Electric Bus Market worth $48.1 billion by 2030
The global electric bus market is projected to grow at a CAGR of 14.5% during the forecast period, from an estimated market size of USD 18.6 billion in 2023 to USD 48.1 billion by 2030.
Rising GHG emissions and the increasing need for sustainable mobility solutions influence the electric bus market growth. Furthermore, the transport sector is one of the largest contributors to GHG emissions globally. For these reasons, many countries worldwide focus on incorporating electric buses into their public transportation. Introducing electric buses is expected to change global mass transit in the coming years by improving air quality, reducing noise levels, and increasing fuel efficiency. However, the industry would face challenges such as high costs for developing charging infrastructures. Unlike many developed countries, insufficient charging infrastructure is one of the major challenges in the growth of the electric bus market in developing countries, including India, South Korea, and others.
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Intracity is estimated to be the largest electric bus application over the forecast period.
Given rapid urbanization, clean mobility solutions have become critical. The growing urban population would drive the need for extensive urban transportation, which holds a vast potential for electric mobility. Furthermore, many leading OEMs such as BYD (China), Proterra (US), AB Volvo (Sweden), Ebusco (Belgium) and others are offering electric buses for intracity applications in their product line. For instance, in 2022, King Long (China) introduced its K06-XMQ6601 electric bus with a low floor design, which greatly aids intracity transport. For instance 2021, Nova Bus (Canada) announced a supply order from the Chicago Transit Authority for 600 new 40-foot electric buses for their intracity operations. Asia Pacific is expected to lead the intracity segment of the electric bus market due to increased emission regulations and in-city restrictions. Various countries in the region have chosen to use sustainable mobility in their public transportation.
BEVs to Dominate the electric bus market
BEVs are expected to dominate the electric bus market during the forecast period. This is mainly because lithium-ion batteries have proven to be effective. Many OEMs are investing in R&D activities to develop new and efficient battery technologies, driving the growth of this segment. Favorable government regulations for BEVs would also positively impact the market. Many governments are planning to replace existing public fleets with electric ones. With attractive subsidies and tax exemptions offered by different governments, the sales volume of advanced pure electric buses is expected to grow exponentially. BEVs have relatively higher operational efficiency, about 90%, compared to ICE, which is 30–40%. The average range of BEVs is 150 to 250 miles and varies based on battery type installation. The electricity used to power the buses is less expensive than diesel, further lowering the operational costs for buses. With advancements in battery technology and a continuous drop in battery prices, the overall costs of BEVs are expected to decrease substantially. Transit agencies in the US and other countries increasingly purchase pure battery-electric buses; this trend is expected to accelerate further in the coming years.
The Asia Pacific region is the largest electric bus market during the forecast period
Asia Pacific is will be the largest market for electric buses during the forecast period. The key reason for this is the increasing need to reduce urban pollution and dependency on fossil fuels in this region, along with growing government initiatives toward clean public transportation. Many of the leading players in the electric bus market, including BYD (China), Yutong (China), King Long (China), Zhongtong (China), Tata Motors (India), Ashok Leyland (India), JBM Auto Limited (India) and many others are from Asia Pacific. Furthermore, the rapid expansion of the electric bus fleet in several countries in this region is also a ey driving factor for the region to dominate the market. The reduction in the batteries and EVs cost, and the development of charging infrastructures, also provide a great opportunity for the growth of the market. Many countries in the Asia Pacific region, including China, South Korea, India, and Japanese markets, have favorable government policies and mandates that promote the reduction of emissions and usage of green technology in public transportation.
Key Market Players
The key players in the Electric bus market BYD (China), Yutong (China), Proterra (US), CAF (Solaris) (Spain), VDL Groep (Netherlands), and AB Volvo (Sweden). The key strategies adopted by major companies to sustain their position in the market are expansions, contracts and agreements, and partnerships.
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