The government segment is projected to be the larger market. However, the COVID-19 pandemic is expected to have a slight impact on the electric bus market
The global electric bus market size is projected to grow from 81 thousand units in 2021 to reach 704 thousand units by 2027. The forecast growth represents a CAGR of 43.1 per cent.
“The advancements in battery pack technologies and electric powertrains are some of the major factors driving the growth of the electric bus and coach market. Many countries are focusing on the electrification of their mass transit solutions, especially buses and coaches,” read a report by Research and Markets.
However, the COVID-19 pandemic is expected to have a slight impact on the electric bus market. Both the production and sales of new vehicles had come to a halt in Q1 and Q2 of 2020 across the globe as the whole ecosystem had been disrupted. OEMs had to wait until lockdowns were lifted to resume production, which affected their business.
Asia-Pacific is estimated to account for the largest market share in 2021. The government segment is projected to be the larger market, 2021 Vs. 2027 (Units).
Factors such as rise in pollution and environmental hazards, stringent government regulations, and stiff competition have compelled automotive OEMs to make fuel-efficient and environment-friendly buses. Post the pandemic, the demand for mass transportation would increase, as people would return to their workplace, and use public transportation.
In addition, component manufacturing is also suspended, and small Tier II and Tier III manufacturers could face liquidity issues. Nevertheless, another wave of COVID-19 due to newer strains may hamper the recovery in some countries.
Subsequently, electric bus manufacturers would need to adjust the production volume based on the COVID-19 scenario across different countries. In addition, component manufacturing too was suspended, and small Tier II and Tier III manufacturers are facing liquidity issues. Thus, production suspension during the outbreak and lower demand post the pandemic might have an unprecedented impact on electric bus providers