Asia-Pacific Electric Bus Market Outlook, 2029

The Asia Pacific electric bus market is rapidly expanding and transforming, owing to a variety of factors such as cultural trends, technology advances, government efforts, and environmental concerns. In recent years, the region has seen a significant movement toward sustainable transportation alternatives, fuelled by increased awareness of environmental issues and the need to cut carbon emissions. As a result, electric buses have emerged as a possible alternative to traditional diesel-powered buses, providing major environmental benefits while also saving money on operations. Electric buses have several distinct selling points that set them apart from traditional buses and attract both consumers and operators.

For starters, electric buses are more environmentally friendly than diesel buses, with zero tailpipe emissions and much lower greenhouse gas emissions. This makes them an appealing choice for governments and transportation agencies looking to combat air pollution and alleviate the effects of climate change. Second, electric buses have lower operating costs over their lifespan than diesel buses because they use less fuel and require less maintenance. Furthermore, electric buses are quieter and have a better ride, increasing passenger comfort and pleasure. Cultural factors in the Asia Pacific region influence the need for electric buses.

With rising urbanisation and population density in major cities around the region, there is a greater emphasis on sustainable urban mobility solutions. Furthermore, cultural ideals like environmental consciousness and social responsibility are encouraging governments, corporations, and consumers to adopt cleaner and greener transportation solutions. As a result, electric buses are gaining popularity as a sign of development and modernity, reflecting the region's desire for a cleaner, healthier future.

According to the research report 'Asia-Pacific Electric Bus Market Outlook, 2029' the Asia-Pacific Electric Bus Market is anticipated to grow with more than 10% CAGR from 2024-2029. The COVID-19 epidemic has had both beneficial and negative consequences for the Asia Pacific electric bus sector. While the first lockdowns and travel restrictions caused a short slowdown in bus procurement and deployment, the epidemic has also emphasised the need for resilient and sustainable transportation networks. As the region's economies recover and rebuild, there is increasing interest in investing in green infrastructure and sustainable transportation options, such as electric buses.

Furthermore, the epidemic has accelerated trends such as remote working and e-commerce, resulting in altered travel patterns and increasing demand for public transportation options. Looking ahead, the Asia Pacific electric bus market is expected to grow significantly, owing to favourable government regulations, technical improvements, and rising environmental awareness. Governments across the region are setting aggressive targets and incentives to encourage the usage of electric buses, such as subsidies, tax breaks, and procurement mandates. Furthermore, developments in battery technology, charging infrastructure, and vehicle-to-grid connectivity are expected to reduce prices while increasing the performance and viability of electric buses. As cities and transportation operators prioritise sustainability and resilience, electric buses will play an important role in determining the future of public transportation in Asia Pacific.

Market Drivers

Government Push for Clean Air: Stringent air quality rules and aggressive emission reduction objectives set by governments throughout Asia-Pacific are a major driver of electric buses. The necessity to tackle air pollution in megacities drives the shift toward sustainable mobility.

Economic Efficiency Wins: While the initial cost of electric buses may be greater, operational costs are much cheaper when compared to typical diesel vehicles. Electric buses are an advantageous long-term investment for public transportation operators due to lower fuel costs and maintenance requirements.

Market Challenges

High upfront costs: High upfront costs remain a big impediment to APAC's electric bus business. Electric buses can be much more expensive than typical diesel or CNG vehicles, creating a financial problem for bus operators, particularly in emerging nations.

Limited Range, Limited Routes: The range of electric buses is often limited by battery capacity, which might be an issue. This can be especially restricted in large areas where charging facilities may be scarce, causing range anxiety among operators concerned about running out of power on long routes.

Market Trends

Regional Expansion: The electric bus boom is spreading outside China. Countries such as India, Japan, and South Korea are seeing considerable growth in electric bus usage as air quality concerns rise, accompanied by supportive government policies and incentives.

Extending the Range: Advancements in battery technology are tackling one of the APAC electric bus market's biggest concerns: range anxiety. New generation batteries have a longer range on a single charge, making electric buses more suitable for longer routes and intercity travel, hence expanding their operating reach.

The APAC electric bus market offers a varied range of vehicle types that cater to a variety of operating needs and preferences. BEVs dominate the market due to their zero-emission capabilities, although PHEVs and FCEVs provide alternative choices for longer distances and specific applications. As governments and stakeholders in the APAC region continue to prioritise sustainable transportation solutions, demand for electric buses of all types is likely to increase dramatically in the coming years.

The Asia-Pacific (APAC) electric bus market is segmented by vehicle type into three distinct categories: battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and fuel cell electric vehicles (FCEV). The segment is led by the Battery Electric Vehicle (BEV), which runs entirely on electricity supplied by rechargeable batteries. BEVs have zero tailpipe emissions, making them an environmentally benign option for urban transportation in APAC. They are becoming popular among governments, transit agencies, and fleet operators looking to minimise air pollution and reliance on fossil fuels. Meanwhile, the plug-in hybrid electric vehicle (PHEV) sector is expanding in the APAC electric bus market.

PHEVs combine an internal combustion engine and an electric propulsion system, allowing them to run on electricity alone for a limited time before switching to a combustion engine or a combination of the two power sources. PHEVs are versatile and flexible, making them ideal for longer journeys and areas with limited charging infrastructure. The Fuel Cell Electric Vehicle (FCEV) sector is also making inroads in the APAC electric bus market. FCEVs use fuel cells to create electricity onboard, which powers electric motors that propel the vehicle. Unlike BEVs and PHEVs, FCEVs generate power using an electrochemical process in the fuel cell, allowing for larger ranges and faster refuelling times. FCEVs are particularly well-suited for intercity and long-distance commuting in APAC, where hydrogen refuelling infrastructure is being developed.

The Asia-Pacific (APAC) electric bus market is segmented by application into two separate categories: intercity and intracity. Intracity electric buses, which are primarily geared for urban or city transportation, dominate the segment.

These electric buses serve short to medium-distance travel needs within city borders, providing efficient and ecologically beneficial alternatives to typical diesel buses for public transit. Intracity electric buses are frequently outfitted with features tailored to urban transportation, such as compact designs, efficient electric power systems, and facilities that prioritise passenger comfort and convenience. Meanwhile, the intercity segment of the APAC electric bus market is rapidly growing and expanding. Intercity electric buses are intended for long-distance travel between cities or villages, serving regional transit routes.

These buses include larger batteries or alternative power sources to allow for longer journeys, as well as increased passenger capacity and facilities appropriate for interstate travel. With advances in battery technology and charging infrastructure, intercity electric buses now have enough range and performance to suit the needs of regional transportation networks throughout APAC. Both intracity and intercity electric buses play critical roles in tackling transportation difficulties and lowering carbon emissions in the Asia-Pacific area. Governments, transit agencies, and private operators are investing more in electric bus fleets to modernise public transportation, improve air quality, and promote sustainable mobility. As urbanisation and population expansion continue to drive demand for efficient and environmentally friendly transportation solutions in APAC, the market for intracity and intercity electric buses is likely to expand significantly and innovate in the coming years.

As governments continue to invest in public transportation infrastructure and fleet electrification projects, the APAC electric bus market is expected to grow significantly in both the private and public sectors.

The Asia-Pacific (APAC) electric bus market is segmented by end-use into two separate categories: private and public. The private sector dominates the segment, which includes firms, businesses, institutions, and organisations that operate their own bus fleets for specific reasons. Private companies use electric buses for employee transportation, shuttle services, tourism, and other private transportation requirements. These organisations are increasingly turning to electric buses as a sustainable and cost-effective way to meet their transportation needs while lowering carbon emissions and exhibiting corporate social responsibility.

Furthermore, the growing trend of corporate sustainability and environmental stewardship is driving demand for electric buses among private entities in the APAC region. Meanwhile, the public sector is a developing part of the APAC electric bus market, consisting of public transportation authorities, local governments, and other organisations that provide public transit services. Public entities use electric buses for public transportation, including urban and intercity transit lines, feeder services, and last-mile connection. Public transit agencies are adopting electric buses in response to government initiatives supporting clean energy and sustainable transportation solutions to reduce air pollution, greenhouse gas emissions, and enhance urban air quality. Furthermore, the increasing urbanisation and population density in many APAC countries need efficient and ecologically friendly public transportation systems, accelerating the switch to electric buses.

The electric bus market in Asia-Pacific (APAC) is divided into regions, each with its own set of characteristics and factors that influence market dynamics and demand for electric buses.

Firstly, East Asia, which includes China, Japan, and South Korea, dominates the APAC electric bus industry. China, in particular, stands out as a global leader in electric bus adoption, thanks to government incentives, subsidies, and strong targets for reducing air pollution and carbon emissions. Chinese cities have swiftly increased their electric bus fleets, establishing the country as a significant production base and market for electric buses. Second, Southeast Asia is a burgeoning market for electric buses, with Thailand, Malaysia, and Indonesia all embracing electric mobility programs.

The region's governments are investing in infrastructure development and clean energy initiatives to solve urban congestion, air pollution, and energy security issues. Furthermore, increased urbanisation, population expansion, and the need for sustainable transportation solutions are fueling demand for electric buses in Southeast Asian cities. Third, South Asia, including India and Sri Lanka, is gradually shifting to electric buses, albeit at a slower rate than other regions in APAC. Several cities in India have launched pilot projects and procurement programs for electric buses, with government subsidies and incentives helping to fund them.

However, obstacles including infrastructure restrictions, affordability restraints, and regulatory concerns continue to impede broad implementation. Finally, Oceania, which includes Australia and New Zealand, represents a new but potential market for electric buses. Governments and transportation authorities in these nations are looking into electric mobility technologies to minimize greenhouse gas emissions and promote sustainable transportation options. However, great distances, low population density, and infrastructure constraints all pose barriers to the widespread deployment of electric buses throughout Oceania.

Recent Developments

China dominates the APAC electric bus industry, accounting for more than 85% of the market share in 2022. This supremacy is supported by government programs supporting clean transportation and a thriving domestic electric bus manufacturing sector.

Following a two-year hiatus due to fire incidents, Paris has reintroduced Bluebus electric buses with implemented safety features. This marks a step forward for electric bus adoption in the city

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Electric Bus market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Vehicle

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

By Application

• Intercity
• Intra-city

By End-Use

• Private
• Public

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. After this, the analyst started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the analyst had primary data, they started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Electric Bus industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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