NEW YORK, Oct. 6, 2021 /PRNewswire/ -- The global electric bus market registered 82,604 unit sales in 2020, and it is predicted to rise at a CAGR of 14.9% from 2021 to 2026, according to the market research report published by P&S Intelligence.
The major factors driving the global market are:
1. Falling Prices of Batteries: As per various industry experts, the average cost of lithium-ion battery packs for large orders fell to nearly $150 per kilowatt-hour (kWh) in 2020 from around $600/kWh in 2015. Since the battery accounts for nearly 40% of the total manufacturing cost of an electric bus, any reduction in its price will allow automotive manufacturers to reduce the cost of these vehicles, which will, in turn, propel the electric bus market sales volume.
2. Burgeoning Need for Greener Environment: The extensive usage of fossil-fuel-powered vehicles has caused rapid environmental deterioration, which is one of the major factors responsible for the rising incidence of lung diseases. Thus, in order to mitigate the escalating air pollution levels, the governments of many countries are encouraging the deployment of electric buses. For instance, the Indian government has provided $486 million in incentives for supporting the deployment of 7,090 such automobiles in the country.
The battery electric bus (BEB) category dominated the global electric bus market during the last few years, under the vehicle segment, and this trend is predicted to continue in the forthcoming years. The deployment of these vehicles has increased massively in recent years because of the provision of government subsidies and other financial incentives. In addition, major automotive companies are incorporating BEBs in their product portfolio, which is also supporting the advance of the category.
Asia-Pacific (APAC) held the largest share in the electric bus market in the past, mainly because of the large-scale deployment of these vehicles in China. This was because of the enactment of supportive policies and provision of financial incentives by the government for the replacement of traditional diesel, petrol, and natural gas buses with greener variants. Moreover, many other regional countries are aiming to electrify their public fleets in the coming years.
In the near future, North America is expected to be the fastest-growing electric bus market on account of the enactment of strict emission regulations in the region. Currently, in North America, the procurement rate of hybrid electric buses (HEBs), plug-in hybrid electric buses (PHEBs), and BEBs is higher in the U.S. Essentially, the provision of tax credits and subsidies by the federal as well as the state governments is positively impacting the sales of these automobiles in the country. Furthermore, the U.S. government has mandated emission tests and announced an exemption from toll charges, for encouraging the deployment of electric buses.
The major companies in the electric bus market are Proterra Inc., Zhongtong Bus & Holding Company Limited, Solaris Bus & Coach S.A., Beiqi Foton Motor Co. Ltd., Zhengzhou Yutong Bus Co. Ltd., BYD Company Limited, Dongfeng Motor Corporation, AB Volvo, Tata Motors Limited, Ashok Leyland Limited, and Olectra Greentech Ltd.
Across the globe, the sales of electric trucks were observed to be the highest in the Asia-Pacific (APAC) region during the last few years. In this region, the demand for these vehicles was found to be the highest in China in the past years and this trend is likely to continue in the forthcoming years as well.
Globally, the electric bus charging station market registered the highest growth in Asia-Pacific (APAC) in the past, due to the large-scale deployment of electric buses in China. In the forthcoming years, the demand for electric bus charging stations will rise rapidly in North America.
P&S Intelligence is a provider of market research and consulting services catering to the market information needs of burgeoning industries across the world. Providing the plinth of market intelligence, P&S as an enterprising research and consulting company, believes in providing thorough landscape analyses on the ever-changing market scenario, to empower companies to make informed decisions and base their business strategies with astuteness.