at facilitating the transition to electric vehicles, thereby solidifying the future growth of the electric bus market in South Korea.

Technological Advancements in Battery Technology

The continuous advancements in battery technology are driving the growth of the South Korea Automotive Electric Bus Market. Major South Korean companies like LG Chem and Samsung SDI are at the forefront of developing high-capacity and fast-charging batteries. 

The capacity of electric bus batteries has increased dramatically, with some models equipped with batteries exceeding 600 kWh, providing a range of over 300 kilometers on a single charge. This improvement increases the feasibility of electric buses as a viable public transport option.The increased investment in Research and Development (R&D) by these leading firms not only enhances battery performance but also lowers costs, making electric buses more economical for public transport providers.

Increasing Demand for Eco-Friendly Transportation

As environmental concerns rise among citizens, there is a growing demand for eco-friendly transportation solutions in South Korea. Public awareness campaigns, supported by institutions like the Korea Transport Institute, highlight the importance of sustainable transportation methods in reducing urban pollution. 

A survey indicated that over 70% of South Koreans prefer public transportation to be eco-friendly, reflecting a significant shift in public preference towards electric buses.This consumer demand is expected to drive investments from both the public and private sectors to develop more electric buses, fostering the South Korea Automotive Electric Bus Market Industry.

Urbanization and Increasing Public Transportation Needs

Urbanization in South Korea is leading to increased public transportation needs, particularly in densely populated cities like Seoul and Busan. The rapid urbanization rate, projected to surpass 90% by 2030, creates substantial pressures on existing public transportation systems, necessitating a shift towards more efficient and sustainable options, such as electric buses. 

Furthermore, according to Statistics Korea, the number of public transportation passengers has been on the rise, indicating a need for enhanced services.This urban demand will therefore contribute significantly to the growth of the South Korea Automotive Electric Bus Market, as cities opt for zero-emission buses to meet these rising transportation needs.

South Korea Automotive Electric Bus Market Segment Insights

Automotive Electric Bus Market Type Insights

The South Korea Automotive Electric Bus Market is experiencing significant growth, driven by the increasing demand for sustainable transportation solutions. The market is primarily segmented into two main types, namely Single-Decker and Double-Decker buses. The Single-Decker electric buses are gaining popularity due to their suitability for urban environments, where maneuverability and efficiency are essential for navigating narrow streets and heavy traffic. They are particularly favored by city transport authorities as they tend to offer lower operational costs and are easier to maintain compared to their larger counterparts. On the other hand, Double-Decker buses hold a substantial share of the market, owing to their high passenger capacity, which is ideal for urban areas with high ridership. The ability to carry more passengers effectively reduces the number of trips needed, thereby minimizing carbon emissions and traffic congestion.

As South Korea continues to focus on developing its public transportation infrastructure, the government is implementing various policies to encourage the adoption of electric buses. This includes financial incentives for operators and manufacturers, aiming to enhance the accessibility and efficiency of public transport. The rising awareness about environmental issues and the need for cleaner air in densely populated cities are also significant factors propelling the growth of these bus types. 

Additionally, advancements in battery technology are boosting the range and performance of both Single-Decker and Double-Decker electric buses, making them a more viable option for public transit systems.Moreover, South Korea's commitment to reducing greenhouse gas emissions aligns with global trends toward sustainable transport, increasing the attractiveness of electric buses as a solution to meet future transportation needs. The South Korea Automotive Electric Bus Market is witnessing a shift towards more modern and eco-friendly solutions that serve the country's urban transit demands efficiently. This evolution is also supported by ongoing Research and Development initiatives aimed at improving the performance and affordability of electric buses, ensuring long-term growth in the sector.

Overall, the Type segmentation of the South Korea Automotive Electric Bus Market highlights the importance of both Single-Decker and Double-Decker buses in addressing urban mobility challenges while contributing to environmental sustainability. The continuous innovations in this market are expected to support the long-term development of clean transportation solutions in South Korea, thereby playing a crucial role in shaping the future public transportation landscape. As such, understanding the dynamics of these segmentations is vital for stakeholders looking to capitalize on emerging opportunities in the automotive electric bus market in South Korea.

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

Automotive Electric Bus Market Propulsion Insights

The Propulsion segment within the South Korea Automotive Electric Bus Market is experiencing significant growth, driven by the increasing demand for sustainable and efficient public transportation solutions. Battery Electric Vehicles (BEV) are particularly noteworthy, as they offer zero-emission transportation, aligning with South Korea's environmental policies aimed at reducing urban air pollution. Plug-in Hybrid Electric Vehicles (PHEV) provide added flexibility, combining electric and traditional fuel-powered systems, thus appealing to a broader consumer base.Fuel Cell Electric Vehicles (FCEV) are gaining traction, especially due to advancements in hydrogen technology and government support for developing a hydrogen economy. 

Each of these technologies addresses specific needs in the market, from completely emission-free operation to extended range capabilities. The South Korea Automotive Electric Bus Market is also supported by significant government initiatives and investments aimed at expanding charging infrastructure, thereby enhancing the practical usability of these propulsion technologies. Additionally, growing environmental awareness and urbanization trends are expected to further boost the adoption of these propulsion methods, highlighting their importance in shaping the future of public transport in South Korea.

Automotive Electric Bus Market Length Insights

The South Korea Automotive Electric Bus Market is experiencing significant growth, particularly in the Length segment, which is characterized by various categories including 6 to 8 meters, 9 to 12 meters, and Above 12 meters. The segment plays a crucial role in the market dynamics, as each category caters to distinct transportation needs across urban and rural areas. The 6 to 8-meter buses are often preferred for navigating narrow streets and efficient public transport in densely populated urban areas, making them significant for city commutes. 

Meanwhile, the 9 to 12-meter category is widely utilized for inter-city travel, providing a balance between capacity and maneuverability.Above 12-meter buses cater to longer-distance routes and larger capacity demands, often used for touristic and high-density public transport. As South Korea focuses on reducing emissions and enhancing public transport infrastructure, the adoption of electric buses across these varying lengths presents opportunities for growth and innovation in the market. The government's support for electric vehicles and growing environmental concerns are driving the transition towards these electric solutions, establishing the South Korea Automotive Electric Bus Market as a major component of the nation's strategic initiatives in sustainable transportation.The diverse needs addressed by each length category indicate a robust market segmentation that allows for tailored solutions to meet the rising demand for cleaner and more efficient public transport options.

South Korea Automotive Electric Bus Market Key Players and Competitive Insights

The South Korea Automotive Electric Bus Market is rapidly evolving, driven by technological advancements, government regulations, and an increasing demand for sustainable public transportation solutions. With a strong push towards reducing carbon emissions and promoting electric mobility, the market is characterized by robust competition among key industry players. The South Korean government has been actively supporting this transition by providing incentives for electric vehicle purchases and investing in charging infrastructure. This dynamic landscape has prompted local manufacturers to innovate in design, performance, and battery technology, as they seek to capture market share in an increasingly eco-conscious society. 

The electric bus segment, in particular, is gaining traction as cities seek cleaner alternatives for urban transport, leading to a competitive environment among both established automakers and new entrants.Hyundai Motor is a dominant player in the South Korea Automotive Electric Bus Market, leveraging its vast experience in vehicle manufacturing and innovation. The company has made significant investments in electric bus technology, enabling it to develop a range of models that cater to various needs in public transportation. 

Hyundai Motor's strengths include its advanced research and development capabilities, strong supply chain management, and extensive distribution network in South Korea. The company's commitment to sustainability is evident in its ambitious plans for producing eco-friendly vehicles, which align with government initiatives aimed at reducing pollution. As a recognized name in the automotive sector, Hyundai has been able to effectively establish partnerships with local governments and public transport operators, enhancing its market presence and ensuring a competitive edge in this sector.Kia also holds a significant position in the South Korea Automotive Electric Bus Market, focusing on creating innovative electric bus solutions that meet the evolving demands of urban transit systems. The company has developed strategic partnerships aimed at enhancing electric mobility infrastructure, thus boosting its service offerings in South Korea. 

Kia's electric buses are characterized by their energy efficiency and advanced technological features, making them suitable for various applications in public transport. In addition, the company has been expanding its portfolio through collaborations that include joint ventures and alliances focused on the electrification of public transportation. Kia's strengths include a keen understanding of consumer preferences and the ability to rapidly adapt its products to reflect changing market trends. This agility, combined with its commitment to battery technology advancements, positions Kia favorably within the competitive landscape of the South Korean electric bus sector.

Key Companies in the South Korea Automotive Electric Bus Market Include:

• Hyundai Motor


• Kia


• Dongfeng Motor


• Sunwin


• BYD


• Hankook Tire


• SK Innovation


• LG Chem


• Proterra


• Daewoo Bus


• Ebusco


• NAVYA


• Hyundai Rotem


• Samsung SDI


• SNC Lavalin

South Korea Automotive Electric Bus Market Industry Developments

Recent developments in the South Korea Automotive Electric Bus Market reflect a significant shift towards sustainable transportation solutions. In September 2023, Hyundai Motor announced plans to increase production of electric buses to meet the growing demand, following government initiatives aimed at reducing carbon emissions. Kia is also expanding its electric vehicle lineup, focusing on electric buses designed for urban mobility. 

In August 2023, SK Innovation and LG Chem collaborated to enhance battery technology, which is vital for electric bus efficiency and range. Meanwhile, Hyundai Rotem and Daewoo Bus are working on a joint venture to develop advanced electric bus platforms, expected to be launched in early 2024. Notably, Ebusco, a Dutch electric bus manufacturer, is exploring partnerships with South Korean companies to penetrate the market. 

Over the past two years, the South Korean government has committed substantial funding to boost electric vehicle production, specifically targeting municipal transport systems. The focus on electric buses aligns with national policies aimed at achieving net-zero carbon emissions by 2050, further spurring innovation and investment in the sector.

South Korea Automotive Electric Bus Market Segmentation Insights

Automotive Electric Bus Market Type Outlook

• Single-Decker


• Double-Decker

Automotive Electric Bus Market Propulsion Outlook

• BEV


• PHEV


• FCEV

Automotive Electric Bus Market Length Outlook

• 
  

  6 to 8 m

  
  


• 
  

  9 to 12 m

  
  


• 
  

  Above 12 m

  
  

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	10.48(USD Billion)
MARKET SIZE 2024	14.32(USD Billion)
MARKET SIZE 2035	55.13(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.037% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Hyundai Motor, Kia, Dongfeng Motor, Sunwin, BYD, Hankook Tire, SK Innovation, LG Chem, Proterra, Daewoo Bus, Ebusco, NAVYA, Hyundai Rotem, Samsung SDI, SNC Lavalin
SEGMENTS COVERED	Type, Propulsion, Length
KEY MARKET OPPORTUNITIES	Government incentives for electric buses, Growing demand for sustainable transport, Advancements in battery technology, Expansion of charging infrastructure, Increase in urban population transport needs
KEY MARKET DYNAMICS	growing environmental regulations, increasing urbanization, advancements in battery technology, government financial incentives, rising public transportation demand
COUNTRIES COVERED	South Korea