The Electric Bus Market was valued at US$ 29,179.51 million in 2021 and is expected to reach US$ 105,808.15 million by 2028; it is estimated to register a CAGR of 20.2% from 2021-2028.
An electric bus, often known as an e-bus, is a vehicle that runs entirely on electricity rather than a standard internal combustion engine. An on-board electric motor powers the E-bus, which is powered by on-board batteries or a set of batteries. Electric buses are considered environmentally friendly as they emit no emissions and are cost-effective than typical gasoline/diesel buses. A hybrid electric bus (HEB), also known as hybrid diesel-electric buses, uses both a combustion engine and an electric motor or propulsion system. The plug-in hybrid electric bus (PHEB) fuels the combustion engine with electricity, recharging the battery.
Factors driving the electric bus market include increasing demand for fuel-efficient, high-performance, low-emission buses, strict government emission norms and regulations, and lower battery prices. However, high production costs, as well as low fuel economy and serviceability, limit market expansion. Further, technical improvements and strong government measures to promote the usage of e-buses provide the industry with significant potential opportunities. Electric buses are projected to become more prevalent in the coming years as gasoline is used in conventional power buses, which is a nonrenewable resource. Electric buses are the most environmentally friendly option for promoting sustainable development and are favorable to the environment. As a result, the worldwide electric bus market is predicted to rise rapidly in the following years. A standard gas-powered vehicle's internal combustion engine emits a large amount of carbon dioxide, highly harmful to the environment. Electric buses, on the other hand, employ pollution-free electric motors. Therefore, the above mentioned advantages of electric buses are boosting the market's growth.
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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.
Impact of COVID-19 Pandemic on Electric Bus Market
The US automotive manufacturers witnessed the most severe impact of COVID-19 in 2020 with the enactment of lockdowns and travel restrictions, shut down of production facilities, and shortage of employees. The health and economic crises led to major disruptions in the electric bus industry, impacting everything from supply chain and manufacturing to product sales. However, progress in vaccination programs and opening up of production facilities are enhancingdemand for cars, thereby boosting the growth of demand for electric bus for enhanced safety in the coming years. The zero-emission vehicle mandates are increasing EV purchases in North America. Such policies are bolstering charging infrastructure plans, and structure stimulus packages. Further, effective policy tools to mitigate greenhouse gases for the transport sector are supporting EV adoption, boosting the demand for the electric bus market. Thus, covid-19 pandemic has negatively effect on the electric bus market.
List of Players:
- AB Volvo
- King Long United Automotive Industry Co., Ltd
- Shenzhen Wuzhoulong Motors Co., Ltd
- BYD Company Ltd
- Daimler AG
- CAF Group (Solaris Bus Coach)
- Proterra Inc
- NFI Group
- Van Hool NV
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