Electric Bus Market Size | Share and Trends 2024 to 2034

Electric Bus Market Size and Growth 2024 to 2034

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 13.4% from 2024 to 2034.

Electric Bus Market Key Takeaways

• By vehicle, the BEV segment has captured a revenue share of 86% in 2023. 
• The FCEV segment is expected to register a lucrative CAGR of 15.1% in terms of volume over the forecast period.
• By application, the intracity segment has held revenue share of 86% in 2023. 
• The intercity segment is expanding at a CAGR of 15.6% between 2024 to 2034. 
• By end-use, the public segment has held a revenue share of around 81% in 2023.
• The private segment is growing at a CAGR of 11.8% from 2024 to 2034.
• By battery, the lithium iron phosphate battery segment has accounted revenue share of 90.5% in 2023.
• The lithium nickel manganese cobalt oxide segment is poised to grow at a CAGR of 14.7% over the forecast period.
• Asia Pacific market has accounted Highest revenue share of 85.7% in 2023.

Asia Pacific Electric Bus Market Size and Growth 2024 to 2034

The Asia Pacific electric bus market size was estimated at USD 24.38 billion in 2023 and is predicted to be worth around USD 97.23 billion by 2034, at a CAGR of 13.6% from 2024 to 2034.

Asia-Pacific dominated the electric bus market in 2023 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.

Growth Factors

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.

Market Scope

Propulsion Insights

The battery electric bus segment dominated the electric bus market in 2023. 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 2023. 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.

Electric Bus Market Companies

• Tata Motors
• Daimler AG
• Geely Automobiles Holdings Ltd.
• Man SE
• Scania
• AB Volvo
• Workhorse
• BYD Company Ltd.
• Dongfeng Motor Company
• Paccar Inc.

Recent Developments

• Volvo buses began offering its usable energy commitment as a commercial solution in July 2021, ensuring electric bus accessibility and reliability. This means that Volvo buses guarantees the operation’s capacity for a set quantity of energy for the duration of the agreement.
• Alexander Dennis Ltd and BYD UK declared a deal with the National Transport Authority of Ireland for the supply of up to 200 zero emission battery electric buses that is manufactured by BYD UK in July 2021.
• Meritor and Daimler announced a partnership in December 2021 to supply powertrain for electric buses. The agreement is expected to start in January 2024.
• Arrival, a commercial electric vehicle firm, declared in July 2021 that it would build an electric bus for Anaheim utilizing its artificial intelligence enabled production facility in California.
• Olectra Greentech Ltd. stated in November 2021 that it would invest in a fully automated production facility in India with a capacity of 10,000 electric bus models per year.  

Segments Covered in the Report

By Propulsion

• Battery Electric bus
• Hybrid Electric bus
• Plug-in Hybrid Electric bus
• Fuel Cell Electric bus

By Consumer Segment

• Private
• Government

By Application

• Intercity
• Intracity

By Length of Bus Type

• less than 9 m
• 9−14 m
• Above 14 m

By Vehicle Range

• Less than 200 miles
• Above 200 miles

By Battery Capacity

• Upto 400 kWh
• Above 400 kWh

By Power Output

• Upto 250 kW
• Above 250 kW

By Battery Type

• Lithium- Nickel- Manganese- Cobalt-Oxide
• Lithium- Iron- Phosphate
• Others

By Component

• Motor
• Battery
• Fuel Cell Stack
• Battery Management System
• Battery Cooling System
• EV Connectors

By Seating Capacity

• Up to 40 seats
• 40-70 seats
• Above 70 seats

By Level of Autonomy

• Semi-autonomous
• Autonomous

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa