A new report says the global electric bus industry was estimated at $17.95 billion in 2019, and is expected to hit $31.45 billion by 2027, registering a compound annual growth rate (CAGR) of 12.6% from 2020 to 2027.
The report, from Allied Market Research, says the rise in demand for fuel-efficient, high-performance, and low-emission buses, stringent government rules and regulations toward vehicle emission, and reduction in battery prices drive the growth of the global electric bus market. On the other hand, high manufacturing cost, along with low fuel economy and serviceability, restrain the growth to some extent. Nevertheless, the report notes that technological advancements and proactive government initiatives are anticipated to create lucrative opportunities for the key players.
The outbreak of COVID-19 led to the closure of several manufacturing units across the globe. Also, a shortage of skilled workforce disrupted the entire system and the global electric bus market has been highly affected. At the same time, an array of restrictions were imposed on transportation during the first phase of the lockdown, thereby impacting the market negatively.
Based on propulsion type
The battery electric vehicle (BEV) segment accounted for more than four-fifths of the global electric bus market share in 2019 and is expected to rule the roost by the end of 2027, owing to changing perception among individuals toward the adoption of electric buses in developing as well as developed countries. The fuel cell electric vehicle (FCEV) segment, on the other hand, would grow at the fastest CAGR of 17.6% throughout the forecast period, due to the fact that hydrogen fuel cell bus emits water as a byproduct and is considered an eco-friendly vehicle.
Based on length
The 9- to 14-meter segment contributed to more than two-thirds of the global electric bus market revenue in 2019 and is projected to lead the trail till 2027. Majority of the electric buses across the world have a height between 9 and 14 meters owing to its advantages such as higher passenger carrying capacity over e-buses with a height less than 9 meters. This factor drives the growth of the segment. Simultaneously, the above 14-meter segment would register the fastest CAGR of 15.6% from 2020 to 2027. The fact that all electric buses with a height above 14 meters are able to carry more passengers from point A to point B when compared with the small sized buses fuels the segment growth.
Based on region
Asia-Pacific, followed by Europe and North America, garnered the highest share in 2019, holding 89.5% of the global electric bus market. Introduction of a new range of electric buses with added features is propelling the market growth in this province. At the same time, LAMEA would portray the fastest CAGR of 27.8% by the end of 2027. The increasing need of fuel-efficient vehicles and supportive government initiatives are driving the growth of the market in the region.
Frontrunners in the industry
- Ankai Bus
- BYD Company Ltd.
- AB Volvo
- Construcciones y Auxiliar de Ferrocarriles, S.A.
- Daimler AG
- NFI Group Inc.
- Yutong Group
- VDL GROEP BV
- Zhongtong Bus Holdings Co., Ltd.