Electric Bus Market Size, Share & Trends Analysis Report 2020-2027
The global electric bus market is expected to grow at a CAGR of 28.4% and become the rapidly growing market in the upcoming years. The rapid growth has a lot driving factors like the acceptance of more sustainable ways of fuel in the automobile industry which is also known as a green fuel, and also the rapid increase in costs of crude oil which is fluctuating the prices of petrol and diesel. The unstable geopolitical scenario which is restricting the easy flow of resources from one location to another, for example, the tensions between the middle eastern countries which is responsible for the inconsistent flow of crude oil to the rest part of the world and the recent tension which arose between Armenia and Azerbaijan which creating roadblocks for the flow of natural gas from Baku (the capital city of Azerbaijan) to other parts of the world. All these parameters are encouraging the automobile and other sectors which are fuel dependent, to find a consistent option which can be easily & locally manufactured and favour the environment in long run. Hence, the adoption and acceptance of the second-best alternative, an electric bus that is expected to boost this market in the next 5-10 years.
Rising awareness campaigns for pollution and the substance which mix in the environment by burning fuels is the major topic of discussion on the table for NGOs, encountering governments to demote the use of combustible fuels is one of the key factors for the growth of electric bus market. Similarly, low operating costs, less fuel consumption rate, and easy maintenance are the supporting factors to drive the market growth. In addition to these, growing concerns of greenhouse gas emissions and finding an alternative to it is expected to be the driver of growth to the electric bus market. The initial investment associated with the electric bus is high hence, this is the major roadblock for the growth of this market.
Since the electric bus market is a recently developed market and therefore the segmentation for this market has been done in detail to understand every aspect contributing to its growth and development. It is segmented by the length of bus, Component, the battery capacity, propulsion type, power output, consumer segment, range, application and regional outlook. Let’s discuss these in detail as below.
The North American region (USA & Canada) experienced stable growth in this market. Owing to the technological developments, easy acceptance of technology and government initiatives for cleaner environment the region has propelled in terms of growth and is expected to continue ahead with similar momentum. With the expansion of renowned OEMs of electric bus in the middle east countries like UAE, South Africa and Egypt, the Middle-eastern region is expected to grow rapidly, the region is also an early acceptor of electric mass transit solutions with the consistent support of governments. For example, an Egyptian company collaborated with Shanghai Wanxiang Group to manufacture its first electric smart bus in the country in late 2019. In this region due to growing number of tourist’s attractions and a greater number of tourists visiting every year, the governments are shifting their public transport system to electric based, to save the economy and provide with better alternatives to traditional fuel-based transport.
The Asia Pacific is expected to be the largest market in the upcoming years for the electric bus due to vivid reasons, the APAC market has one of the fastest economies in the world including India, China, Singapore and Taiwan. The expected exponential growth is due to the presence of leading OEMs in the region specifically China which made Shenzhen (city of China) the first city of the world to have a fully electric public transport fleet. The favorable government regulations, easy availability of electric bus components and good charging stations throughout are some of the major factors of growth in the APAC region. Recently, TATA motors, a subsidiary of TATA Group also initiated the manufacture and promotion of electric buses which are used in the public transport of Pune city. These buses are not only a good substitute for diesel buses but also provides a greener way to commute.
The global electric bus market is an emerging market but looking at a promising potential, major players have started the research and development activities and are innovating the electric buses, such players include, Daimler AG (Germany), New Flyer Industries (Canada), Proterra (USA), Scania AB (Sweden), AB Volvo (Sweden), Iveco (Italy), BYD (China) and Yutong (China). These companies have a significant manufacturing capability and a strong distribution network across the globe. These players offer a wide range of products and are continuously focused on new product development, acquisitions, mergers and partnership agreements with many other players to dominate the market position.
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