Europe Electric Bus Market

Europe Electric Bus Market:

The Europe electric bus market size reached US$ 2.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 14.4 Billion by 2032, exhibiting a growth rate (CAGR) of 19.81% during 2024-2032. The implementation of favorable government policies in the region, several technological advancements in battery technology for improved efficiency and performance, and the growing awareness regarding environmental pollution are some of the major factors propelling the market growth.

Europe Electric Bus Market Analysis:

• Major Market Drivers: The growing environmental concerns and stringent regulations aimed at curbing carbon dioxide (CO₂) emissions from conventional fuel vehicles are primarily driving the growth of the European electric bus market.
• Key Market Trends: The significant expansion in charging infrastructure and the establishment of testing facilities dedicated to the analysis of electric motors, controllers, and battery chargers are influencing the market growth.
• Geographical Trends: According to the report, Germany accounted for the largest market share. Germany's robust economy enables significant investments in clean energy technologies, including electric buses. Additionally, the implementation of favorable government policies, such as subsidies and incentives for electric vehicle adoption, encourages transit authorities and operators to transition to electric buses, thus accelerating the Europe electric bus market share.
• Challenges and Opportunities: Challenges in Europe bus market include the high initial investment costs for electric buses and the need for extensive charging infrastructure, which may deter some operators from transitioning to electric fleets. However, stringent emission regulations and increasing environmental awareness create opportunities for manufacturers to capitalize on the growing demand for eco-friendly public transportation solutions. 

Europe Electric Bus Market Trends:

Implementation of Favorable Government Policies

The implementation of favorable policies to curb urban air pollution, reduce greenhouse gas (GHG) emissions, and promote sustainable transportation solutions are primarily contributing to the market growth. Furthermore, the urban bus fleets in Europe are anticipated to largely transition to electric power by 2030, supported by public transit operators and city governments. Over the past five years, the number of electric buses in Europe has increased from around 200 to more than 2,500 vehicles. Additionally, several countries in the European region have taken steps toward transitioning their public transport fleet to hydrogen fuel-powered vehicles in order to meet their emission targets. For instance, in June 2020, Germany adopted the National Hydrogen Strategy after approval from its federal cabinet. The policy extended a total investment of € 7 Billion to ramp up the public transport fleet to hydrogen technologies in the future. Such initiatives are anticipated to propel the Europe electric bus market demand in the coming year. 

Emerging Technological Advancements

The continuous evolution of battery technology is extending the range and performance capabilities of electric buses. Additionally, lithium-ion batteries with higher energy density and faster charging capabilities are enabling buses to cover longer distances on a single charge and reducing charging times, thus augmenting the market growth. Moreover, various key market players are increasingly investing in the expansion and upgrading the technology to offer more improved and efficient versions of electric buses. For instance, in June 2022, Van Hool Introduced a new range of zero-emission public buses A-Series at the European Mobility Expo in Paris. The A-series of zero-emission buses featured options of a battery-electric and fuel cell (hydrogen) powertrain. Similarly, in April 2022, Switch Mobility showed its new Metrocity electric bus at BUS2BUS in Berlin. Later, in June 2022, the company launched its new 12-meter bus at the European Mobility Expo in Paris. Furthermore, the ongoing development of wireless charging technology is projected to enhance the charging infrastructure projects, allowing on-the-go charging facilities and eliminating the need for frequent stops at charging stations, which will significantly propel the Europe electric bus market revenue over the forecasted period.

Public Awareness and Demand

Growing public awareness of environmental issues and demand for greener transportation options are fueling interest in electric buses among commuters, putting pressure on transit agencies to transition to cleaner fleets. In response to this, numerous bus operators are now switching from IC engine-powered buses to electric buses, which is positively impacting the Europe electric bus market outlook. For instance, in July 2021, MZK in Konin stated that it would be the first public transport operator in Poland to add a hydrogen bus to its fleet. Secured by Solaris Bus & Coach, the contract stipulated the four-year lease of an Urbino 12 hydrogen bus propelled with energy derived from hydrogen. The vehicle was delivered to Konin in 2022. Similarly, VDL Bus&Coach started building a new, climate-neutral factory in Roeselare, Belgium, where the first bus commenced manufacturing at the beginning of 2022. The industrial buildings are designed in such a way that only electrically powered buses can be built in a climate-neutral and efficient manner.

Europe Electric Bus Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Europe electric bus market report, along with forecasts at the regional and country levels from 2024-2032. Our report has categorized the market based on propulsion type, battery type, length, range, and battery capacity.

Breakup by Propulsion Type:

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
   

Battery electric vehicle (BEV) presently accounts for the largest market share

The report has provided a detailed breakup and analysis of the market based on the propulsion type. This includes battery electric vehicle (BEV), fuel cell electric vehicle (FCEV), and plug-in hybrid electric vehicle (PHEV). According to the report, battery electric vehicle (BEV) represented the largest segment.

Battery electric vehicles (BEVs) are powered exclusively by electric batteries and are gaining substantial traction due to their intrinsic advantages and alignment with the region's ambitious environmental goals. Additionally, the rising demand for BEVs due to their zero tailpipe emissions effectively addresses the pressing concerns of urban air pollution and contributes to the reduction of greenhouse gas (GHG) emissions thus augmenting the market growth.

Breakup by Battery Type:

• Lithium-ion Battery
• Nickel-Metal Hydride Battery (NiMH)
• Others
   

Lithium-ion battery represents the most used battery type

The report has provided a detailed breakup and analysis of the market based on the battery type. This includes lithium-ion battery, nickel-metal hydride battery (NiMH) and others. According to the Europe electric bus market report, lithium-ion battery accounted for the largest market share.

Lithium-ion batteries have emerged as the preferred choice for powering buses across the continent, driving the transition to cleaner and more sustainable transportation solutions. Additionally, the widespread adoption of lithium-ion batteries is due to their remarkable energy density, efficient charge and discharge cycles, and relatively lower self-discharge rates are influencing the market growth. These batteries provide buses with extended-range capabilities, enabling them to cover substantial distances on a single charge. Moreover, the decline in lithium-ion battery prices is also catalyzing the growth of this segment. In 2023, the lithium-ion battery price was noted to be around US$ 139 per kWh in the global market, a decrease of around 82.17% from 2013. This, in turn, is offering lucrative growth opportunities to the overall market.

Breakup by Length:

• Less than 9 Meters
• 9-14 Meters
• Above 14 Meters
   

9-14 meters hold the largest share of the market

A detailed breakup and analysis of the market based on the length has also been provided in the report. This includes less than 9 meters, 9-14 meters, and above 14 meters. According to the report, 9-14 meters represented the largest segment.

Europe electric bus market statistics by IMARC, indicates that the 9-14 meters buses are driven by the increasing demand for buses that are well-suited for urban and intercity transportation needs, striking a balance between passenger capacity, efficiency, and maneuverability, thus contributing to the market growth. These mid-sized buses are particularly favored for urban transit routes due to their ability to accommodate a substantial number of passengers while navigating through city streets with relative ease. As a result, the demand for 9-14 meters bus is rising. In response to this, numerous manufacturers are introducing electric buses with improved features in this size. For instance, in April 2022, Switch Mobility showed its new Metrocity electric bus at BUS2BUS in Berlin. Later in June 2022, the company launched its new 12-meter bus at the European Mobility Expo in Paris.

Breakup by Range:

• Less than 200 Miles
• More than 200 Miles
   

Less than 200 miles dominates the market

A detailed breakup and analysis of the market based on the range has also been provided in the report. This includes less than 200 miles and more than 200 miles. According to the report, less than 200 miles accounted for the largest market share.

The less than 200 miles range is primarily driven by the growing urban environments. In addition to this, the practical and operational requirements of urban transit systems and short-to-medium distance routes often require shorter travel distances, making electric buses with a range of less than 200 miles a viable and efficient option, thus contributing to the market growth. These buses fulfill the demands of daily commutes, city tours, and inner-city transportation needs while minimizing the need for frequent recharging.

Breakup by Battery Capacity:

• Up to 400 kWh
• Above 400 kWh
   

400 kWh presently accounts for the largest market share

A detailed breakup and analysis of the market based on the battery capacity has also been provided in the report. This includes up to 400 kWh and above 400 kWh. According to the report, up to 400 kWh represented the largest segment.

The up to 400 kWh market is primarily dominating the battery capacity segment due to its ability to balance extended range and operational efficiency, thus contributing to the market growth. Moreover, the widespread adoption of up to 400 kWh battery capacity aligns with the overarching goals of the electric bus market, addressing the challenge of covering substantial distances while accommodating the energy demands of urban transportation represents another major growth-inducing factor. This capacity allows electric buses to navigate diverse routes, including those with higher energy consumption demands, without compromising on performance or passenger capacity.

Breakup by Country:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
   

Germany exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include Germany, France, United Kingdom, Italy, Spain, and others. According to the report, Germany accounted for the largest market share.

As per the Europe electric bus market overview, Germany's robust economy enables significant investments in clean energy technologies, including electric buses. Additionally, the implementation of favorable government policies, such as subsidies and incentives for electric vehicle adoption, encourages transit authorities and operators to transition to electric buses, thus accelerating market growth. For instance, in June 2020, Germany adopted the National Hydrogen Strategy after approval from its federal cabinet. The policy extended a total investment of € 7 Billion to ramp up the public transport fleet to hydrogen technologies in the future. Additionally, German cities are introducing stringent emission zones, accelerating the demand for zero-emission vehicles, which is anticipated to propel the Europe electric bus market recent price.

Competitive Landscape:

At present, key players in the market are actively implementing strategies to solidify their positions and capitalize on the growing demand for sustainable transportation solutions. Additionally, leading Europe electric bus market companies are investing significantly in research and development (R&D) to develop cutting-edge technologies and innovations including advancements in battery technology, energy management systems, and regenerative braking, enhancing the efficiency and performance of buses. They are offering several types of models customized to different market segments and customer needs that allow companies to cater to varying requirements, from urban transit to intercity travel which strengthens the market presence. Furthermore, key players are prioritizing customization options to address specific customer preferences and operational demands to enhance customer satisfaction and build long-lasting relationships.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.

Europe Electric Bus Market Recent Developments:

• April 2024: Daimler Buses and battery systems expert, BMZ Poland, entered into a strategic partnership for the development and supply of the next generation of e-bus batteries. The company vowed to further develop the existing battery technology electric buses in Europe, with customer induction from the middle of this decade.
• October 2023: Scania, a major Swedish manufacturer of commercial vehicles, launched a new battery-electric bus platform at Busworld Europe. The introduction of low entry 4x2 buses included sustainably sourced and constructed batteries, which provide a substantial energy storage capacity of up to 520 kWh. These batteries were specifically engineered for heavy commercial vehicles, allowing for a range of over 500 km under optimal conditions.
• October 2023: Indian electric bus maker, JBM Electric Vehicles, presented two of its latest e-bus products at the Busworld Europe 2023 expo in Brussels, Belgium, thus marking the company's foray into the European Union region with its tailored-made solutions for mass e-mobility ecosystem.

Europe Electric Bus Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Europe electric bus market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Europe electric bus market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Europe electric bus industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.