Europe Electric Bus Market Size & Outlook, 2025-2033

Europe Electric Bus Market Size

The Europe electric bus market size was valued at USD 6.39 billion in 2024 and is projected to reach from USD 7.19 billion in 2025 to USD 18.42 billion by 2033, growing at a CAGR of 12.5% during the forecast period (2025-2033).

Instead of ICE engines, e-buses use electric motors. The E-bus uses a battery-powered electric motor. Electric buses don't pollute. Gasoline/diesel buses cost more. The electric bus market is driven by government regulations on vehicle emissions, demand for fuel-efficient, high-performance, and low-emission buses, and lowering battery prices.

Fuel economy, serviceability, and manufacturing costs limit market growth. Growth potential comes from technological advances and strong government policies to boost bus uptake. Fossil fuel gasoline will run out. Develop and use alternative fuels for sustainable growth. Electric buses are cheaper and gas-free. These factors drive better fuel-efficient technology and electric buses for travel.

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Europe Electric Bus Market Growth Factor

Government Regulation

Europe has strict emission laws and aims to reduce greenhouse gas emissions and enhance air quality. They have established targets for switching to low- and zero-emission buses, establishing a favorable policy environment for electric buses. 

Germany's National Electromobility Development Plan (Nationale Leitmarktinitiative Elektromobilität) has lofty bus electrification goals. By 2030, 7,000 electric buses are planned. The German government has implemented policies and financial incentives to attain this goal.

Market Restraint

High Cost

Transport for London (TfL), the city's transportation agency, is switching to electric buses to decrease emissions and improve air quality. Electric buses' higher upfront cost has hindered uptake. TfL says electric buses cost 60-70% more than diesel buses. This cost differential may constrain TfL and other transit agencies, especially when replacing or expanding their fleets.

Market Opportunity

Technological Advancement

Electric buses are benefiting from battery, charging, and drivetrain improvements. Electric bus performance improves due to battery energy density, charging time, and range. The Volvo 7900 Electric, a fully electric bus, was unveiled in 2015. They've improved their electric buses since then. The 2020 Volvo 7900 Electric Articulated has more battery capacity, range, and efficiency. Electric buses are becoming more efficient, reliable, and affordable, increasing their adoption throughout Europe.

Regional Analysis

The Europe electric bus market is analyzed across the U.K., Germany, France, Italy, Spain, and the Rest of Europe. Germany dominated the market and is expected to grow at a CAGR of 14.25% during the forecast period.

Europe is experiencing a rising desire for electric buses because more people are learning how good they are for the environment. Traditional buses that run on gasoline or diesel release much more carbon dioxide and other pollutants than electric buses. This is becoming more important as towns try to improve the air quality. Electric buses are also usually quieter than buses with internal combustion engines, which is another benefit in cities with many people. Since the European Union has set high goals for reducing greenhouse gas emissions, city transit officials are increasingly interested in switching to electric buses. Several European towns have already started testing electric buses, and the results have been good.

Propulsion Type Insights

Propulsion Type further segments the market into BEV, PHEV, and FCEV. BEV segment dominates the market and is expected to grow at a CAGR of 13.55% during the forecast period.

Component Insights

Component further segments the market into Motor, Battery, Fuel Cell Stack, Battery Management System, Battery Cooling System, and E.V. Connectors. Battery dominated the market and is expected to register a CAGR of 13.96% over the forecast period.

Consumer Segment further segments the market into Fleet Operators, Government. The Fleet Operator segment dominates the market and is expected to grow at a CAGR of 13.24% during the forecast period.

Length of the Bus Insights

The market is further segmented by Length Of The Bus into Less Than 9m, 9-14m, and Above 14m. The 9-14m segment dominates the market and is expected to grow at a CAGR of 13.69% during the forecast period.

Application Insights

The market is further segmented by application into intercity and intracity. Intracity dominated the market and is expected to register a CAGR of 13.69% over the forecast period.

Range Insights

The market is further segmented by Vehicle Range into Less Than 200 Miles, Above Miles. The less than 200 miles segment dominates the market and is expected to grow at a CAGR of 13.48% during the forecast period.

Battery Capacity Insights

Battery Capacity further segments the market into up to 400kwh and above 400kwh. The up to 400 kWh segment dominates the market and is expected to grow at a CAGR of 13.07% during the forecast period.

Power Input Insights

The market is further segmented by Power Input into Up to 250kw, Above 250kw. Up to 250kw dominated the market and is expected to register a CAGR of 13.62% over the forecast period.

Battery Type Insights

The market is further segmented by Battery type into Lithium-Nickel-Manganese-Cobalt-Oxide, Lithium-Iron-Phosphate. The lithium-Iron-Phosphate segment dominates the market and is expected to grow at a CAGR of 13.66% during the forecast period.

List of key players in Europe Electric Bus Market

1. BYD Auto
2. YUTONG
3. VDL GROUP
4. AB VOLVO
5. Anhui Ankai Automobile Co., Ltd.
6. The Lion Electric Company
7. Tata Motors
8. JBM Auto Limited (JBM Group)
9. Chariot Motors
10. Carrosserie Hess AG
11. Heuliez Bus
12. Hybricon
13. Optare
14. Rampini Carlo
15. SOR Libchavy spoil. s r. o.
16. Van Hool NV

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Recent Developments

• May 2023- Volvo Group Mobility Transformation Forum urges collaboration to accelerate Europe's fossil-free future.
• May 2023- Lion Electric Company launched the Lion5, an all-electric Class 5 vehicle powered by LionBattery packs, its 800V battery packs.