United States Electric Bus Market Report and Forecast 2024-2032

United States Electric Bus Market Size

The United States electric bus market reached a value of around USD 889.42 million in 2023. The market is estimated to grow at a CAGR of 19.2% between 2024 and 2032, reaching a market value of nearly USD 4513.59 million by 2032.

United States Electric Bus Market Outlook

• BYD has delivered over 1,000 electric buses to transit agencies across the United States, including major cities like Los Angeles, New York, and Seattle.

• The West Coast, including California, Oregon, and Washington, accounts for 41% of the total zero-emission buses in the country, with California having the most ZEBs at 1,977 vehicles.

• As of 2023, there were approximately 1,873 electric buses on the road in the United States, which accounts for 3% of the total 60,995 buses in the nation.

United States Electric Bus Market Growth

Buses that run on electricity are called electric buses or e-bus, and they are powered by electricity completely or partially. Buses running partially on electricity and combustion engines are known as hybrid buses. Electric buses are not only beneficial for the environment but also provide financial benefits due to their lower operational costs.

The United States electric bus market expansion can be attributed to the increasing focus on decarbonisation and the switch towards electric vehicles. Electric buses in the United States witnessed a significant increase of 66% in 2022.  As of September 2022, there were 5,480 full-size battery-electric and fuel-cell electric transit buses, compared with 3,297 e-buses in 2021.

Key Trends and Developments

Increasing demand for zero-emission buses, growing focus on improving air quality, and favourable government initiatives are factors that have influenced United States electric bus market development

June 2024

The Spencerport Central School District has received a USD 400,000 rebate from the EPA's Clean School Bus Rebate program to purchase two electric school buses. This is part of a larger effort to transition school districts across New York to zero-emission vehicles and reduce pollution.

June 2024

Bipartisan Infrastructure Law have awarded USD 91 million to California school districts to purchase electric school buses. This initiative will improve air quality and promote a healthier environment for future generations.

June 2024

The Ithaca City School District has received an USD 800,000 EPA rebate to support the conversion of its school bus fleet to electric vehicles. The transition is part of New York State's mandate for all new school buses to be electric by 2035.

April 2024

First Bus has launched 62 state-of-the-art electric buses that will serve routes between Portsmouth and Southampton. The EUR 28.6 million project is a partnership between First Bus South, Portsmouth City Council, and Hampshire County Council.

Growing demand for sustainable transportation

The demand for sustainable transportation options like electric buses is increasing in the United States, driven by concerns over greenhouse gas emissions. This is evident in a survey conducted by the Natural Resources Defense Council (NRDC), which indicates that 40% Americans prefer sustainable transportation options over highway expansions to mitigate pollution and traffic.

Declining battery costs

The average price of lithium-ion battery packs fell by 14% in 2023, reaching INR 139 per kilowatt hour (kWh), compared to INR 161/kWh in 2022. As battery costs decrease, the total cost of ownership for electric buses is expected to decrease, making them more attractive to transit agencies.

Government initiatives and regulations

California introduced the Zero-Emission Vehicle (ZEV) program, which has spurred the growth of electric vehicles in the state. Similarly, the Advanced Clean Truck (ACT) Rule in New York has set a target for all new heavy-duty vehicles to be zero-emission by 2045, which is driving the demand for electric buses.

Increasing adoption by public transportation agencies

Public transportation agencies are increasingly adopting electric buses due to their environmental benefits and lower operating costs. For instance, in the United States, nearly 6,147 new full-size zero-emission transit buses were on the road in September 2023, a 66% increase over the previous year.

United States Electric Bus Market Trends

Stringent environmental regulations aimed at reducing emissions and promoting zero-carbon emission vehicles also drive the market’s growth. Under the scheme Zero Emission Bus (ZEB), the United States aims to transition all public transit agencies to 100% zero-emission bus fleets by 2040. Moreover, the usage of electric buses is likely to reduce dependence on fossil fuels in the coming years and can hence, provide a stable United States electric bus market outlook.

Ongoing advancements in electric vehicle (EV) technology, particularly improvements in battery technology and charging infrastructures, are enhancing the feasibility of electric buses. For example, BYD's new electric bus models, such as the K7 and K9S, feature the company's proprietary iron phosphate battery technology, which is non-toxic and 100% recyclable. These advancements contribute to making electric buses more competitive, economically viable, and sustainable compared to traditional fossil fuel-powered buses.

United States Electric Bus Industry Segmentation

The EMR’s report titled “United States Electric Bus Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Propulsion Type

• Fuel Cell Electric Vehicle (FCEV)

• Battery Electric Vehicle (BEV)

• Plug-in Hybrid Electric Vehicle (PHEV)

Market Breakup by Length

• Less Than 9 Meters

• 9-14 Meters

• Above 14 Meters

Market Breakup by Range

• Less Than 200 miles

• More Than 200 miles

Market Breakup by Battery Capacity

• Up to 400 kWh

• Above 400 kWh

Market Breakup by Power Output

• Up to 250kW

• Above 250kW

Market Breakup by Region

• New England

• Mideast

• Great Lakes

• Plains

• Southeast

• Southwest

• Rocky Mountain

• Far West

United States Electric Bus Market Share

Battery EVs and PHEVs are high in demand due to their lower operational costs and better driving range

Battery electric bus (BEB) holds a notable portion of the market share as these buses offer a good transitioning alternative to combustion engines. BEBs have lower operating costs than diesel buses, as they do not require expensive fuel or frequent oil changes. The charging infrastructure for BEBs is rapidly expanding, making it easier to keep them charged and operational. Examples of BEVs include the Proterra Catalyst and the New Flyer XE60.

Meanwhile, plug-in hybrid electric buses are expected to attain a significant share in the forecast period due to their ability to operate in both electric and hybrid modes and notable investments in infrastructural developments. They also offer a longer driving range compared to BEVs and can be charged from the grid. Examples of PHEVs include the BYD K9 and the Gillig Brite.

As per United States electric bus market analysis, fuel cell electric vehicles (FCEVs) are gaining popularity due to advancements in hydrogen technology and the increasing availability of hydrogen fueling infrastructure. Examples of FCEVs include the Toyota SORA Fuel Cell Bus and the Hyundai ELEC CITY Fuel Cell Bus.

Buses with a range of 200 miles and above are gaining traction in the market, driven by the demand for cost-effective transportation solutions

Buses with a range of less than 200 miles are popular for intracity transportation, such as city routes and local services. These buses are commonly used where the distances are shorter and the demand for frequent stops is higher. The demand for these buses is driven by the need for efficient and cost-effective transportation solutions, as well as the growing focus on reducing emissions and improving air quality.

According to United States electric bus market report, Buses with a range of more than 200 miles are used for intercity transportation, such as long-distance routes and highway services. These buses are often used for regional or national transportation. The demand for these buses is driven by the need for efficient and reliable transportation solutions, as well as the growing focus on reducing emissions and improving air quality. Companies like BYD Motors Inc. offer electric bus models with a range of up to 215 miles and these buses can be fully charged in 3-4 hours.

Leading Manufacturers in the United States Electric Bus Market

Market players are focused on manufacturing battery electric buses, hybrid electric buses, and fuel cell electric buses, with a strong emphasis on reducing carbon emissions

Blue Bird Corporation, based in Georgia, the United States, is a bus manufacturer. The company primarily focuses on school buses, pupil activity buses (SPAB), and speciality vehicle derivatives. The company has a presence in more than 60 countries and sales in Africa, Asia, Latin America, Europe, and the Middle East.

Gillig LLC, headquartered in California, the United States, is a bus designer and manufacturer company founded in 1890. The company is the leading manufacturer of heavy-duty transit buses in the United States. The company has maintained a reputation as the lowest-cost buses to maintain and operate.

Proterra Inc. is a California-based automotive and energy storage company that designs and produces battery electric transit buses, battery systems, and charging solutions for heavy-duty vehicles. The company was established in 2004. The company has 3 facilities, one in California and two in South Carolina.

BYD Motors Inc. is a leading electric vehicle manufacturer, focusing on zero-emission transportation solutions. It is headquartered in Los Angeles, California, and was founded in 1995. The company is a wholly owned subsidiary of BYD Company Ltd, the largest domestic auto-manufacturer and electric-bus manufacturer in China.

Other key players in the United States electric bus market include Volvo AB, Daimler Truck Holding AG, Hyundai Motor Company, Lion Electric Company, NFI Group Inc., Motiv Power Systems Inc., and GreenPower Motor Company Inc., among others.

United States Electric Bus Market Analysis by Region

Regions like Southeast, Far West, and Southwest leads the market due to the sufficient availability of EV charging stations

The growing infrastructural development, increasing government initiatives, and consumer initiatives to reduce carbon emissions are factors positively impacting the market in regions like Southeast and New England. Moreover, the rising adoption of fuel cell electric buses and increasing number of charging stations in regions like Far West and Southeast is also expanding the overall United States electric bus market share. As per industry reports, California’s 14 states with transit agencies have adopted the highest number of fuel cell electric buses in US.

Additionally, as of November 2022, there were 56,256 electric vehicle (EV) charging stations in the United States, of which 52,375 were public electric vehicle charging stations and 3,816 were private electric vehicle charging stations. States like California, Florida, and New York are the leading states for the number of electric vehicles charging stations installed.

Key Highlights of the Report

United States Electric Bus Market Report Snapshots

United States Electric Bus Market Size

United States Electric Bus Market Growth

United States Electric Bus Market Share

United States Electric Bus Market Trends

United States Electric Bus Market Regional Analysis

United States Electric Bus Manufacturers