Do Electric Buses Spearhead The Transformation Of Transportation Sector?

T Murrali
06 May 2024
11:01 AM
2 Min Read

The recent report from Meticulous Research highlights the surge in market volume, which is expected to reach 341,601 units by 2031, growing at a CAGR of 22.4%.


The shift towards sustainable transportation has reached a pivotal moment as the global electric bus market is projected to soar to $100.39 billion by 2031, exhibiting a robust compound annual growth rate (CAGR) of 23.4% from 2024, according to a detailed report by Meticulous Research. This significant growth underscores the increasing commitment to environmental sustainability and the adoption of cleaner transport solutions worldwide.

The comprehensive report, titled ‘Electric Bus Market by Propulsion Type, Battery Type, Bus Length, Power Output, Sector & Geography—Forecasts to 2031', highlights the surge in market volume, expected to reach 341,601 units by 2031, growing at a CAGR of 22.4%. The burgeoning demand is fueled by three main types of electric buses: battery electric, hybrid, and fuel cell, each playing a crucial role in reducing urban carbon emissions and enhancing air quality.

Electric buses, powered by innovative battery technologies such as lithium nickel manganese cobalt oxide (NMC) and lithium iron phosphate (LFP), are set to dominate the market. The report anticipates that in 2024, battery electric buses will capture the largest market share at 65%, driven by stringent emission standards and substantial Government support, such as India’s PM-eBus Sewa Scheme which plans to deploy 10,000 electric buses across multiple cities with an investment of $2.4 billion. In India, presently, around 4,000 electric buses are operational on Indian roads, compared to 2.3 million diesel and CNG buses. Electric buses are commercial vehicles that use electric motors powered by batteries instead of internal combustion engines.

Segment Analysis

The market segmentation reveals that medium-sized buses (9 m–12 m) are expected to lead, due to their widespread use in public transport systems and the focused development efforts by major industry players. Similarly, the 200 kW to 400 kW power output segment is predicted to dominate, reflecting the growing implementation of robust and fast charging solutions that cater to the high-energy demands of electric buses.

The sector-wise analysis indicates a dominance of the public sector, which is projected to hold an 82% share of the market in 2024. This is largely due to increasing Government initiatives aiming to integrate electric buses into public transit systems to meet zero-emission goals and improve fuel efficiency.

Regional Dynamics

Geographically, Asia-Pacific is poised to lead the charge, with the market value estimated to hit around $19 billion in 2024. This dominance is attributed to aggressive policy frameworks, rising environmental awareness, and the strong presence of leading electric bus manufacturers. Countries like Japan are actively enhancing their public transportation networks with electric buses, emphasising the regional commitment to climate goals and sustainable development.

Industry Leaders

Prominent companies shaping this electric revolution include BYD, Yutong Bus Co., Ltd., and Volvo Group, NFI Group Inc. (Canada), Solaris Bus & Coach sp. z o.o. (Poland), Daimler Truck Group (Germany), Tata Motors Limited (India), Switch Mobility (India), Olectra Greentech Limited (India), Hyundai Motor Company (South Korea), Ebusco B.V. (Netherlands), Xiamen King Long United Automotive Industry Co., Ltd (China), Anhui Ankai Automobile Co., Ltd. (China), Zhongtong Bus Holding Co., Ltd. (China) and MAN Truck & Bus SE (Germany).

These industry giants are continuously innovating and expanding their global reach to meet the escalating demand for electric buses, ensuring a competitive and dynamic market landscape.


The electric bus market is at the forefront of the transportation sector's transformation, driven by technological advancements, Governmental support, and growing environmental consciousness. As this market continues to expand, it promises not only a greener future but also a dynamic arena for technological innovation and international cooperation in the quest for sustainable mobility solutions.

NB: Photo is representational; courtesy: Switch Mobility.

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