Analysis by Power Output (Up to 25o kW, and Above 250 kW); by Autonomy (Semi-Autonomous, and Autonomous); and by Propulsion Type {Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), and Fuel Cell Electric Vehicle (FCEV)} – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global electric bus market is estimated to garner a revenue of USD 5 Billion by the end of 2033 by growing at a CAGR of ~17% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 0.8 Billion in the year 2022. The growth of the market is primarily attributed to the dynamically growing demand for zero-emission buses (ZEBs) in the transport sector, owing to the rising emission of greenhouse gases worldwide, followed by the surging demand for fuel-efficient buses, is also propelling the growth of the market. For instance, as per 2020 data, it was found that transportation is responsible for almost 28% of greenhouse gas emissions globally. The zero-emission buses utilize electricity to power the battery, and they do not use any fossil fuels that release harmful gases. Also, the use of electric vehicles will reduce greenhouse gas emissions. Oil, petrol, or diesel consumption will produce combustion of these fuels that increase the percentage of greenhouse gases in the environment.
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The cost of maintenance and electricity price of these vehicles is lower than any conventional fuel vehicle. With the increasing demand for transportation automobiles, electric buses are one of the best and most efficient vehicles for passengers. With the rising demand for fuel-efficient transport systems along with lower maintenance costs, the demand for the electric bus is on the rise amongst the mobility service providers, which in turn, is expected to generate huge revenue opportunities for the prominent market players in the global electric bus market in the coming years. As per research conducted in 2020 in the United States, switching from a diesel to an electric bus is forecasted to save ~USD 150,000 in fuel and over USD 180,000 in maintenance over the bus’s lifetime. Besides this, increasing initiatives and support from the governments of nations for achieving zero emissions is another major factor that is also boosting the growth of the market during the projected timeframe.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~17% |
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Base Year Market Size (2022) |
~ USD 0.8 Billion |
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Forecast Year Market Size (2033) |
~ USD 5 Billion |
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Regional Scope |
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Growth Drivers
Rising Penetration of Electric Buses with Increasing Environmental Concern – For instance, electric buses are more economical than conventionally fueled buses. An electric bus converts more than 50% of the electric energy from the grid power at the wheels. The increasing penetration of electric buses worldwide is expected to propel the global electric bus market in the forecasted period.
Upsurge in the Development of Charging Stations with Increasing Electric Vehicles – For instance, the United States is expected to develop nearly 500,000 more public charging stations to meet electric vehicle growth by 2030.
Growing Cost of Congestion on the Roads with a Rising Number of Vehicles – For instance, it is estimated that congestion costs more than USD 100 billion annually to the European Union economy.
Increasing Number of Electric Buses Across the World – For instance, in 2019, there were more than 420,000 electric buses on the road in China.
Upsurge in Government Initiatives for Electric Vehicles - For instance, the Indian government has developed a variety of EV Subsidy Programs and launched FAME (Faster Adoption and Manufacturing of Electric Vehicles), which have contributed to the rapid adoption of electric scooters and motorcycles to Indian roadways.
Challenges
The global electric bus market is segmented and analyzed for demand and supply by autonomy segment into semi-autonomous and autonomous. Amongst these segments, the autonomous segment is anticipated to garner the largest revenue by the end of 2033, backed by the increasing use of self-driving vehicles across many cities along with the rising number of new purchases to avoid road accidents. Further, it is estimated that autonomous vehicles attribute to approximately 10% of total car registrations occurring by the end of the year 2030 across the globe. The increasing number of road accidents owing to manual errors and high speed is estimated to project the growth of the market’s segment as per the market analysis. The rising penetration of the internet and growing digitalization across the world is increasing the demand for self-driven vehicles or intelligent vehicles. The increasing concern for safety among people, and the convenience offered by autonomous cars are expected to rise the segment’s growth in the coming years.
The global electric bus market is also segmented and analyzed for demand and supply by the propulsion type into battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and fuel cell electric vehicle (FCEV). Among these, the battery electric vehicle (BEV) segment is estimated to garner significant growth. The rising number of government initiatives to reduce fuel emissions into the environment, public concern to purchase eco-friendly products, and increasing investment in the research and advancement of battery electric vehicles are projected to propel the market’s segment growth. The growth of battery vehicles in turn increases the growth of the global electric bus market. The battery can be rechargeable at power stations, which improves the efficiency of the vehicles. The battery powered vehicles decrease the cost of maintenance and increase profit for the manufacturer and consumer. The number of battery electric vehicles used across the world in the year 2021 as per the statistical estimations was more than 11 million.
Our in-depth analysis of the global electric bus market includes the following segments:
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By Power Output |
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By Autonomy |
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By Propulsion Type |
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The Asia Pacific electric bus market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of giant manufacturers in the region, along with the growing penetration of electric buses, as well as the increasing awareness among governments about encouraging the adoption of battery vehicles to reduce environmental pollution. Moreover, it was reported that ~100% of battery-electric buses around the globe were deployed in China, which is about 18% of China's total bus count in 2019. With the rising population across the region, the traffic on the roads rises day by day, which releases greenhouse gases into the environment. Electric vehicles help to eliminate this problem by increasing their efficiency of the vehicles. Furthermore, there has been a growing adoption of people for public transportation, as it is cheap to travel daily for work, school, or college compared to other conventional methods. Electric vehicles also reduce the discomfort caused by the smoke released during fuel combustion on the roads. Lastly, electric buses are the new way of transport to serve the purpose of transport by eliminating air pollution, that is further expected to boost the market’s growth in the region.
BYD Motors Inc.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Increasing greenhouse gas emissions, as well as rising prices of fuel along with the surge in congestion costs, are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~17% over the forecast period, i.e., 2023 – 2033.
Ans: High cost of electric vehicle production, as well as lack of infrastructure are some of the factors estimated to hamper the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are BYD Motors Inc., Volvo Group, Daimler Truck AG, Equipmake Limited, Yinlong Energy China Ltd., Hyundai Motor Company, Yutong Bus Co., Ltd., NFI Group Inc., Proterra Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by power output, autonomy, propulsion type, and by region.
Ans: The autonomous segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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