Electric and Fuel Cell Buses 2025-2045: Markets, Players, Technologies and Forecasts

Buses are the most common form of public transport in the world and are integral to public transport networks. In 2023, around 330,000 new bus and coach vehicles were produced. In most regions, these are primarily diesel, which not only contributes to CO₂ emissions but reduces air quality, especially in the most dense urban regions.

 

The global electrification of bus fleets is gaining increasing momentum around the globe after initially being confined to the Chinese market. IDTechEx research indicates that around 60,000 electric buses were sold in 2023 and that by 2045 this number will reach 190,000 annually. This report unpacks the factors that will drive this growth and gives in depth regional assessments into market trends and players. Technological innovation is also explored, with the latest developments in Li-ion batteries for buses, cathode chemistry trends, electric motors, fuel cells and charging infrastructure.

 

 

 

 

Global sales of electric buses began at scale in the early 2010s, but the market has until recently been entirely dominated by China. A period of explosive growth helped in part by generous subsidies led to a peak of almost 120,000 sales in 2016. In the following years, a combination of subsidy withdrawal and saturation of tier-1 cities has caused sales in China to decline and then plateau. The rest of the world is only now following suit, with the European market leading the way.

 

 

 

There is a wide range of players in the electric bus space, making it an increasingly competitive market. In Europe, pure electric bus startups are now competing with the late entry of legacy bus OEMs (those who have a history manufacturing diesel buses) and Chinese imports. In 2023 the leading holder of market share was MAN, which held 16% of the available market share. Operators have a wealth of choice in terms of suppliers and models - and for many the challenge remains the higher upfront costs, with an electric bus being twice as expensive as an equivalent diesel bus. This report also provides current market analysis of China, the US, Latin America, Korea, Japan and India.

 

 

In this report, IDTechEx studies the comparative deployments and merits of the main candidates for electrification:

 

This report provides in-depth analysis of case studies, TCO considerations and quantitative and qualitative benchmarking on electric bus technologies. Key questions are answered such as what battery energy density improvements will mean for range, and what are the infrastructure costs associated with fleet electrification. CO₂ emissions of FCEBs by the color of hydrogen used, and real-world efficiency and consumption data are explored and disseminated by IDTechEx in this report.

 

The bus market is comparatively smaller in GWh volume demand than other sectors such as passenger cars, and this impacts economic decisions around battery pack sourcing. Whilst for the largest volume segments, vertical integration reduces costs and increases supply chain security, many bus OEMs do not require packs in the volume to warrant the investment required for in-house battery production. There are a few exceptions (BYD and MAN), which leverage demand in other sectors to reach the required demand. For most OEMs, battery packs are outsourced and this report includes information on the various battery pack suppliers and benchmarks products by capacity (kWh), chemistry (LFP/NMC) and energy density (kWh/kg).

 

IDTechEx has tracked the maximum available battery configuration for various electric bus models by release year, and a clear trend of increasing capacity and models can be seen. This has been driven by two main factors, increases in energy density (kWh/kg) meaning more energy can be stored in the same weight battery, and decreasing pack prices. The overall result for electric buses is increased range and options for routes.

 

 

 

Replacing diesel ICE (internal combustion engines) with electric motors presents new opportunities and challenges for electric buses. This report explores the various technical options for motors (PMSM, ACIM, etc) and the various configurations they can be integrated into an electric bus. Tier-1 supplier analysis and supply relationships are also studied, with benchmarking of commercial traction motors by power and torque density.

 

In this report, IDTechEx combines extensive in-depth market data, first-hand interviews with industry players, and attendance at global events to assess, quantify and forecast the global electric bus market. This report contains granular forecasts for the global electric bus market up to 2045 including:

 

With a forecast market value of USD$180 billion predicted by 2045, this report informs and advises on this growing but competitive aspect of transport electrification.

 

This report provides commercial and technical market intelligence on the electric bus industry, including:

 

Global Historic Sales

 

Batteries for Electric Buses

 

Thermal Management for Electric Buses

 

Electric Motors for Buses

 

Charging Infrastructure and Technologies for Buses

 

Fuel Cell Electric Buses

 

Plug-in Hybrid Buses and Hydrogen Internal Combustion Engine Buses.

 

Benchmarking and Cost Analysis.

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