Electric Bus Market Report 2026

The electric bus market size has grown rapidly in recent years. It will grow from $40.47 billion in 2025 to $44.85 billion in 2026 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to government emission regulations, urban air pollution concerns, public transport electrification programs, declining battery costs, pilot electric bus deployments.

The electric bus market size is expected to see rapid growth in the next few years. It will grow to $67.3 billion in 2030 at a compound annual growth rate (CAGR) of 10.7%. The growth in the forecast period can be attributed to expansion of charging networks, smart city initiatives, advancements in battery energy density, hydrogen ecosystem development, large-scale fleet electrification. Major trends in the forecast period include rapid adoption of zero-emission public transport, expansion of fast-charging infrastructure, deployment of long-range electric buses, integration of smart fleet management, growth of fuel cell bus pilots.

The rising adoption in commercial and heavy-duty vehicles is expected to drive the growth of the electric bus market going forward. Commercial and heavy-duty vehicles are large transport vehicles designed to carry goods or passengers, typically used for industrial, logistics, and commercial operations. Their adoption is increasing due to growing demand for efficient goods transportation driven by expanding e-commerce and logistics networks. Electric buses are used in commercial and heavy-duty fleets by providing zero-emission, energy-efficient transportation for mass passenger movement in urban and intercity routes. For instance, in September 2023, according to the World Resources Institute, a US-based non-profit organization, the collective count of electric school buses reached 5,982 in June 2023, marking a notable increase of over 3,200 buses compared to June 2022. Therefore, the rising adoption in commercial and heavy-duty vehicles is driving the growth of the electric bus market.

Major companies operating in the electric bus market are focusing on developing advanced, zero-emission models with enhanced battery options, improved passenger comfort, integrated charging solutions, and comprehensive service offerings to strengthen their market presence. For instance, in May 2023, Volvo Buses, a Sweden-based company that manufactures buses and coaches, launched the fully electric LUMINUS city bus in Mexico, celebrating its 25th anniversary. Produced locally, the LUMINUS offers battery options ranging from 280 to 470 kWh and lengths between 9.7 and 13 meters. It features advanced safety systems, a low entrance for accessibility, and spacious interiors equipped with wireless internet and USB charging ports. Volvo Buses provides comprehensive solutions that encompass the buses, charging infrastructure, and financing, while maintaining a commitment to zero-emission products.

In January 2024, Phoenix Motorcars, Inc., a US-based electric vehicle manufacturer, acquired Proterra Inc. and Proterra Operating Company, Inc. for an undisclosed amount. This acquisition aims to strengthen Phoenix Motor's position in the electric bus market by utilizing Proterra's expertise, technology, and product portfolio. This strategic move enhances Phoenix Motor's ability to provide innovative and sustainable electric transit solutions for public transportation. Both Proterra Inc. and Proterra Operating Company, Inc. are US-based companies that specialize in manufacturing electric buses and related technologies.

Major companies operating in the electric bus market report include BYD Co. Ltd., Tata Motors Limited, Zhengzhou Yutong Bus Co. Ltd., Scania AB, Dongfeng Motor Corporation, MAN Truck & Bus AG, Sinotruk Hong Kong Limited, Foton Motor Group, VDL Groep, Ashok Leyland Limited, NFI Group Inc., Blue Bird Corporation, Solaris Bus & Coach S.A., Gillig LLC, New Flyer of America Inc., Eicher Motors Limited, Alexander Dennis Limited, JBM Auto Limited, King Long United Automotive Industry Co. Ltd., Zhongtong Bus & Holding Company Limited, Proterra lnc., Nanjing Golden Dragon Bus Manufacturing Co. Ltd., Ebusco, The CAF Group incorporates, GreenPower Motor Company Inc., The Volvo Group, Daimler AG, Higer Bus Company Limited, Motiv Power Systems Inc., Zhuhai Guangtong Automobile Co. Ltd., Shenzhen Wuzhoulong Motors Co. Ltd., Olectra Greentech Limited, Xiamen King Long United Automotive Industry Co. Ltd., Yaxing Motor Coach Co. Ltd.

Asia-Pacific was the largest region in the electric bus market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the electric bus market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric bus market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electric bus market consists of sales of battery-powered all-electric buses. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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