Electric bus market to record growth with government support

The agreement will offer the US electric bus manufacturer a sum of $648m in cash and another sum of $415m from investors comprising Fidelity Management, Daimler Trucks, funds managed by BlackRock Inc., Franklin Templeton, and venture investor Chamath Palihapitiya.

Similar advancements are expected to foster an increase in electric bus projects through the forthcoming years. As per the latest research by Global Market Insights, Inc., the global electric bus market size is estimated to surpass $53bn by 2027.

This escalation is ascribed to the strict emission regulations imposed by government authorities comprising the EPA (Environmental Protection Agency). For exemplar, EPA’s vehicle greenhouse gas rules will help in the elimination of nearly six billion metric tons of greenhouse gas pollution by 2025.

Hybrid buses are powered by a combination of diesel/gasoline and electric engines. This provide them with an improved range in terms of kilometers. These buses are in high demand due to their low cost in comparison to FECVs and all-electric buses. Owing to these factors, the PHEV bus segment is expected to exhibit steady growth through the analysis period.

Eminent players in the electric bus market are Zhongtong Bus Holdings Co., AB Volvo, Scania AG, BYD Co. Ltd., VDL Group, Ltd., Daimler AG, Alexander Dennis Ltd., Yutong, Solaris, Ankai Bus, and NFI Group Inc, amongst others. These electric bus manufacturers are focusing on acquisitions, mergers, as well as product launches for the enhancement of their business operations.

Citing an instance, in September 2018, CAF Group unveiled plans to acquire Solaris Bus and Coach. The deal helped the company in entering the electric bus industry.

However, the market is facing numerous challenges owing to the rapid spread of the SARS-CoV-2 pandemic at the global level. Several trades and travel restrictions issued by various governments have imposed a ban on domestic and international trade. While there has been a decline in the sales of electric buses, measures towards the containment of the virus and steps toward economic revival are expected to drive market growth through the coming years.

The Middle East & Africa electric bus industry is estimated to record substantial growth through the forecasted period, owing to an upsurge in the demand for electric buses in countries comprising Saudi Arabia and the UAE.

The increasing presence of OEMs, rising government support, and the development of sustainable electric mass transit solutions are anticipated to bolster industry expansion over the estimated span. In November 2019, the Shanghai Wanxiang Group from China helped Egypt’s Arab Organisation for Industrialisation in the introduction of its first electric bus in the country.

On the whole, increasing supportive policy measures coupled with surging government regulations towards vehicular emissions will augment electric bus market size through the assessment period.

You can view the report here.