Electric Bus Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Vehicle Type (Battery Electric Bus, Hybrid electric Bus, Plug-in Hybrid Electric Bus); Hybrid Powertrain (Series Parallel Hybrid, Parallel Hybrid, Series Hybrid); Battery (Lithium iron phosphate (LFP), Lithium Nickel Manganese Cobalt Oxide (NMC)); End User (Public, Private) and Geography
Publication Month: Feb 2022 |
Report Code: TIPAT00002413
| No. of Pages:
No. of Pages
| Category: Automotive and Transportation
| Status: Published
The electric bus market was valued at US$ 29,179.51 million in 2021 and is expected to reach US$ 105,808.15 million by 2028; it is estimated to register a CAGR of 20.2% from 2021-2028.
An electric powertrain is combined with fuel cell systems, controlled technology, and batteries to power hydrogen fuel cell buses. These buses are considered next-generation green transportation because their lifespan is far longer than a typical electric bus. The hydrogen fuel cell bus can refuel quickly and has many routes. With such benefits, the demand for hydrogen fuel cell buses is skyrocketing. For instance, over a thousand hydrogen buses will be launched throughout Europe during the next few years. China has been at the forefront of this technology, moving the battery-electric-driven business forward. In the US, the deployment of hydrogen-fueled buses has been slow, with hydrogen buses accounting for only 3.1% of total zero-emission buses (deployed or planned) across the country. The deployment will likely grow significantly over the next decade, with the scalability factor outweighing the high procurement costs. For instance, within the scope of three initiatives in Cwmbran, Warwickshire, and Ballymena, the UK Business Secretary announced a GBP 54 million fund to create the next generation of electric trucks and hydrogen-powered buses. The initiatives are expected to create around 10,000 employment and reduce 45 million tonne of carbon emissions across the UK. Thus, increasing demand for hydrogen fuel buses in some parts of the world is driving the growth of the electric bus market.
Market Size Value in
US$ 29,179.51 million in 2021
Market Size Value by
US$ 105,808.15 million by 2028
CAGR of 20.2% from 2021 to 2028.
No. of Pages
No. of Tables
No. of Charts & Figures
Historical data available
Vehicle Type, End User and Geography
North America; Europe; Asia Pacific; Latin America; MEA
US, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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Impact of COVID-19 Pandemic on Electric Bus Market
The electric bus market has been significantly influenced by COVID-19. The electric bus market has been impacted significantly by both the manufacture and COVID-19. As the entire ecosystem was disrupted, both manufacturing and sales of new electric buses came to a halt worldwide. Original equipment manufacturer (OEMs) had to wait for the lockdowns to be lifted before they could resume production, which harmed their company. With economies progressively recovering from the pandemic, demand for new electric buses is projected to rise. However, a fresh wave of COVID-19, caused by novel strains, may impede recovery in some regions. As a result, electric bus manufacturers would have to modify production volumes across countries based on the COVID-19 scenario. During the COVID-19 outbreak, component manufacturing was also halted due to a lack of cash among minor Tier II and Tier III manufacturers. As a result, manufacturing halted during the pandemic, followed by decreasing demand, which might have a massive impact on electric bus companies. Furthermore, the second wave in India impacted vehicle sales, affecting the growth of the electric bus industry.
Lucrative Regions for Electric Bus Providers
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Electric Bus Market Insights
Emergence of Autonomous and Semi-Autonomous Transportation Systems
Autonomous and semi-autonomous transportation systems have emerged due to advancements in instrumentation, actuation, and sensing technologies. Light detection and ranging (LiDAR), odometer, a global positioning system (GPS), and computer-aided vision are all characteristics that let autonomous buses perceive their environment. Autonomous driving has gained popularity in the electric bus industry over the years due to the technology's better efficiency (more predictable transit times) and lower prices (including fuel, labor, and maintenance costs). Original equipment manufacturers (OEMs) such as Navya SAS, AB Volvo, Easy Mile SAS, and SB Drive embrace autonomous driving and create autonomous bus shuttles because of the various benefits. For instance, the first full-sized self-driving urban electric bus, for example, has arrived in Europe. Cities will soon be home to the electric, self-driving bus. Málaga, in southern Spain, is one of the most recent towns to conduct a live trial of autonomous buses. China approved new legislation in January allowing autonomous cars to be tested on public roadways. Meanwhile, a Chinese technology corporation, Huawei, has built a four-kilometer test track for self-driving buses. The test track, located in the eastern city of Wuxi, is equipped with sensors and cameras that connect directly with the automobiles. Further, Norway is one of the world's electric vehicle pioneers, with electric vehicles accounting for more than half of all new automobiles sales by 2020. A year-long trial with a fleet of autonomous minibusses has begun in the capital city of Oslo. Thus, the rising emergence of autonomous and semi-autonomous transportation systems is driving the growth of electric bus market.
Vehicle Type-Based Market Insights
Based on vehicle type, the electric bus market is segmented into battery electric bus, hybrid electric bus, and plug-in hybrid electric bus. The battery electric bus segment led the Electric Bus Market with a share of 93.5% in 2020.
Electric Bus Market, by Vehicle Type, 2020 and 2028 (%)
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Hybrid Powertrain-Based Market Insights
Based on hybrid powertrain, the electric bus market is segmented into series parallel hybrid, parallel hybrid, and series hybrid. The parallel hybrid segment led the Electric Bus Market with a share of 64.3% in 2020.
Battery-Based Market Insights
Based on battery, the electric bus market is segmented into lithium iron phosphate (LFP) and lithium nickel manganese cobalt oxide (NMC). The lithium iron phosphate (LFP) segment led the Electric Bus Market with a share of 85.7% in 2020.
The players operating in the electric bus market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:In September 2021, Volvo Buses were expanding its offerings for electromobility worldwide. Volvo Buses are now offering a solid platform for sustainable and efficient public transportation in cities worldwide and reliable and profitable operations for customers, with the introduction of the new Volvo BZL Electric chassisIn January 2020, BYD ADL partnership delivered 29 ENVIRO400EV Electric Buses to Abellio London. Alexander Dennis Limited (ADL) and BYD UK, the UK’s leading electric bus manufacturer, have supplied 29 BYD ADL Enviro400EV to Abellio London for Transport for London (TfL) route 63 between King’s Cross and Honor Oak.
An electric powertrain is combined with fuel cell systems, controlled technology, and batteries to power hydrogen fuel cell buses. These buses are considered next-generation green transportation because their lifespan is far longer than a typical electric bus. The hydrogen fuel cell bus can refuel quickly and has many routes. With such benefits, the demand for hydrogen fuel cell buses is skyrocketing. For instance, over a thousand hydrogen buses will be launched throughout Europe during the next few years. China has been at the forefront of this technology, moving the battery-electric-driven business forward. In the United States, the deployment of hydrogen-fueled buses has been slow, with hydrogen buses accounting for only 3.1% of total zero-emission buses (deployed or planned) across the country. The deployment will likely grow significantly over the next decade, with the scalability factor outweighing the high procurement costs. For instance, within the scope of three initiatives in Cwmbran, Warwickshire, and Ballymena, the UK Business Secretary announced a GBP 54 million fund to create the next generation of electric trucks and hydrogen-powered buses. The initiatives are expected to create around 10,000 employment and reduce 45 million tonnes of carbon emissions across the UK. Thus, increasing demand for hydrogen fuel bus will drive the electric bus market.
Electric buses employ a variety of batteries. Low-cost lithium ion-phosphate batteries are becoming increasingly used in electric buses. Batteries made of lithium-ion phosphate are both cost-effective and robust. The average price of these batteries is a significant benefit for automakers. Due to its speed, safety, and excellent thermal stability, lithium-ion phosphate batteries have seen a phenomenal increase in sales in recent years. To accommodate the growing need for longer driving ranges, market participants are implementing technical improvements to improve the operational efficiency of the batteries. This will increase electric bus sales. Electric bus manufacturers are always trying to improve efficiency and increase the range of their vehicles. Furthermore, the production of high-density Nickel, Manganese, and Cobalt (NMC) batteries are subject to significant intellectual property rights, primarily from Japanese and Korean battery manufacturers, and the use of LFP batteries avoids any risk of litigation while simultaneously promoting domestic battery suppliers over foreign competitors such as LG Chem and Samsung. For instance, CATL and BYD sold 78 percent of electric bus lithium-ion batteries in China in 2018, and both companies chose LFP batteries for electric buses. Thus, rising production of low-cost lithium ion-phosphate batteries will drive the demand for electric bus market.
Based on vehicle type, the global electric bus market is segmented into battery electric bus, hybrid electric bus, and plug-in hybrid electric bus. The electric bus market was dominated by the battery electric bus segment in 2020.
Asia Pacific dominated the electric bus market in 2020 with a share of 90.4% and is expected to continue its dominance by 2028. Europe is the second-largest contributor to the global electric bus market in 2020, followed by North America.
The major companies in electric bus market are AB Volvo; King Long United Automotive Industry Co., Ltd; Shenzhen Wuzhoulong Motors Co., Ltd; BYD Company Ltd; Daimler AG; Ebusco; CAF Group (Solaris Bus & Coach); Proterra Inc; NFI Group; and Van Hool NV.
The major end user in electric bus market includes public, and private. In terms of market share, the market was dominated by the public segment in 2020.
The List of Companies - Electric Bus Market
King Long United Automotive Industry Co., Ltd
Shenzhen Wuzhoulong Motors Co., Ltd
BYD Company Ltd
CAF Group (Solaris Bus & Coach)
Van Hool NV
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