Electric Bus Market Size, Share, Growth Analysis, By Propulsion Type(Battery Electric Vehicle, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle), By Range(Less than 200 Miles, More than 200 Miles), By Battery Capacity(Up to 400 kWh, Above 400 kWh), By length of bus(less than 9 meters, 9-14 meters, and above 14 meters), By component(battery, motor, fuel cell stack, battery management system), By power output(up to 250kW and above 250kW), By application(Intercity and intracity), By battery type(lithium-nickel-manganese-cobalt oxide, lithium-iron phosphate, and others), By Region - Industry Forecast 2024-2031

Electric Bus Market size was valued at USD 40 billion in 2019 and is poised to grow from USD 45.4 billion in 2023 to USD 122.7 billion by 2031, growing at a CAGR of 13.5% in the forecast period (2024-2031).

Electric buses are growing in popularity and demand, as they offer many benefits over traditional buses. They're more environmentally friendly, as they don't produce emissions, and they're quieter since they don't require engines. They're also much cheaper to operate, as there's not a need for fuel or maintenance. In fact, many electric bus manufacturers offer financing options that make it easier for taxpayers and businesses to invest in this type of bus.

From the last few years, the global electric bus market has been witnessing a strong demand for electric buses across the globe. This can be attributed to a range of factors such as fluctuating crude oil prices, growing concerns about environment, increasing governments efforts to reduce pollution, stringent government regulations on ICE engine buses, and declining cost of lithium-ion batteries. As a result, the world is enjoying entry of new players in the global electric bus market to take advantage of lucrative opportunity and establish themselves in the rapidly evolving electric automotive industry.

Covid Impact

The Covid-19 pandemic has had a significant impact on e-bus rollouts. Several public transportation systems around the world experienced a significant loss in revenue due to deep drop in transit ridership during the pandemic. According to the American Public Transportation Association (APTA), public transit usage dropped by 80% in April 2020, and ridership levels for the rest of 2020 started falling by more than 60% compared to 2019. According to APTA, this trend in the global electric bus market will continue in the near to foreseeable future as a result of factors such as increased adoption of work from home model and growth in private vehicle ownership.

Similarly, according to the Transformative Urban Mobility Initiative, urban transportation systems in Brazil lost around USD 190 million per day between April and May 2020. As a result, the transition to e-buses will be impacted. Increased public-private partnerships, as seen in Latin America, can help to reduce the cost burden that transit agencies are currently facing. for example, in Santiago, Chile, there are 776 e-buses, all of which are privately owned. In this model, fleet owners purchase and maintain these buses before leasing them to municipalities or transportation operators on long-term contracts. This separates operation from ownership. This could pave the way for a large-scale transition to electrified fleets. As a result, these elements will influence the growth of the electric bus market.

US Electric Bus Market is poised to grow at a sustainable CAGR for the next forecast year.