Charging the Future: Opportunities in the U.S. Electric Bus Market
Charging the Future: Opportunities in the U.S. Electric Bus Market
Blog Article
Market Overview
The U.S. electric bus market was valued at USD 1,268.3 million in 2023, which is expected to grow at a CAGR of 14.5% during the forecast period 2024–2030.
Several factors that are contributing to the growth of the market include the availability of funding at local, state, and federal levels for the development of ZEBs the long-term economic returns from ZEBs for transit agencies Battery costs Reduction in operational cost through efficient management Environmental benefits related to sustainable energy sources Stringent emission standards.
Precedent initiatives like the NFCBP and the AFCB Project the use of electrically powered buses to transport systems have elongated the use of electric buses in the country.
It is also opening the way to technology transfer, policy preparation, and growth of related component makers for electric buses in the United States Besides, different states of the country have begun to determine the policies on their product development to match their air quality and climate change control standards; California is leading the way in this aspect. The main funding programs to support the use of these vehicles are also on the increase in the country.
Local governments today and environmental agencies are increasingly becoming worried due to the negative impacts brought about by the increment of vehicles in urban areas hence the formulation of energy conservation environmental policies in the U. S. Presently, conventional, diesel-operated buses are used in the provision of public transport services but their emission level augur well with GHG emission.
Key Insights
- In 2023, battery electric buses hold a 70% industry share and are projected to advance the fastest because of advanced battery technology and government/private support.
- BEBs are popular because of their contribution to improving air quality in urban areas.
- In 2023, more-than-40-foot buses led the U.S. industry with an 85% revenue share, projected to remain dominant in terms of volume and value.
- Hybrid technology is preferred for longer buses due to better fuel mileage compared to diesel buses of the same size.
- An overview of the present concept of electric buses shows that longer electric buses are more advantageous environmentally than overall shorter buses.
- NiMH batteries are estimated to account for 15% of the market share in 2023 due to
- competition from the high market share, low cost, lightweight, high-energy density, low maintenance, and safety highlighting Li-ion batteries.
- Large electric buses require high energy density batteries, high nickel-containing cells, and relatively low cobalt load batteries.
- Flexible plug-in charging stations account for 65% market share in the year 2023 due to early adaptation, convenience, and affordable price nature of personal transport vehicles.
- The advancements in inductions underpin the predicted 15% compound annual growth rate in global markets between 2020 and 2030 due to quick charging and decreased operator stress.
- Recent industry developments include Daimler supplying 45 buses to VLP Transport, Greenpower's acquisition of a West Virginia manufacturing facility for electric school transportation, Proterra introducing the ZX5 electric bus, and BYD launching a Type A battery electric vehicle for zero-emission school transport.
Source: P&S Intelligence Report this page