Trystan Casey
Electric buses are becoming an increasingly common sight around the world. As of 2019, about 17% of the world's buses were electric—425,000 in total. The vast majority of these (99%) are in China, where government initiatives have encouraged the uptake of electric vehicles. However, other countries are also making the transition to electric buses, including the US, Germany, and the UAE. Electric buses offer several advantages over diesel buses, including reduced noise and pollution, and the ability to recharge kinetic energy during braking, which reduces brake wear. As the market for electric buses grows, it will be interesting to see how this technology continues to shape public transportation worldwide.
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What You'll Learn
Electric bus market growth
The global electric bus market is projected to witness significant growth in the coming years. Valued at USD 29 billion in 2021, it is expected to reach USD 105 billion by 2028, growing at a CAGR of 20.2%. By 2032, the market size is forecast to hit USD 187 billion, with an estimated value of USD 17 billion in 2024 and USD 37.5 billion by 2030, according to different sources. This growth is driven by several factors, including increasing environmental concerns, government support and initiatives, and the rising demand for zero-emission vehicles.
Government regulations, incentives, and tax exemptions play a crucial role in promoting the adoption of electric buses. For example, the Federal Transit Administration in the United States set aside USD 1.7 billion in 2023 for buses with an emphasis on zero-emission vehicles, and the Bipartisan Infrastructure Law provided USD 5.6 billion for cleaner buses. Additionally, the Clean School Bus Program of the U.S. Environmental Protection Agency offers funding to replace existing school buses with alternative fuel or zero-emission buses. Similar initiatives are being implemented in Canada, with public-private partnerships and tax breaks facilitating the transition to electric buses.
The transportation industry is currently the fastest-growing contributor to greenhouse gas emissions, and electric buses offer a significant advantage by producing zero tailpipe emissions. They also provide a quieter and more comfortable ride, reducing noise pollution. The demand for hydrogen fuel cell electric buses and advancements in battery technologies further contribute to the market's growth prospects.
Manufacturers are also driving market growth by developing electric buses to gain a competitive edge globally. For instance, Yutong, a prominent Chinese manufacturer, delivered 46 battery-electric apron buses to Spain in May 2024, helping the country achieve its green development goals. Other manufacturers, such as Volvo, Irizar, and Mercedes, have also introduced electric bus models, with Volvo beginning the first demonstration of its 100% electric city bus in Latin America in 2023.
The Asia Pacific region is expected to dominate the electric bus market, with leading manufacturers like BYD and Yutong operating across major regions. China, in particular, has been a key driver of electric bus sales, accounting for 80% of global electric bus sales in 2022. Europe is also witnessing significant growth, with the Dutch electric bus market taking the lead and countries like Norway, Belgium, and Switzerland achieving electric bus sales shares above 50% in 2023.
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Electric bus manufacturers
Electric buses are becoming an increasingly important component of transport electrification in cities around the world. The global electric bus market was valued at USD 29 billion in 2021 and is expected to reach USD 105 billion by 2028. In 2022, around 66,000 electric buses were sold worldwide, with China accounting for 80% of these sales.
There are several electric bus manufacturers worldwide, including:
- Irizar: The first European manufacturer to boast a plant focused on e-mobility, Irizar builds the whole electric bus, including components, in-house. The Basque manufacturer's ie bus model has been purchased by the Voyages Emile Weber group in Luxemburg.
- VDL: This Dutch manufacturer was awarded a 55-unit electric bus contract by Rotterdam public transport operator RET in 2018.
- Mercedes: The company showcased its first battery-electric bus, the eCitaro, in 2018, with serial production beginning by the end of that year.
- Scania: Scania unveiled the first LNG coach in the world at IAA Hannover in November 2018. The company has successfully tested its battery-electric Scania Citywide model in the Swedish city of Östersund.
- Volvo: This Swedish manufacturer produces battery-electric buses and was one of the first to realise electric buses, along with VDL, Solaris, and Irizar.
- MAN: MAN is another manufacturer that began producing electric buses in 2019-2020.
- GreenPower Motor Company: This company manufactures several high-floor and low-floor battery-powered bus models.
- New Flyer: New Flyer offers the next-generation battery-electric, zero-emission Xcelsior CHARGE NG™ bus, as well as the fuel cell-electric Xcelsior CHARGE FC™ model.
- Bolloré: This French manufacturer produces the Bluebus SE, available as a standard 12-metre bus or an 18-metre articulated bus, and the 6-metre Bluebus 22.
- Proterra: Proterra manufactures 35 and 40-foot versions of the ZX5 electric bus in Greenville, South Carolina.
Other notable electric bus manufacturers include Gillig, Complete Coach Works, Ebusco, Heuliez Bus, and Astonbus.
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Electric school buses
Electric buses are becoming increasingly popular worldwide, with cities adopting them as a key component of transport electrification. In 2022, around 66,000 electric buses were sold worldwide, with China accounting for 80% of these sales. The global electric bus market is projected to reach USD 19.2 billion in 2022 and is expected to grow at a rate of 13.3% annually, reaching USD 66.5 billion by 2032.
As of June 2022, US school districts have committed to 12,275 electric school buses in 38 states, with every state now planning to transition their school bus fleets to electric models. This number has seen a significant increase since August 2021, when the World Resources Institute (WRI) began tracking school electric buses nationwide. By June 2023, the cumulative figure for electric school buses that have been ordered, delivered, or are operational stood at 2,277.
Several manufacturers are leading the way in the production of electric school buses. Blue Bird Corporation, a technology leader and innovator in the school bus industry since 1927, offers electric buses that can help districts electrify their fleets at a reduced cost. Thomas Built Buses also manufactures electric school buses with innovations that make today's school routes smarter, more efficient, and safer. Their buses are designed with Proterra's lightweight, powerful battery systems, which have proven performance for over 15 million miles on transit buses.
The adoption of electric school buses is being supported by various initiatives and collaborations. The Electric School Bus Initiative aims to ensure that all students have access to clean rides, starting with those most impacted by harmful diesel exhaust pollution. They are working with partners and stakeholders across the country to foster a rapid and equitable transition to electric school buses. Additionally, financial assistance from public and private grants can help make the transition more feasible for districts.
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Electric bus adoption
China has been a pioneer in this regard, with electric bus manufacturers and the Chinese government recognizing early on the need to reduce air pollution from diesel-powered vehicles and decrease reliance on imported oil. In 2016, China registered 340 electric city buses daily, contributing 80% of electric bus sales worldwide in 2022. Europe and the United States have also begun their transition, with the European zero-emission city bus market growing by 45% in the first half of 2024.
The United States is making significant strides, with a focus on electric school buses. By June 2022, US school districts committed to 12,275 electric school buses across 38 states, a tenfold increase from August 2021. Additionally, every state has committed to transitioning their school bus fleets to electric models, and one-third of districts are under mandates to initiate this switch.
India is also projected to be a major player in the electric bus market, with forecasts suggesting it will account for over 10% of global annual demand by 2025, surpassing Europe and North America combined. The Indian government's National Electric Bus Program aims to introduce 50,000 electric buses by 2030.
The shift towards electric buses is not just about numbers; it's about reducing global warming emissions. According to the Union of Concerned Scientists, electric buses produce less than half the global warming pollution of diesel or natural gas buses, even in cities reliant on coal and natural gas power plants. As the market grows and technology advances, electric bus adoption is expected to accelerate, contributing to a cleaner and more sustainable future for public transportation worldwide.
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Electric bus charging infrastructure
Electric buses are becoming increasingly popular worldwide, with around 66,000 sold in 2022, constituting about 4.5% of all bus sales. The global electric bus market is projected to reach USD 105 billion by 2028 and USD 187 billion by 2032. As cities and countries adopt electric buses, the charging infrastructure needs to be in place to support these vehicles.
There are three types of charging infrastructure for battery-electric buses (BEBs): plug-in charging, overhead conductive charging, and wireless inductive charging. These can be installed at maintenance or storage depots, or on the bus route itself. The type of charging infrastructure chosen will depend on various factors, including route structure, bus schedules, depot capacity, and local climate.
For example, long-range BEBs have larger battery packs (250-660 kWh) and are meant to be charged once or twice per day. In contrast, fast-charge BEBs have smaller battery packs (50-250 kWh) and can be charged more frequently with high-powered charges. Electric school buses (ESBs) generally fit into the fast-charge category as they tend to have shorter routes and can be charged during midday breaks.
The upfront costs of purchasing and installing charging infrastructure can be significant, and utility upgrades or maintenance facility modifications may be required. However, the falling price of batteries and government initiatives to decarbonize public transportation are accelerating the adoption of electric buses. Dynamic charging solutions are also being developed, such as the model created by First Bus, where chargers for business customers' cars are used during the daytime while the bus fleet charges overnight.
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Frequently asked questions
As of 2019, there were 425,000 electric buses in the world, with 99% of them in China.
As of 2019, about 17% of the world's buses are electric.
As of 2019, China has the most electric buses, with 99% of the world's electric buses in the country.
Several countries have set deadlines to phase out fossil fuel buses and transition to electric buses. Denmark, New Zealand, and the Netherlands are aiming for 100% zero-emission bus procurement by 2025, while Costa Rica has set a target for 100% bus fleet electrification by 2050.
