The report forecasts the global low-floor hybrid bus market to grow at a CAGR of 15.77% during the period 2016-2020.
The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Ultra-capacitors used for energy storage and discharge function in the battery packs of hybrid buses are a highly attracted futuristic trend. Ultra-capacitors are energy storage devices, which unlike a battery, stores energy through an electric field, whereas a battery stores energy through a chemical reaction. As ultra-capacitors conduct electricity through an electric field, it can store higher charge quantity compared with a battery. Thus, the ultra-capacitor has higher energy density and 30%-40% reduced cost than normal Li-ion battery pack. They can fast recharge the batteries of hybrid buses, mostly suitable in urban areas where there is a stop in every few meters.
According to the report, the Canadian government has initiated Transport Electrification Action Plan 2015-2020, under which $420 million is invested to electrify the public transports. It will support the public transport showcase projects from private sector vendors. The Japanese government provides acquisition tax exemption, tonnage tax exemption, and subsidies up to $1,100 on low-emission vehicle purchases.
Further, the report states that the high initial investment/cost of a purchase associated with hybrid bus hinders the global low-floor hybrid bus market growth. Hybrid bus costs are almost double than a conventional diesel and CNG bus. The high cost of battery packs in hybrid buses are the major reason for this increased cost of the hybrid bus.