Europe Electric Bus Market Report and Forecast 2024-2032

Europe Electric Bus Market Outlook

The Europe electric bus market size was approximately USD 2.23 billion in 2023. The market is assessed to grow at a CAGR of 18.5% between 2024 and 2032, reaching a value of around USD 10.71 billion by 2032. 

Key Trends in the Market

Electric buses refer to vehicles that use electric motors to generate mechanical energy. They reduce local and global emissions and boast lower operating costs than their conventional counterparts. Several countries worldwide are adopting electric mobility solutions, including electric buses, to reduce emissions from the transportation sector.

Electric buses can cut pollutants and lower the level of carbon emissions, thereby improving the quality of air and life. A conventional vehicle with an internal combustion engine, on average, produces 1.3kg CO2 per km travelled, whereas an electric bus produces none.

• The Europe electric bus market demand is being driven by rapid urbanisation, increasing traffic congestion, growing environmental concerns, and changing mobility patterns. In the first half of 2023, Europe deployed approximately 2567 electric buses, surpassing the number of electric buses adopted in 2022.

• The introduction of several initiatives by the European Union, governments, and key organisations to promote the usage of electric vehicles is positively impacting the Europe electric bus market growth . The European Commission aims to deploy only zero-emission city buses by 2030 to combat the climate crisis and reach zero-emission goals.

• Various countries in the region are phasing out internal combustion engine (ICE) vehicles to decarbonise the transportation sector, boosting sales of e-buses. For instance, the Netherlands, Ireland, and Austria have set targets to phase out sales of internal combustion engines used in buses by 2025, 2030, and 2032 respectively. Moreover, more than half of European capital cities are planning to deploy zero-emission buses by 2040 amid stringent government regulations.

• The Europe electric bus market expansion is further being supported by technological advancements and innovations, coupled with increasing adoption of autonomous e-buses that can enhance the safety and comfortability of public transportation. For instance, Karsan’s Level-4 autonomous e-buses, which can detect road and environmental conditions at defined routes and offer maximum safety to passengers, have been adopted in Romania.

Europe Electric Bus Market Segmentation

Based on the propulsion type, the market is segmented into battery electric bus, plug-in hybrid electric bus, and fuel cell electric bus. On the basis of length, the market can be divided into less than 9 meters, 9-14 meters, and above 14 meters. Based on battery type, the market is segmented into lithium-ion battery, and nickel-metal hydride battery (NiMH), among others.

Based on range, the market is categorised into less than 200 miles and more than 200 miles. On the basis of battery capacity, the market is bifurcated into up to 400 kWh and above 400 kWh. Based on end user, the market is divided into private and public. By country, the market is divided into Germany, the United Kingdom, France, and Italy, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Europe electric bus market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Yutong Bus Co., Ltd.

• Daimler Truck AG

• IVECO S.p.A

• Solaris Bus & Coach sp. z o.o.

• AB Volvo

• Traton SE

• Karsan Otomotiv San. ve Tic. A.S

• Xiamen Golden Dragon Bus Co.,LTD

• TAM-Europe d.o.o. 

• BYD Europe B.V.

• Others

Market Share by Propulsion Type

According to the Europe electric bus market analysis, plug-in hybrid electric buses (PHEVs) are gaining significant demand as they use batteries to power an electric motor and fuels such as gasoline to operate an internal combustion engine (ICE). Initially, the vehicle runs on electric power, and when the battery is depleted, it automatically switches to the internal combustion engine.

The main components of a plug-in hybrid electric bus are batteries, charge ports, electric traction motors, and fuel tanks, among others. Meanwhile, fuel-cell electric buses are gaining popularity in Europe owing to their ability to incorporate both hydrogen fuel cells and batteries/capacitors.

Market Share by Country

The United Kingdom holds a substantial portion of the Europe electric bus market share as the country is committed to decarbonise road transport by 2040. To support this goal, the UK government introduced the ZEBRA (Zero Emissions Bus Regional Areas) scheme in 2021 aimed at promoting the use of zero-emissions buses and developing robust infrastructure.

Moreover, to support the electrification of buses, the Department for Transport (DfT) in the United Kingdom has also invested £320m (€362m) to fund 4,000 zero-emission (ZE) buses by 2025.

Competitive Landscape

AB Volvo was established in 1927 and is headquartered in Gothenburg, Sweden. It is a multinational manufacturing corporation that deals in the production and distribution of trucks, buses, construction equipment, and power solutions for marine and industrial applications.

Xiamen Golden Dragon Bus Co., LTD was founded in 1992 and is a joint venture company which is headquartered in Xiamen, China. It specialises in developing, manufacturing, and selling luxury buses and light vans in medium to large sizes. Its products include Intour electric bus, Astar, Polestar electric bus, and E12 electric bus series, among others.

BYD Europe B.V. was founded in 1998 and is a pioneer in battery technology. The leading European e-bus manufacturer aims to transform the global transportation sector through electrification. It offers a wide range of electric buses, including BYD eBus B11, BYD eBus B13, and BYD eBUS B15, among others.

Other Europe electric bus market players include Yutong Bus Co., Ltd., Daimler Truck AG, IVECO S.p.A, Solaris Bus & Coach sp. z o.o., Traton SE, Karsan Otomotiv San. ve Tic. A.S, TAM-Europe d.o.o., BYD Europe B.V., and others.

Key Highlights of the Report