Electric Bus Market Trends: Transforming Global Urban Mobility by 2030
The Electric
Bus Market Trends has witnessed substantial
growth in recent years, driven by the global shift towards sustainable
transportation and the reduction of carbon emissions. Governments across the
world are implementing strict regulations and offering incentives to promote the
adoption of electric buses in urban areas. With advancements in battery
technology, charging infrastructure, and a push for cleaner public transport
solutions, the electric bus market trends is
expected to expand significantly over the next decade.
As cities aim to modernize public
transportation systems, the electric
bus market trends is projected to see continued growth. Fleet
operators are transitioning to electric buses to meet environmental targets,
reduce operational costs, and improve air quality. Additionally, the increasing
demand for zero-emission public transport solutions is propelling investments
in electric bus manufacturing and innovation, further boosting the electric bus market trends
globally.
The global electric bus market is
projected to be USD 17.0 billion in 2024 and to grow to USD 37.5 billion by
2030, at a compound annual growth rate (CAGR) of about 14.2%.
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LFP Battery type is expected
to be the largest market by 2030.
Lithium Iron Phosphate (LFP)
batteries are estimated to be dominating the electric bus market during the
forecast period. This is mainly due to the larger demand for electric buses in
the Chinese market (more than 60% of the global demand) which primarily LFP
battery chemistry is predominantly favored in the domestic market. The LFP
batteries are less expensive compared to other lithium-ion types like NMC or
NCA. The main factor causing this disparity in cost is the availability of
abundant raw materials such as iron and phosphate, which are essential for LFP
batteries. Unlike cobalt and nickel, they are more resistant to changes in
price. Furthermore, in China, there is a robust manufacturing industry for LFP
batteries, with top companies like CATL, BYD, and SVOLT Energy Technology Co.,
Ltd leading the way. In addition, LG Energy Solution, Samsung SDI, Panasonic
Corporation, and SK Innovation from South Korea and Japan are also major
players in the area, possessing significant expertise in producing large battery
packs and cells, resulting in cost savings through scale economies and
technological advancements. Other Asian companies, many of them are either
exporting their e-buses or selling the battery technology which leads to
growing adoption of LFP battery chemistry in other regions as well. According
to the IEA, the cost of LFP batteries has been significantly affected by the
sharp rise in prices of battery minerals over the past few years, mainly due to
the increased cost of lithium.Nonetheless, despite the rapid increase in
lithium prices, LFP batteries remain more affordable than Nickel Manganese
Cobalt (NMC) batteries. By 2023, the cost difference between NMC and LFP
batteries has decreased, with NMC batteries now costing less than 25% more than
LFP batteries, compared to a 50% price gap in 2021. The electric bus market
share of LFP batteries is projected to increase significantly as OEMs and
battery manufacturers expand production and enhance LFP battery technology.
The above 400 kWh battery
capacity segment is projected to be the fastest-growing market for electric
buses from 2024 to 2030
Above 400 kWh battery capacity electric buses are estimated
to grow at the fastest CAGR during the forecast period. This range is usually
offered in electric buses for intercity or long-distance commutes. Developments
in battery technologies and the reduction in prices of batteries have
positively impacted the growth of above 400 kWh batteries. Severe weather has a
negative impact on battery performance, requiring larger capacities to maintain
efficiency and range. Buses having larger battery capacities can travel more
without recharging often, which is important in regions with tough weather and
limited charging infrastructure. Long-range electric buses with large capacity
batteries are particularly useful in locations with unreliable infrastructure
for charging. It is expected that government financing and incentives for
electric public transportation projects will favour buses that have larger
battery capacities in order to maximise the efficiency and effectiveness of
these vehicles. The market is anticipated to expand due to falling battery
costs and continuous improvements in battery components.
North America will be the
fastest-growing market for electric buses from 2024-2030.
North America is estimated to be
the fastest-growing market during the forecast period. In North America,
government incentives, the presence of individual investors, and technological
edge are driving the electric bus market. The US has been leading the market in
this region. The market is expanding due to government incentives, tax breaks,
and private investments. The Federal Transit Administration set aside USD 1.7
billion in 2023 for buses, with an emphasis on zero-emission vehicles, even
though European acceptance lags lag. This shift is further supported by the USD
5.6 billion set up in the Bipartisan Infrastructure Law for cleaner buses. make
at least one-third of its 70,000 public transit buses electric by 2045.
Key Market Players:
The report profiles key players
such as BYD Company Ltd. (China), Yutong Co., Ltd. (China), VDL Groep
(Netherlands), AB Volvo (Sweden) and CAF (Solaris Bus & Coach sp. z o.o.)
(Spain). These companies adopted new product development, and supply contract
strategies to gain traction in the terminal tractor market.
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