Electric Bus Market to Register 912,354 Unit Sales by 2030
- Published: January 2023
The electric bus market size is expected to advance at a CAGR of 29.1% during 2022–2030, to reach 912,354 units by 2030.
Subsidies and Financial Incentives Support Market in Growing
In Europe, subsidies and financial incentives are offered by the European Commission and the state governments. The European Local Energy Assistance (ELENA) is a joint initiative of the European Commission and the European Investment Bank (EIB) under the Horizon 2020 Programme. It provides grants for technical assistance, focused on distributed renewable energy, energy efficiency, and urban transport projects and programs.
Similarly, the Ultra-Low Emission Bus Scheme has been implemented by the U.K. government with the prime objective of making every vehicle a low- or ultra-low-emission vehicle (U/LEV) by 2050 and ensuring the country is at the forefront of U/LEV-related investment around the world.
Moreover, in March 2018, the Federal Ministry of the Environment, Nature Conservation, and Nuclear Safety (BMUB) of Germany announced funding of $79.06 million (EUR 70 million) to support the adoption of electric and plug-in hybrid electric buses by public transport operators.
The charging infrastructure and supporting operations are also included in the funding. Moreover, up to 80% of the incremental costs on electric buses will be covered through the grant. These costs include the costs of procurement, capacity-building measures, operational adjustments, and charging infrastructure. For PHEBs, only 40% of the incremental costs will be covered. The public transport operators will be funded on a competitive basis, including the total cost of ownership, environmental benefits, expected noise reduction in buses, and loan funding and equity.
Furthermore, Paris, which is a part of the C40 initiative of cities fighting climate change, has pledged to completely remove combustion-powered vehicles by 2025 and ban diesel vehicles before the start of the Olympic Games in 2023. In 2017, Mayor Anne Hidalgo extended EV rebates to the professionals in the French bus transit system, under which they could claim a subsidy up to $10,165.4 (EUR 9,000).
Growing Adoption of Battery Electric Buses in Emerging Economies
Over the past few decades, urban population in many developing countries, including India and Brazil, has risen at a significant rate. Thus, the high concentration of people in the large cities of these countries has led to the increasing adoption of BEBs.
Since buses are an integral part of the public transportation system in developing countries, governments are actively investing in clean-energy transportation systems, thereby offering lucrative opportunities to electric bus manufacturers. Therefore, globally, the BEB vehicle type category is expected to grow at a rate of 29.4% during the forecast period.
For instance, in India, the government provides incentives for R&D and manufacturing of electric buses, to cut down carbon emissions, by encouraging the adoption of electric buses in the public transportation system. Similarly, in Brazil, the conventional diesel-based buses in municipal transportation departments are being replaced with those that run on electricity or other renewable and non-polluting fuels. Thus, such countries are offering ample growth opportunities to the OEMs.
The most-significant electric bus market players are Zhengzhou Yutong Bus Co. Ltd., BYD Company Limited, Zhongtong Bus & Holding Company Limited, Solaris Bus & Coach S.A., Proterra Inc., Dongfeng Motor Corporation, Anhui Ankai Automobile Co. Ltd., Yinlong Energy Co. Ltd., Nanjing Golden Dragon Bus Co. Ltd., and Beiqi Foton Motor Co. Ltd.