Increasing fuel prices coupled with growing awareness regarding the hazardous effects of emissions from conventional vehicles has propelled the demand for electric vehicles. Additionally, major countries around the globe are backing electric buses in public transport through favourable government initiatives. Inclination toward electric buses can be ascribed to greater emphasis on improving air quality, reducing noise levels, and increasing fuel efficiency. Apart from this, due to the increase in electric passenger buses in the public transport fleet, the demand for 9-14 m bus length is constantly rising. Against this backdrop, the global electric bus market is likely to flourish in the coming years.
Increased Adoption of Sustainable Energy to Prolong Market Expansion
Transport is among the significant causes of pollution in cities around the world. Therefore, it becomes vital to create cleaner and more sustainable transport systems. Electric buses will play a crucial role in this energy transition and building an environment-friendly future. Apart from curtailing the carbon emissions, electric buses also have various economic benefits as they initiate significant cost reduction in terms of amount spent on fuel. Even though diesel buses are still the most common type around the world, battery-driven electric vehicles are beginning to gain popularity across the globe. This is due to their low maintenance and better performance. Such unprecedented shifts are expected to create lucrative growth opportunities across the global electric bus market.
Lower Battery Prices to Augur Well for Global Electric Bus Market
Electric vehicles can’t work on an AC power supply owing to consistent power fluctuations. Therefore, they run on a DC power supply and utilise batteries to store the energy. Li-Ion batteries are used in electric vehicles that power the whole vehicle along with all the extra systems in the transport. The battery packs are thus considered as a significant expense. As a result, the cost of acquiring an electric vehicle has substantially reduced. This has left a positive impact on the sales of electric passenger vehicles. In the coming years, the lower cost of batteries is projected to create tremendous growth potential for the global electric bus market.
Favourable Government Initiatives to Establish Asia Pacific as a Key Player
The demand for electric buses in the Asia Pacific region has significantly increased owing to relevant subsidies, encouraging regulations, national sales targets, and local air-quality targets. This in turn is likely to propel the electric bus market in the region. A major economy in the Asia Pacific region, China, is among the leading manufacturers of electric buses. The country is expected to sustain its dominance due to its intense focus on electrifying public transportation and propitious subsidies. Meanwhile, the Indian government is converting ICE bus fleets to electric buses to save operating costs, reduce carbon emissions, and improve air quality. The cumulative forces of these factors will create tremendous growth potential for the regional electric bus market.
Prominent Market Players
Some of the most competitive players in the global electric bus market include Yutong (China), BYD (China), VDL Groep (Netherlands), CAF (Solris) (Spain), and AB Volvo (Sweden).