Electric Bus Market To Surpass USD 53 Billion By 2027

The electric bus market is set to grow from its current market value of more than USD 28 billion to over USD 53 billion, as reported in the latest study by Global Market Insights Inc.

As the world is advancing towards sustainable development with the profound steps to reduce carbon emissions, adoption of cleaner technologies has been on the rise. This has significantly impelled the adoption of electric vehicles across the globe. The government authorities of several countries are now introducing these vehicles to public transportation which is providing lucrative growth prospects for electric bus market.

Besides, the establishment of stringent regulatory framework for vehicular emissions is also positively influencing the demand for electric public transportation. To illustrate, the UN Environment along with its partners is supporting 20 major cities in Latin America, Asia and Africa to prepare roadmaps for low emission public transport. The initiative reportedly includes the electrification of buses. It seeks to address the emissions and public health burden of urban bus fleets by employing electric engine-based vehicles.

The accelerating product demand is encouraging the industry players active in electric bus market to focus on launching new products as well as forming strategic alliances to strengthen their market position. Quoting an instance, in 2020, BYD introduced its electric buses for the first time in Latin America’s Chilean capital of Santiago. The company made this move in partnership with the domestic operators Metbus and Enel X. Reportedly, the initiative has strengthened Chile’s position as the leader in electric mobility in the region, with the fleet of BYD’s 285 pure electric buses.

All-electric buses are gaining wider prominence across the globe due to the availability of supportive policy measures and the establishment of stringent government regulations to curb vehicular emissions. In 2021, the first fleet of six fully electric buses was introduced in the UK to serve rural communities. This launch was jointly initiated by SP Energy Networks and transport
group Stagecoach West Scotland to extend its support in reducing Scotland’s overall CO2 emissions.

Higher efficiency and relatively lower costs are the major factors fueling the adoption of PHEV buses that run on a combination of electric and diesel/gasoline engines. Besides, growing awareness among people to reduce carbon emissions is further impelling product adoption. In 2020, the National Transport Authority (NTA) of Ireland launched the initial fleet of 100 Alexander Dennis Enviro400ER PHEV buses. The NTA has also ordered an additional 180 of these buses that are zero-emission capable.

Electric bus market is rapidly expanding in the Middle East & Africa on account of the burgeoning demand for these buses in the UAE and Saudi Arabia. In addition, development of sustainable electric mass transit solutions, the growing presence of OEMs, and favorable supportive initiatives are further fueling the market growth.

For instance, in 2020, Hyundai Motor Co. shipped four of its hydrogen-powered vehicles- two Elec City hydrogen buses and two Nexo hydrogen fuel cell electric vehicles in the Middle East. The growing inclination towards addressing greenhouse emissions and stringent regulatory scenarios for the same has created enormous opportunities for the adoption of electric buses.

This has encouraged the industry players to focus on the development of efficient electric vehicles which is expected to drive the expansion of electric bus industry in the coming years.

 

Author: Priya Deshmukh