Global EV Bus Market – Industry Trends and Forecast to 2031

The EV Bus market is experiencing robust expansion, with market size projected to increase from XX billion in 2023 to xx billion by 2031, demonstrating a consistent year-over-year growth rate of 12.1%. EV Bus Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle), by applications (Public, Private) And regions ({regionNms}) : Industry Forecast and Opportunity Analysis for 2023 - 2031

The global electric bus market includes all the activities related to the manufacturing, distribution, and operation of electric motor buses. These buses are benefited over the diesel or petrol buses in many aspects, such as reduced emissions, lesser operational costs, and quiet functioning. The market is influenced by greater environmental awareness, stricter emission laws, and the need for more sustainable transportation systems. Moreover, the clean energy and the sustainable urbanization of the cities being opted for by the many countries’ governments have led to a forecast of a quicker rate of adopting electric buses.

EV Bus Report Highlights

Report Metrics	Details
Forecast period	2019-2031
Base Year Of Estimation	2023
Growth Rate	CAGR of 12.1%
By Product Type	Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle
Key Market Players	AB Volvo Ashok Leyland Limited BYD Company Limited Daimler Truck AG Hyundai Motor Company MAN Nissan Motor Corporation Proterra TATA Motors Limited Zhengzhou Yutong Bus Co., Ltd.
By Region

EV Bus Market Trends

The market for electric vehicle (EV) buses is on the rise chiefly due to the move towards zero-emission vehicle public transportation and government mandates. Cities from all walks of life are now replacing diesel buses with electric buses to combat global warming. Further, improvement in battery size and charging systems has made it possible to use electric buses on longer and more frequented routes. Consequently, transit authorities have embraced electric buses as the government has put in place numerous incentives and subsidies that are meant to reduce the cost of purchasing EV buses. Aside from government regulations, the changes in charging technology, i.e., fast charging and wireless charging, that have enabled the electric bus market to have these commercially effective electric vehicles that cannot wait for operational downtimes are also the factors fuelling the electric bus market. Also, there is a growing trend for battery-swapping technologies wherein buses can run out of a battery and put in another one instead of stopping for a charge. The players in the market are also involved in designing and producing flexible and modular buses for different urban and intercity transport operations, which help in the transition of public transport from traditional to electric buses. These tendencies are making the adoption and growth of electric bus technology more feasible in many regions of the world.

EV Bus Market Leading Players

The key players profiled in the report are AB Volvo, Ashok Leyland Limited, BYD Company Limited, Daimler Truck AG, Hyundai Motor Company, MAN, Nissan Motor Corporation, Proterra, TATA Motors Limited, Zhengzhou Yutong Bus Co., Ltd.

Growth Accelerators

The public electric vehicle (EV) bus market is gaining traction due to the rising requirement for environmentally friendly solutions for public transport. With the policies in place for cities, nations, and states toward curbing air pollution and carbon emissions, the transformation to EV buses supports the green revolution and environmental policies. In addition, these policies are institutionalized through the provision of incentives, subsidies, and tax breaks to foster the use of electric buses. In particular, these policies aim at reducing the total cost of ownership incurred by the operating agency so that the public transit program can adopt E Buses. The increasing rate of urbanization and the efficiency of the transport system are the main drivers of electric bus usage growth. Another key driver is the rapid and steady strides made towards EV technology that are lowering the weight and improving the charging range and efficiency of electric buses as well as power cabling. Due to the invention of better battery technologies and the construction of fast-charging facilities, the icing on the cake is that EV buses have now been modified to comply with urban as well as inter-town operational requirements. The implementation of EV buses as a response to concerns over the expansion of transport costs and environmental issues is being experienced in both developed and developing markets increasingly.

EV Bus Market Segmentation analysis

The Global EV Bus is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle . The Application segment categorizes the market based on its usage such as Public, Private. 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

Competition is also influenced by the strategic alliances and contracts concluded by the competitors in the market. For example, Tata Motors has roped in some transport corporations and won large contracts for electric buses, taking also a contract for 5,450 e-buses from the Indian government. Elsewhere, Ashok Leyland’s sister company, Switch Mobility, is filling its order pipeline with designs of new electric buses, which include India’s first electric double-decker bus. These activities are part of the wider phenomenon in which traditional automotive manufacturers are not only growing their product range in response to acquisitions but are also transforming their business models owing to paradigm shifts both in the sustainability of the automotive industry and associated advanced technologies.

Challenges In EV Bus Market

The market for electric buses (EVs) is not without its challenges, the most glaring being the high costs associated with EVs and, often, the absence of supporting systems. The first electric bus purchased by a transit agency can be exceedingly more expensive than the last diesel bus owing to exorbitant prices of high-capacity battery systems and leveraged technology. This is in spite of the advantageous fuel and maintenance costs of operating the expensive buses over time, making it hard for many transit agencies to adopt. In addition, the operational efficiency of bus fleets may be hindered by the limited driving range, as well as longer vehicle recharge times. For instance, a lot of electric buses have an operational range that cannot support even a single day’s work, requiring the use of several charging intervals or reserve buses, which add to operational expenditure and alter the configuration of the routes. Moreover, the required time to refuel the vehicles can be too long, with the fast nets still cramped within the costs and availability of the facilities. These distance and charging constraints create problems for the use of electric buses in long-haul routes or in demand areas, limiting the rate at which these buses are incorporated in public transport systems.

Risks & Prospects in EV Bus Market

Opportunities for electric vehicles (EVs) and buses are apparently much more active in the urban public transportation sector, as most cities across the globe are keen on mitigating emissions and pollution. Many governments are returning encouragements to transition from conventional diesel-powered buses to electric ones, courtesy of grants, subsidies, and strict measures to enforce emission control, all factors cumulating to enable the uptake of EV buses. These policies, notably in European, North American, and parts of Asian regions, help the municipalities and transit authorities in fleet renewal while ensuring that operational costs with respect to fuel and maintenance are reduced in the long term. Moreover, the advanced battery technology and network of charging stations make it easier and more efficient to operate large urban diesel-free buses on a higher daily commuting frequency. The rising usage of electric buses in regions outside of urban public transport, such as tourism, corporate, and school transportation, is another notable opportunity in the EV bus market. These areas are increasingly adopting green options of transport in a bid to meet their ecologic objectives as well as the ever-growing consumer wish to have non-polluting alternatives. In addition, the improvement in the battery range and charging speed makes it realistic to have electric bus routes that cover long distances and the rural areas, thus expanding the market.

Key Target Audience

The electric vehicle (EV) bus market has several core consumer groups: public transportation agencies, governmental and local authorities, as well as fleet owners. Public transport agencies are major customers due to the trends towards decreasing greenhouse gas emissions, reducing fuel costs, and complying with legislation on urban transport. Other advantages of EV buses are their lessened noise, lower emissions, and operational costs, which makes them appealing to the cities that have a strategy for improving air quality and population health. Governments, in turn, are also very important as they assist in the acquisition of EV buses by earmarking funds, offering subsidies, or developing other forms of encouragement in the wider EV bus program.,, Besides, school districts, corporate transport shuttle services, and tourism operators represent major market segments. There are school districts that are eager to implement electric buses in their fleet to ensure safe, clean, and responsible transportation for all students without additional charges for fuel and maintenance. This is because the electric buses offered by tourists and used in corporate shuttle services are largely envied since they are in line with the green practices and their target customers, who are eco-friendly. All the above-stated forces contribute to one plight and create a demand for the EV buses, which is part of a larger global trend in providing a cleaner mode of transport, whether for public use or private vehicle ownership.

Merger and acquisition

Recent developments in electric public transportation have opened up the market for the electric bus, with major mergers and acquisitions aiming to consolidate the stakes in the segment. Specifically, JBM Auto Limited announced that through its wholly owned subsidiary, JBM Electric Vehicles acquired a 51% stake in JBM Green Energy Systems and JBM EV Industries. This will take the development of lithium-ion battery packs and important aggregates for electric vehicles forward in the country. It is in line with the government's strategy to enhance indigeneity in the electric vehicle space. Besides it, MakeMyTrip—a firm that has primarily operated in the online travel space—has also ventured into building electric buses with the establishment of its subsidiary Easy Green Mobility. ₹200 crore will be dedicated towards research development and establishing manufacturing facilities over the next couple of years.