Electric Bus Market Size

Electric Bus Market size was over USD 38.65 billion in 2024 and is projected to cross USD 342.63 billion by the end of 2037, witnessing more than 19.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of electric bus is estimated at USD 44.62 billion. 

The growth of the market is primarily attributed to the dynamically growing demand for zero-emission buses (ZEBs) in the transport sector, owing to the rising emission of greenhouse gases worldwide, followed by the surging demand for fuel-efficient buses, is also propelling the growth of the market. For instance, as per 2020 data, it was found that transportation is responsible for almost 28% of greenhouse gas emissions globally. The zero-emission buses utilize electricity to power the battery, and they do not use any fossil fuels that release harmful gases. Also, the use of electric vehicles will reduce greenhouse gas emissions. Oil, petrol, or diesel consumption will produce combustion of these fuels that increase the percentage of greenhouse gases in the environment.

The cost of maintenance and electricity price of these vehicles is lower than any conventional fuel vehicle. With the increasing demand for transportation automobiles, electric buses are one of the best and most efficient vehicles for passengers. With the rising demand for fuel-efficient transport systems along with lower maintenance costs, the demand for the electric bus is on the rise amongst the mobility service providers, which in turn, is expected to generate huge revenue opportunities for the prominent market players in the global electric bus market in the coming years. As per research conducted in 2020 in the United States, switching from a diesel to an electric bus is forecasted to save USD 150,000 in fuel and over USD 180,000 in maintenance over the bus’s lifetime. Besides this, increasing initiatives and support from the governments of nations for achieving zero emissions is another major factor that is also boosting the growth of the market during the projected timeframe.