Electric bus market seen reaching $439.7 billion by 2031

Allied Market Research says the global electric bus market will grow from $35.3 billion in 2021 to $439.7 billion by 2031, driven by cleaner transport policies, battery costs and government fleet investments. Asia-Pacific led the market in 2021, while fuel-cell buses, longer buses and higher-range models are expected to gain the fastest traction. Why it matters: - The electric bus market is moving from an early-growth segment into a much larger global transportation category. - The forecast points to a shift in public transit spending toward zero-emission fleets, charging and hydrogen infrastructure, and cleaner urban mobility. - Governments and transit agencies are under pressure to cut bus emissions while keeping service levels and passenger capacity intact. What happened: - Allied Market Research projected the global electric bus market will rise from $35.3 billion in 2021 to $439.7 billion by 2031. - The firm said the market will grow at a 29.5% compound annual growth rate from 2022 to 2031. - Asia-Pacific dominated the global e-bus market in 2021. - China is expected to keep the largest revenue share through the forecast period. - The report sample pages are available online. The details: - The report breaks the market down by propulsion type, length, range, battery capacity and power output. - The propulsion segments include battery electric vehicles, fuel cell electric vehicles and plug-in hybrid electric vehicles. - Fuel-cell buses use hydrogen and emit water as a by-product. - Fuel-cell buses need less infrastructure than battery-electric buses, aside from a central hydrogen refueling station. - Hyundai partnered with Iveco Group in July 2022 to provide a hydrogen fuel cell system for European buses. - Iveco’s bus division plans to produce more than 3,000 zero- and low-emission buses at its Foggia plant in southern Italy from 2023. - The report says the above-14-meter segment, above-300-mile range segment, above-250-kWh battery segment and above-250-kW power segment are expected to post strong growth. - LAMEA is expected to register the highest CAGR during the forecast period. - Major companies profiled include AB Volvo, Ankai Bus, BYD Company Ltd., Construcciones y Auxiliar de Ferrocarriles, S.A., Daimler AG, NFI Group Inc., Proterra, VDL GROEP BV, Yutong Group and Zhongtong Bus Holdings Co., Ltd. - The purchase options and purchase inquiry pages are listed on the report site. Between the lines: - Government rules on vehicle emissions are doing a lot of the market’s heavy lifting. - The U.S., Germany, France and China have all tightened emissions requirements for vehicles, which is pushing manufacturers toward advanced bus technologies. - Battery costs are falling, which supports wider adoption. - The market still faces a drag from weak charging infrastructure in developing countries and the high upfront cost of electric buses. - Autonomous buses and other technical upgrades could open another growth lane. - The COVID-19 shock reduced demand in early 2020, but sales recovered as governments resumed infrastructure spending and EV adoption accelerated. - The report says electric bus demand increased in China, the U.S., Germany, France and the UK after the early pandemic slowdown. What’s next: - India approved a plan in March 2021 to procure 300 low-floor electric AC buses for Delhi Transport Corporation. - The first 118 buses arrived in October 2021. - Another 100 were scheduled for November 2021. - Up to 60 more were due in December 2021, with the final 20 expected by January 2022. - London operated 3,884 hybrid buses, 485 electric buses and 2 hydrogen buses in March 2021. - London plans to expand to 9,200 electric buses by 2027. - The report says governments will keep spending on electric buses to improve public transport and passenger safety while cutting accidents. The bottom line: - Electric buses are becoming a core part of the clean-transport push, and the market forecast suggests the next decade will be defined by fleet electrification, fuel-cell expansion and public-sector procurement.