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Table Of Content
May 2025
The global electric bus market size was is calculated at USD 36.46 billion in 2025 and is expected to reach around USD 113.06 billion by 2034, expanding at a CAGR of 13.40% from 2024 to 2034. The Asia Pacific electric bus market size surpassed USD 31.36 billion in 2025 and is expanding at a CAGR of 13.60% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global electric bus market size accounted for USD 32.15 billion in 2024 and is expected to reach around USD 113.06 billion by 2034, expanding at a CAGR of 13.40% from 2025 to 2034.
The Asia Pacific electric bus market size was estimated at USD 27.65 billion in 2024 and is predicted to be worth around USD 97.23 billion by 2034, at a CAGR of 13.60% from 2025 to 2034.
Asia-Pacific dominated the electric bus market in 2024 with highest revenue share of 86%. 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.
China continues to dominate the electric bus market throughout the Asia Pacific region, with robust government policy support, massive investment in EV infrastructure, and rapid urbanization on the supply side fully operational. With the continued rollout of programs such as the “New Energy Vehicle” (NEV) program and generous subsidies, the country accounts for nearly all electric bus deployment in the world. Large suppliers such as BYD and Yutong lead in scale and innovation. In addition to the production and adoption of electric buses, China's move to replace conventional diesel buses and improve urban air pollution (expedited by COVID-19) in cities has made China the centre of electric bus production in the Asia Pacific.
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 United States is a leader of the electric bus market in North America as a result of growing environmental awareness, federal funding programs, and commitments to reduce public transport emissions. Government funding initiatives such as the Bipartisan Infrastructure Law and Federal Transit Administration Grants have catalyzed adoption of electric buses in recent years. Cities, such as Los Angeles and New York, have committed to fully electrifying their public systems within a decade. Additionally, infrastructure improvements and U.S.-based manufacturers (e.g., Proterra, Lion Electric, etc.) as well as international joint ventures with other global transportation providers signals that the U.S. is on the forefront of enabling a cleaner and more sustainable transit ecosystem.
Europe is expected to grow significantly in the electric bus market during the forecast period. The demand as well as the use of electric buses in Europe are increasing for reducing the environment pollution. This, in turn, is supported by the government policies as well as investments. Thus, this, promotes the market growth.
The use of electric buses in the UK is increasing, due to increasing awareness about air pollution. At the same time, the investment by the government is also encouraging the development process of these buses with additional safety features.
In Germany, the demand for the use of electric buses is increasing due to their affordability as well as efficiency. Furthermore, to reduce the pollution, different polices laid down by the government are encouraging their use as well.
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 in 2024 | USD 32.15 Billion |
| Market Size in 2025 | USD 36.46 Billion |
| Market Size by 2034 | USD 113.06 Billion |
| Growth Rate from 2025 to 2034 | CAGR of 13.40% |
| Largest Market | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Propulsion, Consumer Segment, Application, Length of Bus Type, Vehicle Range, Battery Capacity, Power Output, Battery Type, Component, Seating Capacity, Level of Autonomy, and Region |
| Regions Covered | Asia Pacific, North America, Europe, Latin America, Middle East and Africa |
Government Initiatives Accelerate Growth Opportunities for Electric Bus Industry
One key opportunity that is defining the electric bus market is strong government support through policy initiatives, like in May 2025, the PM e-Drive Scheme in India's urban and intercity transport. The Union government recently also approved 4,500 electric buses for Bengaluru, and this is a clear sign of the scale of investment and commitment towards green mobility.
(Source: https://energy.economictimes.indiatimes.com)
By 2030, electric buses are expected to account for 25% of the total share (STATED POLICIES SCENARIO), sharply increased from just under 6% in 2024. The projections for electric buses show that even in intercity transport, where electric coaches had less than 10% market share in 2024, by 2030 electric buses will account for around 75% of all bus segments market share. The surge in electric buses due to funding, a supportive infrastructure, and emissions targets provide a substantial growth opportunity for manufacturers and service providers.
(Source: https://www.iea.org)
The battery electric bus segment dominated the electric bus market in 2024. 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 2024. 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.
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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