According to our latest market study on “Electric Bus Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Vehicle Type, Hybrid Powertrain, Battery, and End User” the Electric Bus market was valued at US$ 29,179.51 million in 2021 and is projected to reach US$ 105,808.15 million by 2028; it is expected to grow at a CAGR of 20.2% from 2021 to 2028.
Stringent Government Emission Regulations
According to the World Health Organization (WHO), air pollution has been a significant cause of death. Because vehicular discharge impacts public health and the environment, it may have a dangerous effect on the environment. Governments worldwide are investing heavily in infrastructure development to reduce ozone-depleting compounds and air pollution levels. This is accomplished by enacting strict government regulations on automobile emissions. The market is expanding as a result of these standards. Electric buses are eco-friendly since they do not emit any harmful pollutants. Furthermore, electric buses are efficient and provide clean urban transportation, giving a viable alternative to maintaining clean air in metropolitan areas. As a result, many urban areas in countries such as the United States and China progressively accept E-transport systems. The Swiss government, for example, wants to expand electric vehicle penetration to 15% by 2022. The country has a Green Deal for Electric Transportation from 2016 to 2020. The green deal's primary goal is to eliminate vehicle emissions by 2025, which will help the electric bus sector grow. In addition, the Federal Transit Administration (FTA) of the US Department of Transportation has announced financing of USD 130 million for Low or No Emissions in June 2020. In 2019, France, for instance, established a goal of 100 percent zero-emission vehicles by 2040. The country enacted a law banning the sale of ICE vehicles by 2040 as part of the Paris Climate Agreement. In addition, the European Commission (EC) has proposed that 1.3 million publicly accessible chargers be installed by 2030 to help EVs gain market share. Furthermore, China is putting a plan to encourage electric mobility, with over half a million electric buses already in service. Guangzhou, Shenzhen, and Xi'an are three Chinese cities with entirely electrified public transportation networks. To assist, finance, and mobilize the development of India's hybrid and electric vehicle market, the Faster Adoption and Manufacturing Scheme, or FAME II, was created. By 2030, the Republic of Korea wants Jeju Island to be carbon-free. Under the Republic of Korea's Greater 2030 Initiative to reduce greenhouse gas emissions, the government has created electric vehicle infrastructure and granted incentives to EV customers through 2020 to encourage Smart Transportation. Thus, Governments worldwide are enforcing strict pollution standards and directives, which will accelerate the use of electric buses.
Key Findings of Study:
Geographically, the electric bus market is segmented into five key regions—North America, Europe, Asia Pacific (APAC), the Middle East Africa (MEA), and South America (SAM). North America held the largest revenue share in 2020, followed by Europe and APAC. Based on vehicle type, the electric bus market is segmented into battery electric bus, hybrid electric bus, and plug-in hybrid electric bus. The battery electric bus segment led the electric bus market with a share of 93.5% in 2020 and is expected to account for 95.3% of the total market by 2028. Based on hybrid powertrain, the electric bus market is segmented into series parallel hybrid, parallel hybrid, and series hybrid. The parallel hybrid segment led the electric bus market with a share of 64.3% in 2020 and is expected to garner 63.6% share by 2028.
