Global Electric Bus Market Overview
The global electric bus market is forecasted to reach 331,327 units by 2025, registering a CAGR of 16.6% during the forecast period. The market has witnessed a significant growth in the recent past owing to the strict government norms and regulations, rising government support for the electric vehicles, and the declining battery prices.
GLOBAL ELECTRIC BUS MARKET, BY VEHICLE, UNITS (2013-2025)
Based on the vehicle type, the electric bus market is segmented into battery electric bus (BEB), plug-in hybrid electric bus (PHEB), and hybrid electric bus (HEB). Among these, BEB was the dominant category in terms of volume, accounting for more than 75% share in 2017. Moreover, the category is expected to witness considerable growth in the market during the forecast period, owing to declining battery prices and the minimum levels of carbon emissions it offers.
Based on the hybrid powertrain used, the electric bus market is segmented into parallel hybrid, series parallel hybrid, and series hybrid. Among these, the parallel hybrid category was the most popular choice in this segment in 2017, accounting for more than 40% revenue share in 2017. However, the series hybrid category is forecasted to dominate the market sales by volume in during the forecast period as well. This is because the series hybrid powertrain is smaller in size and has a simpler configuration when compared to parallel and series parallel hybrid powertrains.
Based on battery, the electric bus market is segmented into lithium iron phosphate (LFP), lithium nickel manganese cobalt oxide (NMC), and others. Among these, the LFP category held the majority of market share by volume in 2017. This is because LFPs are generally safer and cheaper when compared to NMCs.
Based on the length, the electric bus market is segment into two categories — more than 10m and less than 10m. Among these, the less than 10m category recorded higher volume sales in the market, with more than 60% share in 2017. The category is expected to be a popular choice during the forecast period as well, owing to the preference for smaller than 10m buses by the transport authorities around the world.
Geographically, the electric bus market is divided into Asia-Pacific (APAC), Europe, North America, and the rest of the world (RoW). Of these, APAC, led by China, witnessed the highest volumes sales of these buses in 2017, accounting for more than 95% market share. Further, the region is expected to continue being the largest market during the forecast period, owing to the consolidation and concentration of key players in China.
Global Electric Bus Market Dynamics
The adoption of electric vehicles been on the rise globally, and none of the markets around the world has attained saturation yet. This is encouraging regional-level manufacturers to expand their reach and venture into the international market. The leading manufacturers atn the global level are going for joint ventures with the manufacturers in developing economies, where the demand for such vehicles has upsurged in the recent past. This is the best time for electric bus manufacturers around the world to strengthen their foothold in the global electric bus market. Thus, the growing adoption of these buses is the major trend spotted in the market.
Air pollution caused due to vehicles running on conventional fuel has become a major global concern, compelling the policy makers to look for an alternative in low emission vehicles. The natural gas based public transport system is being used as to cope with air pollution, however, electric buses have been gaining popularity due to their near zero carbon dioxide emission, thereby driving the growth of the global electric bus market.
Also, a major chunk of the crude oil imports by countries around the world is used in their public transport vehicles. These countries are looking to cut down their crude oil import bills by adopting electric vehicles. In spite of the high initial cost, electric buses offer low operating cost as compared to their conventional counterparts. Public transport authorities in developing economies are focusing more on long term environmental and cost benefits. Moreover, electric buses are less noisy and require less maintenance as compared to their conventional counterparts, thus contributing to the growth of the electric bus market.
The price of electric buses is much higher as compared to their conventional counterparts. The demand for public transport vehicles has been on the rise with rapid urbanization and increasing population, especially in the developing economies of the world. However, the premium pricing of electric buses is limiting their acceptance in these price sensitive countries. The lack of electric vehicle (EV) charging infrastructure is also hindering the penetration of electric buses in the public transport system across countries, thereby restraining the growth of the global electric bus market.
Global Electric Bus Market Competitive Landscape
Some of the key players in the global electric bus market include AB Volvo, Zhengzhou Yutong Group Co. Ltd., Shenzhen Wuzhoulong Motors Co. Ltd., Daimler AG, BYD Company Limited, King Long United Automotive Industry Co. Ltd., Alexander Dennis Limited, New Flyer Industries Inc., EBUSCO, Solaris Bus & Coach S.A., and Proterra Inc.