Battery Electric Bus (BEB) Market, by Battery Capacity (Less Than 400 kWh, Above 400 kWh) by Length (Less than 9 meters, 9-14 meters, Above 14 meters), by Consumer (Government, Private), by Range (Less Than 150 Miles, 150 To 300 Miles, Above 300 Miles), Application (Intercity, Intracity) ,by Power Output (Up to 250 kW, Above 250 kW), battery type (NMC batteries, LFP batteries, NCA batteries, Other batteries), seating capacity, and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Battery Electric Bus (BEB) market size was estimated at USD 41.8 billion in 2023 and is projected to reach USD 332.8 billion in 2030 at a CAGR of 34.5% during the forecast period 2023-2030.
Battery Electric Bus (BEB) is a type of public transportation vehicle that is powered entirely by electricity stored in onboard batteries. Unlike traditional buses that rely on internal combustion engines running on fossil fuels like diesel or gasoline, BEBs operate using electric motors powered by rechargeable batteries. These buses produce zero tailpipe emissions, contributing to improved air quality and reduced greenhouse gas emissions in urban environments. BEBs are a key component of the transition to sustainable and environmentally-friendly transportation systems.
The battery electric bus market is driven by factors such as increasing demand for fuel-efficient, efficient and low-emission buses, strict government rules and regulations on vehicle emissions and declining battery prices. However, the market growth is limited by high production costs and low fuel economy and serviceability. Additionally, technological advancements and proactive government initiatives to adopt e-buses are creating lucrative growth opportunities for the market. In addition, governments are implementing various measures to promote the adoption of electric buses worldwide.
The covid-19 pandemic has severely affected battery electric bus rollouts. Several public transit systems around the globe are facing extreme revenue losses due to a decline in transit ridership during the pandemic. According to the American Public Transportation Association (APTA), a decline of 80% was observed in April 2020 in public transit usage, and ridership levels for the rest of 2020 also declined by more than 60% compared to 2019.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. Rising demand for non-polluting, air-combating, fuel-efficient buses along with initiatives from major countries seeking alternatives to transform their existing conventional bus fleets with electric buses are some of the key factors driving the growth of the global electric bus industry. In addition, growing environmental concerns, strict regulations, and government initiatives to achieve zero emissions targets are triggering the adoption of electric buses. The battery electric vehicles will have a great positive impact in the future. These factors have led to the expansion of the market and increased demand for Battery Electric Bus (BEB) solutions.
Asia-Pacific to Dominate the Market