Electric Bus Market Size to Surpass USD 72.91 Billion by 2034 with 12.9% CAGR Growth

Electric Bus Market Size, Trends, Share and Innovations

The electric bus market is forecast to grow from USD 25.08 billion in 2025 to USD 72.91 billion by 2034, driven by a CAGR of 12.9% from 2025 to 2034. The increasing adoption of electric buses in urban areas to curb emission along with technological advancements in the EV manufacturing sector is playing a crucial role in shaping the industrial landscape.

Additionally, numerous government initiatives aimed at rising awareness about EVs coupled with rapid investment by automotive brands for opening up new EV bus production facilities has boosted the market expansion. The integration of advanced technologies such as AI and IoT in electric buses is expected to create ample growth opportunities for the market players in the upcoming years.

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Introduction

The electric bus market is a crucial segment of the electric vehicle industry. This industry deals in development and distribution of electric buses across the world. There are numerous types of bus developed in this sector comprising of battery electric buses, plug-in hybrid buses, fuel cell hybrid buses and some others. These buses are powered by different types of batteries including Lithium Nickel manganese cobalt oxide batteries, lithium iron phosphate batteries and some others. The end-user of these buses consists of public and private. This market is expected to rise significantly with the growth of the commercial vehicles industry around the globe.

Highlights of the Electric Bus Market

• Asia Pacific generated highest revenue of the electric bus market.
• Europe is expected to rise with a significant CAGR during the forecast period.
• By type, the battery electric vehicle (BEV) segment led the market.
• By type, the fuel cell electric vehicle (FCEV) segment is expected to grow with a considerable CAGR during the forecast period.
• By end use, the public segment dominated the market.
• By end use, the private segment is expected to rise with a significant CAGR during the forecast period.

What are the Trends of the Electric Bus Market in 2025?

The major trends in this market consists of government initiatives, partnerships and rapid investment by battery manufacturers.

Government Initiatives

• Government of several countries such as India, Japan, the U.S., Germany and some others are launching several initiatives to enhance the adoption of EVs.

Partnerships

• Numerous automotive brands are partnering with powertrain developers to manufacture powerful powertrains for electric buses.

Rapid Investment by Battery Manufacturers

• The battery manufacturing companies are investing heavily for opening up new battery production centers to cater the needs of e-buses.

Type Insights

How did the Battery Electric Vehicle (BEV) Segment Led the Electric Bus Market in 2025?

The battery electric vehicle (BEV) segment dominated the market. The growing sales of electric buses in developed regions with an aim at lowering GHG emission has boosted the market expansion. Also, the increasing adoption of e-buses by airline sector to carry passengers from the aircraft to the airports is playing a crucial role in shaping the industrial landscape. Moreover, technological advancements in battery manufacturing sector is expected to drive the growth of the electric bus market.

The fuel cell electric vehicle (FCEV) segment is expected to expand with a considerable CAGR during the forecast period. The rising emphasis of automotive companies for advancing research and development activities related to FCEV engines has boosted the market expansion. Additionally, the deployment of FCEV buses by transport organizations in numerous developed nations is playing a vital role in shaping the industry in a positive direction. Moreover, growing investment by government of several countries for developing the hydrogen refueling infrastructure is expected to boost the growth of the electric bus market.

End Use Insights

Why did the Public Segment Held the Largest Share of the Electric Bus Market in 2025?

The public segment led the market. The deployment of electric buses by municipal corporations in urban areas to reduce vehicular emission has driven the market expansion. Additionally, partnerships among government organizations and bus manufacturers to launch e-buses to enhance intracity transportation is playing a crucial role in shaping the industrial landscape. Moreover, numerous government initiatives aimed at providing sustainable transportation solutions to public is expected to drive the growth of the electric bus market.

The private segment is expected to grow with a significant CAGR during the forecast period. The increasing demand for electric buses by long-route travelers due to enhanced convenience and less ticket price has boosted the market expansion. Additionally, the deployment of e-buses by fleet operators for operating overnight journey with an aim at gaining maximum profits is playing a vital role in shaping the industry in a positive direction. Moreover, the availability of private buses in numerous ticket booking platforms is expected to boost the growth of the electric bus market.

Geographical Insights

Why Asia Pacific Dominated the Electric Bus Market in 2025?

Asia Pacific dominated the electric bus market. The increasing adoption of electric buses in several countries such as China, India, Australia, Singapore and some others with an aim at reducing vehicular emission has boosted the market expansion. Additionally, rapid investment by EV charging providers to open new charging stations coupled with numerous government initiatives aimed at deploying electric buses for public commute is playing a vital role in shaping the industrial landscape. Moreover, the presence of various market players such as BYD, Tata Motors, Hyundai Motor Company and some others is expected to foster the growth of the electric bus market in this region.

• In April 2025, Hyundai Motors launched ELEC CITY TOWN electric buses in Japan. These electric buses are designed to provide sustainable transportation across this nation.

Europe is expected to expand with a significant CAGR during the forecast period. The rising demand for luxury electric buses in prominent nations such as Germany, Italy, France, UK and some others has driven the market growth. Additionally, numerous government initiatives aimed at lowering CO2 emission coupled with rapid deployment of wireless chargers on modern roads is contributing to the industry in a positive manner. Moreover, the presence of several market players such as Volvo, Mercedes-Benz Group AG, Scania and some others is expected to drive the growth of the electric bus market in this region.

• In April 2025, Scania launched a new range of electric buses in Europe. These electric buses are designed for suburban, city, and shorter intercity routes.

Industry Leader Announcement

• In March 2025, Rafael Kisel, the President at Volvo Group Mexico made an announcement stating that, “We are accelerating the transformation to sustainable and efficient transport solutions to further improve the public transport system in Mexican cities. This will not only have a positive effect for the operators and the passengers, but it will also improve the quality of life for citizens in cities.”

Competitive Landscape

The electric bus market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Hyundai Motor Company, BYD Company Limited; AB Volvo; Proterra; Nissan Motor Corporation; Ashok Leyland Limited; Daimler AG; Iveco Group, MAN; Zhengzhou Yutong Bus Co. Ltd.; TATA Motors Limited; and some others. These companies are constantly engaged in developing electric buses and adopting numerous strategies such as joint ventures, acquisitions, launches, partnerships, business expansions, collaborations and some others to maintain their dominance in this industry.

• According to the annual report of Iveco, the revenue of the bus segment in 2023 was around 2260 million euros that increased to 2561 million euros in 2024.

Recent Developments

• In April 2025, JBM launched an electric bus in Germany. This bus is equipped with a 424 kWh LFP battery pack and integrated with ADAS to enhance safety.
• In March 2025, Volvo launched Volvo 7800 electric in Mexico. This bus is designed for delivering sustainable transport solutions to people of this country.
• In March 2025, NueGo launched a new electric sleeper bus in India. This bus is equipped with several features such as USB charging ports, night reading lamps, overhead storage, berth pockets, soft-touch interiors, ambient LED lighting and modern sanitation facilities.

Top Electric Bus Market Players

• BYD Company Limited
• AB Volvo
• Proterra
• MAN
• Nissan Motor Corporation
• TATA Motors Limited
• Hyundai Motor Company
• Ashok Leyland Limited
• Daimler Truck AG
• Zhengzhou Yutong Bus Co., Ltd.

Electric Bus Market Segments

By Type

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

By Battery Type

• Lithium Nickel Manganese Cobalt Oxide
• Lithium Iron Phosphate

By Application

• Intercity
• Intracity

By End-Use

• Public
• Private

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa