The global electric bus market size was valued at US$ 25 billion in 2022 and is expected to surpass around US$ 85.99 billion by 2032, growing at a compound annual growth rate (CAGR) of 13.20% from 2023 to 2032. The North America electric bus market is expected to drive growth at a CAGR of 20.3% over the forecast period 2023 to 2032.
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Key Takeaway:
The Asia Pacific electric bus market size reached US$ 20.25 billion in 2022 and is predicted to hit around US$ 69.66 billion by 2032, growing at a CAGR of 13.20% between 2023 to 2032.
Asia-Pacific dominated the electric bus market in 2022 with highest revenue share. The China dominates the electric bus market in Asia-Pacific region. The Asia-Pacific region comprises of large number of market players operating in electric bus market. The electric bus market is growing in developing and developed countries such as China, Japan, South Korea, and India. In addition, the Asia-Pacific region has vast number of original equipment manufacturers (OEMs). Furthermore, the factors such as favorable government regulations regarding electric buses and the expansion of the electric vehicle infrastructure are propelling the growth of the electric bus market in the Asia-Pacific region during the forecast period.
North America is expected to develop at the fastest rate during the forecast period, due to increasing research and development investments in the development of electric buses. The major market players of the region are collaborating with government to increase their market share in the region. This is also helping them to increase their geographical presence in developed and developing nations. In addition, the growing number of infrastructural development projects is also driving the expansion the electric bus market in the region.
The electric bus is a vehicle that do not require internal combustion engine. The electric buses are considered as environmentally friendly. The electric bus does not emit any kind of toxic gases in the environment. As a result, the growing environmental concerns are driving the growth of the global electric bus market. In addition, the electric bus also helps in saving of fuel and gasoline. The use of electric bus benefits end user in each and every way. The surge in government initiatives is also driving the expansion of the electric bus market. The government of established and emerging nations is mainly investing in the development of electric bus. The electric bus also helps end users to save time of their passengers. Due to ongoing trend of clean energy, the major countries have started using electric bus on a large scale. The electric bus is also helping government in reduction of noise pollution levels. Moreover, the utilization of solar powered electric bus charging stations is creating growth prospects for the electric bus market expansion.
The highly populated regions require good vehicles for public transportation. The electric bus is changing the face of public transportation in a different way. The electric bus helps in reduction of pollution which is helping in the reduction of global warming. The utilization of electric buses has helped government in saving costs. The launch of self-driving electric bus is boosting the growth and development of the global electric bus market. One of the prominent factors that drive the growth of the global electric bus market is technological developments. The new and advanced features deployed in the electric bus are creating lucrative opportunities for the growth of the electric bus market. The electric buses are largely used in the developed regions. Additionally, the electric bus manufacturers are adding additional features to the bus such as additional seating capacity and lane keep assist system. The lane keep assist technology will help drivers to drive efficiently by reducing the chances of accidents. The electric bus is also helping in the reduction of road accidents. Thus, all of these factors are propelling the growth of the global electric bus market.
Globally, there has been a significant increase in the electrification of public transportation. This has resulted into low maintenance expenses for using electric buses. In addition, the government is significantly investing in the development of charging infrastructure in all developed regions. Moreover, the research and development expenditure in battery technology is also increasing. The electric bus is considered as environmentally friendly option all over the globe. In the developing regions such as Latin America and Asia-Pacific, there is surge in demand for environmentally friendly transportation and mobility solutions. Furthermore, the transportation companies are shifting their focus to sustainable energy. Thus, this has created significant demand for electric bus since few years. As a result, all of these aforementioned factors are driving the expansion and development of the global electric bus market over the projected period.
| Report Coverage | Details |
| Market Size by 2032 | USD 85.99 Billion |
| Growth Rate from 2023 to 2032 |
CAGR of 13.20% |
| Largest Market | Asia Pacific |
| Fastest Growing Region | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Propulsion, Consumer Segment, Application, Length of Bus Type, Vehicle Range, Battery Capacity, Power Output, Battery Type, Component, Seating Capacity, Level of Autonomy, Geography |
| Companies Mentioned | Tata Motors, Daimler AG, Geely Automobiles Holdings Ltd., Man SE, Scania, AB Volvo, Workhorse, BYD Company Ltd., Dongfeng Motor Company, Paccar Inc. |
The battery electric bus segment dominated the electric bus market in 2022. The electric bus that runs on batteries is known as battery electric bus. The battery electric bus is an ideal option for no emission or zero emission vehicles. As compared to traditional buses, the battery electric buses are very efficient in nature. The battery electric bus enables drivers to drive fast as compared to fuel or gasoline-based buses. The charging of battery electric buses is quite easy and cost effective then diesel or petrol-based buses. The electric bus manufacturers are deploying supercapacitors in the battery electric bus. This factor is driving the growth of the segment during the forecast period.
The hybrid electric bus segment is fastest growing segment of the electric bus market in 2022. The hybrid electric bus includes electric propulsion and internal combustion engine propulsion system. The hybrid electric bus helps in the reduction of the greenhouse gases emissions and air pollution levels. The growing government efforts to curb the carbon emissions and for the safety of environment are contributing towards the growth of the segment. Furthermore, the growing technological advancements and adoption of advanced technologies is creating growth prospects for the segment. All of these aforementioned factors are propelling the growth and development of the global electric bus market over the projected period.
Key Developments
Segments Covered in the Report
By Propulsion
By Consumer Segment
By Application
By Length of Bus Type
By Vehicle Range
By Battery Capacity
By Power Output
By Battery Type
By Component
By Seating Capacity
By Level of Autonomy
By Geography
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