The global electric bus market is supposed to grow at a CAGR of 43.1 percent, from 81k units in 2021 to 704 thousand units in 2027. The electric bus industry is growing due to increased attention on increasing electrification of mass transport options and government backing.
Because of the significant demand for electric buses in countries like China, Japan, South Korea, and India, the market in the Asia Pacific is expected to develop the fastest.
Furthermore, to reduce car emissions, China has deployed a large number of electric buses. BYD, for example, offers the world’s most popular electric buses, the K8 and K9, which are 9 and 14 meters long and have a range of 155 and 190 miles, respectively.
In January 2021, Mahanagar Parivahan Mahamandal Ltd placed 350 electric buses with Electra Greentech Limited and Evey Trans Private Limited. In the future years, the Indian electric bus market will be driven by favorable legislation and steady new orders for electric buses.
Because of the rising demand for emission-free public transportation and favorable government policies for electric vehicles, the European and North American markets are expanding.
COVID-19’s Impact on the Electric Bus Market
- COVID-19 has significantly influenced the electric bus market. The electric bus market has been impacted significantly by both the manufacture and COVID-19.
- As the entire ecosystem was disrupted, both manufacturing and sales of new electric buses came to a halt worldwide.
- With economies progressively recovering from the pandemic, demand for new electric buses is projected to rise. However, a fresh wave of COVID-19, caused by novel strains, may impede recovery in some regions.
- As a result, electric bus manufacturers would have to modify production volumes across countries based on the COVID-19 scenario.
- The Swiss government, for example, wants to expand electric vehicle penetration to 15% by 2022. The country has a Green Deal for Electric Transportation from 2016 to 2020. The green deal’s main goal is to eliminate car emissions by 2025, which will help the electric bus sector grow.
- Electric buses will revolutionize public transportation in the future by improving air quality, reducing noise, and increasing fuel efficiency.
High development costs are a constraint.
- Infrastructure development costs for EVs are also very high. Globally, around USD 2.8 trillion is required to create infrastructure.
- An electric vehicle’s battery requires regular and rapid charging using specialized equipment such as electric chargers found only at EV charging stations. Several high-capacity charging stations will need to be installed.
- Electric buses and coaches are more expensive than standard ICE buses and coaches because of the battery, charger, and charger installation costs.
Government support for public transportation electrification is an opportunity.
- Governments all over the world have introduced enticing efforts and programs to encourage the usage of electric buses.
- Developed-country governments have started the tender process to expand the usage of electric buses in their cities. For example, London has about 2,500 electric buses in operation as of 2018, with plans to grow that number to 9,200 by 2037. The Mayor of London has set aside money for this.
- USD 105.72 million will be spent to refit 5,000 buses with the newest green engine technology to cut exhaust emissions. China and India, for example, are planning to offer zero-emission commercial buses shortly.
Battery capacity is a constraint.
- Current electric bus batteries have low capacity, high charging times, and a restricted range per charge.
- Lead-acid, nickel-cadmium, nickel-metal hydride, lithium-ion, and supercapacitors are now used in electric power buses. Lead-acid, nickel-cadmium, and nickel-metal hydride batteries are rapidly being phased out of electric buses in favor of lithium-ion batteries, which have longer battery life.
- On the other hand, lithium-ion batteries have insufficient capacity for commercial power vehicles such as electric buses because large loads necessitate more power to generate maximum torque.
- The charging-discharging performance of batteries deteriorates dramatically in cold regions, making it difficult for the batteries to deliver maximum power.
- With a 7 kW charging outlet, charging an electric vehicle from zero to 100 percent takes more than four hours on average.
- Furthermore, the majority of the charging infrastructure is comprised of low-capacity chargers. These issues must be addressed for the electric bus market to expand.