Mordor Intelligence has published a new report on the Electric Bus Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
The Electric Bus Market is undergoing a significant transformation, driven by technological innovations and a global push towards sustainable transportation solutions. Valued at USD 56.4 billion in 2025, the market is projected to reach USD 116.5 billion by 2029, reflecting a Compound Annual Growth Rate (CAGR) of 19.88% during the forecast period (2025-2029).
Key Trends
-
Technological Advancements in Battery Systems
The electric bus industry is witnessing rapid advancements in battery technology, leading to increased energy density, reduced charging times, and extended vehicle ranges. Innovations such as solid-state batteries and improved thermal management systems are enhancing the performance and safety of electric buses, making them more viable for long-distance and high-capacity routes. These developments are crucial in addressing range anxiety and operational challenges associated with electric public transportation.
-
Government Policies and Environmental Regulations
Governments worldwide are implementing stringent emission regulations and offering incentives to promote the adoption of electric buses. Policies such as subsidies, tax incentives, and low-emission zones are encouraging public transit agencies to transition from diesel-powered fleets to electric alternatives. For instance, the European Union has set ambitious targets for reducing greenhouse gas emissions, prompting member countries to invest heavily in electric public transportation infrastructure.
-
Expansion of Charging Infrastructure
The growth of the electric bus market is closely tied to the development of robust charging infrastructure. Investments are being made in fast-charging stations and grid enhancements to support the efficient operation of electric bus fleets. Innovative solutions such as wireless charging and pantograph systems are also being explored to minimize downtime and optimize route planning. The availability of reliable charging infrastructure is a critical factor in the large-scale deployment of electric buses.
-
Urbanization and Demand for Sustainable Public Transport
Rapid urbanization has led to increased demand for efficient and eco-friendly public transportation solutions. Electric buses offer a sustainable alternative, reducing urban air pollution and contributing to improved public health. Cities across the globe are integrating electric buses into their transit systems to meet environmental goals and enhance the quality of urban life. This trend is particularly prominent in densely populated urban centers where air quality concerns are most acute.
Market Segmentation
The electric bus market is segmented based on fuel category and geography:
-
By Fuel Category:
- Battery Electric Vehicle (BEV): Buses powered entirely by electric batteries, offering zero tailpipe emissions and suitable for urban routes with established charging infrastructure.
- Fuel Cell Electric Vehicle (FCEV): Buses utilizing hydrogen fuel cells to generate electricity, providing longer ranges and quick refueling capabilities, ideal for longer routes and areas with hydrogen refueling stations.
- Hybrid Electric Vehicle (HEV): Buses combining internal combustion engines with electric propulsion systems, offering improved fuel efficiency and reduced emissions, serving as a transitional technology towards full electrification.
- Plug-in Hybrid Electric Vehicle (PHEV): Buses that can be charged via external power sources and operate on both electric and conventional fuels, providing flexibility in operations and extended ranges.
-
By Geography:
- North America: Experiencing significant growth due to federal and state-level initiatives supporting zero-emission public transportation. The United States leads the region, with substantial government funding and ambitious environmental targets driving the adoption of electric buses.
- Europe: Demonstrating strong momentum, driven by stringent emission regulations and comprehensive support mechanisms at both EU and national levels. Countries like Germany, France, and the United Kingdom are actively transitioning their public transport fleets to electric alternatives.
- Asia-Pacific: Leading the global market, with China maintaining a dominant position due to comprehensive policies and substantial investments in electric public transportation. India is emerging as a fast-growing market, supported by government initiatives and infrastructure development.
- Latin America: Witnessing steady growth, driven by increasing urbanization and government efforts to reduce transportation emissions. Brazil stands out as a significant market, with various cities implementing electric bus fleets.
- Middle East and Africa: Emerging markets focusing on sustainable transportation solutions as part of economic diversification strategies. The United Arab Emirates leads the region’s adoption of electric buses, propelled by ambitious smart city initiatives and sustainable transport goals.
Get a Customized Report Tailored to Your Requirements: https://www.mordorintelligence.com/market-analysis/battery-evs
Key Players
The electric bus market is characterized by intense competition, with key players focusing on technological innovation, strategic partnerships, and geographic expansion. Notable companies include:
-
BYD Auto Co. Ltd.: A leading Chinese manufacturer, BYD offers a comprehensive range of electric buses and has established a significant global presence through strategic partnerships and local manufacturing facilities.
-
Proterra Inc.: An American company specializing in electric bus manufacturing, Proterra is known for its advanced battery technology and has secured numerous contracts with transit agencies across North America.
-
NFI Group Inc.: A North American bus manufacturer, NFI Group offers a diverse portfolio of electric buses under its New Flyer brand, focusing on innovation and sustainability.
-
Solaris Bus & Coach S.A.: A European manufacturer based in Poland, Solaris is recognized for its Urbino electric buses and has a strong presence in the European market, supplying vehicles to numerous cities.
-
Zhengzhou Yutong Bus Co., Ltd.: One of the largest bus manufacturers in China, Yutong has made significant advancements in electric bus technology and exports to various international markets.
These companies are investing heavily in research and development to enhance battery performance, vehicle efficiency, and to expand their product portfolios to meet the diverse needs of global transit systems.
Conclusion
The global electric bus market is poised for robust growth, driven by technological advancements, supportive government policies, and a collective shift towards sustainable urban mobility.
Industry Related Reports
India Electric Bus Market: The India Electric Bus Market is categorized based on Fuel Category, which includes Battery Electric Vehicle (BEV), Fuel Cell Electric Vehicle (FCEV), Hybrid Electric Vehicle (HEV), and Plug-in Hybrid Electric Vehicle (PHEV). The report provides market size data in terms of both market value (USD) and market volume (units). Additionally, the report further segments the market based on Vehicle Type, Vehicle Configuration, Vehicle Body Type, Propulsion Type, and Fuel Category.
Europe Electric Bus Market: The report covers Automotive Electric Bus & Coach Manufacturers and is segmented based on Propulsion Type, Battery Type, Consumer Type, and Country. The Propulsion Type segment includes Battery Electric Bus, Plug-in Hybrid Electric Bus, and Fuel Cell Electric Bus. The Battery Type segment consists of Lithium-ion, Nickel-metal Hydride Battery (NiMH), and Others.
About Mordor Intelligence:
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.
For any inquiries or to access the full report, please contact:
media@mordorintelligence.com
https://www.mordorintelligence.com/