Electric Mid Large 9 14m Bus Market

Growing need for green mobility solutions is driving the market growth

Market CAGR for electric mid- and large (9-14m) bus is being driven by the rising number of green mobility. One significant factor is the growing demand for zero-emission automobiles. Cleaner transportation solutions are becoming more popular as environmental concerns grow. Sustainable transportation is being actively promoted by governments across the globe. To stimulate the use of electric mid- and large buses, policies include tax exemptions, subsidies, and investments in the infrastructure necessary for charging them. Public transportation systems that are both sustainable and efficient are necessary due to the growing population density of cities.

Electric buses are essential since they produce no pollutants and are appropriate for urban settings.

Additionally, the use of electric mid- and large buses is expected to increase due to a number of causes, including government purchase incentives, tax exemptions, low-emission zone establishment, strict emission rules, and falling battery prices. The growth of a worldwide supply chain for buses with alternative power trains has been made easier by the increased popularity of electric transit buses. The growing need for zero-emission vehicles, especially in highly crowded metropolitan areas, will fuel the market for electric mid- and large (9-14m) buses for intra-city passenger transit.

It is important to note that the price of batteries is strongly correlated with their capacity. Although high-capacity batteries were initially more expensive, continuous price decreases have made them more affordable for end users.

Operators and communities will notice a dramatic change in how they make purchases for electric mid- and large (9-14m) buses. Due to the higher CAPEX cost of the bus and the need for long-term battery and infrastructure support, this will see a shift from CAPEX to OPEX-based purchasing, including the use of new business models like "bus-as-a-service," "battery-as-a-service," and "depot-as-a-service." NXP's Misfire introduced smartcards and NFC ticketing systems for public transportation operators. The initial transit cards are no longer required in the majority of cities.

Electric buses, both mid- and large-sized, must choose between lengthier charging times and a reduced driving range between charges. The performance and lifespan of the batteries have a significant impact on the cost and effectiveness of these buses.

For instance, a significant increase in global production of batteries for electric mid- and large buses with a 100 kWh capacity for Battery Electric Vehicles (BEVs) from 25,000 to 100,000 units annually has the potential to significantly reduce the cost of producing battery packs per kilowatt-hour by 13%, which is almost one-third less than the current price of USD 300/kWh, according to the International Energy Agency (IEA). This resulted in driving the electric mid- and large (9-14m) bus market revenue.

Government incentives and regulations play a crucial role in shaping the Global Electric Mid- and Large (9-14m) Bus Market Industry. Various countries are implementing policies that promote the adoption of electric buses, including tax credits, grants, and subsidies for manufacturers and operators. For example, the European Union has set ambitious targets for reducing carbon emissions, which encourages municipalities to invest in electric bus fleets. These regulatory frameworks not only facilitate market entry for electric buses but also enhance their competitiveness against conventional vehicles. Consequently, the market is expected to grow significantly, with projections indicating a value of 59.3 USD Billion by 2035.

Urbanization is a significant driver of the Global Electric Mid- and Large (9-14m) Bus Market Industry. As cities expand and populations grow, the demand for efficient public transport solutions intensifies. Electric buses offer a sustainable alternative to meet the increasing transit needs of urban populations. For instance, cities in Asia and Europe are investing heavily in electric bus fleets to alleviate congestion and reduce pollution. This trend is expected to continue, with urban areas increasingly adopting electric buses as part of their public transport strategies. The market's expansion is indicative of the broader shift towards sustainable urban mobility solutions.

Rising fuel prices and operational costs are compelling transit authorities to consider electric buses within the Global Electric Mid- and Large (9-14m) Bus Market Industry. As fossil fuel prices fluctuate, the cost-effectiveness of electric buses becomes more pronounced. Electric buses typically have lower operating costs due to reduced fuel expenses and maintenance requirements. For example, the total cost of ownership for electric buses can be significantly lower than that of diesel buses over their lifespan. This economic advantage is prompting more public transport operators to transition to electric fleets, thereby accelerating market growth.

The Global Electric Mid- and Large (9-14m) Bus Market Industry is experiencing a surge in demand for sustainable transportation solutions. Governments worldwide are increasingly prioritizing environmental sustainability, leading to the adoption of electric buses as a viable alternative to traditional diesel buses. For instance, cities like Los Angeles and London have committed to transitioning their public transport fleets to electric by 2030. This shift not only aims to reduce greenhouse gas emissions but also to improve urban air quality. As a result, the market is projected to reach 11.3 USD Billion in 2024, reflecting the growing emphasis on eco-friendly public transport options.

Technological advancements in battery technology are pivotal for the Global Electric Mid- and Large (9-14m) Bus Market Industry. Innovations in lithium-ion batteries and the development of solid-state batteries are enhancing the efficiency, range, and charging times of electric buses. For instance, improvements in energy density allow electric buses to travel longer distances on a single charge, making them more appealing to transit authorities. Additionally, rapid charging technologies are reducing downtime, further increasing operational efficiency. These advancements are likely to drive market growth, contributing to a compound annual growth rate of 16.24% from 2025 to 2035.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Electric Mid- and Large (9-14m) Bus market area will dominate this market, owing to an increase in the need to reduce emissions, particularly in highly populated urban centers.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ELECTRIC MID- AND LARGE (9-14M) BUS MARKET SHARE, BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Electric Mid- and Large (9-14m) Bus market has the second-largest portion of the market. As they produce no emissions, and electric buses are ideal for these zones. Further, the German Electric Mid- and Large (9-14m) Bus market had the biggest market share, and the UK Electric Mid- and Large (9-14m) Bus market was the European market with the quickest rate of growth.

The Asia-Pacific Electric Mid- and Large (9-14m) Bus Market is anticipated to expand between 2024 and 2032 at the quickest CAGR. This is due to strong government backing for the widespread adoption of electric buses in the form of financial incentives. Moreover, China’s Electric Mid- and Large (9-14m) Bus market held the largest proportion of the market, and the Indian Electric Mid- and Large (9-14m) Bus market was the Asia-Pacific region's fastest-growing market.

Leading market players are putting a lot of money into research and development to expand their product lines, which will drive the market for electric mid- and large (9-14m) bus to expand even further. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, the electric mid- and large (9-14m) bus industry must provide reasonably priced goods.

Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the global electric mid- and large (9-14m) bus industry to help customers and expand the market segment. In recent years, the electric mid- and large (9-14m) bus industry has provided some of the biggest benefits to medicine. Major players in the electric mid- and large (9-14m) bus market, including BYD (China), Yutong (China), CAF (Solaris) (Spain), VDL Groep (Netherlands), and AB Volvo (Sweden), Continental AG (Germany), Bridgestone, Michelin, are engaging in research and development activities in an effort to boost market demand.

A worldwide French tire manufacturer, Michelin SCA ("General Company of the Michelin Enterprises P.L.S."), is situated in Clermont-Ferrand in the Auvergne-Rhône-Alpes region of France. It is bigger than both Goodyear and Continental and ranks as the world's second-largest tire maker after Bridgestone. In May 2019, Michelin confirmed the impending closure of its operations in France and Germany.

Japanese multinational manufacturer Bridgestone Corporation was established in Kurume, Fukuoka, Japan, in 1931 by Shojiro Ishibashi (1889–1976). The Japanese word Ishibashi, which means "stone bridge," is translated and transposed to become the name Bridgestone. It makes golf equipment and tires as its main products. In April 2020, Bridgestone Americas announced intentions to resume its North American commercial tire factories as well as its North American Firestone Industrial Products and Firestone Building Products production facilities owing to demand from vital service providers during the COVID-19 outbreak in Tennessee.