Government Push and Eco-Consciousness Drive Electric Bus Market Surge to USD 68.5 Billion by 2034 | Future Market Insights, Inc.

The electric bus market is surging due to growing environmental concerns and government initiatives promoting clean transportation.  Stricter emission standards and incentives for electric vehicles are driving demand, with advancements in battery range and fast charging infrastructure improving practicality. The Asia Pacific region is expected to be a major market, while the US (13% CAGR) and the UK (14.2% CAGR) are anticipated to see significant growth.

NEWARK, Del., May 13, 2024 /PRNewswire/ — The electric bus market forecast is predicted to be valued at US$ 21.3 billion by 2024. The market valuation is estimated to be US$ 68.5 billion by 2034, projected at a CAGR of 12.4%.

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The global electric bus industry is experiencing rapid growth driven by several dynamic factors. The rising demand for electric bus market is due to non-polluting and fuel-efficient buses, coupled with initiatives from major countries, which are propelling the adoption of electric buses.

Governments worldwide are seeking alternatives to transform their existing conventional bus fleets with eco-friendly electric buses, spurred by environmental concerns and the need to combat air pollution.

With a surge in environmental awareness and the urgency to address climate change, regulators are implementing strict emission standards and offering incentives to encourage the adoption of electric vehicles, including buses.

Initiatives by automobile manufacturers to invest in the development of hydrogen fuel cell-powered electric buses are propelling demand. Hydrogen fuel cells offer a promising alternative to traditional battery-powered electric buses, providing longer ranges and faster refueling times, addressing concerns about range anxiety and operational efficiency.

Technological advancements are playing a crucial role in shaping the electric bus industry’s growth trajectory. Innovations such as increasing the range of mobility and the deployment of fast charging infrastructure are enhancing the practicality and viability of electric buses.

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Key Takeaways from the Market Study

  • Based on the propulsion type, the BEV segment is accounted to hold a market share of 60.2% in 2024.
  • The United States is expected to register at a CAGR of 13% by 2034.
  • The United Kingdom registers significant growth, projected at a CAGR of 14.2% by 2034.
  • Based on battery type, the LFP segment is accounted to hold a market share of 55.5% in 2024.

“The rise in emphasis on environmental sustainability and the urgent need to reduce greenhouse gas emissions where the heightened focus on sustainability is propelling transit agencies and municipalities to invest in electrified public transportation fleets by fueling the growth of the electric bus market,” says Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.).

Competitive Landscape

The global electric bus ecosystem features a competitive landscape characterized by established manufacturers like BYD, Proterra, and Yutong dominating the industry. The players leverage extensive experience, robust manufacturing capabilities, and established industrial presence to maintain their leadership positions.

Innovative startups such as Arrival and Rivian are disrupting the sector with innovative designs, advanced technologies, and agile business models, challenging traditional players and driving innovation in the rapidly evolving electric bus industry.

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Some of the key developments are

In 2023, Daimler Truck AG unveiled its ambitious roadmap for electrifying its entire bus portfolio by 2030, signaling a firm commitment to sustainability and driving the transition towards emissions-free mobility solutions.

In 2023, Zhengzhou Yutong Bus Co., Ltd. launched a groundbreaking electric bus model equipped with cutting-edge autonomous driving technology, paving the way for safer, more efficient public transportation systems in smart cities of the future.

Purchase now and gain full access to the Electric Bus Industry report, featuring comprehensive Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives.

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More Valuable Insights Available

Future Market Insights offers an unbiased global electric bus market analysis, providing historical data from 2019 to 2023 and forecast statistics from 2024 to 2034

To understand market opportunities, the electric bus industry is segmented based on Propulsion Type (BEV, FCEV), Battery Type (NMC, LFP, NCA), Consumer (private, government), Range (upto 200 miles, above 200 miles), Power Output (Upto 250kW, above 250kW), and Region (North America, Latin America, Western Europe, Eastern Europe, South Asia and Pacific, East Asia, Middle East and Africa)

About the Automotive at Future Market Insights

The automotive team at Future Market Insights offers expert analysis, time-efficient research, and strategic recommendations to provide authentic insights and accurate results to help clients worldwide. With over 100+ reports and one billion+ data points, the team has analyzed the industry lucidly in 50+ countries for over a decade. The team briefly analyzes key trends, including competitive landscape, profit margin, and research development efforts.

About the Author:

Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.

His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.

Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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