US Automotive Electric Bus Market Research Report: By Type (Single-Decker, Double-Decker), By Propulsion (BEV, PHEV, FCEV) and By Length (6 to 8 m, 9 to 12 m, Above 12 m) - Forecast to 2035

US Automotive Electric Bus Market Research Report: By Type (Single-Decker, Double-Decker), By Propulsion (BEV, PHEV, FCEV) and By Length (6 to 8 m, 9 to 12 m, Above 12 m) - Forecast to 2035.

US Automotive Electric Bus Market Overview:

As per MRFR analysis, the US Automotive Electric Bus Market Size was estimated at 32.68 (USD Billion) in 2023. The US Automotive Electric Bus Market Industry is expected to grow from 44.64(USD Billion) in 2024 to 600 (USD Billion) by 2035. The US Automotive Electric Bus Market CAGR (growth rate) is expected to be around 26.645% during the forecast period (2025 - 2035).

Key US Automotive Electric Bus Market Trends Highlighted

The US Automotive Electric Bus Market is experiencing a significant shift towards sustainability and clean transportation. A surge in governmental policies aimed at reducing greenhouse gas emissions has become a crucial driver for the adoption of electric buses in the country. Federal and state initiatives, including grants and incentives for transit agencies to transition their fleets, are steering the market towards an electric future. Furthermore, growing public concern about air quality and climate change contributes to this push for zero-emission vehicles, making electric buses more appealing to public transportation authorities. Opportunities in the US market are emerging from significant investments in charging infrastructure.Federal programs are supporting the installation of electric bus charging stations across urban and rural areas, ensuring practical operations for electric fleets. Transit agencies are increasingly evaluating solutions to enhance operational efficiency, leading to collaboration with technology firms to develop smart charging systems. These advancements can further drive the growth of electric bus adoption by addressing range anxiety and operational setbacks. In recent times, there is a noticeable trend of major US manufacturers enhancing their electric bus offerings, focusing on longer range, faster charging capabilities, and better performance.Additionally, many cities are piloting electric bus programs and sharing insights to refine their operations, which provides valuable data for future implementations. The electrification of public transit is becoming a core component of urban planning in major US cities, aligning with broader goals of sustainability and modernization of transportation systems. As more transit agencies evaluate electrification as a viable solution, the US Automotive Electric Bus Market is positioned for notable growth and evolution.

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

US Automotive Electric Bus Market Drivers

Government Initiatives and Regulations

The US government is significantly investing in the promotion of electric vehicles, including electric buses, to transition towards cleaner transportation. Initiatives such as the Bipartisan Infrastructure Law, passed in November 2021, allocate substantial funding for electric vehicle infrastructure, including electric buses, facilitating the provision of more charging stations and supporting vehicles' adoption. The Federal Transit Administration has provided billions in grants to aid public transit authorities in purchasing zero-emission buses.For instance, between 2019 and 2021, the funding for electric buses increased from less than 50 million to over 200 million annually. This surge in government support plays a crucial role in the US Automotive Electric Bus Market Industry's growth, fostering innovation and encouraging transit agencies to switch to electric fleets. With the ambition to achieve significant reductions in greenhouse gas emissions in the transportation sector, which accounts for about 29% of total US emissions as reported by the Environmental Protection Agency, these government initiatives are vital for expanding the electric bus market.

Technological Advancements in Battery Technology

One of the key market drivers for the US Automotive Electric Bus Market is the continuous advancement in battery technology, specifically lithium-ion battery developments. Recent improvements in energy density and reduction in costs have led to significant increases in the operational range and efficiency of electric buses. For example, research from the Department of Energy indicates that battery costs have dropped over 80% from 2010 to 2021, leading to wider adoption of electric buses by transit authorities across the US.Companies like Tesla and Proterra are at the forefront of this revolution, introducing high-performance electric buses that achieve ranges upwards of 300 miles on a single charge, substantially reducing concerns regarding the operational efficacy of electric buses. This improvement not only boosts the growth of the US Automotive Electric Bus Market Industry but also enhances the allure of electric buses for both operators and riders alike.

Environmental Awareness and Sustainable Practices

The growing awareness regarding environmental issues is a significant driver in the US Automotive Electric Bus Market. As public sentiment increasingly favors sustainable practices, cities and states are pushing toward greener transportation solutions. According to a report by the American Public Transportation Association, about 70% of Americans prefer public transit options that focus on sustainability, highlighting an urgent demand for electric buses.Additionally, many municipalities, such as Los Angeles, have committed to converting their entire bus fleets to electric by 2030. This aligns with the environmental goals outlined in the US Climate Change Action Plan, aiming for an overall reduction of greenhouse gas emissions by 50 to 52% by 2030. The focus on sustainability is reshaping the transportation narrative, making the transition to electric buses not just an operational decision but a socio-political one as well, vital for the future growth of the US Automotive Electric Bus Market Industry.

US Automotive Electric Bus Market Segment Insights:

Automotive Electric Bus Market Type Insights

The US Automotive Electric Bus Market has been demonstrating significant developments in recent years, particularly in terms of its Type segmentation, which primarily includes Single-Decker and Double-Decker buses. The increasing demand for sustainable public transportation solutions has contributed to a notable shift towards electric buses, which are recognized for their efficiency and eco-friendliness. Single-Decker buses are preferred in urban settings due to their lower operational costs and ability to navigate through congested city streets, making them an ideal solution for municipalities focused on reducing emissions and improving air quality. Their compact design allows for better accessibility and flexibility in route planning, aligning perfectly with the rising trends of cities implementing stricter environmental regulations. On the other hand, the Double-Decker buses cater to a different yet significant segment of the market, particularly in densely populated areas where passenger capacity is a priority. Their ability to accommodate more passengers without requiring additional road space makes them a wholesome choice for public transport authorities aiming to improve mass transit efficiency. Double-Decker buses can facilitate a higher volume of riders during peak hours, which is essential for reducing traffic congestion and minimizing the carbon footprint associated with transportation. Both Single-Decker and Double-Decker segments play a crucial role in shaping the US Automotive Electric Bus Market, offering diverse solutions to a growing demand for environmentally sound transportation options. The market is primarily driven by advancements in battery technology and supportive government policies that encourage the adoption of electric vehicles. As a result, both types of buses are significant contributors to achieving the overarching goals of sustainability and public health in urban mobility. However, challenges such as the need for extensive charging infrastructure and potential funding constraints for transit agencies present ongoing hurdles. Nonetheless, the increasing emphasis on green initiatives combined with technological advancements heralds a promising growth trajectory for the US Automotive Electric Bus Market, particularly within the Type segmentation that caters uniquely to both urban and suburban transit needs. The awareness surrounding the advantages of electric buses continues to rise, fostering an environment ripe for innovation and expansion across both Single-Decker and Double-Decker models.

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

Automotive Electric Bus Market Propulsion Insights

The US Automotive Electric Bus Market is increasingly focused on the Propulsion segment, which encompasses different technologies like Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), and Fuel Cell Electric Vehicles (FCEV). Each of these propulsion types plays a significant role in shaping the market, with BEVs leading in popularity due to their zero emissions and lower operating costs, making them a compelling option for urban transit systems aiming for sustainability. PHEVs combine conventional engines with electric propulsion, offering flexibility that appeals to a broader range of transit authorities while addressing range anxiety.Meanwhile, FCEVs are gaining traction due to their quick refueling capabilities and long-range potential, essential for long-distance travel and reducing reliance on battery charging infrastructure. Collectively, these propulsion technologies contribute to the growth of the sector, supported by government initiatives emphasizing green infrastructure and investment in electric mobility. The evolving US Automotive Electric Bus Market is thus characterized by a diverse propulsion landscape that caters to different operational needs, driving both technological advancement and consumer acceptance in the quest for cleaner urban air.

Automotive Electric Bus Market Length Insights

The Length segment within the US Automotive Electric Bus Market is critical as it categorizes buses into various size ranges that cater to different transportation needs. The market is segmented into three main categories: 6 to 8 meters, 9 to 12 meters, and above 12 meters. The 6 to 8 meters category is significant for urban environments, as these compact buses are ideal for navigating crowded city streets and serve as efficient solutions for short-distance commuting. The 9 to 12 meters buses are predominantly utilized in intercity and regional transport services, balancing between capacity and maneuverability.Meanwhile, buses exceeding 12 meters play a crucial role in mass transit systems, accommodating larger passenger loads for longer distances, and aligning with public policy shifts toward sustainable transportation. As cities focus on reducing carbon emissions and enhancing public transport systems, the demand across these Length categories continues to evolve, driven by technological advancements, government incentives, and growing environmental awareness among consumers. The segmentation of the market allows stakeholders to tailor offerings to meet specific market demands effectively, creating opportunities for innovation and growth within the US Automotive Electric Bus Market.

US Automotive Electric Bus Market Key Players and Competitive Insights:

The US Automotive Electric Bus Market is experiencing significant growth driven by increasing concerns over environmental sustainability, advancements in battery technologies, and contributions toward reducing urban emissions. As various stakeholders, including government entities, transit agencies, and private operators, strive to enhance public transportation systems, electric buses are becoming an integral part of these infrastructures. This has spurred competition among key players in the market, leading to innovation in design, efficiency, and customer service. Companies in this sector are also focusing on expanding their geographic reach and establishing strategic partnerships to enhance their presence in this dynamic marketplace. The competitive landscape is characterized by a mix of established manufacturers and new entrants, all looking to gain market share and meet the growing demand for zero-emission transport.NFI Group plays a pivotal role in the US Automotive Electric Bus Market by capitalizing on its established reputation for high-quality manufacturing and innovation in bus technology. The company is recognized for its strong commitment to sustainability and customer satisfaction, which allows it to maintain a competitive edge. Its diverse product portfolio, which includes a range of electric buses, showcases the company's ability to cater to varying needs from different transit authorities across the US. NFI Group's strength lies in its extensive experience in the sector, allowing it to leverage advanced engineering and manufacturing capabilities to produce efficient and reliable electric buses. The company's proactive approach to developing strategic alliances with battery suppliers and technology firms further enhances its position in the market.New Flyer, as a subsidiary of NFI Group, is firmly established in the US Automotive Electric Bus Market, distinguishing itself through its focus on innovation and sustainability. The company offers a robust selection of electric buses and environmentally friendly transportation solutions, primarily catering to transit authorities seeking to modernize their fleets. New Flyer is recognized for its commitment to research and development, resulting in cutting-edge products optimized for performance and energy efficiency. The company has successfully executed mergers and acquisitions that bolster its operational capabilities and market reach, solidifying its status within the industry. Moreover, with a substantial market presence, New Flyer benefits from strong relationships with various stakeholders in the public transportation sector, enabling it to meet evolving transportation demands and further advance electric bus adoption across the United States.

Key Companies in the US Automotive Electric Bus Market Include:

NFI Group

New Flyer

Lion Electric

Freightliner

Thunder Power

Volta

Motor Coach Industries

Bluebird

Proterra

BYD

Wrightbus

Navistar

Alexander Dennis

Gillig

US Automotive Electric Bus Market Industry Developments

The US Automotive Electric Bus Market has witnessed notable recent developments, particularly with companies like NFI Group and Proterra expanding their electric bus offerings. In September 2023, New Flyer received significant orders for electric buses from multiple transit authorities, underscoring the demand for sustainable public transport solutions. Lion Electric has also ramped up production to meet increasing orders from municipalities aiming to replace older diesel fleets with electric models. In terms of market valuation growth, industry analysts have noted an upswing due to federal initiatives promoting clean energy and reduction of emissions, reflecting in NFI Group's and Proterra's stock valuations. In a pivotal move, BYD partnered with various municipalities in August 2023 to further enhance its footprint in the electric bus segment. Over the past two years, significant investments and favorable government policies have driven advancements in charging infrastructure, essential for electric buses. Expansion of the electric vehicle market is being accelerated by federal funding programs and incentives aimed at emissions reduction. Acquisitions have been sparse, with notable mergers expected in 2024 as companies seek to consolidate their market presence. Overall, the US market is adapting rapidly to the push for electrification in public transportation.

US Automotive Electric Bus Market Segmentation Insights

Automotive Electric Bus Market Type Outlook

Single-Decker

Double-Decker

Automotive Electric Bus Market Propulsion Outlook

BEV

PHEV

FCEV

Automotive Electric Bus Market Length Outlook

6 to 8 m

9 to 12 m

Above 12 m

Report Scope:

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	32.68(USD Billion)
MARKET SIZE 2024	44.64(USD Billion)
MARKET SIZE 2035	600.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	26.645% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	NFI Group, New Flyer, Lion Electric, Freightliner, Thunder Power, Volta, Motor Coach Industries, Bluebird, Proterra, BYD, Wrightbus, Navistar, Alexander Dennis, Gillig
SEGMENTS COVERED	Type, Propulsion, Length
KEY MARKET OPPORTUNITIES	Government incentives and subsidies, Growing urbanization and public transit needs, Advancements in battery technology, Increased focus on sustainability, Rising fuel prices and operational costs
KEY MARKET DYNAMICS	growing environmental regulations, increasing fuel efficiency standards, advancements in battery technology, rising operational costs, government subsidies and incentives
COUNTRIES COVERED	US