The Global Electric Bus Market size is projected to reach 31.45 billion by 2027 from 17.95 billion in 2020, at a CAGR of 12.6%. The augmenting global focus on promoting electric mass transit solutions is expected to primarily drive this market growth. The government support to encourage the use of electric vehicles is propelling the market ahead.
COVID-19 pandemic has halted the developments in the global market, creating a void in the manufacturing sector. This standstill is expected to last shortly, paving way for the market growth.MiddleEast and Africa are projected to surface as the leading regions in the global market during the forecast period. The accelerating government initiatives to promote electric mass transit vehicles in the region have substantially boosted the size of the landscape.
With emerging technological advancements, government of various developing and developed countries are striving to curb the issue of pollution. While pollution can be categorized in different forms, however, air pollution has been omnipresent gradually choking everyone’s throats leaving no space for fresh air. Commuting facilities, such as cars, buses, and cabs are increasingly contributing towards air pollution today. According to a research conducted by World Health Organization (WHO), air pollution accounts for nearly 100,000 deaths per year in Europe, shrinking life expectancy by an average of one year. Owing to air pollution hazards, government of various developing and developed countries are striving to curb the menace of air pollution.
Surge in air pollution is a significant factor, which is projected to escalate growth of the global electric bus market over the forecast period. Governments of various countries in Europe are taking initiatives and steps to curb pollution, which in turn is boosting demand for electric and hybrid electric vehicles. Additionally, depleting crude oil reserves and unstable fuel prices are adversely affecting the transit agencies and transportation department globally, due to which rising number of alternative, and new energy vehicles are increasingly preferred by governments of various countries, end-users, and customers. The initial investment of the electric buses are generally high, however, operational costs of these vehicles are significantly low as diesel is comparatively costlier than electricity, and various conventional buses mainly run on diesel.
Conversely, the global electric bus market is bound to various challenges. Significant prominence of natural-gas-fuelled buses, the global electric bus market is anticipated to inhibit growth.
Additionally, the global electric bus market faces challenges owing to expensive attributes of electric buses, and manufacturing the electric buses is capital-intensive.
The major players operating in the market of global automotive electric bus are Daimler AG (Germany), Anhui Ankai Automobile Co., Ltd.( China), Volvo Group (Sweden), Wright Enrichment Inc(U.S.), Shandong Yi Xing Electric Auto Co.,Ltd (China), Zhongtong Bus Holding Co., Ltd.( China), BYD Auto Co., Ltd ( China), Iveco (Italy), Ebus (Singapore) and BeiqiFoton Motor Co., Ltd.(China).
The Asia Pacific region is the largest electric bus market in the world. It comprises some of the fastest developing and developed economies in the world. The growth in the region can be attributed to the dominance of the Chinese market and presence of leading OEMs such as BYD, Yutong, Zhongtong, and Ankai in the country as well, resulting in exponential growth of the Asia Pacific electric bus market. Also, Shenzhen was the first city in the world to have a fully electrified public transport fleet. The favorable regulations for electric buses, availability of electric and electronic components at cheaper rates, and rapidly growing charging infrastructure are projected to boost the electric bus market in the region.
Report : Electric Bus Market - By Propulsion (BEV, PHEV and FCEV), By Length of Bus (Less than 9 m, 9−14 m and Above 1 4m), By Component (qualitative) (Motor, Battery, Fuel Cell Stack and Ultra-capacitor), By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) and Industry Analysis, Opportunity and Forecast 2021 To 2027