The Electric bus market was valued at USD 32 billion in 2020 and is anticipated to reach USD 64 billion by 2026 at a CAGR of about 12.44%, during the forecast period (2021-2026).
The covid-19 pandemic has affected the automotive industry and significantly electric vehicles by triggering an unprecedented fall in sales in early 2020. To curb the spread of coronavirus, manufacturing operations and transportation have come to halt along with public transportation.
The electric bus market is driven by factors such as increase in demand for fuel-efficient, high-performance, and low-emission buses, stringent government rules & regulations toward vehicle emission, and reduction in battery prices. However, high manufacturing cost, and low fuel economy & serviceability restrict the market growth.
Moreover, technological advancements, and proactive government initiatives for adoption of e-buses creates lucrative growth opportunities for the market. The market in Asia Pacific is projected to experience the fastest growth owing to the high demand of electric buses from countries such China, Japan, South Korea and India. Further, China has introduced many electric buses to reduce vehicle emissions.
Favorable policies and consistent new orders for electric buses would drive the Indian electric bus market in the upcoming years. European and North American market are growing due to increase in demand of emission free public transport and favorable government policies for electric vehicles.
Key Market Trends Battery Electric Bus Segment To Witness Significant Growth
Transit agencies across various countries have been significantly promoting the adoption of electric buses for public transportation. Among the regions, Asia-Pacific and North America are likely to show high adoption rates of battery-electric buses during the forecast period, owing to their on-going purchase orders for e-buses. For instance,
- In September 2020, the city of Bodö of Norway placed an order for 31 electric Volvo buses. In the 31 electric buses, 17 are of the 12-meter Volvo 7900 Electric model and the remaining 14 are high-capacity Volvo 7900 Electric Articulated buses. These buses have a capacity of up to 120 passengers.
Not only various cities are adding electric buses in their fleet, but major investment has been seen by the governments for research and development of these buses. For instance,
- In February 2020, Canada launched North America’s first research cluster for researching fuel cell and battery-electric buses. The Canadian Urban Transit Research and Innovation Consortium (CUTRIC), along with seven other partners, are contributing USD 4.2 million to support the National Academic Committee on Zero-Emission Buses (NAC-ZEB), along with additional federal funding of USD 551,000. - CUTRIC will support research in electric and hydrogen bus modeling and simulation tools, cybersecurity of electric buses, battery, and fuel cell electric bus performance visualization for batteries, motors, powertrain, fuel cell stack optimization, etc.
Asia-Pacific Region Likely To Dominate The Market
In Asia-Pacific, China is the largest manufacturer and consumer of e-buses in the world. The country’s domestic demand has been supported by the national sales targets, favorable laws, supportive subsidies, and municipal air-quality targets.
During the forecast period, China may continue to witness growth in the adoption of electric buses, as more than 30 Chinese cities have made plans to achieve 100% electrified public transit by the start of 2021, including Guangzhou, Zhuhai, Dongguan, Foshan, and Zhongshan in the Pearl River Delta, along with Nanjing, Hangzhou, Shaanxi, and Shandong.
Major Chinese e-bus suppliers are expanding their market presence outside China with the increasing electric bus deployment around the world. In 2020, Chinese bus makers sold around 61,000 new energy buses, whereas the total bus production in China accounted for around 150,000 units. For instance,
- In November 2020, Yutong Bus signed an agreement with Qatar Free Zones Authority (QFZA) and Mowasalat to establish a KD factory in Qatar. Company will be supplying 741 units of e-buses for FIFA World Cup 2022. - In January 2021, -BYD announced that it has bagged a cumulative order to supply 1,002-unit pure-electric buses to Bogota, Colombia. These buses are scheduled to be delivered during 2021 and into the first half of 2022 and will be put into operation on 34 bus routes across five regions of the city.
Competitive Landscape The market for electric buses is slightly consolidated, with the presence of major Chinese players that cater to the requirements global requirements. Some of the prominent players in the market are Volvo Group, Daimler AG, BYD Auto Co., Ltd, and Zhengzhou Yutong Bus Co., Ltd. among others. These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position. For instance,
- In June 2020, Link Transit in Wenatchee, Washington, received the delivery of 10 new all-electric 35-ft K9S buses, with a range of up to 215 miles (346 km) and seating for up to 32 passengers. - In June 2020, VyBuss AB ordered 49 high-capacity Volvo 7900 Electric Articulated buses. The new buses, which are scheduled to enter operation in Jönköping, Sweden in summer 2021.
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Greenhouse Gas Emissions
Electric Vehicle Sales
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