Electric Bus Global Market Report 2025

An electric bus is an electric vehicle (EV) powered exclusively by electricity, eliminating the need for diesel or gasoline. These buses run on a zero-emissions electricity source, contributing to environmentally friendly public transportation.

Electric buses come in three main types such as battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. Battery electric vehicles, equipped with rechargeable batteries and devoid of a gasoline engine, rely solely on the battery pack for energy, which is recharged from the grid. These batteries can be of various types, such as lithium-nickel-manganese-cobalt-oxide, lithium-iron-phosphate, and others. The range of these vehicles varies, with some covering less than 200 miles and others exceeding 200 miles, depending on battery capacity. Electric buses can have a battery capacity ranging up to 400 kWh and even surpassing 400 kWh, depending on the specific battery used. These buses find applications in both intercity and intracity transport scenarios.

The electric bus market research report is one of a series of new reports from The Business Research Company that provides electric bus market statistics, including electric bus industry global market size, regional shares, competitors with an electric bus market share, detailed electric bus market segments, market trends and opportunities, and any further data you may need to thrive in the electric bus industry. This electric bus market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric bus market size has grown rapidly in recent years. It will grow from $36.68 billion in 2024 to $41.04 billion in 2025 at a compound annual growth rate (CAGR) of 11.9%. The growth in the historic period can be attributed to manufacturing scale and production sophistication, public awareness and perception, improvements in charging infrastructure, economic viability and cost reduction, rising urbanization and congestion.

The electric bus market size is expected to see rapid growth in the next few years. It will grow to $63.4 billion in 2029 at a compound annual growth rate (CAGR) of 11.5%. The growth in the forecast period can be attributed to market demand and acceptance, development of charging infrastructure, improvements in manufacturing cost, rising demand for sustainable transport. Major trends in the forecast period include government incentives and policies, technological advancements in battery technology, rising urbanization and air quality concerns, cost reduction in battery production, demand for sustainable mobility solutions.

Major companies in the electric bus market are actively engaging with various government initiatives to promote the use of e-buses, creating lucrative growth opportunities by transitioning to electric city and intercity passenger transport. This transformation aims to enhance sustainability, reduce carbon emissions, and improve public health by replacing traditional fuel-powered public transport with electric vehicles. For example, in May 2023, Volvo Buses, a Sweden-based manufacturer of buses and coaches, introduced the fully electric LUMINUS city bus in Mexico as part of its 25th anniversary celebration. Locally produced, the LUMINUS offers battery options ranging from 280 to 470 kWh and lengths between 9.7 and 13 meters. It is equipped with advanced safety systems, low entrances for accessibility, and spacious interiors featuring wireless internet and USB charging ports. Volvo Buses provides a comprehensive solution that includes the buses, charging infrastructure, and financing, all while maintaining a commitment to zero-emission products.

The anticipated growth of the electric bus market is expected to be propelled by the increasing levels of greenhouse gas (GHG) emissions. Greenhouse gas emissions involve the release of gases such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) into the atmosphere, contributing to the trapping of heat and climate change. Electric buses, especially those powered by renewable energy sources such as solar or wind power, offer a significant advantage in combating this issue. By replacing fossil fuels with renewable energy, electric buses can substantially reduce greenhouse gas emissions compared to their diesel counterparts. For example, in October 2022, the U.S. Environmental Protection Agency (EPA) reported a 1.1% increase in global greenhouse gas emissions from the previous year, reaching 50.6 gigatons of CO2-equivalent. This rise followed a rebound above pre-pandemic levels, with seven economies contributing to nearly two-thirds of global emissions. The United States also saw a 1.2% increase in GHG emissions from large industrial sources compared to 2021, highlighting the persistent challenge of curbing GHG emissions worldwide.

The electric bus market is witnessing a significant focus on technological advancements. Companies producing electric buses are actively investing in technology to optimize passenger capacity and increase the operational efficiency of electric buses, ensuring economic viability and sustainability for the future. As an example, in January 2022, the Valley Transportation Authority (VTA) implemented an innovative clean energy microgrid and electric vehicle (EV) fleet charging system. This initiative aligns with California's target of achieving a fully zero-emission bus fleet by 2040. The $3 million project aimed to pioneer and showcase advanced charging controls, reduce expenses, and support VTA's overarching strategy for the comprehensive electrification of its bus fleet.

Leading companies in the electric bus market are actively engaged in developing cutting-edge products incorporating advanced technologies, such as autonomous driving technologies, to deliver dependable services to their customers. Autonomous driving technologies encompass a combination of hardware, software, and algorithms that empower a vehicle to navigate and operate in its environment without human intervention. A case in point is Switch Mobility, which, in February 2022, introduced the SWITCH EiV 12, a next-generation electric bus platform launched in India in June 2022. Tailored for the Indian market, this platform features two variants: the EiV 12 low floor and the EiV 12 standard. The SWITCH EiV 12 is equipped with proprietary connected technology solutions, 'switch iON', facilitating remote, real-time diagnostics and monitoring services, along with digital battery management tools. The platform draws from a wealth of experience, having covered 50 million electric kilometers globally.

In January 2024, Phoenix Motorcars, Inc., a US-based electric vehicle manufacturer, acquired Proterra Inc. and Proterra Operating Company, Inc. for an undisclosed amount. This acquisition aims to strengthen Phoenix Motor's position in the electric bus market by utilizing Proterra's expertise, technology, and product portfolio. This strategic move enhances Phoenix Motor's ability to provide innovative and sustainable electric transit solutions for public transportation. Both Proterra Inc. and Proterra Operating Company, Inc. are US-based companies that specialize in manufacturing electric buses and related technologies.

Major companies operating in the electric bus market include BYD Co. Ltd., Tata Motors Limited, Zhengzhou Yutong Bus Co. Ltd., Scania AB, Dongfeng Motor Corporation, MAN Truck & Bus AG, Sinotruk Hong Kong Limited, Foton Motor Group, VDL Groep, Ashok Leyland Limited, NFI Group Inc., Blue Bird Corporation, Solaris Bus & Coach S.A., Gillig LLC, New Flyer of America Inc., Eicher Motors Limited, Alexander Dennis Limited, JBM Auto Limited, King Long United Automotive Industry Co. Ltd., Zhongtong Bus & Holding Company Limited, Proterra lnc., Nanjing Golden Dragon Bus Manufacturing Co. Ltd., Ebusco, The CAF Group incorporates, GreenPower Motor Company Inc., The Volvo Group, Deccan Auto Limited, Daimler AG, Higer Bus Company Limited, Motiv Power Systems Inc., Zhuhai Guangtong Automobile Co. Ltd., Shenzhen Wuzhoulong Motors Co. Ltd., Olectra Greentech Limited, Xiamen King Long United Automotive Industry Co. Ltd., Yaxing Motor Coach Co. Ltd.

Asia-Pacific was the largest region in the electric bus market in 2024 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric bus market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the electric bus market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric bus market consists of sales of battery-powered all-electric buses. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Electric Bus Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on electric bus market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for electric bus ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The electric bus market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Battery Electric Vehicle; Plug-In Hybrid Electric Vehicle; Fuel Cell Electric Vehicle
• 2) By Battery Type: Lithium-Nickel-Manganese-Cobalt-Oxide; Lithium-Iron-Phosphate; Other Battery Types
• 3) By Vehicle Range: Less Than 200 Miles; Above 200 Miles
• 4) By Battery Capacity: Upto 400 kWh; Above 400 kWh
• 5) By Application: Intercity; Intracity
• Subsegments:
• 1) By Battery Electric Vehicle (BEV): Standard Battery Electric Bus; Extended Range Battery Electric Bus
• 2) By Plug-In Hybrid Electric Vehicle (PHEV): Parallel Hybrid Bus; Series Hybrid Bus
• 3) By Fuel Cell Electric Vehicle (FCEV): Hydrogen Fuel Cell Bus; Hybrid Fuel Cell Bus
• Companies Mentioned: BYD Co. Ltd.; Tata Motors Limited; Zhengzhou Yutong Bus Co. Ltd.; Scania AB; Dongfeng Motor Corporation
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.