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Electric Bus Market Size, Share Global Analysis Report, 2024 – 2032

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Electric Bus Market Size, Share, Growth Analysis Report By Vehicle Type (Battery Electric Buses, and Hybrid Electric Buses), By Range (Short-range (<150 miles) and Long-range (>150 miles)), By Battery Technology (Lithium-ion Batteries and Solid-state Batteries), By End-Use (City Transit Buses, and Intercity Coaches), By Ownership (Public and Private), And By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2024 – 2032

Industry Insights

[219+ Pages Report]According to Facts & Factors, the global electric bus market size in terms of revenue was valued at around USD 39.45 billion in 2023 and is expected to reach a value of USD 174.26 billion by 2032, growing at a CAGR of roughly 17.9% from 2024 to 2032. The global electric bus market is projected to grow at a significant growth rate due to several driving factors.

Global Electric Bus Market Size

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logoMarket Overview

An electric bus is a type of bus that is powered by electricity, typically sourced from onboard batteries, rather than by conventional internal combustion engines that use diesel or gasoline. These buses are designed to be more environmentally friendly, as they produce zero emissions at the point of use, contributing significantly less to air pollution and greenhouse gas emissions compared to traditional buses. Electric buses rely on a variety of technologies for charging, including plug-in systems and overhead lines, and advancements in battery technology have greatly increased their range and efficiency.

Cities around the world are increasingly adopting electric buses to reduce urban pollution and meet climate goals, supported by government incentives and improvements in charging infrastructure. As a result, electric buses are becoming a common sight in public transportation networks, offering a cleaner, quieter alternative to conventional buses.

logoKey Highlights

  • The electric bus market has registered a CAGR of 17.9% during the forecast period.
  • In terms of revenue, the global electric bus market was estimated at roughly USD 39.45 billion in 2023 and is predicted to attain a value of USD 174.26 billion by 2032.
  • The growth of the electric bus market is being propelled by growing demand for more sustainable transportation solutions, stricter government regulations on vehicle emissions, and the cost of battery technology is steadily decreasing.
  • Based on the vehicle type, the battery electric buses segment is growing at a high rate and is projected to dominate the global market.
  • Based on the battery technology, the lithium-ion batteries segment is projected to swipe the largest market share.
  • Based on region, the Asia Pacific is expected to dominate the global market during the forecast period.

Global Electric Bus Market

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logoKey Growth Drivers

  • Environmental Concerns and Regulations: Many countries are imposing stricter emissions standards and low-emission zones in cities, which drives the shift away from diesel buses to electric buses, which have zero tailpipe emissions.
  • Government Support and Incentives: Governments worldwide are providing financial incentives such as subsidies, grants, and tax exemptions for electric vehicle purchases, including buses. These incentives lower the initial cost and promote the adoption of electric buses in public and private transport fleets.
  • Advancements in Battery Technology: Significant improvements in battery technology have increased the energy density, decreased charging times, and extended the driving range of electric buses, making them a more practical option for daily operations.


  • High Initial Costs: Despite falling battery prices, electric buses still represent a higher upfront investment compared to traditional diesel buses. This cost barrier can deter many transit agencies and private companies from switching to electric fleets.
  • Charging Infrastructure Requirements: The need for extensive charging infrastructure, including the installation of charging stations and upgrades to electrical grids, is a major hurdle. This infrastructure is costly and requires significant planning and time to deploy.


  • Technological Innovations: Continuous innovations, such as solid-state batteries and faster-charging technologies, present opportunities to overcome current limitations in electric bus technology, potentially leading to broader adoption.
  • Growing Urbanization: As urban populations increase, the demand for public transit solutions grows. Electric buses offer an efficient solution to meet this demand while addressing urban air quality and noise pollution issues.
  • Expansion into New Markets: Emerging markets present significant opportunities for growth as they begin to adopt modern public transportation solutions. Electric buses are positioned to be a key part of this transformation.


  • Battery Lifecycle and Environmental Impact: The production and disposal of batteries for electric buses raise environmental concerns. The extraction of raw materials for batteries can be damaging, and the recycling processes for end-of-life batteries are not yet widespread.
  • Operational Range and Charging Time: While improvements have been made, the operational range of electric buses and the time required to recharge them still pose challenges, especially for long-distance routes or continuous operation without downtime.
  • Maintenance and Technical Expertise: Electric buses require different maintenance and operational expertise compared to conventional buses. There is a learning curve and potentially higher costs involved in training staff and setting up the necessary facilities.

logoElectric Bus Market: Segmentation Analysis

The global electric bus market is segmented based on vehicle type, range, battery technology, end-user, ownership, and region.

logoBy Vehicle Type Insights

Based on vehicle type, the global electric bus market is divided into battery electric buses and hybrid electric buses. Battery Electric Buses (BEB) solely rely on electric power, charged via external power sources. They are increasingly popular in urban centers globally due to their zero-emission nature. Governments support BEBs through incentives, leading to a significant market presence. Their adoption is spurred by advancing battery technologies that reduce costs and increase range, contributing to a robust CAGR. Hybrid Electric Buses (HEB) combine traditional internal combustion engines with electric propulsion systems.

They are particularly favored in regions where electric infrastructure is limited or as a transitional technology. The flexibility in fuel use reduces reliance on a single energy source, which can be beneficial in areas with unstable electric supply. The segment's growth is moderate, reflecting the global push towards fully electric solutions.

logoBy Range Insights

On the basis of Range, the global electric bus market is bifurcated into short-range (<150 miles) and long-range (>150 miles). Short-range electric buses are designed for dense urban environments where routes are shorter but stop frequency is high. They are ideal for cities committed to reducing local air pollution and traffic congestion.

The segment benefits from lower initial costs and reduced range anxiety among operators. Long-range buses cater to regional and long-distance travel, equipped with high-capacity batteries to handle extended ranges without frequent recharging. Technological innovations in battery life and fast charging capabilities are making long-range electric buses more viable and appealing. This segment is poised for growth as infrastructure develops and range concerns are mitigated.

logoBy Battery Technology Insights

Based on Battery Technology, the global electric bus market is categorized into lithium-ion batteries and solid-state batteries. Lithium-ion batteries are the most popular choice due to their high energy density and decreasing cost. Lithium-ion batteries are expected to continue leading, with a robust CAGR. Solid-state batteries are still in developmental stages, they promise higher energy density and safety. They represent a potential future growth segment.

logoBy End-Use Insights

Based on End-Use, the global electric bus market is divided into city transit buses and intercity coaches. City transit buses are the backbone of public transport in urban areas and city transit buses are pivotal in reducing urban air pollution. Transitioning to electric city buses not only helps in cutting down greenhouse gas emissions but also reduces noise pollution, enhancing the quality of urban life. The market for electric intercity coaches is expanding as battery technology advances although they are slower to adopt electric technologies. These coaches are increasingly seen as a viable option for reducing emissions on longer journeys.

logoBy Ownership Insights

On the basis of ownership, the global electric bus market is bifurcated into public and private. The majority of electric buses are owned by public transport authorities, and influenced by government policies and subsidies. The private segment includes private transit companies and corporations. This segment is expanding as corporate responsibility and sustainability become more important.

logoRecent Developments:

  • BYD Motors Inc. joined forces with the Napa Valley Transportation Authority (NVTA) to unveil a unique electric bus for the St. Helena community. This "butterfly bus," as it's called, highlights the region's commitment to environmental responsibility while providing clean and efficient transportation for wine country passengers.
  • In April 2022, Volvo Buses introduced Volvo Connect, a new customer portal that streamlines connected services and workshop efficiency tools. This innovation aims to improve uptime, productivity, and safety for Volvo's electric bus customers.

logoReport Scope

Report Attribute


Market Size in 2023

USD 39.45 Billion

Projected Market Size in 2032

USD 174.26 Billion

CAGR Growth Rate

17.9% CAGR

Base Year


Forecast Years


Key Market Players

AB Volvo, Ashok Leyland Ltd., BYD Company Ltd., Daimler Truck AG, Hyundai Motor Company, King Long, Man Se, Nissan Motor Corporation, Olectra Greentech Ltd., Proterra, TATA Motors Ltd., Zhengzhou Yutong Bus Co. Ltd., and Others.

Key Segment

By Vehicle Type, By Range, By Battery Technology, By End-Use, By Ownership, and By Region

Major Regions Covered

North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa

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logoElectric Bus Market: Regional Analysis

Asia-Pacific holds a dominant position in the global electric bus market, primarily due to China's massive deployment of electric buses. The region’s CAGR is estimated at over 34.7%, driven by large-scale deployments and continuous innovations in battery technology. Other countries like India, Japan, and South Korea are also expanding their fleets of electric buses.

China is the undisputed leader within APAC, driven by stringent air quality regulations, ambitious national sales targets for electric vehicles, and substantial government subsidies that have fueled the Chinese electric bus market. China boasts a robust domestic electric bus manufacturing industry with major players like BYD, Yutong, and Sunwin. These companies benefit from economies of scale and technological advancements.

North America is experiencing significant growth in the electric bus market, driven by stringent emissions regulations and increasing government support through incentives and funding for electric vehicles. The U.S. and Canada are actively promoting the adoption of electric buses in public transportation fleets.

The presence of major electric bus manufacturers and technology companies supports the market growth. Initiatives such as the Low or No Emission Vehicle Program by the Federal Transit Administration enhance the deployment of electric buses. The electric bus market in North America is projected to grow at a CAGR of approximately 25.89% over the next five years.

Europe leads in the electric bus market due to early adoption encouraged by government policies aiming for a reduction in carbon footprints and the promotion of electric vehicles as a part of public transport systems. High fuel prices, strong regulatory frameworks, and well-established public transportation infrastructure significantly contribute to the growth. Countries like Germany, the UK, and France are front runners in the market. The projected CAGR for the European electric bus market is around 31.8% through the forecast period, reflecting aggressive policies toward decarbonization.

The market in Latin America is emerging with countries like Brazil and Mexico beginning to adopt electric buses, particularly in densely populated urban areas. Increasing awareness of environmental issues, coupled with government support for sustainable transport solutions, drives the market. With ongoing projects and government support, the CAGR is expected to be around 20.25% over the next decade.

The Middle East & Africa region is slowly adopting electric buses, with initiatives in countries such as South Africa and the United Arab Emirates. The market growth is primarily due to the increasing investment in smart cities and sustainable public transport solutions by governments. The growth rate is projected to be around 15.21%, influenced by gradual policy shifts towards green energy and sustainable transport.

logoElectric Bus Market: Competitive Landscape

Some of the main competitors dominating the global electric bus market include;

  • AB Volvo
  • Ashok Leyland Ltd.
  • BYD Company Ltd.
  • Daimler Truck AG
  • Hyundai Motor Company
  • King Long
  • Man Se
  • Nissan Motor Corporation
  • Olectra Greentech Ltd.
  • Proterra       
  • TATA Motors Ltd.
  • Zhengzhou Yutong Bus Co., Ltd.

The global electric bus market is segmented as follows:

logoBy Vehicle Type Segment Analysis

  • Battery Electric Buses
  • Hybrid Electric Buses

logoBy Range Segment Analysis

  • Short-range (<150 miles)
  • Long-range (>150 miles)

logoBy Battery Technology Segment Analysis

  • Lithium-ion Batteries
  • Solid-state Batteries

logoBy End-Use Segment Analysis

  • City Transit Buses
  • Intercity Coaches

logoBy Ownership Segment Analysis

  • Public
  • Private

logoBy Regional Segment Analysis

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • The Middle East & Africa
    • Saudi Arabia
    • UAE
    • Egypt
    • Kuwait
    • South Africa
    • Rest of the Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America

Industry Major Market Players

  • AB Volvo
  • Ashok Leyland Ltd.
  • BYD Company Ltd.
  • Daimler Truck AG
  • Hyundai Motor Company
  • King Long
  • Man Se
  • Nissan Motor Corporation
  • Olectra Greentech Ltd.
  • Proterra       
  • TATA Motors Ltd.
  • Zhengzhou Yutong Bus Co., Ltd.

Frequently Asked Questions

The electric bus market is experiencing significant growth due to several factors. Firstly, growing environmental concerns and government regulations aimed at curbing emissions are pushing for cleaner transportation options. Secondly, advancements in battery technology are extending the range and efficiency of electric buses, making them more practical.
The global electric bus market is growing at a CAGR of around 17.9% during the forecast period (2024-2032).
According to Facts & Factors, the global electric bus market size was estimated at approximately US$ 39.45 billion in 2023 and is expected to generate revenue of around US$ 174.26 billion by 2032.
Asia Pacific region will dominate the global electric bus market.
Some major players covered in the global electric bus market are; AB Volvo, Ashok Leyland Ltd., BYD Company Ltd., Daimler Truck AG, Hyundai Motor Company, King Long, Man Se, Nissan Motor Corporation, Olectra Greentech Ltd., Proterra, TATA Motors Ltd., Zhengzhou Yutong Bus Co., Ltd., and others.
The global electric bus market is a comprehensive study of market definitions, growth drivers, opportunities, and challenges. It covers the geographical and competitive dynamics of the global marketplace.