The electric bus market is on track to hit a staggering $100.39 billion valuation by 2031, reveals a recent study titled, ‘Electric Bus Market by Propulsion Type, Battery Type, Bus Length, Power Output, Sector & Geography—Forecasts to 2031’. This marks a notable CAGR of 23.4% from 2024 to 2031. Not just in terms of value, the market is also anticipated to witness a surge in volume, reaching 3,41,601 units by 2031, showcasing a CAGR of 22.4% during the same period.
Driving Forces Behind Market Growth
The surge in the electric bus market is attributed to several factors. One major driver is the growing government emphasis on electrifying public transport systems globally. Additionally, prominent automotive manufacturers are ramping up investments in the Electric Vehicle (EV) ecosystem, further fueling market expansion.
The market analysis segments electric buses based on propulsion type, bus length, battery type, power output, and sector. The study meticulously evaluates industry competitors and conducts a thorough market analysis at regional and country levels.
Propulsion Type Dominance
The market’s propulsion segment includes battery electric buses, hybrid electric buses, and fuel cell electric buses. In 2024, battery electric buses are projected to lead, accounting for a substantial 65% share. This dominance is fueled by stringent emission standards, escalating demand for zero-emission vehicles, and governmental initiatives like India’s PM-eBus Sewa Scheme, aiming to deploy 10,000 electric buses across 169 cities.
Lithium iron phosphate (LFP) batteries are anticipated to reign supreme in 2024, capturing a market value of approximately USD 12 billion. This dominance is attributed to their longevity and reliable performance, making them increasingly popular in EV applications.
Sectoral Insights
The public sector is poised to spearhead market growth, expected to command an 82% share in 2024. Rising fuel efficiency demands, escalating zero-emission bus needs, and governmental impetus for electric bus integration in public transit systems are driving factors.
Asia-Pacific emerges as the frontrunner in the global electric buses market, with an estimated valuation of USD 19 billion in 2024. The region’s dominance is propelled by favorable government policies, environmental concerns, and a surge in electric bus integration within public transportation systems.
Key Players Shaping the Market
Leading players such as BYD Company Limited, Yutong Bus Co., Ltd., and Volvo Group are at the forefront of market innovation and expansion. Their strategic maneuvers and technological advancements are instrumental in shaping the electric bus landscape globally.
The future of urban transportation is electrified, promising reduced carbon emissions, improved air quality, and sustainable mobility. With robust market projections and continuous technological advancements, the electric bus market is poised for remarkable growth in the coming years.
Source：prnewswire.com
