Electric Bus Battery Pack Market Size

Electric Bus Battery Pack Market Analysis

The Electric Bus Battery Pack Market size is estimated at 4.98 billion USD in 2024, and is expected to reach 7.42 billion USD by 2029, growing at a CAGR of 8.28% during the forecast period (2024-2029).

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4.98 Billion

Market Size in 2024 (USD)

7.42 Billion

Market Size in 2029 (USD)

-10.10 %

CAGR (2017-2023)

8.28 %

CAGR (2024-2029)

Largest Segment by Propulsion Type

99.55 %

value share, BEV, 2023

BEV segment in e-buses is dominant, owing to factors such as zero emission, cheap technology over PHEV, very less maintenance and implementation of governmental Norms.

Largest Segment by Battery Chemistry

52.73 %

value share, LFP, 2023

Cheap production, better safety, long range offerings, long life span are the factors maintaining the dominance of LFP battery in global electric bus sales.

Largest Segment by Battery Form

82.61 %

value share, Prismatic, 2023

Prismatic batteries dominate electric buses market owing to its low cost, simple construction due to fewer electrical connections, high energy density, and safety.

Leading Market Player

14.71 %

market share, Contemporary Amperex Technology Co. Ltd. (CATL), 2022

Contemporary Amperex Technology Co. Ltd. (CATL). dominates the global electric bus battery pack market due to its wide reach, strong production, and large exports.

Largest Segment by Capacity

55.01 %

value share, 40 kWh to 80 kWh, 2023

Intercity travel, cost-effective long-distance transport, and convenient availability are driving demand for big buses with batteries over 250 kWH.

Rising environmental concerns and governmental initiatives are driving the growth of the global electric bus market, supported by expansions in battery manufacturing

Asia-Pacific, led by China, dominates the global EV battery pack market with remarkable growth

Electric Bus Battery Pack Industry Segmentation

BEV, PHEV are covered as segments by Propulsion Type. LFP, NCA, NCM, NMC, Others are covered as segments by Battery Chemistry. 15 kWh to 40 kWh, 40 kWh to 80 kWh, Above 80 kWh, Less than 15 kWh are covered as segments by Capacity. Cylindrical, Pouch, Prismatic are covered as segments by Battery Form. Laser, Wire are covered as segments by Method. Anode, Cathode, Electrolyte, Separator are covered as segments by Component. Cobalt, Lithium, Manganese, Natural Graphite, Nickel are covered as segments by Material Type. Asia-Pacific, Europe, Middle East & Africa, North America, South America are covered as segments by Region.

• Buses remain a popular mode of transportation globally, but rising environmental concerns and governmental moves to phase out conventional vehicles, like diesel and petrol buses, are fueling the demand for e-buses. However, factors like the COVID-19 pandemic led to a dip in e-bus demand in 2020. As the EV market rebounded, e-bus sales surged by 32% in 2021, propelling battery pack sales up by 30.9% in the same year.
• The growing demand for electric buses, driven by expanding public transportation services, is spurring the need for diverse battery types in both battery electric and plug-in hybrid buses. Notably, the US witnessed a remarkable 66% surge in transit electric bus sales in 2022 compared to the previous year. States like California are setting ambitious zero-emission targets, aiming to sell only zero-emission buses by 2030. These developments collectively pushed the global demand for bus batteries up by 15% in 2022 over 2021.
• In April 2023, Lion Electric, a Canada-based battery company, inaugurated a new manufacturing facility dedicated to batteries for medium- and heavy-duty vehicles, including buses. The company was eyeing a production capacity of 1.7 GWh by the close of 2023. Such initiatives, seen not only in Canada but globally, are poised to bolster the demand for electric bus batteries in the coming years.