Electric bus market size to grow by 61.03 thousand units between 2022 and 2027; Growth driven by a reduction in battery prices - Technavio

NEW YORK, Aug. 14, 2023 /PRNewswire/ -- The electric bus market size is expected to grow by 61.03 thousand units from 2022 to 2027, progressing at a CAGR of 9.23% as per the latest Technavio market research report. Asia is going to have lucrative growth during the forecast period. About 92% of the market's overall growth is expected to originate from Asia. One of the main countries which is significantly contributing to the growth of the global electric bus market in Asia is China due to the increased demand for efficient public transportation in metro cities like Bus Rapid Transit (BRT) and increased consumer awareness about the advantages of electric vehicles. Additionally, there is an increasing adoption of electric buses in India to reduce air pollution from vehicular emissions. Hence, such factors are expected to drive market growth in the region. For more insights on the market share of various regions- Download a sample report in MINUTES

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Electric Bus Market: Market Dynamics

Key Drivers

Reduction in battery prices drives the electric bus market growth. Electric buses require large-capacity batteries for optimal vehicle downtime as they have a higher load capacity compared to electric passenger cars, The battery size of the vehicle increases when the load capacity increases. However, the major concern of the industry is the time taken for electric buses to get charged, as it takes longer than conventional buses. Hence, there is a need for fast-charging systems to minimize time loss between recharging. The total cost of an electric bus is reduced if there is any change in the battery prices, which brings a huge difference. Therefore, the continuous decrease in battery prices is a result of battery manufacturers achieving economies of scale. This will reduce the overall price of electric buses, which will drive the growth of the global electric bus market during the forecast period.

Major Trends

The increasing popularity of wireless charging systems is a primary trend in the market. Inducting wireless technology provides the necessary higher power levels to conveniently charge electric buses, which proves advantageous for electric bus operators. The enhanced performance has resulted in the introduction of wireless chargers with a 50-kW power capacity which is equivalent to commercially available quick plug-in chargers. As a result, these high-power inductive wireless charging systems are important for charging large vehicles like electric buses, and their introduction is expected to drive market growth during the forecast period.

Significant Challenges

The declining number of public transport users is a major challenge hindering market growth. The decreasing number of public transport users is a major challenge to the global electric bus market growth. The growing preference for personal vehicles is reducing the demand for public transportation. Due to the high cost of electric buses, transport authorities are hesitant to replace their current conventional bus fleet. This is a restriction on the growth of the electric bus market. The rapid increase in the manufacturing of passenger cars in line with the increasing demand for them is posing a significant challenge to the penetration of electric buses in many regions. The demand for public transportation services is decreasing due to the growing demand for passenger cars. Hence, such factors are expected to hinder market growth during the forecast period.

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Some of the key Electric Bus Market Players:

The electric bus market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market. Some of the key market players are mentioned below:

AB Volvo, BKM.BY, Bollore SE, BYD Co. Ltd., CNH Industrial NV, Complete Coach Works, Eletra, GreenPower Motor Co. Inc., Jiangsu Alfa Bus Co. Ltd., Linkker Oy, Mercedes Benz Group AG, NFI Group Inc., POL-MOT Holding SA, Proterra Inc., Tata Sons Pvt. Ltd., TECNOBUS Spa, VDL Bus and Coach BV, Xiamen King Long United Automotive Industry Co. Ltd., Yinlong Energy China Ltd., and Zhongtong Bus Holding Co. Ltd.

Electric Bus Market: Segmentation Analysis

This market is segmented by application (intercity and intra-city), type (pure electric bus and plug-in hybrid bus), and geography (APAC, Europe, North America, and the Rest of the World (ROW)).

• The market share growth in the intercity segment will be significant during the forecast period. In India, the Government of India is promoting the use of electric vehicles to replace internal combustion engine (ICE) vehicles by 2030. Furthermore, various electric bus charging system manufacturers are planning to start business operations within India due to the growth opportunities presented by the rising electric bus market in the country. The growth of this segment is primarily attributed to the increasing adoption of Electric Buses, which is driven by an increase in the global demand for the electric bus industry.

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Vendor Landscape

• Vendors covered
• Vendor classification
• Market positioning of vendors
• Competitive scenario

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1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Application

7 Market Segmentation by Type

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

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