U.S. Electric Bus Market Research Report: By Vehicle Type (BEB, PHEB, HEB), Length (>40 Feet, <40 Feet), Battery (Li-Ion, NiMH), Charging Type (Plug-In, Pantograph, Inductive) – Industry Analysis and Growth Forecast to 2024

  • Published: December 2020
  • Report Code: AT11292
  • Available Format: PDF
  • Pages: 97

U.S. Electric Bus Market Overview

From $469.3 million in 2019, the U.S. electric bus market size is predicted to witness a CAGR of 58.4% during the forecast period (2020–2024). The strongest drivers for the growth of the industry include the environmental benefits of electric vehicles (EV), stringent emission control regulations in the country, long-term operational cost-benefits these vehicles offer to transit agencies, government support for EVs, in the form of funding and subsidies, and falling price and rising efficiency of automotive batteries.

As per the analysis, the COVID-19 pandemic has had a negative effect on the global automotive sector outlook, including the U.S. electric bus market, and the same scenario is expected in the near future. Being the worst-hit country by the virus, the U.S. has locked itself down in order to minimize the number of victims, which has led to the shutdown of automotive plants. In addition, the slump in the crude oil prices is expected to encourage transit firms to revert to conventional buses to some extent. Moreover, with social distancing being practiced widely, public transport ridership will likely fall, making it infeasible for transportation companies to invest in the expensive electric buses.

U.S. Electric Bus Market

Government Support To Drive BEB Category at Highest CAGR till 2024

The battery electric bus (BEB) category, under the vehicle type segment, is predicted to witness the fastest growth in the U.S. electric bus market over the forecast period. As BEBs are the cleanest of all electric buses owing to the absence of the internal combustion engine (ICE), they receive the strongest support from governments. Moreover, with extensive research and development (R&D), batteries have become cheaper and more efficient, thereby making these buses popular among transit companies.

>40-Foot-Long Buses Saw Higher Demand till 2019 due to Their Higher Mileage

During the historical period (2015–2019), the >40 feet bifurcation, on the basis of length, held the larger U.S. electric bus industry share. Compared to a conventional diesel bus of the same length, a hybrid electric bus (HEB) offers a higher mileage, especially the longer ones. For instance, compared to a 60-foot diesel bus, an HEB of similar length offers 38.5% higher mileage, whereas for 40-foot buses, this difference is 21.2%. Higher the mileage, lesser the need for electricity, which makes longer buses more environment-friendly, which is why they are witnessing a rising demand across the country.

Li-Ion Category To Dominate Market over Forecast Period due to Longer Range of Such Batteries

Till 2024, the U.S. electric bus market will be dominated by the lithium-ion (Li-ion) category, based on battery. The continuous decline in the price of such energy storage devices, along with their lightness, compactness, and low self-discharge rate, is driving their demand in electric buses. Another major reason for the larger size of this category is the higher energy density of Li-ion batteries, which gives the buses a longer driving range on a full charge.

Faster Charging Ability To Make Inductive-Charging Buses Rapidly Popular in Near Future

The inductive category, under segmentation by charging type, will witness the fastest U.S. electric bus market growth in the years to come. This kind of charging replenishes the EV battery much quicker than other technologies. Since range anxiety, for which the long charging time is one of the biggest reasons, is a key restraint for the EV sector, manufacturers of electric buses are generating a high demand for the inductive technology in their automobiles.

Depot-Charging Buses Witnessing Increasing Demand among Transit Agencies in U.S.

The key U.S. electric bus market trend is the adoption of buses that use depot charging over those that use the en-route charging technology. Earlier, most of the electric buses operational in the country were those with a small-sized battery, which needs to be charged frequently. However, now depot-charging buses, which have a larger battery, which needs to be charged once, overnight, are becoming popular because such variants are operationally similar to conventional diesel buses. Moreover, with improvements in the battery technology, depot-charging buses with a longer driver range are being launched in the nation.

Eco-Friendliness Biggest Reason for Increasing Electric Bus Sales in U.S.

The strongest U.S. electric bus market driver is the environmental benefits these vehicles offer. The U.S. is the world’s second-largest carbon emitter after China, with the Environmental Protection Agency (EPA) estimating the transportation sector’s 2018 share in the total emissions at 28%. Thus, EVs are being strongly promoted in the country, as they either do not have an ICE or have one that is used in conjunction with an electric motor, thereby leading to fewer emissions.

U.S. Electric Bus Market

Transit Agencies Receiving Ample Government Funding for Buying Electric Buses

Another major factor aiding the U.S. electric bus market growth is the availability of government funding for procuring such low- and zero-emission vehicles. For instance, in 2018, the Federal Transportation Administration (FTA) offered a combined $85 million to 50 local and state governments to induct electric buses in their public transportation fleets. The Low or No Emission Grant program, which the funding was part of, and the State of Good Repair Program and Congestion Mitigation and Air Quality Improvement Program of the Department of Transportation (DoT) are among the federal-level initiatives in the country to increase the usage of electric buses.

U.S. Electric Bus Market Report Coverage
Report Attribute Details
Historical Years 2015-2019
Forecast Years 2020-2024
Base Year (2019) Market Size $469.3 Million
Forecast Period (2020-2024) CAGR 58.4%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Companies’ Strategic Developments, Key Offerings of Major Players, Company Profiling
Market Size by Segments Vehicle Type, Length, Battery, Charging Type
Secondary Sources and References (Partial List) American Public Transportation Association (APTA), California Public Utilities Commission (CPUC), Chicago Transit Authority (CTA), Delaware Transit Corporation (DTC), Department of Energy (DOE), Department of Environmental Protection (DEP), Environmental Protection Agency (EPA), Federal Transit Administration (FTA), Maryland Energy Administration (MEA), New York State Energy Research and Development Authority (NYSERDA), Regional Air Quality Council (RAQC), Texas Commission on Environmental Quality (TCEQ), Utilities and Transportation Commission (UTC)


Client Wins Key Strategy among Electric Bus Manufacturers in U.S.

As the adoption of clean-energy buses is still at its nascent stage, the industry is highly consolidated, with the top 2–3 bus manufacturers holding an over-90% U.S. electric bus market share. To make the most of the government efforts for clean mobility, these companies are pursuing client orders to increase their revenue. For instance,

  • In June 2019, Proterra Inc. was contracted by the Virginia Department of General Services for supplying electric buses and installing charging stations in the state. This move allows the institutions, transit agencies, and universities in the state to buy Proterra’s electric buses and charging stations via the existing contract between the state and the company.
  • In December 2018, NFI Group Inc. subsidy New Flyer of America Inc. received a contract for seven 40-foot battery electric Xcelsior CHARGE heavy-duty transit buses from the Victor Valley Transit Authority (VVTA). With this initiative, the VVTA hopes to make a 100% transition to electric buses by 2040.

Major Players Covered in U.S. Electric Bus Market Report Are:

  • BYD Company Ltd.
  • Proterra Inc.
  • NFI Group Inc.
  • GreenPower Motor Company Inc.
  • Blue Bird Corporation
  • Nova Bus Corporation
  • The Lion Electric Co.

U.S. Electric Bus Market Size Breakdown by Segments

The U.S. electric bus market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2024.

Based on Vehicle Type

  • Battery Electric Bus (BEB)
  • Plug-In Hybrid Electric Bus (PHEB)
  • Hybrid Electric Bus (HEB)

Based on Length

  • >40 Feet
  • <40 Feet

Based on Battery

  • Lithium-Ion (Li-Ion)
  • Nickel-Metal Hydride (NiMH)

Based on Charging Type

  • Plug-In
  • Pantograph
  • Inductive
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