According to a recent report published by Allied Market Research, titled, “Electric Bus Market by Propulsion Type, Length, Range, Battery Capacity, and Power Output: Opportunity Analysis and Industry Forecast, 2020–2027”, the global electric bus market was valued at $17.95 billion in 2019, and is projected to reach $31.45 billion by 2027, registering a CAGR of 12.6% from 2020 to 2027.
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Asia-Pacific dominates the market in terms of revenue, followed by Europe, North America, and LAMEA. In Asia-Pacific, China dominated the electric bus market in 2019, whereas South Korea is expected to witness growth at a significant rate during the forecast period.
Electric buses use batteries for their operation. The cost of the battery is one of the important factors that decides the final price of the e-bus. Also, battery pack cost contributes a significant share in the final cost of the bus. Battery packs generally contribute 30-50% of the final cost of the bus and hence, are considered as an important cost component, which impacts the growth of the electric bus market. Since 2014 till present, the battery pack prices have fallen drastically owing to the technological advancements. The prices are expected to decrease further in near future, which is expected to drive the growth of the market.
Electric buses are advantageous over conventional buses, however cost of the former is higher than gas-powered vehicles. This is because these vehicles have not been mass produced and are yet to witness economies of scale. Also, the unavailability of infrastructure related to electric vehicle growth has proved to be a negative factor, which hampers the growth of the electric bus market. In line with the same,
manufacturing of electric buses requires higher investments, which also affects the growth of the market.
The range of distance covered by a gas-powered vehicle on a full tank is more than the range of electric vehicle, which is fully charged. In addition, the availability of refueling of the buses is higher for the gas-powered vehicles owing to the existing fuel station infrastructure, which can be accessed easily and also can be refueled with diesel in a couple of minutes. The efficiency of the gas-powered vehicle may be less than the electric vehicles, but it out performs the electric vehicle in terms of long range and ease of refueling in shorter time.
COVID-19 impact analysis:
- Due to COVID-19 pandemic, the E-bus market has been affected as the supply chain has been disrupted.
- Due to the imposed lockdown, e-bus manufacturing units across the globe have halted their production, which has affected the demand of the E-buses across the region.
- The unavailability of skilled labor has also affected the electric bus market as people preferred to maintain social distancing and avoid travelling due to restrictions; thus, affecting the production of the E-bus.
Key Findings Of The Study
- In 2019, by range, the less than 200 segment generated the highest revenue.
- In 2019, by battery capacity, the up to 400 kWh segment was the highest revenue contributor.
- In 2019, by power output, the up to 250 Kw segment was the highest revenue contributor.
- In 2019, region-wise, Asia-Pacific contributed the highest revenue, followed by Europe, North America, and LAMEA.
The key players analyzed in the electric bus market report include AB Volvo, Ankai Bus, BYD Company Ltd., Construcciones y Auxiliar de Ferrocarriles, S.A., Daimler AG, NFI Group Inc., Proterra, VDL GROEP BV, Yutong Group, and Zhongtong Bus Holdings Co., Ltd.