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Battery Electric Buses Market Size - By Bus (Standard Electric Bus, Articulated Electric Bus, Shuttle Electric Bus, Midi Electric Bus, Double-Decker Electric Bus), By Battery (Nickel-Cadmium, Li-ion, Lead Acid), By Application & Forecast, 2024 - 2032
Report ID: GMI9284
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Published Date: April 2024
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Report Format: PDF
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Premium Report Details
Base Year: 2023
Companies covered: 20
Tables & Figures: 300
Countries covered: 24
Pages: 240
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Battery Electric Buses Market Size
Battery Electric Buses Market size was valued at USD 73.3 billion in 2023 and is estimated to register a CAGR of 14% between 2024 and 2032. As environmental concerns grow, cities and transportation companies are increasingly turning to electric buses as a sustainable solution. These buses offer zero-emission transportation, reducing air pollution and greenhouse gas emissions. Leading industry events showcase the latest advancements in battery technology, range, and efficiency, driving innovation and adoption.
Government incentives and regulations favoring electric vehicles are further boosting demand. As a result, the battery electric buses industry is poised for significant growth in the coming years. These buses not only offer environmental benefits but also promise cost savings and improved public health, making them an attractive option for modern urban transportation systems. For instance, in March 2024, Volvo Buses introduced a battery-powered intercity bus and a new EV platform. The Swedish company marketed the Electric Volvo 8900 as a low-entry all-electric bus suitable for urban, intercity, and commuter transport.
Despite their numerous advantages, the battery electric buses market faces several restraints. One significant challenge is the high upfront cost of electric buses compared to traditional diesel counterparts. While electric buses offer long-term cost savings, the initial investment can be prohibitive for cash-strapped transit agencies. Another restraint is the limited range of electric buses compared to diesel buses. Although battery technology is improving, electric buses still have a shorter range, which may require more frequent charging and limit their usability on longer routes.
Additionally, the lack of charging infrastructure presents a barrier to adoption, especially in regions with limited access to charging stations. Finally, concerns about battery lifespan and performance in extreme weather conditions also contribute to market restraints.
Battery Electric Buses Market Trends
Battery electric buses industry is witnessing significant trends driven by rising partnerships and collaborations among leading companies. As the demand for electric buses grows, companies are forming strategic alliances to leverage each other's strengths and accelerate innovation. Collaborations between bus manufacturers, battery suppliers, and technology firms are becoming increasingly common, leading to the development of more advanced electric bus solutions.
Partnerships enable the integration of cutting-edge technologies such as fast-charging systems, lightweight materials, and advanced battery management systems. Moreover, joint ventures facilitate the establishment of charging infrastructure networks, addressing one of the key challenges in electric bus adoption. Overall, these partnerships are shaping the Battery Electric Buses market, driving technological advancements, and expanding the reach of electric buses in the transportation sector.
For instance, in April 2024, BMZ Poland and Daimler Buses, a battery systems expert, formed a strategic partnership to develop and supply the next generation of e-bus batteries. They aimed to enhance existing battery technology for electric buses in Europe, targeting customer deployment.
Battery Electric Buses Market Analysis
Based on battery, the market is divided into nickel-cadmium, Li-ion, lead acid. The Li-ion segment accounted for a market share of over 47% in 2023. Li-ion batteries have become the preferred choice for electric buses due to their high energy density, longer lifespan, and faster charging capabilities than traditional lead-acid batteries. Their lightweight design also contributes to improved efficiency and performance of electric buses, enhancing their range and reliability. As cities and transportation agencies prioritize sustainability and seek to reduce emissions, the demand for electric buses equipped with Li-ion batteries continues to rise, driving significant growth in the market.
Based on application, the battery electric buses market is categorized into public transit, and private fleet. The public transit segment is expected to hold over USD 149 billion revenue by 2032. As cities worldwide grapple with increasing traffic congestion and environmental concerns, electric buses offer a sustainable solution. Public transit agencies are increasingly turning to battery electric buses to modernize their fleets and reduce emissions. These buses provide clean, quiet, and efficient transportation, improving air quality and enhancing the overall urban environment.
Additionally, government incentives and regulations promoting the adoption of electric vehicles further boost demand in the public transit sector. As a result, the market is experiencing significant growth driven by the expanding need for sustainable public transportation solutions.
Asia Pacific dominated the global battery electric buses market with a major share of over 38% in 2023. With rapid urbanization and increasing concerns about air pollution, countries in Asia Pacific are turning to electric buses to address transportation challenges sustainably. Governments are implementing policies and incentives to promote the adoption of electric vehicles, including buses, to reduce emissions and improve air quality in densely populated cities.
Additionally, advancements in battery technology and the availability of charging infrastructure are driving the market forward. As a result, Asia Pacific has become a key region for the market, with significant growth expected in the coming years.
The battery electric buses market is witnessing increasing demand in the U.S. as cities and transit agencies prioritize sustainability. With growing concerns about climate change and air pollution, there is a strong push for cleaner transportation options. Federal and state incentives encourage the adoption of electric buses, and many cities have set ambitious targets to electrify their transit fleets. Moreover, technological advancements and decreasing costs of battery technology are making electric buses more economically viable, further driving market demand in the U.S.
Battery Electric Buses Market Share
BYD, Volvo, and Yutong Bus are dominant players holding over 24% in the battery electric buses industry due to their strong focus on innovation, extensive product offerings, and established market presence. BYD, a Chinese company, leads with its diverse portfolio of electric buses and advanced battery technology. Volvo, a global leader in transportation solutions, leverages its reputation for reliability and safety to capture a significant market share. Yutong Bus, another Chinese firm, has expertise in mass production capabilities and cost-effective solutions. These companies benefit from partnerships with governments, transit agencies, and private operators worldwide.
Additionally, their commitment to sustainability, along with favorable government policies promoting electric mobility, further strengthens their position. With a combination of technological expertise, operational excellence, and strategic collaborations, BYD, Volvo, and Yutong Bus continue to dominate and drive the growth of the market globally.
Battery Electric Buses Market Companies
Major companies operating in the battery electric buses industry are:
Battery Electric Buses Industry News
The battery electric buses market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:
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Market, By Bus
Market, By Battery
Market, By Application
The above information is provided for the following regions and countries: