North America Electric Bus Market Size & Outlook, 2025-2033

North America Electric Bus Market Size

The North America electric bus market size was valued at USD 1029.90 million in 2024 and is projected to reach from USD 1164.71 million in 2025 to USD 3116.11 million by 2033, growing at a CAGR of 13.09% during the forecast period (2025-2033).

E-buses use electric motors instead of ICE engines. E-bus motors are battery-powered. They're cheaper than gas/diesel buses. Demand for fuel-efficient, high-performance, low-emission buses, government vehicle emission restrictions, and lowering battery prices drive the market.

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Market Growth Factor

Growing Demand for Energy-Saving and Emission-Free Mass Transit Options

Transportation is a major source of GHG emissions. Due to the high cost of developing electric buses and coaches and related parts like batteries and monitoring systems, electric bus manufacturers are severely constrained by urban and regional air pollution, making up about a quarter of all energy-related greenhouse gas (GHG) emissions, according to UNEP. According to the EPA, buses also emitted 1.1% of the transportation sector's GHGs in 2019. 29% of ozone-depleting pollutants come from automobile exhaust. Many governments have implemented electric bus schemes to increase urban public transportation sustainability and fuel economy. The Federal Transit Administration (FTA) of the U.S. Department of Transportation announced USD 130 million for Low or No Emissions in June 2020.

North America Electric Bus Market Restraint

Limited Availability of Charging Infrastructure

Electric bus charging infrastructure can limit utilization. A large-scale charging infrastructure network requires significant investment and planning. Many places lack fast-charging stations for electric buses. 65% of transit agencies surveyed by the U.S. National Renewable Energy Laboratory (NREL) said the lack of charging infrastructure or its incompatibility was a major impediment to electric bus adoption. This constraint might cause range anxiety and operational issues for electric bus fleets.

Market Opportunity

Advancements in Battery Technology

Battery technology is expanding electric bus options. Battery energy density, charging speed, and durability improve electric bus range and performance. Electric buses will become more viable as battery costs drop. California-based Proterra pioneered electric bus battery technology. Proterra EnergyTM is their high-performance battery system. These battery solutions have an industry-leading energy density, allowing electric buses to travel farther per charge. Solid-state batteries could transform electric bus capabilities in the future.

Regional Analysis

The North American electric bus market is analyzed across the U.S., Canada, and Mexico. The U.S. dominated the market and is expected to grow at a CAGR of 13.27% during the forecast period.

North America is predicted to experience definite expansion. The U.S. is expected to continue to grow steadily in this area. The industry is projected to grow in the upcoming years due to the nation's strict emission regulations. North American demand for electric buses is rising due to the infrastructure's expansion, including installing more stations and charging stations. Government initiatives to enhance public transportation while lowering pollution have allowed electric buses to be developed. Governments are also ready to spend money and lower automobile levies. Additionally, the growing emphasis on reducing carbon emissions and boosting public sector revenue has sparked the expansion of the electric bus market. They are improving transportation and greenhouse gas reduction targets. 

Propulsion Type Analysis

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 13.14% during the forecast period.

Component Analysis

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 13.56% 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 12.67% during the forecast period.

Length of Bus Analysis

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 13.29% during the forecast period.

Application Analysis

The market is further segmented by application into Intercity, Intracity. Intracity dominated the market and is expected to register a CAGR of 13.38% over the forecast period.

Vehicle Range Analysis

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 13.40% during the forecast period.

Battery Capacity Analysis

Battery Capacity further segments the market into up to 400kwh and above 400kwh. Up To 400 kWh segment dominates the market and is expected to grow at a CAGR of 12.90% during the forecast period.

Power Input Analysis

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 12.89% over the forecast period.

Battery Type Analysis

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 13.36% during the forecast period.

List of key players in North America Electric Bus Market

1. BYD Auto
2. PROTERRA INC
3. AB VOLVO
4. Blue Bird Corporation
5. Gillig
6. The Lion Electric Company
7. Tata Motors
8. JBM Auto Limited (JBM Group)
9. Scania
10. Škoda Transportation
11. NFI Group

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Recent Developments

• May 2023- Volvo Group contracts long-term renewable electricity from Vattenfall.
• May 2023- Lion Electric Company launched the Lion5, an all-electric Class 5 vehicle powered by LionBattery packs, its 800V battery packs.