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    Europe Electric Bus Market

    ID: MRFR/AM/19886-HCR
    128 Pages
    Garvit Vyas
    September 2025

    Europe Electric Bus Market Research Report Information By Propulsion Type (Battery Electric Bus, Plug-in Hybrid Electric Bus, and Fuel Cell Electric Bus), By Battery Type (Lithium-ion, Nickel-Metal Hydride Battery (NiMH), and Others), By Consumer Type (Government and Fleet Operators),–and Europe Market Forecast Till 2034

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    Europe Electric Bus Market Research Report – Forecast till 2034 Infographic
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    Table of Contents

    Europe Electric Bus Market Summary

    The Europe Electric Bus Market is projected to grow from 3.5 USD Billion in 2024 to 15 USD Billion by 2035, reflecting a robust growth trajectory.

    Key Market Trends & Highlights

    Europe Electric Bus Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 14.14% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 15 USD Billion, indicating substantial investment potential.
    • In 2024, the market is valued at 3.5 USD Billion, laying a solid foundation for future growth.
    • Growing adoption of electric buses due to increasing environmental regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.5 (USD Billion)
    2035 Market Size 15 (USD Billion)
    CAGR (2025 - 2035) 14.14%

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    Europe Electric Bus Market Trends

    Growing public awareness of environmental is driving market growth

    Growing public awareness of the environment, coupled with increasing acceptance of sustainable transportation solutions, is driving the European electric bus market. As people become more informed about the detrimental effects of traditional diesel buses on air quality and public health, there is a growing demand for cleaner and greener alternatives. Electric buses offer a promising solution, providing zero-emission transportation that improves air quality and reduces noise pollution in urban areas. Moreover, passengers are increasingly choosing electric buses for their eco-friendly attributes and smoother, quieter ride experience.

    As a result, public transportation authorities, cities, and communities are embracing electric buses as a vital component of their sustainable mobility strategies, driving the adoption and deployment of electric buses across Europe.

    Increasing urbanization and congestion in European cities are driving the European electric bus market by creating a pressing need for sustainable public transportation solutions. As cities become more densely populated and traffic congestion worsens, there is a growing demand for transportation alternatives that reduce emissions and alleviate congestion. Electric buses offer a clean and efficient mode of public transportation that can help improve air quality, reduce noise pollution, and enhance mobility in urban areas. Moreover, electric buses can access city centers and low-emission zones where diesel vehicles are restricted, making them an attractive option for public transportation operators.

    Therefore, the need to address urbanization-related challenges and create livable, sustainable cities is driving the adoption and deployment of electric buses across Europe.

    The transition towards electric buses in Europe is poised to reshape urban mobility, driven by stringent emissions regulations and a growing commitment to sustainable public transport solutions.

    European Commission

    Europe Electric Bus Market Drivers

    Market Growth Projections

    The Global Europe Electric Bus Market Industry is poised for substantial growth, with projections indicating a compound annual growth rate (CAGR) of 14.14 percent from 2025 to 2035. This growth trajectory reflects the increasing adoption of electric buses across various European cities, driven by supportive policies and technological advancements. The market is expected to reach 3.5 USD Billion in 2024 and expand to 15 USD Billion by 2035. Such figures underscore the potential for electric buses to become a dominant mode of public transport in Europe, aligning with broader sustainability goals and urban mobility strategies.

    Growing Environmental Awareness

    The rising environmental consciousness among consumers and policymakers is a crucial driver for the Global Europe Electric Bus Market Industry. Public demand for cleaner air and reduced noise pollution has prompted cities to adopt electric buses as a solution to urban transport challenges. Surveys indicate that over 70 percent of European citizens support the transition to electric public transport. This shift is further supported by the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050. Consequently, the increasing public pressure on local governments to invest in electric bus fleets is likely to accelerate market expansion.

    Economic Viability and Cost Savings

    The economic viability of electric buses is becoming increasingly apparent within the Global Europe Electric Bus Market Industry. With the total cost of ownership for electric buses projected to be lower than that of diesel buses over their lifespan, municipalities are recognizing the financial benefits of transitioning to electric fleets. The initial investment may be higher, but operational savings from reduced fuel and maintenance costs can lead to significant long-term savings. Reports suggest that electric buses can save up to 40 percent on fuel costs compared to traditional buses, making them an attractive option for public transport authorities aiming to optimize budgets.

    Government Initiatives and Regulations

    The Global Europe Electric Bus Market Industry is significantly influenced by government initiatives aimed at reducing carbon emissions and promoting sustainable transportation. Various European countries have implemented stringent regulations to phase out diesel buses, with many cities committing to fully electrifying their public transport fleets by 2030. For instance, the European Union has set ambitious targets to reduce greenhouse gas emissions by at least 55 percent by 2030. Such policies not only encourage the adoption of electric buses but also provide financial incentives for municipalities to invest in electric public transport solutions, thereby driving the market's growth.

    Infrastructure Development and Charging Stations

    The expansion of charging infrastructure is a vital component driving the Global Europe Electric Bus Market Industry. As cities invest in the necessary charging stations and facilities, the feasibility of operating electric buses increases. Governments are collaborating with private sectors to establish comprehensive charging networks, which are essential for the widespread adoption of electric buses. By 2024, the market is expected to reach 3.5 USD Billion, with projections indicating a growth to 15 USD Billion by 2035. This infrastructure development not only supports current electric bus operations but also lays the groundwork for future advancements in electric mobility.

    Technological Advancements in Battery Technology

    Advancements in battery technology are pivotal for the Global Europe Electric Bus Market Industry, as they enhance the performance and efficiency of electric buses. Innovations such as solid-state batteries and improved lithium-ion technologies are leading to increased energy density and reduced charging times. For example, the recent developments in fast-charging infrastructure allow electric buses to recharge in under an hour, making them more viable for public transport systems. As battery costs continue to decline, projected to fall by 50 percent by 2030, the overall operational costs of electric buses are expected to decrease, thus fostering market growth.

    Market Segment Insights

    Electric Bus Propulsion Type Insights

    The Europe Electric Bus market segmentation, based on propulsion type, includes Battery Electric Bus, Plug-in Hybrid Electric Bus, and Fuel Cell Electric Bus. The Battery Electric Bus segment dominated the market. Battery electric bus propulsion has captured the largest market share in the Europe electric bus market due to its proven technology, widespread availability, and favorable economics. Battery electric buses offer zero-emission transportation with sufficient range to meet the demands of urban and suburban routes.

    Additionally, advancements in battery technology have improved energy density and reduced costs, making battery electric buses a cost-effective and environmentally friendly solution for public transportation operators across Europe.

    Plug-in hybrid electric bus propulsion is experiencing the highest Compound Annual Growth Rate (CAGR) in the Europe electric bus market due to its versatility and transitional appeal. Plug-in hybrid buses offer the benefits of both electric and conventional propulsion systems, providing extended range and flexibility. They are particularly suitable for routes with longer distances or variable operating conditions, making them a preferred choice for public transportation operators seeking to transition to electric propulsion while ensuring operational reliability and flexibility.

    Electric Bus Battery Type Insights

    The Europe Electric Bus market segmentation, based on battery type, includes Lithium-ion, Nickel-Metal Hydride Battery (NiMH), and Others. The Lithium-ion category generated the most income. Lithium-ion batteries have captured the largest market share in the Europe electric bus market due to their superior energy density, longer lifespan, and faster charging capabilities compared to other battery types. Lithium-ion batteries offer sufficient power and range to meet the demands of electric buses operating in urban and suburban environments.

    Additionally, advancements in lithium-ion battery technology have led to reductions in cost and improvements in performance, making them the preferred choice for electric bus propulsion in Europe.

    Nickel-Metal Hydride (NiMH) batteries are experiencing the highest Compound Annual Growth Rate (CAGR) in the Europe electric bus market due to their reliability, safety, and proven track record in automotive applications. While lithium-ion batteries dominate the market, NiMH batteries are gaining traction in certain segments due to their lower cost, stable performance, and established infrastructure for recycling and disposal. Additionally, some public transportation operators favor NiMH batteries because of their familiarity and compatibility with existing electric bus fleets.

    Electric Bus Consumer Type Insights

    The Europe Electric Bus market segmentation, based on consumer type, includes Government and Fleet Operators. The Government category generated the most income. Government consumers have captured the largest market share in the European electric bus market due to their significant role in public transportation procurement and sustainability initiatives. Governments at national, regional, and local levels are leading the transition to electric buses by setting ambitious targets, providing financial incentives, and implementing regulations favoring zero-emission vehicles. Public transportation agencies and municipalities procure electric buses to meet environmental goals, improve air quality, and enhance the quality of life for citizens across Europe.

    Fleet operators are experiencing the highest Compound Annual Growth Rate (CAGR) in the Europe electric bus market due to several factors. They are increasingly recognizing the benefits of electric buses, including lower operating costs, reduced emissions, and enhanced sustainability. Additionally, advancements in electric bus technology, coupled with supportive government policies and incentives, make electric buses a compelling choice for fleet operators looking to modernize their fleets and meet environmental regulations while improving their bottom line.

    Figure 1: Europe Electric Bus Market by Consumer Type, 2023 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

    Electric Bus Country Insights

    In Europe's electric bus market, certain countries stand out for their dominance and leadership in electric bus adoption and deployment. Nordic countries, particularly Sweden and Norway, lead the market with extensive electrification efforts supported by robust government policies, substantial investments in charging infrastructure, and strong public awareness of environmental issues. Germany, with its renowned automotive industry and commitment to sustainability, plays a pivotal role in driving electric bus innovation and deployment. Additionally, the Netherlands, known for its progressive transportation policies and initiatives, serves as a model for sustainable mobility practices, further cementing its dominance in the European electric bus market.

    Figure 2: Europe Electric Bus Market Share By Country 2023 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

    Get more detailed insights about Europe Electric Bus Market Research Report – Forecast till 2034

    Regional Insights

    Key Players and Competitive Insights

    Leading players are actively engaged in developing and deploying innovative electric bus solutions. Companies like BYD, Volvo Group, and Daimler are investing in the market developments of electric bus models with advanced battery technology and energy-efficient drivetrains. Additionally, manufacturers such as Solaris, VDL Bus & Coach, and Irizar are expanding their electric bus offerings and collaborating with government agencies and public transportation operators to deploy electric buses in cities across Europe, driving the transition towards sustainable mobility In the European electric bus market.

    Major players in the Electric Bus market are attempting to increase market demand by investing in research and development operations, including BYD Company Limited, Volvo Group, Daimler AG, Solaris Bus & Coach, VDL Bus & Coach, Irizar Group, MAN Truck & Bus, Iveco Bus, Alexander Dennis Limited, and Van Hool NV.

    Key Companies in the Europe Electric Bus Market market include

    Industry Developments

    • Q2 2025: First half 2025: electric bus market in Europe up 41%. MAN and BYD expand, fuel cell bus boom Battery-electric bus registrations in Europe reached 5,315 units in the first half of 2025, a 41% increase over the same period in 2024, with strong gains for manufacturers like MAN and BYD.
    • Q1 2025: Netherlands, Finland, and Iceland lead EU's electric bus boom In 2024, the Netherlands, Finland, and Iceland achieved 100% battery-electric for new city bus registrations, marking a full transition to electric public transport for new buses in these countries.
    • Q2 2025: Electric bus, main fleets and projects around the world Daimler Buses and Iveco Bus secured the top two positions in the EU27 electric city bus market in 2024, with Yutong and Wrightbus performing strongly in the UK market.
    • Q2 2025: First half 2025: electric bus market in Europe up 41%. MAN and BYD expand, fuel cell bus boom Fuel cell bus registrations in Europe reached 279 units in the first half of 2025, a 426% increase compared to the same period in 2024.
    • Q1 2025: Netherlands, Finland, and Iceland lead EU's electric bus boom Estonia made a dramatic shift in 2024, with 84% of its new city buses being battery-electric by the end of the year after introducing electric buses in Tallinn in April.
    • Q2 2025: Electric bus, main fleets and projects around the world The European electric city bus market grew 22% in 2024 compared to 2023, reaching 7,779 electric bus registrations.

    Future Outlook

    Europe Electric Bus Market Future Outlook

    The Europe Electric Bus Market is projected to grow at a 14.14% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing environmental awareness.

    New opportunities lie in:

    • Invest in battery technology to enhance range and efficiency of electric buses.
    • Develop smart charging infrastructure to support fleet operations and reduce downtime.
    • Explore partnerships with public transport authorities for integrated electric bus solutions.

    By 2035, the Europe Electric Bus Market is expected to be a cornerstone of sustainable urban transport.

    Market Segmentation

    Electric Bus Regional Outlook

    • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Luxembourg
    • Norway
    • Austria
    • Rest of Europe

    Electric Bus Battery Type Outlook

    • Lithium-ion
    • Nickel-Metal Hydride Battery (NiMH)
    • Others

    Electric Bus Consumer Type Outlook

    • Government
    • Fleet Operators

    Electric Bus Propulsion Type Outlook

    • Battery Electric Bus
    • Plug-in Hybrid Electric Bus
    • Fuel Cell Electric Bus

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024    2.29 (USD Billion)
    Market Size 2025    2.64 (USD Billion)
    Market Size 2034     9.44 (USD Billion)
    Compound Annual Growth Rate (CAGR)     15.20% (2025 - 2034)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2034
    Historical Data 2019 - 2023
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Propulsion Type, Battery Type, Consumer Type, and Region
    Region Covered Europe
    Countries Covered Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria and Rest of Europe
    Key Companies Profiled BYD Company Limited, Volvo Group, Daimler AG, Solaris Bus & Coach, VDL Bus & Coach, Irizar Group, MAN Truck & Bus, Iveco Bus, Alexander Dennis Limited, and Van Hool NV
    Key Market Opportunities Expanding operations and entering new markets in Europe and beyond presents opportunities for companies to capitalize on the growing demand for electric buses
    Key Market Dynamics Growing Public Awareness and Acceptance Increasing Urbanization and Congestion

    Market Highlights

    Author
    Garvit Vyas
    Analyst

    Explore the profile of Garvit Vyas, one of our esteemed authors at Market Research Future, and access their expert research contributions in the field of market research and industry analysis

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    FAQs

    How much is the Electric Bus market?

    The Europe Electric Bus market size was valued at USD 2.29 Billion in 2024.

    What is the growth rate of the Electric Bus market?

    The market is projected to grow at a CAGR of 15.20% during the forecast period, 2025-2034.

    Who are the key players in the Electric Bus market?

    The key players in the market are BYD Company Limited, Volvo Group, Daimler AG, Solaris Bus & Coach, VDL Bus & Coach, Irizar Group, MAN Truck & Bus, Iveco Bus, Alexander Dennis Limited, Van Hool NV, Ebusco, CaetanoBus, Yutong Group, Zhongtong Bus Holding Co., Ltd. and Temsa Global, among others.

    Which propulsion type led the Electric Bus market?

    The battery electric bus bonding category dominated the market in 2023.

    Which battery type had the largest market share in the Electric Bus market?

    The lithium-ion category had the largest share of the market.

    1. 'Table of Contents
    2. Executive summary
    3. Market Introduction
      1. Definition
      2. Scope of the Study
        1. Research Objective
        2. Assumptions
        3. Limitations
    4. Research Methodology
      1. Overview
      2. Data
    5. Mining
      1. Secondary Research
      2. Primary Research
        1. Primary
    6. Interviews and Information Gathering Process
      1. Breakdown of Primary Respondents
      2. Forecasting Model
      3. Market Size Estimation
        1. Bottom-Up
    7. Approach
      1. Top-Down Approach
      2. Data Triangulation
      3. Validation
    8. Market Dynamics
      1. Overview
      2. Drivers
      3. Restraints
      4. Opportunities
    9. Market Factor Analysis
      1. Value Chain Analysis
      2. Porter’s
    10. Five Forces Analysis
      1. Bargaining Power of Suppliers
        1. Bargaining
    11. Power of Buyers
      1. Threat of New Entrants
        1. Threat of Substitutes
        2. Intensity of Rivalry
      2. COVID-19 Impact Analysis
        1. Market
    12. Impact Analysis
      1. Regional Impact
        1. Opportunity and Threat Analysis
    13. EUROPE ELECTRIC BUS MARKET, By Propulsion Type
      1. Overview
      2. Battery
    14. Electric Bus
      1. Plug-in Hybrid Electric Bus
      2. Fuel Cell Electric Bus
    15. EUROPE ELECTRIC BUS MARKET, By Battery Type
      1. Overview
      2. Lithium-ion
      3. Nickel-Metal Hydride Battery (NiMH)
      4. Others
    16. EUROPE ELECTRIC
    17. BUS MARKET, By Consumer Type
      1. Overview
      2. Government
      3. Fleet
    18. Operators
    19. EUROPE ELECTRIC BUS MARKET, by Region
      1. Overview
      2. Europe
        1. Germany
        2. France
        3. UK
        4. Italy
        5. Spain
        6. Sweden
        7. Denmark
        8. Luxembourg
        9. Norway
        10. Austria
        11. Rest of Europe
    20. Competitive Landscape
      1. Overview
      2. Competitive
    21. Analysis
      1. Market Share Analysis
      2. Major Growth Strategy in the
    22. Europe Electric Bus Market,
      1. Competitive Benchmarking
      2. Leading
    23. Players in Terms of Number of Developments in the Europe Electric Bus Market,
      1. Key Developments and Growth Strategies
        1. New Product Launch/Service
    24. Deployment
      1. Merger & Acquisitions
        1. Joint Ventures
      2. Major
    25. Players Financial Matrix
      1. Sales & Operating Income, 2023
        1. Major
    26. Players R&D Expenditure. 2023
    27. Company ProfileS
      1. BYD Company
    28. Limited
      1. Company Overview
        1. Financial Overview
        2. Products
    29. Offered
      1. Key Developments
        1. SWOT Analysis
        2. Key Strategies
      2. VOLVO GROUP
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      3. DAIMLER AG
        1. Company Overview
        2. Financial
    30. Overview
      1. Products Offered
        1. Key Developments
        2. SWOT
    31. Analysis
      1. Key Strategies
      2. SOLARIS BUS & COACH
        1. Company
    32. Overview
      1. Financial Overview
        1. Products Offered
        2. Key
    33. Developments
      1. SWOT Analysis
        1. Key Strategies
      2. VDL
    34. Bus & Coach
      1. Company Overview
        1. Financial Overview
        2. Products
    35. Offered
      1. Key Developments
        1. SWOT Analysis
        2. Key Strategies
      2. Irizar Group
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      3. MAN Truck & Bus
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      4. IVECO BUS
        1. Company
    36. Overview
      1. Financial Overview
        1. Products Offered
        2. Key
    37. Developments
      1. SWOT Analysis
        1. Key Strategies
      2. ALEXANDER
    38. DENNIS LIMITED
      1. Company Overview
        1. Financial Overview
        2. Products
    39. Offered
      1. Key Developments
        1. SWOT Analysis
        2. Key Strategies
      2. Van Hool NV
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
    40. Appendix
      1. References
      2. Related
    41. Reports
    42. Synopsis, 2019-2032
    43. 2032 (USD BILLION)
    44. 2032 (USD BILLION)
    45. 2032 (USD BILLION)
    46. 2032 (USD BILLION)
    47. Type, 2019-2032 (USD BILLION)
    48. Type, 2019-2032 (USD BILLION)
    49. Type, 2019-2032 (USD BILLION)
    50. Type, 2019-2032 (USD BILLION)
    51. Type, 2019-2032 (USD BILLION)
    52. Type, 2019-2032 (USD BILLION)
    53. Type, 2019-2032 (USD BILLION)
    54. Type, 2019-2032 (USD BILLION)
    55. Type, 2019-2032 (USD BILLION)
    56. Type, 2019-2032 (USD BILLION)
    57. Type, 2019-2032 (USD BILLION)
    58. Type, 2019-2032 (USD BILLION)
    59. Type, 2019-2032 (USD BILLION)
    60. 2032 (USD BILLION)
    61. 2032 (USD BILLION)
    62. Type, 2019-2032 (USD BILLION)
    63. Type, 2019-2032 (USD BILLION)
    64. Type, 2019-2032 (USD BILLION)
    65. Type, 2019-2032 (USD BILLION)
    66. Type, 2019-2032 (USD BILLION)
    67. Type, 2019-2032 (USD BILLION)
    68. Type, 2019-2032 (USD BILLION)
    69. Type, 2019-2032 (USD BILLION)
    70. Type, 2019-2032 (USD BILLION)
    71. Type, 2019-2032 (USD BILLION)
    72. Type, 2019-2032 (USD BILLION)
    73. Type, 2019-2032 (USD BILLION)
    74. Type, 2019-2032 (USD BILLION)
    75. Type, 2019-2032 (USD BILLION)
    76. Type, 2019-2032 (USD BILLION)
    77. By Propulsion Type, 2019-2032 (USD BILLION)
    78. BUS MARKET, By Battery Type, 2019-2032 (USD BILLION)
    79. ELECTRIC BUS MARKET, By consumer Type, 2019-2032 (USD BILLION)
    80. Electric Bus Market
    81. Europe Electric Bus Market, Share (%), By Battery Type, 2023
    82. Electric Bus Market, Share (%), by Region, 2023
    83. Market: Company Share Analysis, 2023 (%)
    84. OVERVIEW SNAPSHOT
    85. GROUP: FINANCIAL OVERVIEW SNAPSHOT
    86. DAIMLER AG: FINANCIAL OVERVIEW SNAPSHOT
    87. BUS & COACH: SWOT ANALYSIS
    88. SNAPSHOT
    89. Group: FINANCIAL OVERVIEW SNAPSHOT
    90. & BUS: SWOT ANALYSIS
    91. OVERVIEW SNAPSHOT
    92. Van Hool NV: FINANCIAL OVERVIEW SNAPSHOT

    Europe Electric Bus Market Segmentation

    Market Segmentation Overview

    • Detailed segmentation data will be available in the full report
    • Comprehensive analysis by multiple parameters
    • Regional and country-level breakdowns
    • Market size forecasts by segment
    Report Infographic
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