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The global electric bus market volume was valued at 198 thousand units in 2019 and is projected to reach 256 thousand units by 2027, exhibiting a CAGR of 11.58% during the forecast period.
According to the report of the United Nations Environment Program (UNEP), city buses are the cause of large amounts of black carbon emissions in the transportation sector. Therefore, the UNEP is providing technical and policy support to 20 cities in Asia, Latin America, and Africa to develop and map low-emission transportation routes for the public by including these buses. In addition, the UNEP together with the International Clean Transportation Council (ICCT) and regional partners have provided technical support to identify and eliminate obstacles and support the adoption and design of clean buses to achieve public commitment. This government support and initiatives are expected to drive the electric bus market growth during the forecast period.
Falling Demand for Public Transport amid COVID-19 to Hinder Market Growth
The COVID-19 pandemic has affected the automotive industry and significantly electric vehicles by triggering an unprecedented fall in sales in early 2020. To curb the spread of coronavirus, manufacturing operations and transportation have come to halt along with public transportation. With city-wide lockdowns, social distancing, and limited staff to run the production line with all safety measures, the global automotive industry has slowed down and also the public commute has disturbed. Owing to the increasing impact of the coronavirus on this electric vehicle industry, the market may see a deep decline in sales and demand. Also growing concerned regarding the spread of coronavirus, the people are fearful regarding the use of public transport. This is also anticipated to slow down growth of the market.
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Environmental Benefits of Electric Buses to Drive Market Growth
Vehicle emissions are exclusively liable for discharging 29% of ozone-depleting substances that bring about air pollution and are dangerous for the atmosphere. The consumption of unrefined petroleum and rising fuel costs have brought about an ascent in fame and demand for vehicles that are less harmful to nature and utilize electric energy. This has additionally prompted an expansion in the adoption of this type of bus to lessen the reliance on petroleum fuels. Furthermore, owing to fewer moving parts, electric vehicles are light in weight and are more productive than conventional modes of transport. As a result, there is a lesser requirement for vehicular maintenance and overall these vehicles are beneficial for the environment. Owing to these factors, therefore, the market is expected to grow substantially over the forecast period.
Rising Demand for Hydrogen Fuel Cell Bus to Boost the Market
Hydrogen fuel cell buses are powered by combining an electric powertrain with fuel cell systems, managed technology, and batteries. These buses are considered next-generation green transport as they have a more prolonged life than electric buses. The hydrogen fuel cell bus has speedy refueling pace and route flexibility. By such advantages, the demand for the hydrogen fuel cell bus is growing enormously. As an instance, in Europe, approximately one thousand hydrogen buses are to be introduced in the next few years. China has been a frontrunner in this technology and is propelling the battery-electric bus market.
Stringent Government Emission Regulations are Expected to Drive the Market Growth
As indicated by the World Health Organization (WHO), a significant reason for deaths has been air contamination. Since vehicular discharge affects general wellbeing and furthermore on the environment may lead to a hazardous effect on the environment. Governments around the world are robustly putting resources into infrastructural advancements to diminish ozone-depleting substances and lower air pollution levels. This is being achieved through the framing of stringent government norms over vehicle emissions. These guidelines are fueling the expansion of this market. These buses are environment-friendly as they don't discharge any harmful substances. Additionally, they are proficient and give clean urban transportation, providing urban communities an alternate track to maintainability of clean air. In response, many urban areas are increasingly accepting E-transport systems in certain nations such as China and the United States.
High Cost of Battery Buses May Restrain Market Growth
Electric buses are eco friendly and are also low in maintenance. However, the initial cost of these buses is higher compared to conventional buses. This is a major hindrance for several governments and administrations for the implementation of these buses in the public transportation sector. Furthermore, governments are providing subsidies for the purchase of private electric vehicles, which may lead to a positive effect on this market for those who are willing to purchase commercial fleets. Moreover, these buses cost ten times higher than their conventional counterparts, which may hamper the growth of the market.
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Battery Bus Segment to Dominate the Market
Based on type, the market is segmented into battery-electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. The battery-electric vehicles segment holds the major share in the global market. Battery-electric powered buses store electricity on board in the high capacity battery sets. These buses make use of the strength of those batteries to run the electrical motor and also on board all electronics. The fuel cell electric vehicle segment is likewise estimated to grow exponentially in the course of the forecast period as hydrogen fuel cell buses have lasted longer and have speedy refueling capability as compared to the regular electric buses. Plug-in hybrid electric vehicle segment is predicted to witness constant growth in this market during the forecast period. These buses can charge the battery with the aid of both plugging inside the external electric strength supply and regenerative braking.
Asia-Pacific Electric Bus Market Volume, 2019 (Thousand Units)
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The market size in Asia-Pacific stood at 194 thousand units in 2019. The region is expected to dominate the electric bus market share. China is leading the regional market and also globally on account of having the biggest market in terms of quantity. The Chinese government has developed its public transportation zones for the use of these buses. The tasks taken by the government have boosted the adoption of battery-operated buses in the region. Moreover, the presence of the marketplace leader BYD is further fueling the growth of the market in this region. Additionally, the speedily growing charging infrastructure in this region is auguring well for the regional market. Japan and South Korea also are contributing to the booming sales of these buses in this region.
Europe is the second-biggest market and is expected to show healthy growth over the forecast period. The stringent government policies for car emissions are the main factor promoting the market rise in this region. Many governments have started taking projects to make city public transport sustainable by deploying clean and green transportation technologies in this region. The demand for fuel cell buses in this region is likewise growing.
North America is also anticipated to show defined growth in the global market. The U.S. is predicted to show steady growth in this region. The stringent emission guidelines in this country are likely to boost the market in the coming years.
Globally BYD is Leader in this Market
BYD is a global leader in this market as it provides services and manufactured electric buses. Their global customer network is vast and the company has lots of orders in very high quantities from various nations for these buses. Some of the prominent top key players in the largest market other than BYD are Protera, AB Volvo among others in the Chinese and Asia pacific market.
An Infographic Representation of Electric Bus Market
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The electric bus market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market forecast and trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
Volume (thousand units)
Fortune Business Insights says that the global electric bus market volume was 198 thousand units in 2019 and is projected to reach 256 thousand units by 2027.
In 2019, the Asia-Pacific market volume stood at 194 thousand units.
The market is projected to grow at a CAGR of 11.6% and will exhibit steady growth in the forecast period (2020-2027).
The battery electric vehicle type segment is expected to be the leading segment in this market during the forecast period.
Stringent government norms for vehicle emission is propelling the market growth
BYD is the leading player in the global market.
Asia-Pacific dominated the market share in 2019.
Increasing adoption of hydrogen fuel cell buses is expected to drive the market growth.
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