Electric Bus Market - Forecast(2023 - 2028)

Electric Bus Market Overview

The global market for Electric Bus is forecast to reach $10.2 billion by 2026, growing at CAGR 15.7% from 2021 to 2026. Buses are most preferred mode of public transportation by many people in day to day life. The growing population in urban areas has increased the demand for buses. Increasing pollution and increasing emission has encouraged the many to convert to electric vehicles in the bus fleet. Also governments' initiatives towards improving public transportation along with the growth of on-demand bus services are expected to propel the market growth. Innovation and manufacturing of vehicles have helped the industry to grow into a profitable one, especially for electric buses. The demand is also increasing for varied bus types primarily double decker and articulated buses. The increasing investment into development of gyrobuses that use flywheel energy storage, rather than overhead lines, will also drive market growth. These factors are set to boosts the market growth for Bus during the forecast period 2021-2026

Electric Bus Market Report Coverage

The report: “Electric Bus Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Electric Bus Market.

By Application: Transit, Motor Coaches, School buses, and Others.
By Type: Single Decker, Double Decker, Articulated Bus.
By Fuel type: Hybrid, Fully Electric.
By Seating Capacity: 15-30 seats, 31-55 seats, More than 55 seats.
By Body Built: Fully Built, Customizable.
By Geography: North America (U.S, Canada, Mexico), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, South Korea, Australia and Others), South America (Brazil, Argentina and others), and ROW (Middle East and Africa).

Key Takeaways:

• The Electric Bus Market will have the substantial growth in the forecast period especially in the transit segment. As the population increases and adoption of public transportation will be the top priority both by Government and by the public.
• Electric Bus Market is expected to shift its fuel consumption from diesel to natural gas and electric. This in turn will reduce the pollution in the environment. Initiatives have been taken due to increased pollution in the past few years and this will drive the market grow during the forecasted period.
• APAC region will show high growth due to increasing population and need for public transportation for the people. This is especially rising in countries like China and India.

Electric Bus Market Segment Analysis - By Application

Transit buses are efficiently designed to move passengers within cities and also for other applications. These buses are used by private transport companies. Common public rely on buses to cater their needs for transportation in turn driving the demand for these buses. This is driving the market especially for doubler decker and articulated buses. Motor Coaches used in long distance travelling with comfortable seats and other amenities. Tourism sector utilizes multi-axis buses, particularly motor coach electric vehicles, so that the passengers are comfortable while traveling. The rising use of flywheel energy storage based gyrobuses rather than overhead line based electric vehicles is also driving market growth This is driving the motor coach market at highest CAGR of 18.2% CAGR through 2026.

Electric Bus Market Segment Analysis - By Fuel Type

Electric Bus Market significantly utilized diesel as their fuel resulting in over 65% share for this hybrid bus segment in 2020 but in recent years the pollution and emission of toxic gases has increased. Due to increasing pollution UITP Australia New Zealand has conducted an event for the flagship of Zero Emission Bus (ZEB) forum. The shift from diesel and other fossil fuels to electric, compressed natural gas and liquefied natural gas is because of the stringent emission standards and environmental regulations set by many governments. However, this shift from diesel to fully electric vehicles is not happening directly but rather through a bus that combines a conventional internal combustion engine propulsion system with an electric propulsion system that uses overhead lines.

Electric Bus Market Segment Analysis - Geography

APAC region dominates the market with highest market share of 34.1% due to the increasing demand and populations. Top players from China have focused extensively on capturing the transit growth and witnessed a growth in the market. APAC countries such as China and India have rapidly growing population which is expected to increase in the forecasted period. This in turn will increase the need of public transportation like buses, particularly double decker and articulated buses. North America and Europe follow APAC in increasing the demand and services to make healthy environment thereby driving replacement and modernization of buses.  The significant spending in the APAC market, particularly on modernization is also focused on pollution reduction thereby driving demand for hybrid and electric buses.

Electric Bus Market Drivers

Increasing adoption of Fully Electric Buses

There is increased adoption of Fully electric buses due to two factors that is, one to control the pollution and other to reduce the maintenance and operating cost compared to the hybrid diesel electric buses. Fuel plays a major role in cost of transport. Diesel cost is rising year on year. On the other hand Electric vehicles are lot cheaper in the long run and is significantly the most comfortable mode of transport compared to diesel and petrol engine buses. This combined with pollution reduction in order to meet increased government scrutiny will drive market growth for fully electric buses.

Government Initiatives to Control Traffic

Increased population is one driver that is major cause for the pollution and traffic. The government initiatives from the ministry of road transport & highways in India has introduced the scheme for providing the central assistance to the states road transport undertaking for strengthening the public transport system. The scheme will provide the financial assistance for the use of latest information technology such GPS/ GSM based vehicles for tracking system, automatic fare collection system, electronic ticket vending machines and many others for the inter city and rural area operations. The increased use of public transport will reduce the use of private vehicles which will reduce congestion on road and decrease traffic. Smart transportation assists in this and utilizes information technology and artificial intelligence to efficiently manage and coordinate advanced public transportation systems. For instance, in Germany, they are using artificial intelligence to optimize traffic light control and reduce the waiting time at an intersection. The application of smart transportation network allows the traveling population to be aware of the traffic for better coordination and to ensure safety of the drivers. Over the past decade, traffic congestion has continued to increase globally. For instance In the U.S. alone, traffic congestion cost $305 billion in 2019, an increase of $10 billion from 2018. Increase in congestion will ultimately increase demand for smart transportation market.

Electric Bus Market Challenges

Outdated and Lack of Infrastructure

The challenges in Electric Bus Market are infrastructure of the buses with its old sub-systems, reactive rather than proactive response. Lack of stand-alone security systems like video surveillance and access control, in addition to the absence of cohesive command and control platform that enables transportation officials to respond to the incident will hinder the Electric Bus Market. Also, the electric vehicle infrastructure is significantly underdeveloped in many markets, particularly in APAC region. This lack of infrastructure is acting as a major bottleneck to the electric bus market growth.

Electric Bus Market Landscape

Acquisition is the major key strategy used by the top players in the Electric Bus Market. The market for Bus is consolidated with the top players Zhengzhou Yutong Bus Co., Volvo, Daimler AG, Xiamen King Long United, Traton/Volkswagen, Ashok Leyland, Navister and Others. These are the companies are subsequently planning to expand its market locally and globally.

Acquisitions/Technology Launches/Partnerships

• In August 2020, Eicher Motors' VECV reached an agreement to acquire Volvo India's bus biz for $14.2m as a going concern on slump sale basis, of the bus business of Volvo Group India

• In July 2019, Solaris Bus & Coach has been acquired by the Spanish company CAF, which expands its interest towards electromobility.

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