Electric Bus Market Projected to Reach $678.3 Billion by 2030

Electric buses charging at a charging depot

(Credit: Canva Pro)

by | Aug 24, 2023

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Electric buses charging at a charging depot

(Credit: Canva Pro)

As sustainable transportation transitions continue to be an international focus, the electric bus market is projected to grow at a rate of 41.7% from 2023 to 2030 and transform it from a $58.9 billion industry into a value of $678.3 billion, according to a report by MarketsandMarkets.

Conversations around the rising emissions have led to the pressing need for cleaner and more sustainable mobility solutions. The transportation sector has long been a major contributor to emissions on a worldwide scale, as countries are increasingly embracing electric buses as a means to curtail emissions and add efficiency.

Electric buses have the potential to revolutionize mass transit by enhancing air quality, reducing noise pollution, and improving fuel efficiency.

Transitioning to electric buses has its benefits, but it still comes with a number of challenges. Developing countries face hurdles with the high costs associated with developing charging infrastructures. Unlike their developed counterparts, these nations grapple with insufficient charging infrastructure, which can hinder the growth of the electric bus market.

Battery Technology Advancements

Lithium iron phosphate (LFP) batteries are emerging as the fastest-growing battery type for electric buses. These batteries offer advantages such as affordability, high thermal stability, and long cycle life. They are particularly well-suited for long-haul buses due to their ability to accommodate heavy battery packs while providing the required range.

Furthermore, LFP batteries demonstrate superior efficiency at lower temperatures compared to other battery types. This battery chemistry is expected to thrive in the price-sensitive Asia Pacific market, where many Chinese original equipment manufacturers are already incorporating LFP batteries into their electric buses.

The Asia Pacific Region and the Electric Bus Market

According to the report, the Asia Pacific region is poised to take the lead in the electric bus market. The imperative to reduce urban pollution, fossil fuel dependency, and government initiatives promoting clean public transportation are key drivers.

Leading players such as BYD (China), Yutong (China), King Long (China), Tata Motors (India), Ashok Leyland (India), and JBM Auto (India) are based in the Asia Pacific and are instrumental in driving the region’s electric bus market forward. China, South Korea, India, and Japan are at the forefront of this surge, driven by favorable government policies and mandates to reduce emissions and adopt green technology in public transportation.

Segment Dominance: The 9-14 m Electric Bus

Many public transportation fleets use the 9- to 14-meter electric bus segment due to the larger seating capacity.

Generally, these buses can travel up to approximately 215 miles before needing to be charged. The Asia Pacific region is set to dominate this type of bus, largely due to substantial demand from key countries like China and India. China, in particular, is expected to account for a significant 74% of the world’s electric bus production.

Moreover, government initiatives aimed at incorporating electric buses into public transportation systems in countries like India are expected to further boost the 9- to 14-meter segment. For instance, India has set a goal to increase the share of electric buses to 40% by 2030.

The report also outlines the notable players in the electric bus industry including BYD, Yutong, Proterra, CAF (Solaris), VDL, and AB Volvo.

 

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