The global electric buses market is expected to demonstrate strong growth till 2025 at a double-digit
CAGR. According to market analysts, the global electric buses market will cross the mark of 30,000 units by the end of 2020. Let us take a look into the
forces responsible for the impressive growth of this market.
Driver: Growing Environmental Concerns
Air pollution caused by vehicles has become a serious concern for governments worldwide. This is driving the demand for public transport that features
lower emission rates. Consequently, countries such as Germany, France, and the U.K. are emerging key markets for electric vehicles (EV) due to extensive
government support for electrification of public transport. The increasing environmental concerns will greatly fuel the growth of this market.
Driver: Rise in Investments and Partnerships
The growing external funding, investments, and public-private partnerships will greatly drive the global electric buses market. Investment firms and
transit agencies in the global electric buses market are backed by public funding and venture capital. This is working in the favor of the global electric
Opportunity: Emerging China Market
China is aggressively moving towards its goal of a pollution-free transportation environment. Hence, the focus on increasing the number of electric
vehicles in the country is high. Thus, the Chinese government is encouraging the purchase of electric buses by offering several commercial incentives.
In addition to this, China is also a key manufacturing hub for electric buses, with key vendors such as BYD and Zhongtong operating in this region. BYD had
sold over 1,000 electric buses by 2013.
Trend: New Product Launches
Technological roadmaps demonstrate the rapid innovation coming in the next ten years. Recently, certain product launches by players in the global electric
buses market show the elevated level of competition in the industry. The key players operating in this market are Ashok Leyland, Shenzhen Wuzhoulong
Motors, Alexander Dennis, Solaris Bus & Coach, Daimler, AB Volvo, BYD, Proterra, Zhongtong Bus & Holding, and EBUSCO.
Restraint: Initial High Purchase Costs
The high initial investment associated with electric buses is expected to suppress the global electric buses market. On the other hand, the operation cost
of these buses is significantly lower in contrast to conventional buses, since electricity is more affordable and a more efficient power source than
Restraint: Increasing Popularity of Substitutes
The global electric buses market is threatened by the increasing adoption of vehicles that run on natural gas. CNG vehicles are expected to steadily enter
the overall market for buses in the coming decade. CNG vehicles offer a broader range of prices, while this range is pegged at premium limits with regard
to electric buses. Additionally, the charging time for electric buses can be multiple hours, while filling up a CNG vehicle is no different than filling up
a conventional gasoline-powered vehicle. These practicalities increase the allure of CNG vehicles.
Though the global electric buses market is still in its nascent stage, it is expected to grow tremendously in the coming few years as a result of growing
investment from government agencies and venture capitalists.
Browse the full Global Electric Buses Market report at http://www.mrrse.com/electric-buses