An electric bus is a bus that is propelled by electric motors as opposed to an internal combustion engine. Electric buses can store the required electricity on-board, or be fed continuously from an external source. The majority of buses storing electricity are battery electric buses.
Statistics:
The electric bus market was valued at US$ 14,795.5 Mn in 2021 and is forecast to reach a value of US$ 44,309.04 Mn by 2030 at a CAGR of 13.4% between 2022 and 2030.
Figure 1: Global Electric Bus Market Value (US$ Bn) Analysis and Forecast, 2017 - 2030
Key Developments:
In October 2019, AB Volvo approved a new electrically powered articulated bus for smooth and emission free high capacity operations. The Volvo 7900 Electric Articulated in the trading configuration is available in an option of two lengths 59 and 61 feet. The bus is 80% more energy-effective than a corresponding diesel bus.
In November 2019, AB Volvo signed a contract with the Transdev, a French originated international private public transport operator to export the electric buses in Europe. The Volvo would deliver 157 electric articulated buses to Transdev that started in the 2020. These buses operated a number of routes in the Gothenburg.
Figure 2: Global Electric Bus Market Share (%), By Region, 2021
Market Drivers:
Driver 1:
The rise in demand for fuel efficient and low emission buses is expected to drive the growth of the global electric bus market. For instance, the US Department of Transport’s Federal Transit Administration (FTA) has announced funding of USD 130 million for Low or No Emission in June 2020.
Driver 2:
The U.S., Germany, France, and China have implemented stringent government laws and regulations for vehicular emission, making it compulsory for the automobile manufacturers to use advanced technologies to combat high-emission levels in buses is expected to boost the growth of the global electric bus market.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 14,795.5 Mn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 13.4% | 2030 Value Projection: | US$ 44,309.04 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
AB VOLVO, CAF, CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES, S.A., ANKAI BUS, ZHONGTONG BUS HOLDINGS CO., LTD, BYD COMPANY LTD, PROTERRA, DAIMLER AG, YUTONG GROUP, NFI GROUP INC. and VDL GROEP BV |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Restraint:
Restraint 1:
The high cost involved in the growth of electric buses and coaches, related components such as batteries and monitoring systems acts as a major restraint for electric bus manufacturers. The development cost of infrastructure for EVs is also very high. Around USD 2.8 trillion is needed for building the infrastructure globally.
Restraint 2:
The battery of an EV needs frequent and fast charging through additional equipment such as electric chargers, which are only accessible at EV charging stations. The battery, charger, and installation cost of the charger add to the cost of electric buses and coaches, making them costlier compared to traditional ICE buses and coaches which is expected to hinder the growth of the global electric bus market.
Market Opportunities:
Opportunity 1:
Battery electric vehicles are gaining immense traction in the electric bus market owing to its advantages such as changing perception toward the adoption of electric buses in developing and developed countries. Also, simple technology usage and low maintenance of battery electric buses compared to other traditional buses supplements is expected to boost the growth of the global electric bus.
Opportunity 2:
Plug-in hybrid electric vehicle decreases diesel fuel combustion and CO2 emissions up to 75%, which boosts the growth of the market. In addition, PHEV batteries can be charged by the ICE, using a wall outlet or charging station, or through regenerative braking system is expected to propel the growth of the global electric bus market.
Market Key Takeaways/Trends:
Trend 1:
E-buses with range of more than 200 miles can travel more distance on a single charge itself, which is driving the growth of the market. These types of buses are more suitable on longer routes. This makes them cost-efficient when compared with the traditional bus, which is acts as an opportunity in global electric bus market.
Trend 2:
Factors such as signing of contracts by bus manufacturers to offer operation and maintenance of electric buses in the region, and supportive government to buy electric buses are anticipated to propel the growth of the e-bus market during the forecast period in Europe.
Competitive Landscape:
Major companies that are involved in the growth of the global electric bus market are AB VOLVO, CAF, CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES, S.A., ANKAI BUS, ZHONGTONG BUS HOLDINGS CO., LTD, BYD COMPANY LTD, PROTERRA, DAIMLER AG, YUTONG GROUP, NFI GROUP INC. and VDL GROEP BV.
An electric bus gets electricity from the power grid and stores it in a battery that can be recharged after the complete use of electricity. This is equivalent to the method how electronics work. People plug them in and let it get charged and then use them without wires till the charge is completed.
Market Dynamics:
Electric buses are more economical compared to conventional buses. As the electric bus converts over 50% of the electric energy from the grid power at the wheels. The demand for electric vehicles has increased with the high performance fuel efficiency offered. At one full charge, an electric bus can travel up to 150kms of distance, which is expected to propel the growth of the global electric bus market.
On Contrary, the batteries of present electric buses have low capacities with long charging durations and limited range per charge. The performance and service life of the batteries openly affect the performance and the cost of the electric buses which is anticipated to hinder the growth of the global electric bus market.
The electric bus market dominated over 90% revenue share in 2021, due to their advanced multiple features and strict government regulations against fuel-powered buses, globally. For instance, in March 2021, the Government of UK declared to ban all types of diesel buses sales in the region from 2030 as a part of government initiatives to control air pollution and climate changes. The governments also invested around USD 4.12 billion under the National Bus Strategy plan to fuel the adoption of e-buses in the region which is expected boost the growth of the global electric bus market.
Key features of the study:
Detailed Segmentation:
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