Electric Bus Market size to hit $5 Bn globally by 2033: Research Nester

Key electric bus market players 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., Nissan Motor Corporation.

New York, June 12, 2023 (GLOBE NEWSWIRE) -- The electric bus market size is anticipated to surpass USD 5 billion by 2033 and is projected to attain 17% CAGR between 2023 and 2032, as per latest study by Research Nester.

The growth of the electric bus market is attributed to the increasing concern regarding greenhouse gas emissions across the world. As compared to fuel-based buses or vehicles, electric buses are the cleaner and more environmentally friendly option since they work on electricity. For instance, the USA Environment Protection Agency declared in 2020 that the transportation sector was responsible for more than 27% of greenhouse gas emissions. In addition to this, electrically charged buses do not produce any air pollutants, and hence the air quality of the areas where these buses are used is expected to be better than that of areas with fuel-based buses. It was found during research that a typical fuel-based passenger vehicle omits around 4.6 metric tons of carbon dioxide every year, and carbon dioxide is one of the major air pollutants that is responsible for causing various environmental concerns and health hazards.

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Surge in fuel prices to boost industry growth

The growth of the electric bus market can also be attributed to the rapid surge in fuel prices across the globe. The electric bus does not use any kind of fuel, so it is more cost-efficient. It was found that the diesel price in Europe increased by about 1.40 USD in 2021 and is expected to rise further during the forecast period owing to excessively increasing crude oil prices. Furthermore, with greater energy efficiency, a lower emissions rate, and a low noise level, the operation cost for electric buses is low compared to diesel buses. For instance, the operation cost of an electric bus is on average around 22% lower than that of a diesel bus. In addition to this, the increasing demand for cost-efficient and low-maintenance transportation solutions is predicted to fuel electric bus market growth over the ensuing years. According to studies done in the United States in 2020, moving from a diesel to an electric bus has resulted in fuel savings of around USD 150,000 and maintenance savings of over USD 180,000 over the course of the bus's lifetime.

Growing adoption of electric bus to drive the growth in the Asia Pacific region

The electric bus market in the Asia Pacific region is estimated to garner the largest revenue by the end of 2033 owing to the increasing adoption of electric or e-buses in the region, especially as fleet service buses. Apart from this, it was also observed that e-buses are highly suitable for this type of transit owing to their reliable duty cycle and fixed route of travel, where they can commute for a certain distance and stop at the charging station or at the depot to charge overnight. It was discovered that 99% of the electric buses manufactured across the world were deployed in China in 2019, which comprises 17% of the total bus fleet in the region.

In addition to this, the rising investment by the government and key manufacturers to develop more charging stations for battery-operated vehicles in the region is predicted to foster the electric bus market. It was noted that under the FAME (Faster Adoption and Manufacturing of Electric Vehicles) Phase II India scheme, the government of India has announced a budget of around USD 10 billion for the increasing adoption of various electric vehicles and to develop sufficient numbers of charging stations in the region.

Increasing concerns regarding greenhouse gas emissions to drive the growth in the North America region

The electric bus market in North America is estimated to garner the highest CAGR by 2033. This growth is credited to the rising greenhouse gas (GHG) emissions and the growing awareness among people regarding the adverse effects of greenhouse gases and the importance of environmentally friendly transportation systems. It was found that around 60.1% of the GHG emissions come from the country’s 251 million and more vehicles. Furthermore, the growing investment and efforts by the government to limit GHG emissions and the increasing investment in battery-operated vehicles and e-bus services in the region are predicted to drive market growth during the forecast period.

Market Segmentation by Autonomy (Semi-Autonomous, Autonomous)

The autonomous electric bus market is anticipated to hold the largest revenue by the end of 2033 due to the increasing requirement for autonomous vehicles, backed by the increasing bookings and sales of autonomous vehicles. It is predicted that by 2030, the booking or registration for autonomous vehicles will be more than 10% of the total car registration. Additionally, the growing number of car accidents and the rising instances of accidents owing to driver carelessness or driving error are anticipated to fuel segment growth as autonomous vehicles become driverless cars and eliminate human errors. It was observed that more than 16% of vehicle accidents in the USA are owing to driver carelessness, and about 81% of accidents are on account of human error.

Market Segmentation by Propulsion Type (Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle)

Electric bus market from the PHEV segment is slated to hold the largest revenue by the end of 2033 on account of the rising adoption of plug-in hybrid electric vehicles and the rising awareness among people regarding the harmful impact of fuel on the atmosphere. Furthermore, with the growing price of fuel, including petrol, diesel, gas, and oil, the inclination of people is rising toward the EV segment, as generally the investment cost of EVs is high but other costs, including operational and maintenance costs, are comparatively very low and proven to be a pocket-friendly option for smart mobility. For instance, according to the Passenger Car Association of China, more than 5.65 million electric and plug-in hybrid vehicles were sold in China in 2022 as consumers chose to replace their gas guzzlers owing to government subsidies and high oil prices.

Furthermore, the PHEV gives the benefit of a regenerative braking system as the batteries used in this type of vehicle can charge themselves through charging equipment, making it more reliable for long-distance travel. Moreover, as PHEV is an important segment of the EV market, the growth in the overall electric vehicle market across the globe is predicted to drive the segment growth over the upcoming years. It is believed that the EV market in China will reach a value of USD 305 billion by 2027.

Major participants in the global electric bus market are BYD Motors Inc., Volv0 Group, Daimler Truck AG, Equipmake Limited, Yinlong Energy China Ltd., Hyundai Motor Company, Yutong Bus Co., Ltd., NFI Group Inc., Proterra Inc., Nissan Motor Corporation.

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