Ottawa, Oct. 08, 2024 (GLOBE NEWSWIRE) -- The global electric bus market size is predicted to increase from USD 25.08 billion in 2025 to approximately USD 72.91 billion by 2034, a study published by Towards Automotive a sister firm of Precedence Statistics. The sector is representing a double-digit CAGR of 12.9% during the forecast period.
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The Rapid Expansion of Electric Buses: Driving Towards a Cleaner Future
The electric bus sector has seen remarkable growth in recent years, fueled by environmental concerns, supportive government policies, and advancements in technology. As global societies increasingly prioritize sustainability and work to reduce greenhouse gas emissions, electric buses have emerged as a key solution for transforming public transportation.
Rising awareness about the detrimental effects of fossil fuel-powered vehicles on the environment is a major factor driving this shift. As air pollution and climate change become more pressing issues, governments and municipalities are facing mounting pressure to adopt cleaner, more sustainable transportation options. Electric buses, which produce zero tailpipe emissions, offer a compelling alternative that helps to minimize overall carbon footprints and improve air quality.
Government initiatives and incentives have been instrumental in accelerating the adoption of electric buses. Many countries and cities have introduced policies to promote electric vehicles, including subsidies, tax incentives, and mandates requiring public transportation fleets to transition to electric. These measures not only make electric buses more financially accessible by offsetting their higher initial costs but also foster a more supportive investment climate for electric transportation infrastructure.
Technological advancements have further boosted the electric bus industry, making these vehicles more practical, reliable, and cost-effective. Innovations in battery technology have significantly increased the range and performance of electric buses, addressing concerns about range anxiety and enabling longer routes between charging stations. Additionally, improvements in charging infrastructure—ranging from slow overnight charging to rapid pantograph or overhead systems—have streamlined the process of electrifying transit fleets.
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How AI is Revolutionizing the Electric Bus Market and Accelerating Growth
Artificial Intelligence (AI) is driving transformative changes in the electric bus market, significantly enhancing its growth prospects. By integrating AI technologies, electric buses are becoming smarter, more efficient, and better suited to meet urban transportation demands. AI-powered systems improve route optimization, enabling buses to adjust their paths in real-time based on traffic conditions, which leads to fuel efficiency and reduced travel times.
Moreover, AI enhances predictive maintenance by analyzing data from various sensors, which helps in anticipating potential issues before they become major problems. This proactive approach reduces downtime and maintenance costs. AI also contributes to better energy management, optimizing battery usage and charging schedules to extend vehicle lifespan and improve overall performance.
Furthermore, AI-driven safety features, such as advanced driver assistance systems, enhance passenger safety by providing features like collision avoidance and lane-keeping assistance. These innovations not only improve the reliability of electric buses but also make them more attractive to fleet operators and municipalities. As a result, the integration of AI is set to accelerate the growth of the electric bus market, making urban transportation more sustainable and efficient.
Import Transaction Overview
- Transaction 1: JBM Auto Limited
- Importer Name: JBM Auto Limited
- Supplier Name: JBM Auto Limited (same entity)
- Import Export Code (IEC): 0501028927
- Product Description: Integrated monocoque vehicle, air-conditioned
- Origin Country: India
- Port of Shipment: Antwerpen
- Indian Port: Bombay Sea
- Total Assessed Value: $363,036.81
- Standard Quantity: 1 unit
- Average Unit Price: $363,036.81
- Transaction 2: Gainwell Commosales Private Limited
- Importer Name: Gainwell Commosales Private Limited
- Supplier Name: Fermel Pty Limited
- Import Export Code (IEC): AAFCG8736M
- Product Description: Other, non-air-conditioned vehicles
- Origin Country: South Africa
- Port of Shipment: Durban
- Indian Port: Kolkata Sea
- Total Assessed Value: $268,131.80
- Standard Quantity: 1 unit
- Average Unit Price: $268,131.80
India: Government Initiatives Drive Rapid Growth
India's electric bus market is experiencing substantial growth, driven primarily by government policies and initiatives aimed at reducing air pollution and promoting sustainable transportation. The government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme has been pivotal, offering financial incentives and subsidies to encourage the adoption of electric buses. This policy support, coupled with rapid urbanization and increasing demand for cleaner urban mobility solutions, has positioned India as a leader in the electric bus sector.
The key players operating in India are focused on adopting inorganic growth strategies like partnership to develop and launch new electric bus with advanced technology in the market which is estimated to drive the growth of the electric bus market in India over the forecast period.
For instance,
- In November 2023, Ashok Leyland Limited, automotive industry headquartered in Chennai, India signed partnership with a leading technology firm to design innovative electric bus solutions customized to the specific needs of emerging markets, focusing on reliability, performance, and affordability.
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United States: Environmental Awareness and Technological Advancements
In the United States, the electric bus market is thriving due to heightened environmental awareness, technological innovation, and supportive regulatory frameworks. Urban areas plagued by high air pollution levels are driving the demand for cleaner transportation options, such as electric buses. Advances in battery technology and charging infrastructure have enhanced the practicality and cost-effectiveness of electric buses. Federal and state incentives, grants, and mandates further support the transition to electrified public transportation fleets.
United Kingdom: Government Policies and Sustainability Goals
The United Kingdom’s electric bus market is bolstered by the government's strong commitment to sustainability and ambitious net-zero emissions targets by 2050. The UK government’s stringent emissions regulations and congestion charges, particularly in major cities like London, incentivize the adoption of electric buses. Public-private partnerships and ongoing advancements in battery technology and charging infrastructure have accelerated the growth of the electric bus ecosystem in the UK.
Several factors contribute to the increasing adoption of BEVs:
Environmental Regulations: Stricter emissions standards and environmental policies are pushing transit agencies and municipalities to seek cleaner transportation solutions.
- Fuel Cost Savings: BEVs offer substantial cost savings compared to traditional diesel buses, especially with fluctuating fuel prices.
- Advancements in Battery Technology: Continuous improvements in battery efficiency and charging infrastructure make BEVs a more viable option for public transportation.
BEVs are prized for their zero-emission operation, which aligns with global efforts to reduce carbon footprints and enhance air quality in urban areas. As cities strive to meet sustainability goals, the demand for BEVs is expected to continue its upward trajectory.
Competitive Landscape
The electric bus industry is witnessing a dynamic competition between established giants and emerging startups. Industry leaders like BYD, Proterra, and Yutong maintain a strong foothold due to their extensive experience, substantial manufacturing capabilities, and well-established market presence. These companies leverage their long-standing expertise to dominate the market and drive industry standards.
Meanwhile, a wave of innovative startups is reshaping the industry landscape. Companies such as Arrival and Rivian are making significant inroads with their cutting-edge designs and advanced technologies. These newcomers challenge traditional players with their nimble business models and focus on sustainability. By emphasizing scalability, agility, and eco-friendly solutions, they are pushing the boundaries of what electric buses can offer and setting new benchmarks for the industry.
Browse More Insights of Towards Automotive:
- The automatic bus door system market was valued at $0.41 billion in 2023 and is projected to grow to $5.6 billion by 2032, with an annual growth rate (CAGR) of approximately 21.28% between 2024 and 2032.
- The autonomous bus market was valued at $1.62 billion in 2023 and is expected to expand to $15.66 billion by 2032, growing at a CAGR of around 19.64% from 2024 to 2032.
- The transit bus market was worth $511.6 billion in 2023 and is projected to reach $1,170.48 billion by 2032, with an estimated CAGR of 9.63% from 2024 to 2032.
- The apron buses market was valued at $0.58 billion in 2023 and is forecasted to grow to $4.68 billion by 2032, increasing at a CAGR of approximately 26.11% during the forecast period.
- The pantograph bus charger market is estimated at $3.72 billion in 2023, and is anticipated to reach $12.14 billion by 2032, growing at a CAGR of 15.95% during the forecast period.
- The electric vehicle battery recycling market is projected to be $4.91 billion in 2024, with an expected increase to $74.87 billion by 2034, at a CAGR of 31.34% between 2024 and 2034.
- The electric vehicle charging software market is estimated at $1.15 billion in 2023, and is forecasted to grow at a CAGR of 28.95% from 2024 to 2034.
- The off-highway electric vehicle market is expected to be valued at $2.58 billion in 2024, growing to $9.69 billion by 2034, with a CAGR of 14.15% during this period.
- The electric bikes market is projected to be valued at $62.62 billion in 2024, with an estimated growth to $166.15 billion by 2034, at a CAGR of 10.25% from 2024 to 2034.
- The electric utility vehicles market is expected to be worth $10.63 billion in 2024 and is anticipated to reach $44.73 billion by 2034, growing at a CAGR of 15.45% over the forecast period.
Recent Developments
- In 2023, Nissan Motor Corporation unveiled its latest electric bus model, which boasts state-of-the-art battery technology and an extended range. This new model also features enhanced connectivity options, addressing the increasing demand for sustainable and smart urban transportation solutions. Nissan Motor Corporation, automobile manufacturer, revealed the introduction of the latest model of the electric bus model featuring advanced battery technology, enhanced connectivity features, extended range capabilities, and resolving to the growing demand for sustainable urban transportation solutions.
- In August 2024, Volvo Buses, automobile company, revealed the introduction of the new Volvo 8900 Electric and extended its European electromobility. The new Volvo 8900 Electric is an electric low-entry bus designed for city, intercity, and commuter operations. It comes with two or three axles, depending on the operator's preference, to optimize the potential for profitable, sustainable, and efficient travel. In a few European markets in 2025, the Volvo 8900 Electric's initial iterations will be offered.
Market Segments
By Propulsion Type
- BEV (Battery Electric Vehicle)
- FCEV (Fuel Cell Electric Vehicle)
By Battery Type
- NMC (Nickel Manganese Cobalt)
- LFP (Lithium Iron Phosphate)
- NCA (Nickel Cobalt Aluminum)
By Consumer
- Private
- Government
By Range
- Up to 200 miles
- Above 200 miles
By Power Output
- Up to 250 kW
- Above 250 kW
By Region
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East and Africa
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