China Electric Bus Market Report and Forecast 2024-2032

China Electric Bus Market Size

The China electric bus market value reached approximately USD 34.03 billion in 2023. The market is further projected to grow at a CAGR of 11.1% between 2024 and 2032, reaching a value of USD 87.80 billion by 2032.

China Electric Bus Market Growth

Electric buses are vehicles whose accessory and propulsion systems are driven by zero-emission electricity sources, such as hydrogen fuel cells, onboard batteries, and ground-based non-contact conductors. These buses reduce noise and air pollution, enhancing the overall travel experience for passengers.

The increasing environmental awareness is bolstering the adoption of electric vehicles including electric buses in China. Electric vehicles aid in reducing environmental impact as they have no tailpipe emissions. The growing awareness about the harmful gases and pollutants released by traditional fuel-based vehicles is further boosting the popularity of electric vehicles, supporting the growth of the China electric bus industry.

China Electric Bus Market Analysis

The growing initiatives and investments by various manufacturers to develop hydrogen cell-powered electric buses are providing lucrative growth opportunities to the market. The technological advancements in increased mobility and growing accessibility of charging infrastructure are supporting the growth of the China electric bus market.

The China electric bus market dynamics and trends are driven by the vehicles' cost-effectiveness, minimal maintenance needs, and low operational expenses. These advantages are increasing their adoption across various sectors, including travel and tourism, transportation, and education.

China Electric Bus Industry Outlook

According to the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, China saw battery-electric bus sales reach 96,857 units in 2020. During the same period, plug-in hybrid bus sales rose from 7,923 units in 2020 to 10,674 units in 2022. Sales of fuel-cell electric buses also showed significant growth, increasing from 646 units in 2020 to 2,135 units in 2022.

According to "Electric Vehicle Outlook 2019," China dominated the global e-bus fleet in 2018, significantly ahead of other regions. By 2022, China's share of the global e-bus fleet exceeded 0.6 million units. This number is projected to approach 0.8 million units by 2026. Additionally, China’s electric bus fleet is expected to exceed 1 million units by 2030 and approach 1.4 million units by 2040, driving the China electric bus market revenue as these buses are instrumental in cutting air pollution and greenhouse gas emissions compared to traditional diesel buses, leading to cleaner urban air, and advancing China’s environmental objectives.

The growth of the China electric bus market is being driven by significant developments. The International Council on Clean Transportation reports that in 2022, China held a major share of the battery electric bus (BEV) market within the zero-emission (ZE) technology sector, with 46,000 units accounting for 42% of the total ZE vehicle market. Fuel cell electric vehicles (FCEVs) had a smaller presence, with 1,200 units. In 2020, BEVs dominated the market with a 99% share, showing a strong preference for battery-electric technology in the bus segment, while FCEVs accounted for the remaining 1%. By 2021, the market began to diversify, with BEVs holding 94% of the market share and both BETs and FCEVs each capturing 3%. In 2022, BEVs continued to lead with an 85% market share, BETs increased to 4%, and FCEVs saw a significant rise to 11%.

Electric buses significantly reduce air pollution and greenhouse gas emissions, aligning with China’s environmental goals.

• Lower operational and maintenance costs compared to traditional diesel buses enhance long-term financial savings.

• Strong government incentives and subsidies for electric vehicles promote China electric bus market demand and adoption.

The upfront expense of electric buses and charging infrastructure can be prohibitive for some operators.

• Battery range limitations may affect the operational flexibility and suitability for long-distance routes.

• Insufficient or underdeveloped charging networks can hinder the widespread adoption of electric buses.

Innovations in battery technology and charging solutions can improve range and reduce costs.

• Growing urban areas present opportunities for increased deployment of electric buses in public transportation.

• Opportunities to export technology and vehicles to other countries can drive additional revenue.

Increasing competition from both domestic and international electric bus manufacturers may pressure profit margins.

• Economic downturns could affect public and private funding for electric bus initiatives.

• Shifts in government policies or subsidies may impact China electric bus market dynamics and trends.

Key Players in the China Electric Bus Market and Their Key Initiatives

BYD Company Limited

• Opened new factories to increase electric bus manufacturing output to meet the growing demand of the China electric bus market. 

• Introduced advanced battery technology to enhance electric bus efficiency.

Zhengzhou Yutong Bus Co., Ltd.

• Unveiled its Electric Architecture (YEA), integrating advanced systems.

• Supplied 800 buses to Uzbekistan and 214 electric buses to Chile.

Anhui Ankai Automobile Co. Ltd.

• Launched the third generation of the L4 autonomous driving bus.

• Developed a new energy bus with advanced EMC and safety features.

AB Volvo

• Launched new electric bus models with enhanced battery efficiency.

• manufacturers to accelerate production to capture the China electric bus market opportunities.

China Electric Bus Industry Segmentation

“China Electric Bus Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Breakup by Propulsion

• Battery Electric Vehicle

• Plug-in Hybrid Electric Vehicle

• Fuel Cell Electric Vehicle

Breakup by Length

• Less Than 9 Meters

• 9-14 Meters

• Above 14 Meters

Breakup by Power Output

• Up to 250kW

• Above 250kW

Breakup by Battery Capacity

• Up to 400 kWh

• Above 400 kWh

Breakup by Application

• Intercity

• Intracity

Breakup by Ownership

• Private

• Government

China Electric Bus Market Share

Intercity applications are anticipated to account for a significant China electric bus demand growth over the forecast period. This growth can be attributed to the increasing requirement for public transport and the rising adoption of electric buses by universities, schools, and businesses due to rising environmental awareness. The increasing investments by the government towards the enhancement of charging infrastructure are further bolstering the adoption of electric buses for intercity travel.

The government sector is experiencing substantial growth due to increased focus on lowering greenhouse gas emissions and the cost-effectiveness of electric vehicles, including electric buses. Growing public preference for public transportation, driven by rising traffic congestion and high costs associated with personal vehicles, is fuelling demand in the China electric bus market. Additionally, government initiatives aimed at reducing reliance on fossil fuels and addressing noise and air pollution are further supporting the market's expansion.

Leading Companies in the China Electric Bus Market

The companies specialise in buses and commercial vehicles, known for its innovation and quality. It offers a range of products, including electric and fuel-efficient buses.

• BYD Company Limited 

• Zhengzhou Yutong Bus Co., Ltd.  

• Anhui Ankai Automobile Co. Ltd.  

• Xiamen King Long Motor Group Co., Ltd.  

• AB Volvo  

• Dongfeng Motor Corporation  

• Liaoning SG Automotive Group Co., Ltd.  

• Higer Bus Company Limited  

• Zhongtong Bus Holding Co., Ltd.  

• Yangzhou Yaxing Motor Coach Co., Ltd.  

• Yinlong Energy International Pte Ltd.

Key Highlights of the Report

China Electric Bus Market Report Snapshots

China Electric Bus Market Size

China Electric Bus Market Growth

China Electric Bus Market Analysis

China Electric Bus Market Share

China Electric Bus Companies