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The transportation industry is undergoing a significant transformation, driven by the growing shift toward sustainability. One of the most significant developments in recent years is the rise of electric buses in public transportation systems globally. These buses offer a cleaner, more energy-efficient alternative to traditional diesel-powered buses, contributing to reductions in greenhouse gas emissions and air pollution.
In 2025, the automotive electric bus market is expected to grow significantly, driven by supportive government policies, advances in battery technology, and increasing demand for eco-friendly public transportation options. According to recent estimates, the global automotive electric bus market is projected to reach USD 13 billion by 2025, with a 10% annual growth rate.
This article will explore the global automotive electric bus market, provide regional insights, examine the growth opportunities, and delve into the profiles of the major companies that are shaping the sector.
Automotive Electric Bus Market was valued at USD 12,028.29 million in 2023 and is projected to reach USD 13,747.14 million in 2024, with growth anticipated to reach USD 40,009.53 million by 2032, reflecting a CAGR of 14.29% during the forecast period [2024-2032].
What is the Automotive Electric Bus Industry?
The automotive electric bus industry involves the manufacturing, development, and deployment of electric buses, which use electric motors powered by energy stored in batteries. These buses are increasingly being seen as a solution to reduce greenhouse gas emissions, decrease reliance on fossil fuels, and improve the sustainability of public transportation systems.
The core advantages of electric buses include lower operational costs compared to diesel buses, zero tailpipe emissions, reduced noise pollution, and long-term cost savings. Electric buses typically require less maintenance and are quieter, making them more suitable for urban areas. The primary challenge for the industry remains the high initial investment and the development of adequate charging infrastructure.
In 2025, it is expected that the electric bus market will see substantial growth, driven by the increasing need for energy-efficient and environmentally friendly transportation solutions.
How Big is the Automotive Electric Bus Industry in 2025?
The global automotive electric bus market is projected to reach USD 13 billion by 2025. This growth represents a 10% annual increase from the market size of USD 8.5 billion in 2020. The market is primarily being driven by rising governmental initiatives and the global push for reducing carbon footprints.
North America and Europe are expected to account for significant portions of this market. In North America alone, the market is expected to grow to USD 3 billion by 2025, largely due to government incentives and policies that encourage the adoption of electric vehicles. In Europe, the electric bus market is expected to grow to USD 3 billion as well, driven by the European Union's aggressive sustainability goals and urban transit initiatives.
China is the largest market for electric buses, with over 300,000 electric buses expected to be in operation by 2025, accounting for over 50% of the global fleet. In addition, the Asia-Pacific region is expected to contribute 35% of the market share by 2025.
Key Findings
The global automotive electric bus market is expected to reach USD 13 billion by 2025, growing from USD 8.5 billion in 2020, marking an annual growth rate of approximately 10%. This growth is driven by increased demand for sustainable and energy-efficient public transport solutions. Asia-Pacific is leading the market, with China projected to have over 500,000 electric buses by 2025, accounting for more than 50% of the global electric bus fleet. In North America, the market is anticipated to grow to USD 3 billion by 2025, primarily driven by U.S. policies such as the USD 5 billion allocated for electric bus deployment through the Infrastructure Investment and Jobs Act. The U.S. is on track to electrify a significant portion of its bus fleets, with California aiming to achieve 100% electric bus fleets by 2040, and 10,000 electric buses expected in the state by 2025.
In Europe, the electric bus market is set to grow to USD 3 billion by 2025, representing 25% of the global market. The European Union’s aggressive sustainability goals and the adoption of zero-emission vehicles in cities like London and Paris will accelerate the adoption of electric buses. The UK alone is committed to purchasing 4,000 electric buses by 2025, part of its larger push to ensure all new buses are zero-emission by 2030. Additionally, Germany and France are also significantly increasing their electric bus fleets.
China’s dominance in the electric bus sector is further highlighted by the fact that over 300,000 electric buses are expected to be deployed in the country by 2025. The Asia-Pacific region is projected to account for 35% of the global market share by 2025, with countries like India also witnessing a rise in electric bus adoption, particularly in major cities like Delhi and Mumbai, where a goal of replacing 500 diesel buses with electric alternatives by 2025 is in place.
In Latin America, the electric bus market is expected to reach USD 500 million by 2025, with countries like Brazil and Mexico leading the way. São Paulo plans to deploy 1,000 electric buses by 2025, and Mexico City is set to replace 500 diesel buses with electric buses as part of its green transportation initiative. Similarly, in the Middle East & Africa, the region’s market is expected to reach USD 750 million by 2025, driven by the electric bus programs in cities like Dubai, where the city is aiming to have 25% of its public transportation fleet electric by 2030.
The adoption of electric buses is being further supported by advancements in battery technology, which have led to longer-lasting and quicker-charging electric buses. These technological advancements have made electric buses more viable for city transit systems. Additionally, the charging infrastructure needed to support these buses is rapidly expanding. Proterra Inc., for example, has already deployed over 1,000 electric buses across North America, and BYD, the largest electric bus manufacturer, has delivered buses to over 50 countries and is focusing on scaling production to meet rising global demand.
Governments worldwide are offering incentives to public transit agencies to adopt electric buses. For example, in the U.S., the Biden administration has allocated USD 5 billion to support electric bus programs. In Europe, countries such as the UK and Germany are making significant investments in electric bus fleets to reduce carbon emissions and meet their sustainability goals. As a result, electric buses are projected to play an increasingly central role in urban public transport systems by 2025.
USA: A Growing Automotive Electric Bus Market
The U.S. automotive electric bus market is expected to reach USD 3 billion by 2025. The U.S. is witnessing significant growth in the adoption of electric buses, thanks in part to government initiatives like the USD 5 billion allocated to transit agencies as part of the Infrastructure Investment and Jobs Act. Major cities like Los Angeles, New York, and San Francisco have already begun deploying electric buses to meet their environmental and public health goals.
In California, which has set the goal to have 100% of buses in its fleet electric by 2040, the demand for electric buses is expected to grow sharply, supported by rebates, grants, and other government incentives. The electric bus fleet in California alone could surpass 10,000 buses by 2025, accounting for nearly 35% of the total electric buses in North America.
Regional Market Share and Opportunities
North America
North America is one of the largest markets for electric buses, projected to account for 30% of the global market share by 2025. This equates to a value of USD 3 billion, driven by strong demand from both the U.S. and Canada.
The opportunity for electric buses in North America is substantial, given the federal and state-level incentives available for public transit agencies. Additionally, cities in North America are implementing ambitious policies aimed at reducing carbon emissions, increasing investments in EV charging infrastructure, and promoting public transportation electrification.
Europe
Europe represents 25% of the global automotive electric bus market, estimated to reach USD 3 billion by 2025. The European Union’s aggressive sustainability goals have contributed to the adoption of electric buses, with countries like Germany, the UK, and France making substantial investments in electric bus fleets.
Key markets like London, Paris, and Berlin are leading the way in deploying electric buses. For example, the UK has committed to purchasing 4,000 electric buses by 2025, while France plans to have 100% of its new buses be electric by 2030. These policies are driving the transition to electric buses in Europe.
Asia-Pacific
The Asia-Pacific region is expected to account for 35% of the global electric bus market share by 2025, making it the largest regional market. In China, the market is expected to surpass USD 6 billion by 2025, as the country continues to lead the world in the adoption of electric buses.
China is expected to have more than 500,000 electric buses in operation by 2025, constituting more than 50% of the total global electric bus fleet. The government’s incentives, such as subsidies and tax exemptions for electric vehicle manufacturers, have contributed to this rapid expansion.
India is also seeing a rise in electric bus adoption, with major cities like Delhi and Mumbai launching electric bus fleets. By 2025, India’s market is expected to be valued at USD 2 billion, accounting for 10% of the Asia-Pacific share.
Latin America
Latin America’s electric bus market is expected to reach USD 500 million by 2025, accounting for 5% of the global market share. Key markets in the region include Brazil and Mexico, where government policies are beginning to promote the electrification of public transport.
In Brazil, São Paulo is deploying 1,000 electric buses by 2025, contributing to the region's growth. Mexico City is also planning a major shift to electric buses as part of its initiative to reduce air pollution, with a goal of replacing 500 diesel buses with electric buses by 2025.
Middle East & Africa
The Middle East and Africa’s electric bus market is projected to reach USD 750 million by 2025, representing 5% of the global market share. The demand for electric buses is growing in cities like Dubai and Cape Town, where governments are increasing their focus on sustainability and cleaner transportation.
In the UAE, Dubai has introduced an electric bus fleet as part of its goal to have 25% of its public transport fleet be green by 2030. South Africa is also seeing an uptick in electric bus adoption, with Cape Town planning to roll out 200 electric buses by 2025.
Global Growth Insights unveils the top List Global Automotive Electric Bus Companies:
| Company Name | Headquarters | Electric Bus Fleet Size (2025 Projection) | Key Focus Areas | Market Share |
|---|---|---|---|---|
| Nanjing Jiayuan EV | Nanjing, China | Expected to be one of China’s largest manufacturers, with over 10,000 electric buses in 2025 | Expanding electric vehicle production, cost-efficiency, battery technology | Leading Chinese electric bus producer, strong domestic market presence |
| Zhengzhou Yutong | Zhengzhou, China | Over 10,000 electric buses delivered globally by 2025 | Global expansion, high-quality electric buses for urban transit | Largest electric bus fleet globally, over 50% of China’s electric buses |
| Daimler (Mercedes-Benz) | Stuttgart, Germany | Over 2,500 electric buses in Europe by 2025 | Electric bus development, zero-emission vehicles, European market | Strong presence in Europe, with a focus on sustainable urban transit |
| Iveco | Turin, Italy | Over 2,000 electric buses in Europe by 2025 | Zero-emission vehicles, bus manufacturing for European cities | Leading European electric bus manufacturer, expanding presence |
| BYD | Shenzhen, China | Over 25,000 electric buses globally by 2025 | Global leader in electric buses, battery technology, environmental sustainability | Dominant in China and global markets, major expansion in North America and Europe |
| Anhui Ankai Automobile | Anhui, China | Expanding fleet, focusing on both domestic and international markets | Electric buses, hybrid vehicles, and transit solutions | Top-tier producer in China, gaining global market share |
| New Flyer Industries | Winnipeg, Canada | Delivering 1,000+ electric buses in North America by 2025 | North American market, bus fleet electrification | Leading North American manufacturer, major expansion in electric vehicles |
| Scania | Södertälje, Sweden | Increasing fleet in Europe, with focus on high-performance electric buses | Sustainable solutions, European urban transit solutions | Strong presence in European market, with increasing focus on electrification |
| Shandong Yi Xing Electric Automobile | Shandong, China | Expanding electric bus fleet domestically and in Southeast Asia | Affordability, international expansion, electric vehicle manufacturing | Growing international presence, especially in Southeast Asia |
| Proterra Inc. | Burlingame, California, USA | Over 1,000 electric buses in North America by 2025 | Electric vehicle battery technology, North American public transportation | Leading in North American electric bus market |
| Zhongtong Bus | Shandong, China | Expanding electric buses in Europe, North America, and Asia | Electric buses for urban transportation, sustainability initiatives | Increasing presence in international markets, especially in Europe |
| Volvo | Gothenburg, Sweden | Expanding electric bus fleet in Europe by 2025 | Global electrification, European market leadership, zero-emission vehicles | Strong presence in Europe, aiming for 100% electric buses by 2030 |
| Ryobi Bus | Tokyo, Japan | Expanding electric bus presence in Japan and Southeast Asia | Electric buses, expanding into Southeast Asia, sustainability | Emerging presence in the Asian electric bus market |
| Wright Group | Leeds, UK | Deploying electric buses in the UK and expanding into Australia | Innovative bus designs, electric vehicle solutions for urban transit | Strong in the UK market with expansion into international markets |
Conclusion
The automotive electric bus market is set to experience significant growth by 2025, driven by increasing demand for sustainable transportation solutions, government support, and technological advancements. The market is growing in all regions, with China, North America, and Europe leading the charge. As key players like BYD, Proterra, and Yutong expand their market share, electric buses are poised to transform urban transportation systems worldwide, providing cleaner, more energy-efficient solutions for cities and reducing the environmental impact of public transportation.