Riding the Green Wave: Electric Bus Market Growth Trends and Market Players
Key Ideas
  • The global electric bus market is projected to grow by USD 21.0 billion from 2024-2028, driven by a CAGR of 16.3% and a focus on reducing battery prices and increasing wireless charging systems.
  • Key market players like AB Volvo, BYD Co. Ltd., Hyundai Motor Co., and Mercedes Benz Group AG are at the forefront of this growth.
  • The shift towards zero-emission vehicles, including hydrogen fuel cell-powered buses and battery electric vehicles, is motivated by environmental concerns and the need to combat air pollution.
  • Investments in charging infrastructure and the expansion of the electric bus ecosystem are supporting the transition towards a more sustainable transport sector.
The global electric bus market is expected to experience significant growth, with a projected increase of USD 21.0 billion between 2024-2028, fueled by a Compound Annual Growth Rate (CAGR) of 16.3%. The market is witnessing a trend towards reducing battery prices of electric buses and an increasing popularity of wireless charging systems. Despite these advancements, challenges such as the declining number of public transport users pose obstacles. Key market players driving this growth include AB Volvo, BYD Co. Ltd., Hyundai Motor Co., and Mercedes Benz Group AG, among others. The shift towards electric buses is largely influenced by the transportation sector's focus on non-polluting and air-combatant solutions. Manufacturers are developing fuel-efficient buses to address environmental concerns and meet zero emissions targets, with hydrogen fuel cell-powered buses and battery electric vehicles leading the charge. Transit agencies and Original Equipment Manufacturers (OEMs) are investing in charging infrastructure to support the Electric Vehicle (EV) transition. Various types of zero-emission vehicles, including hybrid buses, plug-in hybrid vehicles, fuel cell electric vehicles, and battery electric buses, are becoming more common as the sector moves towards sustainability. Factors such as rising fuel costs, the accessibility of charging devices, and the importance of combating air pollution are driving the adoption of electric buses. Investments in battery technologies, charging stations, and hydrogen power are reshaping the electric bus ecosystem, contributing to a more environmentally friendly transport sector.
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