According to Custom Market Insights (CMI), the Global Electric Bus Market was valued at approximately USD 29 billion in 2021 and is projected to reach nearly USD 107 billion by the end of 2030. This significant expansion is expected to occur at a compound annual growth rate (CAGR) of 22% from 2022 to 2030.

This comprehensive report analyzes the market's driving forces and limiting factors and assesses their influence on market growth. Additionally, it highlights the global opportunities that are shaping the future of the electric bus sector.

Electric Bus Market: Overview

An electric bus operates using electric motors instead of traditional internal combustion engines. These buses can be powered either through onboard energy storage systems or by drawing continuous power from external sources. The most common type, battery electric buses, rely on onboard battery packs to supply electricity to the motor. Although rare, other forms such as gyrobuses, which utilize flywheel energy storage, also exist. For electric buses that do not store energy onboard, power is supplied via an external infrastructure such as overhead lines or ground-based systems.

Growth Factors

There has been a noticeable increase in the demand for fuel-efficient and non-polluting public transport solutions, which is a primary growth driver for the electric bus market. Efforts by governments across the globe to achieve zero-emission targets, combined with strict environmental regulations and heightened awareness regarding pollution reduction, are major factors contributing to the growing adoption of electric buses.

Moreover, manufacturers are making significant investments in developing electric buses powered by hydrogen fuel cells, which further supports market expansion. Battery manufacturers are also focusing on creating more affordable and advanced battery technologies, improving the cost-efficiency and overall appeal of electric buses.

However, some key challenges still constrain the market's growth. High upfront costs and the relatively poor performance of current battery technology are notable limitations. Compared to conventional buses, electric buses generally have a higher total cost of ownership and maintenance. In addition, issues such as slow charging rates, limited range per charge, and reduced battery performance in colder climates affect operational efficiency and market adoption.

Segmental Overview

The global electric bus market is segmented based on battery type, vehicle type, application, and end-use.

By end-use, the public sector dominated the market in 2021, accounting for over 80% of the global revenue. This dominance is due to the increasing need for public transportation services and governmental efforts to reduce greenhouse gas emissions, cut fossil fuel dependency, and combat air and noise pollution. For example, under the Trolebici project in Mexico City, an investment of approximately USD 35 million led to the integration of 63 electric trolleybuses into the city’s public transportation network in January 2020, aimed at improving urban commuting.

By application, the intracity segment held a commanding share of more than 85.0% of the market revenue in 2021. The surge in the number of people commuting daily to schools, universities, and workplaces is a key factor propelling the demand for intracity electric buses and the broader adoption of public transport in urban areas.

Regional Overview

In terms of regional contribution, the Asia Pacific region accounted for the largest revenue share in 2021, capturing more than 85.0% of the global market. This dominance is largely attributed to the presence of populous countries such as China, India, and Japan, where there is a growing demand for clean and efficient transportation systems. China, in particular, plays a pivotal role as a manufacturing hub and market leader. As of March 2021, China had more than 421,000 electric buses, making up approximately 99% of the global fleet.

Factors such as increased investment in electric charging infrastructure, growing environmental consciousness, and strict regulatory frameworks are accelerating market growth across the Asia Pacific region.

Competitive Landscape

The report also includes an in-depth analysis of the major companies operating within the electric bus market. It covers financial statements, SWOT analysis, product benchmarking, and strategic initiatives of key market players. The competitive landscape section outlines the players’ recent developments, market share, and positioning within the global electric bus ecosystem.

Prominent Players

  • AB Volvo

  • Shenzhen Wuzhoulong Motors Co. Ltd

  • Ebusco

  • King Long United Automotive Industry Co. Ltd

  • BYD Company Ltd

  • Daimler AG

  • Proterra Inc

  • CAF Group (Solaris Bus & Coach)

  • NFI Group

  • Van Hool NV

https://www.custommarketinsights.com/report/electric-bus-market/