Global Electric & Hybrid Electric Buses Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030

The Electric & Hybrid Electric Buses market is experiencing robust expansion, with market size projected to increase from XX billion in 2023 to xx billion by 2030, demonstrating a consistent year-over-year growth rate of 17.6%. Electric & Hybrid Electric Buses Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Light Duty Electric, Hybrid Electric Bus, Heavy Duty Electric, Hybrid Electric Bus), by applications (Industry, Commercial, Others, Government, Fleet Owners) And regions ({regionNms}) : Industry Forecast and Opportunity Analysis for 2023 - 2030

The market for electric and hybrid electric buses on a global scale includes the manufacturing and operating of buses that are either fully electric or have an internal combustion engine as well. Such applications are aimed at controlling the emission of harmful gases, enhancing the quality of air, as well as cutting down on the operating cost of the vehicles. Some of the driving forces for the market include strict emission norms, an increase in fuel prices, and growing environmental awareness. As with emission concerns, the pursuit of sustainable transportation solutions will also fuel the growth of the electric and hybrid electric bus market.

Electric & Hybrid Electric Buses Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2023
Growth Rate	CAGR of 17.6%
By Product Type	Light Duty Electric, Hybrid Electric Bus, Heavy Duty Electric, Hybrid Electric Bus
Key Market Players	Aktiebolaget Volvo Alexander Dennis Limited Anhui Ankai Automobile Co. BYD Company Limited Daimler AG Ebusco B.V. GreenPower Motor Company Inc. Heilongjiang Longhua Automobile Co. Iveco S.p.A. Ltd. Ltd. New Flyer Industries Limited Optare PLC Proterra Inc. Shanghai Sunwin Bus Corporation Shenzhen Wuzhoulong Motors Co. Ltd. Solaris Bus and Coach S.A. VDL Bus & Coach bv Wrighbus Limited Xiamen King Long United Automotive Industry Co. Ltd. Zhengzhou Yutong Bus Co. Ltd.
By Region

Electric & Hybrid Electric Buses Market Trends

The global market for electric and hybrid electric buses is gaining momentum on account of growing environmental concerns and government initiatives to control vehicular pollution in cities. Countries are advocating for cleaner modes of transport such as electric and hybrid buses to reduce greenhouse gas emissions, hence investing more in these electric buses. In addition, long range electric buses are aided with higher energy density batteries that charge faster, which supports the growth of the market amongst other factors. Cities across the globe are rapidly adapting towards the introduction of electric buses with countries such as China, Europe and North America being the first transition. Another aspect that is affecting trends within the market is the ever-increasing need for affordable and cleaner means of transport by transit authorities and operators. Given the volatility of fuel costs, electric and hybrid buses have a clear operating advantage over traditional diesel buses due to lower operating and maintenance costs, which is a very important factor for cost-conscious public transport operators. Fleet operators have also begun to appreciate the advantage of electric buses - long-term savings – not relying on fossil fuels and a lower cost per mile. This change is also on account of an increasing emphasis on supporting systems development, where governments are putting up charging stations and energy management systems to enhance the use of electric bus fleets.

Electric & Hybrid Electric Buses Market Leading Players

The key players profiled in the report are Aktiebolaget Volvo, Alexander Dennis Limited, Anhui Ankai Automobile Co., BYD Company Limited, Daimler AG, Ebusco B.V., GreenPower Motor Company Inc., Heilongjiang Longhua Automobile Co., Iveco S.p.A., Ltd., Ltd., New Flyer Industries Limited, Optare PLC, Proterra Inc., Shanghai Sunwin Bus Corporation, Shenzhen Wuzhoulong Motors Co. Ltd., Solaris Bus and Coach S.A., VDL Bus & Coach bv, Wrighbus Limited, Xiamen King Long United Automotive Industry Co. Ltd., Zhengzhou Yutong Bus Co. Ltd.

Growth Accelerators

The pandemic caused a slowdown in growth in the electric and hybrid electric buses, which were previously sustaining an upward trajectory. Growing government initiatives to curb carbon emissions and enhance the air quality in urban areas is the main factor propelling the growth of the global electric and hybrid electric buses market. Considerable numbers of governments across the globe are enforcing strict emission laws and providing financial assistance in one form or another toward the purchase of electric and hybrid cars so as to enhance the public means of transport. This has also provided policy support to the transformation of public fleets from diesel to electric and hybrid buses in a sustainable manner, especially in areas such as Europe, Asia, and North America, where large cities are prone to pollution. And also, the growing battery technology and charging technology are positive factors gauging the market growth. Improvements in battery operations, like higher energy density, quicker charging, and increased battery lifetime, have particularly made it possible for electric and hybrid buses to be used on long-distance and high-service frequency routes. In addition to battery enhancements, the gradual accumulation of charging facilities and the introduction of advanced wireless and fast charging systems have lessened the operational downtime, which has also benefited electric and hybrid buses and bus operators who wish to curb costs on fuel and maintenance services while raising environmentally friendly transport options.

Electric & Hybrid Electric Buses Market Segmentation analysis

The Global Electric & Hybrid Electric Buses is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Light Duty Electric, Hybrid Electric Bus, Heavy Duty Electric, Hybrid Electric Bus . The Application segment categorizes the market based on its usage such as Industry, Commercial, Others, Government, Fleet Owners. Geographically, the market is assessed across key Regions like {regionNms} and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The demand for electric and hybrid electric buses on a global scale has witnessed an upsurge owing to environmental factors as well as government initiatives. The industry outlook is promising, as a large market is anticipated with projections indicating that it will be worth nearly USD 37.5 billion by the year 2030. Asia-Pacific countries are likely to hold the largest shares and dominate this market primarily due to the presence of key players such as BYD and Yutong and charging infrastructure investments, as well as battery technology. While North America is taking the third position, it is likely to be the region with the highest growth rate projection over the period, driven by public policy initiatives and private sector investments in converting public transport systems to ones with zero emissions. In the competitive environment, it has been observed that there is a tendency to increase battery capacities over 400 kWh, which are more suited for these regions where long-distance travel is needed and where the travel is less frequently interrupted by charging facilities. In addition, the European region also experiences sharp growth in electric bus registrations—more than 42% of city buses sold in the recent years were zero-emission vehicles.

Challenges In Electric & Hybrid Electric Buses Market

The market for electric and hybrid electric buses across the globe faces its greatest challenge in the total upfront cost of investment incurred. For though savings are realized in the long run on fuel and maintenance, electric buses entail a very inflated capital outlay when put against the use of conventional diesel buses. This cost barrier prevents many municipalities and transit agencies, especially those in underdeveloped nations, from being able to take these cleaner technologies up. Moreover, the supporting infrastructure, such as the charging stations and the maintenance units for electric buses, incurs additional costs. Moreover, range and charging time are also issues with electric buses. Although hybrid electric buses can be more convenient, fully electric ones are likely to face challenges in long-distance travel, more so in places where charging stations are not developed. In addition, the slow pace at which these buses charge significantly reduces the efficiency of electric fleets, particularly for transport agencies that have quick turnarounds during peak times. It is its operational shortcomings, as well as worries surrounding battery longevity and incessant recharging, that limit the effectiveness of electric and hybrid bus implementation around the world.

Risks & Prospects in Electric & Hybrid Electric Buses Market

The electric and hybrid electric bus market is expected to grow due to factors such as rising urbanization and government support and incentives, as well as the increasing demand for eco-friendly public transport systems. With various governments around the world working to mitigate air and carbon emissions, it is only logical that cities turn to the use of electric and hybrid buses to facilitate the process of upgrading to cleaner, greener fleets. This is facilitated by government policies in cash and in kind—subsidies and tax benefits, as well as regulatory economic pressure to utilize such eco-friendly buses. Technological changes, including but not restricted to the enhancement of battery technology and charging systems, are a result, such innovations as increased battery life, fast charging systems, or placing a wireless charger on the bus will allow distance buses and distance frequent routes with electric buses to be more realistic. yet another critical opportunity. As a result, such innovations as increased battery life, fast charging systems, or placing a wireless charger on the bus will allow distance buses and distance frequent routes with electric buses to be more realistic. Hybrid buses, which use electrical and conventional powertrains, are also a convenient option in countries that have limited or no charging facilities. That is the reason why the emergence of charging station networks and development of energy management systems will drive even more electric and hybrid buses toward cities, as they will make these buses more efficient and easier to use in different countries.

Key Target Audience

The main focus group of the global electric and hybrid electric bus industry consists of municipal transport authorities, public transportation companies, and government bodies. These organizations are putting more money into electric and hybrid electric buses for the purposes of decreasing the number of emissions, alleviating air pollution in cities, and in order to achieve sustainable business operations. Transport agencies across borders are in the process of adopting more environmentally friendly vehicles as a result of government policies on the use of clean energy, enhancement of environmental protection laws, as well as socio-economic adjustments that create demand for sustainable means of transport.,, Another important segment consists of private operators and fleet owners in the commercial transport sector, such as those running airport shuttles, intercity buses, and tourist transport services. These operators are attracted to electric and hybrid buses due to their fuel efficiency, lower maintenance costs, and quiet, comfortable rides. This particular market segment has also increased due to passengers, who form a large part of the clientele, demanding more and more green means of travel and consisting of customers who actively seek such methods.

Merger and acquisition

The latest activity in the global electric buses and hybrid electric buses industry is dominated with mergers and acquisitions which seem to be aimed at developing more technology and increasing market size. For instance, in November 2023, Ashok Leyland Limited, a leading automotive company in India, signed a Memorandum of Understanding (MoU) with the world’s top twenty technology companies for designing advanced electric bus solutions for their durability and effectiveness. This is in line with the broader trend of the incorporation of motions such as partnerships to improve on products and speed up the process of getting ready for electric mobility considering all the governments are acting supportive and customers are demanding environmentally friendly transportation means. Furthermore, incumbent players are also investing heavily in their expansion strategies. One such company, BYD, needs no introduction when it comes to electric buses, but the company is also striving to grow the global market through acquisitions and alliances that enhance its worldwide research and development infrastructure. Such developments are a great concern for the management of such companies since most of them have to do something as quickly as possible in relation to the impossibly short period of time innovation and development of new products are expected within the market with regards to the new emission control regulations, especially with the quest for electric buses in this region, that is, Asia-Pacific and even more in Europe.