Electric Bus Market worth $37.5 billion by 2030

The global electric bus market is projected to be USD 17.0 billion in 2024 and to grow to USD 37.5 billion by 2030, at a compound annual growth rate (CAGR) of about 14.2%. The electric bus market will witness high acceleration in the upcoming years due to zero-emission vehicle promotion in countries with respect to their public transportation fleets and government initiatives backing electrification. For the forecast period, it is expected that the Asia Pacific will dominate the market for electric buses.

The existence of leading electric bus manufacturers such as BYD and Yutong operating in every major region has influenced this market, coupled with a variety of affordable electric buses due to lower prices of parts and components. Besides, government initiatives, large investment in charging infrastructure, and improvements in battery technologies continue to further drive the market in this region. North America is estimated to grow with the highest CAGR over the forecast period, followed by Latin America and Europe.

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LFP Battery type is expected to be the largest market by 2030.

Lithium Iron Phosphate (LFP) batteries are estimated to be dominating the electric bus market during the forecast period. This is mainly due to the larger demand for electric buses in the Chinese market (more than 60% of the global demand) which primarily LFP battery chemistry is predominantly favored in the domestic market. The LFP batteries are less expensive compared to other lithium-ion types like NMC or NCA. The main factor causing this disparity in cost is the availability of abundant raw materials such as iron and phosphate, which are essential for LFP batteries. Unlike cobalt and nickel, they are more resistant to changes in price. Furthermore, in China, there is a robust manufacturing industry for LFP batteries, with top companies like CATL, BYD, and SVOLT Energy Technology Co., Ltd leading the way.

City/ transit bus by application is the largest market in 2024 and is projected to dominate the market by 2030

The usage of electric buses for city application is maximum across all the regions during the forecast period. The demand is mainly prominent for this application due to its suitability for urban environments, comparatively lower travel distance, and fixed defined routes. Local governments are giving benefits and requiring the use of electric buses in their public transportation collections. The pressure from regulations has encouraged Volvo, BYD, and Daimler to develop electric buses tailored for urban environments, with enhancements in maneuverability, seating capacity, and accessibility features. The main motive of the eBRT2030 project in Europe is to enhance urban transportation by developing advanced electric Bus Rapid Transit (BRT) systems.

North America region holds the largest share of the Electric Bus Market.

North America is estimated to be the fastest-growing market during the forecast period. In North America, government incentives, the presence of individual investors, and technological edge are driving the electric bus market. The US has been leading the market in this region. The market is expanding due to government incentives, tax breaks, and private investments. The Federal Transit Administration set aside USD 1.7 billion in 2023 for buses, with an emphasis on zero-emission vehicles, even though European acceptance lags lag. This shift is further supported by the USD 5.6 billion set up in the Bipartisan Infrastructure Law for cleaner buses. make at least one-third of its 70,000 public transit buses electric by 2045.

Key Market Players:

The report profiles key players such as BYD Company Ltd. (China), Yutong Co., Ltd. (China), VDL Groep (Netherlands), AB Volvo (Sweden) and CAF (Solaris Bus & Coach sp. z o.o.) (Spain).

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