Electric Bus Market Projected to Reach US$ 117.57 Billion by 2035, Supported by Public Transit Electrification Programs Says Astute Analytica

Electric bus market promises huge opportunity despite logistics and geopolitical challenges. Success hinges on supply chain agility, grid intelligence, and workforce readiness—not just range or batteries. Leaders will turn regulatory and infrastructure hurdles into competitive edges in fragmented global markets.

Chicago, Jan. 20, 2026 (GLOBE NEWSWIRE) — The global electric bus market size was valued at USD 35.95 billion in 2025 and is projected to hit the market valuation of USD 117.57 billion by 2035 at a CAGR of 12.58% during the forecast period 2026–2035.

The electric bus market has become well-established globally, driven by robust government policies and infrastructure advancements. Major manufacturers operate in regions like China, Europe, and North America, with operational fleets serving urban transit, schools, and intercity routes.

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​As per Astute Analytica’s recent study, Widespread deployment is evident in cities such as Los Angeles and New York, where public systems commit to full electrification, supported by federal grants and grid upgrades. In India, state transport undertakings actively procure models for cleaner operations, aided by schemes like PM E-Drive. Moreover, battery innovations enable ranges up to 260 km per charge, suiting diverse applications without frequent stops, while localization efforts by firms like VinFast signal supply chain reliability. Challenges like battery durability persist but are mitigated by improved management systems.

Key Findings

• In the propulsion type, the BEV segment secured a revenue share of 73% in 2025.
• In the application category, the intracity segment commanded a revenue share of 84% in electric bus market.
• In the end-use category, the public segment dominated with a revenue share of approximately 83% in 2025.
• In the battery category, the lithium iron phosphate battery segment captured a revenue share of 92% in 2025.
• The Asia Pacific region claimed the largest revenue share of 87% in 2025.

BEV Securing 88% Share by Outpacing Rivals with Standardized Electric Chassis Platforms

The BEV segment’s overwhelming 88% revenue share in the electric bus market is currently driven by legacy manufacturers aggressively converting their entire production lines to standardized electric platforms, leaving no room for alternative propulsion in volume orders. MAN Truck & Bus reported in their H1 2025 financial results that sales of their electric vehicles rose by a staggering 238% compared to the previous year, confirming that the market has decisively moved past the pilot phase into mass adoption. This surge is underpinned by the “Lion’s City E” platform, which has captured the top spot in the European market by offering a modular chassis that shares components with existing logistics networks, thereby simplifying maintenance for operators.

Similarly, UK-based Wrightbus cemented its dominance with a 40% market share in 2024, delivering over 20 buses per week. Their growth is fueled not by experimental technology but by the mass production of the “Electroliner” BEV series, which offers verified range consistency that hydrogen competitors have failed to match at scale. The electric bus market dominance is further solidified by Scania, which used Busworld 2025 to launch a complete battery-electric platform for both city and intercity operations, effectively signaling the end of diesel development for their core markets.

Intracity Application Generating 84% Share via Aggressive Fleet Renewal in High Density Metros

The Intracity segment’s 84% revenue share in the electric bus market is fueled by the operational urgency of “Territorial Equity” and noise pollution mandates in the world’s most densely populated capitals. Red Movilidad, the transport authority for Santiago, Chile, reported in mid-2025 that their active fleet had reached 2,555 electric buses, consolidating the city’s status as the largest electric fleet operator outside China. This dominance in the electric bus market is driven by the specific operational profile of stop-start urban traffic, where regenerative braking recovers up to 40% of energy, a distinct efficiency advantage that intercity highway routes cannot leverage. In Europe, VDL Bus & Coach confirmed in April 2025 that the order book for their new generation “Citea” electric city bus was completely filled for the year, driven by municipal requirements in the Netherlands and Scandinavia for zero-emission city centers.

These urban operators are prioritizing electric buses not just for CO2 reduction, but for the immediate elimination of particulate matter and noise in residential zones, a benefit that creates immediate political capital for city mayors and ensures the intracity segment retains the vast majority of procurement budgets.

Public Use Commanding 83% Share of the Electric Bus Market through Sovereign Wealth Investment in National Transit Infrastructure

The Public segment’s 83% revenue share is sustained by the fact that decarbonization has become a primary vehicle for sovereign wealth investment and national climate diplomacy. Unlike private charter operators who are sensitive to interest rates and ROI, public transport authorities are capitalizing on direct government liquidity. In 2025, the Chilean Ministry of Transport (MTT) utilized direct fiscal transfers to fund the “Red Movilidad” expansion, bypassing traditional commercial lending constraints that hamper private buyers. Similarly, in the UK, the franchised public transit model has allowed Go-Ahead Group to place a landmark order for 1,500 electric buses from Wrightbus, a deal made possible only through the guaranteed revenue streams backed by Transport for London (TfL) in the electric bus market.

The World Bank and regional development banks have further skewed the market share by tying infrastructure loans for emerging economies specifically to public zero-emission transit projects. As a result, private tourism and charter companies, receiving near-zero financial aid, have effectively paused fleet electrification, leaving the public sector as the sole driver of revenue volume globally.

Lithium Iron Phosphate Dominating 92% Share by Matching Battery Lifespan to Vehicle Service Life

The Lithium Iron Phosphate (LFP) segment’s 92% share of the electric bus market is secured by a breakthrough in cycle-life technology that has finally aligned battery durability with the bus’s chassis lifespan. In September 2024, CATL, the world’s largest commercial battery supplier, launched the “Tectrans Bus Edition” battery, which features an industry-shattering 15-year or 1.5 million kilometer warranty. This development is critical because it eliminates the need for a mid-life battery replacement—traditionally the biggest cost fear for operators using Nickel Manganese Cobalt (NMC) chemistries.

Following this launch, 13 major OEMs in the electric bus market, including Yutong and Golden Dragon, immediately integrated this LFP solution into their 2025 export models. The dominance of LFP is further justified by its chemical immunity to thermal runaway, a non-negotiable safety requirement for buses operating in hot climates like the Middle East and Latin America. With energy density now reaching 175 Wh/kg—sufficient for all daily urban routes—the lighter, more volatile NMC chemistry has been effectively rendered obsolete for the commercial bus sector.

Massive Federal Subsidies Lower Entry Barriers Triggering Immediate Large Scale Procurement

The US Environmental Protection Agency catalyzed the Electric bus market by opening the 2024 Clean School Bus Rebate Program with USD 965 million in funding. Applicants could request up to USD 325,000 per vehicle for Class 7+ zero-emission models. To foster scale, the EPA raised the application cap to 50 buses per dossier. State-level initiatives mirrored federal aggression. New Jersey awarded USD 32 million in January 2026 specifically for fleet electrification.

That 2026 funding tranche supports the procurement of 53 electric school buses and the installation of 41 charging units. Prior rounds in 2024 allocated USD 15 million to the sector. Such capital facilitated the earlier purchase of 48 electric school buses. These financial mechanisms effectively lower entry barriers. Consequently, the Electric bus market is moving from pilot projects to full fleet conversions.

Infrastructure Investment Persists Despite Budget Cuts Ensuring Long Term Operational Viability

The United Kingdom government allocated GBP 143 million in March 2024 through the ZEBRA 2 scheme. Such funding is contractually tied to deploying 955 zero-emission buses. Authorities ring-fenced GBP 40 million specifically for rural areas to ensure equitable Electric bus market growth. Meanwhile, Germany faced fiscal tightening. The Berlin transport authority reduced its 2024 procurement budget from EUR 33 million to EUR 8 million.

Infrastructure investment remains high despite those procurement cuts. Berlin invested EUR 120 million in the new Treptow depot which topped out in December 2025. That facility holds 220 vehicles and employs 700 staff. Construction began in August 2025 on another depot at Säntisstraße housing 220 buses. Such commitment proves the European market prioritizes long-term operational capacity over short-term fiscal variance.

Centralized State Tenders Guarantee Demand Volume Through Enforceable Payment Security Mechanisms

India’s Cabinet approved the PM-eBus Sewa Payment Security Mechanism in September 2024 with an outlay of INR 3,435 crore. The scheme underwrites the deployment of 38,000 vehicles. By late 2024, officials issued Letters of Award for 4,447 units. Consequently, total Electric bus market sales in India reached approximately 4,400 units for calendar year 2025. That figure represents a significant jump from the 3,600 units registered in 2024.

Singapore continues aggressive modernization as well. The Land Transport Authority set a concrete target to procure 2,000 zero-emission vehicles over five years. Projections indicate the battery-electric fleet will reach 1,140 units following 2025 tenders. These massive, centralized tenders demonstrate how Asian nations drive market demand through state-mandated volume rather than organic private adoption.

Manufacturers in Electric Bus Market Aggressively Expand Physical Plant Capacity To Clear Record High Order Backlogs

Supply chain expansion defines the current market landscape. VDL Bus & Coach opened a new factory in Roeselare, Belgium, in April 2024. The facility spans 27,000 square meters dedicated to production. That plant boasts a maximum annual capacity of 800 buses. Conversely, Ebusco faced headwinds, reporting the cancellation of 361 orders in 2024. Yet, Ebusco maintained an order book of 581 buses by year-end.

New players are also entering the fray. A manufacturing initiative in Western Australia produced its first vehicle in June 2024. Supported by AUD 250 million in joint government funding, the project supports 100 local jobs. Manufacturers are physically expanding plant capacity to meet backlog demand. These movements suggest the Electric bus market is maturing into a robust industrial sector.

Higher Density Batteries Enable Longer Routes Previously Reserved For Fossil Fuel Vehicles

Technological leaps in 2024 and 2025 drive sustained demand. The battery capacity of standard 12-meter vehicles in Europe saw a 34% increase in average density over four years. Models available with capacities exceeding 400 kWh increased 9-fold by 2024. Leading the Electric bus market in performance, Solaris’s new Urbino 18 offers a maximum storage of 800 kWh.

Volvo’s 7900 Electric Articulated bus now supports an battery energy storage capacity up to 564 kWh. New units manufactured in Western Australia in 2024 achieved certification for a 300-kilometer range on a single charge. Furthermore, high-power “megawatt” pilots in 2024 demonstrated speeds delivering 1.2 megawatts. Such advancements allow the Electric bus market to serve longer, more demanding routes previously reserved for diesel.

Depot Level Charging Investments Are Critical For Sustaining Large Scale Fleet Operations

Investments in 2024 and 2025 heavily targeted depot-level infrastructure. The New York MTA began installing 205 pantograph chargers at its Gun Hill and Queens Village depots in early 2025. Similarly, Singapore’s LTA awarded a contract worth SGD 31.3 million for charging systems at Sengkang West and East Coast depots. A separate contract for Gali Batu infrastructure was valued at SGD 14.8 million.

European buyers are bundling vehicles with power solutions. Taranto, Italy, ordered 67 charging stations alongside its procurement in January 2024. The UK’s ZEBRA 2 fund allocated GBP 10.1 million specifically to West Sussex County Council for infrastructure and vehicles. These capital flows confirm that Electric bus market growth relies on synchronized grid and charger deployment.

Multi Year Framework Agreements Secure Long Term Revenue Stability For Western OEMs

Key players in the heavy-duty segment secured major contracts. NFI Group received a firm order from the New York Metropolitan Transportation Authority in February 2025 for 265 battery-electric buses. That order falls under a framework agreement for up to 1,420 vehicles. NFI also secured a Electric bus market win from the Maryland Transit Administration in March 2025 for 117 buses.

Solaris won a tender in November 2024 to supply 45 Urbino 24 units to Liège. Deliveries for another Solaris contract of 96 buses for Utrecht are scheduled for late 2025. Even San Francisco ordered 6 Solaris units in November 2025. Volvo Buses received an order from Svealandstrafiken in Sweden in March 2025 for 106 vehicles. That deal included 33 articulated units.

Diverse Multi Supplier Awards In Asia Reduce Reliance On Single Source Procurement

BYD dominated specific regions, winning a Singaporean contract in December 2025 for 210 vehicles. BYD also secured an order for 45 articulated 18-meter buses for Taranto, Italy, in January 2024. A massive Singapore LTA tender in December 2025 awarded 250 units to ST Engineering. The Electric bus market value of that ST Engineering single-deck contract was approximately SGD 35.7 million.

The double-deck portion of the ST Engineering deal was valued at roughly SGD 79.0 million. That same tender awarded 100 buses to Yutong. Cycle & Carriage also won a contract for 100 vehicles. These multi-supplier awards highlight the competitive diversity within the Asia-Pacific Electric bus market. Agencies across Asia Pacific market especially in Japan are diversifying supply chains management to ensure reliability.

Zero Emission Pledges Materialize Into Concrete Vehicle Deliveries Across Global Regions

North American agencies are fulfilling zero-emission pledges. Sound Transit in Seattle ordered 33 double-deckers in February 2024. Toronto received the first of 340 vehicles in September 2024. The New York MTA took delivery of its first 60 units in May 2024. In Australia, New South Wales ordered 151 buses in September 2025, bringing its total Electric bus market orders to 921.

Latin America consolidates its status as a major hub. Santiago, Chile, reached a fleet of 2,555 units by June 2025 after adding 300 vehicles. Another 176 buses arrived in August 2025. A new tender targets adding 1,267 units by late 2025. Globally, European registrations for buses over 8 tons reached 5,315 units in the first half of 2025. The market is clearly expanding worldwide.

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Electric Bus Market Key Players:

• AB Volvo
• Ashok Leyland Limited
• BYD Company Limited
• Daimler Truck AG
• Hyundai Motor Company
• MAN
• Nissan Motor Corporation
• Proterra
• TATA Motors Limited
• Zhengzhou Yutong Bus Co., Ltd.
• Other Prominent Players

Key Market Segmentation:

By Propulsion Type

• Battery Electric Bus (BEV)
• Plug-in Hybrid Electric Bus (PHEV)
• Fuel Cell Electric Bus (FCEB / Hydrogen)
• Trolley Electric Bus (Overhead Catenary Line Powered)
• Hybrid Electric Bus (HEV)

By Battery Type

• Lithium-Ion Battery
  • LFP (Lithium Iron Phosphate)
  • NMC (Nickel Manganese Cobalt)
  • NCA (Nickel Cobalt Aluminum)
• Solid-State Battery
• Lead-Acid Battery
• Ultracapacitor + Battery Hybrid Systems

By Bus Size / Length

• < 6 meters (Mini/Short Buses)
• 6–8 meters (Midi Buses)
• 9–12 meters (Standard/City Buses)
• > 12 meters

By Application

• Intra-City (Urban Transit)
• Inter-City (Suburban, Long-Distance Transit)
• School Transportation
• Airport Shuttle
• Tourism / Sightseeing Bus
• Corporate Staff Transport
• Last-Mile Shuttle Services

By Charging Type / Infrastructure

• Depot Charging (Slow/Overnight)
• Opportunity Charging (Fast, En Route)
  • Pantograph Charging
  • Inductive Charging (Wireless)
• Swappable Battery Systems
• Hydrogen Refueling Infrastructure (for FCEBs)

By Bus Body Type

• Low-Floor Bus
• High-Floor Bus
• Double-Decker Bus
• Articulated Bus
• Coach / Long-Haul Bus

By Battery Capacity

• < 100 kWh
• 100–200 kWh
• 201–350 kWh
• > 350 kWh

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

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About Astute Analytica

Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.

With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.

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Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/ 

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