As per a new market research report, the total cost of a battery is estimated to go down to 8 percent by 2030, against 26 percent in 2016.
Technavio’s market research analysts have predicted that the electric bus market will register a CAGR of above 12 percent by 2022, owing to the decrease in battery prices.
According to the analysts, advancements in Li-ion batteries have not only reduced the overall weight of electric buses but also increased their lifespan when compared to buses that use conventional lead acid and valve-regulated lead acid batteries.
They projected that the total cost of a battery would go down to 8 percent by 2030, against 26 percent in 2016. Hence, the consistent decrease in battery prices will drive the electric bus market growth during the forecast period, they said.
Soon, price of electric buses to become on par with that of the conventional ones
Technavio’s research report noted that continuous decrease in battery prices has resulted in battery manufacturers achieving economies of scale. This, in turn, will reduce the overall price of electric buses and help the global electric bus market grow.
The original cost of an electric bus is higher than that of a conventional bus. An average electric bus can cost 30 percent-35 percent more than an average conventional bus. Any change in the battery prices can bring a massive difference in the total cost of an electric bus, the report explained.
The analysts believe that the decline in the battery prices will allow the price of electric buses to become on par with the prices of conventional buses soon.
Technavio’s report presents a detailed analysis of the electric bus market by the following applications: pure electric buses and plug-in hybrid buses.