Electric School Bus Market: Current Analysis and Forecast (2024-2032)

The electric school bus market is defined as the emerging business segment to sell and utilize electrically powered school buses for the transport of students as a more environmentally friendly means of transport than diesel-fueled buses. This market is impelled by growing concern over environmental issues, the trend towards a reduction in the emission of greenhouse gases, and the quest for better quality air especially in surrounding schools. The factors that boost growth include other factors like grants, subsidies, and emissions that prompt the school districts to adopt electric fleets. Further, improvements in battery technology as well as declining costs of EVs themselves and continual capital expenditures on EV infrastructure drive the expansion of the market. The transition to electric vehicles is executing a change in pace with other countries to reduce global warming and improve people's health.

The electric school bus market is set to show a growth rate of about 15.38%. This is due to the rising awareness about air pollution and climate change driving the shift to electric buses, as they produce zero tailpipe emissions. Also, increasing R&D, investment, product advancements, and collaborations in this industry drive the electric school bus market. For instance, in April 2022, Lion Electric Company, a leading all-electric medium and heavy truck manufacturer, announced that it had received an order for 50 all-electric school buses of the LIONC segment for the province of Quebec.

Based on design, the market is segmented into Type A & B, Type C, and Type D. The Type A & B segment is expected to have the largest market share of the electric school bus market as it offers a sustainable and eco-friendly alternative to traditional diesel-powered buses. BEBs eliminate tailpipe emissions, reducing air pollution and improving public health, especially for school children. With advancements in battery technology, electric school buses now offer longer ranges, faster charging, and lower operating costs compared to diesel buses, making them an attractive option for school districts. Additionally, government incentives, regulatory support for clean transportation, and rising environmental awareness further fuel the demand for battery electric buses, propelling growth in the electric school bus market.

Based on the type, the market is segmented into battery electric bus and hybrid electric bus. Among these, the battery electric bus segment is a key driver of the electric school bus market because of its zero-emission ability, reduced operating costs, and increasing government support for clean energy transportation. Also, improved battery technology is increasing the capability of range, shortening charging duration, and decreasing costs for the electric school buses making them feasible and appealing to the school districts. These include incentives, grants, as well as mandates that governments impose on the stakeholders to switch their fleets to electric, which also drive the BEB segment growth in this market.

For a better understanding of the market adoption of the electric school bus, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Among these, North America is Expected to Dominate the market during the forecast period. The market for electric school buses in North America is expected to grow at a high rate through the period due to rising environmental consciousness and enhanced government support for clean power projects. Electric Bus initiatives are increasing in American and Canadian school districts to decrease the emission of greenhouse gases and enhance environmental standards in densely populated regions. Major driving forces include government support in the form of financial assistance and lower CO2 limits. Also, improvements in battery technology and growth in the availability of services to charge EVs mean that the utilization of electric school buses is highly feasible and economical. Thus, the market is still in high growth potential as more schools are beginning to search for environmentally friendly solutions to transportation.

Some major players running in the market include BYD Motors; Blue Bird Corporation; The Lion Electric Company; GreenPower Motor Company; Trans Tech Bus; Daimler Buses GmbH; REV Group.; Collins Bus Corporation; Motiv Power Systems, Inc.; INTERNATIONAL MOTORS, LLC