How Is Advancement in Battery Technology Supplementing Electric Bus Market Growth?

Factors such as the increasing environmental concerns due to surging greenhouse gas (GHG) emissions and improving operational efficiency of batteries and plunging battery costs are expected to propel the electric bus market at a vigorous CAGR of 14.9% during the forecast period (2021–2026). According to P&S Intelligence, 82,604 units of electric buses were sold in 2020. The burgeoning demand for these buses can also be ascribed to the long-term cost benefits offered by them.

Electric Bus Market - P&S Intelligence 

The electric bus demand is being driven by the declining costs and improving operational efficiency of batteries. This energy storage device accounts for approximately 40% of the production cost of such buses. Moreover, the increasing battery capacity, on account of continuous technological advancements, will also propel the demand for electric buses, as such batteries assist in meeting the rising need for a longer driving range. Currently, market players are working toward achieving higher energy density and reducing reliance on cobalt, which is an expensive raw material used in batteries, to boost the sales of electric buses.

Globally, Asia-Pacific (APAC) accounted for the largest share in the electric bus market in 2020, due to the presence of favorable government policies, such as tax rebates and discounts for replacing fossil fuel-driven buses with alternative  fuel variants. For instance, the Government of China provides a subsidy of up to RMB 500,000 (around $72,500) for fuel cell electric buses. Furthermore, the National Development and Reform Commission (NDRC), Ministry of Transport (MoT), Ministry of Finance (MoF), Ministry of Housing and Urban-Rural Development (MoHURD), and Ministry of Industry and Information Technology (MIIT) promote the adoption of electric buses in China.

Whereas, the North American electric bus market is expected to demonstrate the fastest growth during the forecast period, owing to the presence of stringent emission norms in the region. In North America, the U.S. generates higher demand for electric buses, due to the enormous subsidies, tax credits, and financial incentives offered by the federal and state governments. Additionally, government initiatives such as exemption of such new energy buses from vehicle emission tests and toll charges also contribute to the market growth in the U.S.

Therefore, the lowering cost and improving efficiency of batteries and rising concerns being raised over GHG emissions are the prominent growth drivers of the market.  

Read More

Europe Electric Bus Market - Highlights on Future Development

The demand for electric buses in the Europe has augmented dramatically over the last decade. The market in the country is predominantly driven by rising air quality concerns, high dependence on conventional or non-renewable fuels, strong environmental ethics and the growing need to assimilate renewables into a network. Penetration of charging infrastructure also plays an important role in market development.

On the basis of technology, the europe electric bus market is broadly categorised into hybrid bus, series hybrid bus, parallel hybrid bus, and pure electric bus. In 2016, the highest number of parallel hybrid buses were circulated in Europe; however, shipments of pure electric bus are expected to become the largest by 2018, owing to the high adoption rate of such buses.

Major countries in Europe including The U.K., Netherlands, France and Germany stand as key electric bus markets. The U.K. and other Central European countries are upgrading their fleet with low or zero-emission buses and retrofitting the old buses with low-emission powertrains, which in turn is projected to intensify the growth of electric bus market in Europe, during the forecast period.

Europe’s Electric Bus Market is in Transformational Growth Mode
As per the current scenario, the number of circulation of such buses in Europe is relatively smaller than APAC and North America. Government subsidies, urban air quality targets and the availability of debt funding are some of the key factors bolstering the demand of electrically operated buses in Europe.

According to an analysis done by Union Internationale des Transports Publics (UITP), approximately 50% of the buses sold in Europe are operating according to the Euro 3 standard or older. To reduce carbon foot prints in the region, European emission standards has been introduced that required all the buses shipped in the region have to meet the Euro 6 emissions standards. Stringent regulations pertaining to energy conservation and carbon footprint reduction are also playing a significant role in market growth.

High Price of to Hamper the European Electric Bus Market Growth
The high cost of electric buses is the major restraint hindering their largescale adoption, especially in the developing countries. Lack of infrastructure, such as charging station in European countries, is hindering the growth of the electric bus in public fleets.

Make Enquiry Before Buying the Report@ https://www.psmarketresearch.com/send-enquiry?enquiry-url=europe-electric-bus-market

Europe Electric Bus Market Competitiveness
Companies operating in the European electric bus market are primarily focusing on providing open interface for charging to push the demand of electricity operated buses in the region. Some of the key European electric bus manufacturers include Solaris Bus & Coach, VDL Bus & Coach BV, EBUSCO, SOR Libchavy Ltd., Bozankaya, and Belkommunmash Holding. Key players operating in the European electric bus market are following the strategy of product launch to strengthen their position in the regional market. For instance, in September 2016, Solaris Bus & Coach presented its new Urbino 12 electric bus at InnoTrans 2016.

Read More

Electric Bus - The Future of Eco-Friendly Mass Transit?

The electric bus market is growing due to strict government regulations on carbon emissions, declining battery prices, and increasing government support for electric transportation modes. A study by P&S Intelligence estimated that by 2025, the worldwide electric bus (e-bus) sales will stand at 331,327 units, advancing at a 16.6% CAGR during the forecast period 2018–2025. Electric buses are those that either solely run on electric batteries or on a combination of a battery and internal combustion engine.

Segmenting the domain by vehicle type, we get battery electric bus (BEB), hybrid electric bus (HEB), and plug-in hybrid electric bus (PHEB) as the three categories. The BEB category led the electric bus market during the historical period 2013–2017 with more than 75.0% sales volume share, as these produce almost no harmful emission. This is why, this bus type is expected to dominate the market in the future as well.

Similarly, the domain can also be segmented by battery type, wherein lithium nickel manganese cobalt oxide (NMC), lithium iron phosphate (LFP), and others would be the three resulting subdivisions. Among these, the e-buses with LFP batteries registered the highest sales during the historical period, as these batteries are cheaper and safer compared to others. Further, less than 10 m and more than 10 m are the two electric bus market categories based on length. Of these, the less than 10 m bus category registered the higher sales volume (60.0% share) in 2017, as these are preferred by government transport departments.

Since public transit authorities are the major buyers of e-buses, the sale of less 10 m variants has been contributing to the electric bus market growth. Rising concerns about greenhouse gas emissions have led governments in several countries to phase out their gasoline or diesel buses. Public authorities are actively giving grants and funding to encourage the manufacture of e-buses. For example, the Federal Transit Administration under the U.S. Department of Transportation offered a $55 million competitive funding in 2017 for buying or leasing zero or low-emission buses.

Another reason for strong government support for e-buses are increasing crude oil prices. A major chunk of the expenditure of developing countries goes into purchasing crude oil; therefore, to decrease their expenditure, governments are encouraging the adoption of e-buses. Though little costly than conventional buses, e-buses are cost-effective in the long run, as these help save the heavy expenses incurred due to crude oil import. Therefore, their dual importance is expected to take the market toward a bright future.

Declining electric battery costs is as much of significance in the electric bus market growth as government support. There has been a significant increase in battery production, particularly in China, which has led to a considerable decline in battery prices. As almost 40.0% of the bus cost is attributed to its battery, a further reduction in battery prices is expected to affect the market positively. Further, battery manufacturers are working tirelessly to increase the output power in order to give bus customers more value for their money.

Therefore, we see due to their environment-friendliness and cost-effectiveness, e-buses are set to become the future of mass transit.

Read More