Electric Bus Market Trends

Growth Drivers

• Rising Penetration of Electric Buses with Increasing Environmental Concern – For instance, electric buses are more economical than conventionally fueled buses. An electric bus converts more than 50% of the electric energy from the grid power at the wheels. The increasing penetration of electric buses worldwide is expected to propel the global electric bus market in the forecasted period.
• Upsurge in the Development of Charging Stations with Increasing Electric Vehicles – For instance, the United States is expected to develop nearly 500,000 more public charging stations to meet electric vehicle growth by 2030.
• Growing Cost of Congestion on the Roads with a Rising Number of Vehicles – For instance, it is estimated that congestion costs more than USD 100 billion annually to the European Union economy.
• Increasing Number of Electric Buses Across the World – For instance, in 2019, there were more than 420,000 electric buses on the road in China.
• Upsurge in Government Initiatives for Electric Vehicles - For instance, the Indian government has developed a variety of EV Subsidy Programs and launched FAME (Faster Adoption and Manufacturing of Electric Vehicles), which have contributed to the rapid adoption of electric scooter and motorcycles to Indian roadways.

Challenges

• High Cost of Production - The initial production cost of electric buses and associated components such as battery management systems is higher than that of conventional buses, which is estimated to hinder the market growth over the forecast period.
• Lack of Infrastructure for Electric Buses
• Concern about Battery Efficiency in High Temperature