The electric bus market is rapidly evolving, playing a crucial role in transforming urban mobility and reducing global carbon emissions. Valued at USD 25.08 billion in 2025, the market is expected to surge to USD 72.91 billion by 2034, growing at a CAGR of 12.9%. This growth is fueled by the rising adoption of electric buses in cities, coupled with technological advancements in electric vehicle (EV) manufacturing.
Electric buses come in various forms, including Battery Electric Buses (BEVs), Plug-in Hybrid Electric Buses (PHEVs), and Fuel Cell Electric Buses (FCEVs). They are powered by advanced battery technologies such as Lithium Nickel Manganese Cobalt Oxide (NMC) and Lithium Iron Phosphate (LFP) batteries. Both public and private sectors are driving adoption globally.
Market Highlights
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Asia Pacific leads in market revenue due to large-scale adoption in China and India.
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Europe is expected to witness strong growth with supportive government policies.
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Battery Electric Vehicles (BEVs) dominate the market.
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Fuel Cell Electric Vehicles (FCEVs) are projected to grow significantly in the coming years.
Top Electric Bus Market Companies
1. BYD Company Limited
About: Headquartered in China, BYD is a global leader in electric vehicle manufacturing, with a strong presence in the electric bus sector.
Products: Battery electric buses, hybrid buses, and energy storage solutions.
Market Cap: Approximately USD 80 billion (2025).
2. AB Volvo
About: A Swedish multinational known for its innovative transport solutions and sustainable mobility initiatives.
Products: Volvo 7900 Electric, hybrid buses, and connected transport systems.
Market Cap: Around USD 45 billion (2025).
3. Proterra
About: A U.S.-based company focused on designing and manufacturing zero-emission electric buses and battery systems.
Products: Catalyst electric buses, Proterra ZX5, and EV battery platforms.
Market Cap: Estimated at USD 1.5 billion (2025).
4. MAN Truck & Bus
About: A German commercial vehicle manufacturer specializing in heavy-duty and urban mobility solutions.
Products: Lion’s City E, intercity and city electric buses.
Market Cap: Part of TRATON Group valued at over USD 14 billion (2025).
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5. Nissan Motor Corporation
About: A Japanese automotive giant with a diversified EV portfolio and a growing focus on electric mobility solutions.
Products: e-NV200 electric van, battery technology for electric buses.
Market Cap: Around USD 13 billion (2025).
6. Tata Motors Limited
About: India’s largest commercial vehicle manufacturer and a pioneer in electric mobility in Asia.
Products: Starbus Electric, Ultra Electric, and hybrid buses.
Market Cap: Nearly USD 30 billion (2025).
7. Hyundai Motor Company
About: South Korea’s leading automotive manufacturer with a strong push toward hydrogen fuel cell buses.
Products: Elec City electric bus, hydrogen fuel cell buses.
Market Cap: Over USD 30 billion (2025).
8. Ashok Leyland Limited
About: An Indian multinational specializing in commercial vehicles, with a rising focus on electric and hybrid buses.
Products: Circuit-S Electric Bus, Switch Mobility solutions.
Market Cap: About USD 5.5 billion (2025).
9. Daimler Truck AG
About: A German leader in commercial vehicles, investing heavily in battery-electric and hydrogen bus solutions.
Products: Mercedes-Benz eCitaro, Setra electric buses.
Market Cap: Around USD 25 billion (2025).
10. Zhengzhou Yutong Bus Co., Ltd.
About: China’s largest bus manufacturer and a pioneer in electric bus production.
Products: Yutong E12, intercity electric buses, school buses.
Market Cap: Estimated at USD 9 billion (2025).
Conclusion
The electric bus market is witnessing unprecedented growth as governments push for cleaner public transportation and companies innovate with advanced battery and hydrogen fuel technologies. With strong demand from both developed and emerging markets, the next decade will redefine the global public transport industry.
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FAQs
1. What is the growth rate of the electric bus market?
The market is expected to grow at a CAGR of 12.9% from 2025 to 2034.
2. Which region dominates the electric bus market?
Asia Pacific leads in market share, particularly driven by China’s large-scale adoption.
3. Which type of electric bus is most popular?
Battery Electric Vehicles (BEVs) currently hold the largest market share.
4. Who are the major players in the electric bus market?
Key players include BYD, Volvo, Proterra, MAN, Nissan, Tata Motors, Hyundai, Ashok Leyland, Daimler Truck, and Yutong.
5. What are the main drivers of market growth?
Government policies, technological advancements in batteries, and rising environmental concerns are key drivers.
Source : https://www.towardsautomotive.com/insights/electric-bus-market-sizing
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