United States Electric Bus Market Size
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 338.6 Million |
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Market Size (2030) | USD 938.5 Million |
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Largest Share by Fuel Category | HEV |
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CAGR (2024 - 2030) | 18.52 % |
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Fastest Growing by Fuel Category | FCEV |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United States Electric Bus Market Analysis
The United States Electric Bus Market size is estimated at 338.6 million USD in 2024, and is expected to reach 938.5 million USD by 2030, growing at a CAGR of 18.52% during the forecast period (2024-2030).
338.6 Million
Market Size in 2024 (USD)
938.5 Million
Market Size in 2030 (USD)
8.98 %
CAGR (2017-2023)
18.52 %
CAGR (2024-2030)
Largest Segment by Fuel Category
51.47 %
value share, HEV, 2023
HEVs are the largest segment due to their fuel efficiency, lower emissions compared to traditional gasoline vehicles, and the ability to switch between electric and combustion engines.
Fastest-growing Segment by Fuel Category
23.95 %
Projected CAGR, FCEV, 2024-2030
FCEVs are the fastest-growing segment due to rapid advancements in hydrogen technology, increasing investments in hydrogen fueling infrastructure, and the global push towards zero-emission vehicles.
Leading Market Player
25.60 %
market share, Proterra INC., 2023
Proterra INC. leads the market with its advanced battery technology, high-performance electric buses, and strong relationships with transit authorities committed to reducing emissions.
Second leading Market Player
16.90 %
market share, GreenPower Motor Company Inc., 2023
GreenPower Motor Company Inc. is a major player due to its innovative electric bus designs, commitment to sustainability, and strong partnerships with transit agencies across the United States.
Third Leading Market Player
15.10 %
market share, NFI Group Inc., 2023
NFI Group Inc. is the fastest-growing player due to its diverse electric bus portfolio, extensive manufacturing capabilities, and strategic expansions in key urban markets focused on ZET.
The US electric bus market is set to rise, with 6,051 units expected by 2030, driven by tech advancements and sustainable urban transit shift
- FTA offers a number of grant programs, many of which have been used to purchase electric buses. In 2018, the Low or No Emission Grant program awarded grants to over 50 state and local governments, totaling USD 85 million. Additionally, in 2018, FTA announced that it had awarded USD 264 million in grants to 139 projects under its Buses and Bus Facilities Infrastructure Investment Program. These programs, along with the DOT’s Congestion Mitigation and Air Quality Improvement Program and State of Good Repair Program, are grant programs that state and local governments apply for on an annual basis. Other federal grant programs include the School Bus Rebate Program, Urbanized Area Formula Funding Program, and BUILD Discretionary Grant Program.
- According to estimates, the US electric bus industry brought in USD 490.6 million in revenue in 2021 at a CAGR of 31.4% from 2021 to 2028. Environmental benefits, stricter emission-reduction regulations, the availability of local, state, federal funding for zero-emission buses, long-term economic benefits to transit agencies, declining battery costs, and increased operational efficiencies are the main driving forces behind the market's expansion.
- In the United States, the EPA and NHTSA proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) Vehicles rule to be effective from 2021 to 2028. The rule may set corporate average fuel economy standards and greenhouse gas emissions for passenger and commercial vehicles. The Zero-Emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV plan aims to put 12 million ZEVs on the road in the country by 2030.
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United States Electric Bus Market Trends
Rapid growth in electric vehicle sales driven by government initiatives and increasing demand in the US
- The United States has witnessed a significant surge in the adoption of electric vehicles (EVs) in recent years. This uptick can be attributed to a heightened awareness of EVs, growing environmental concerns, and the implementation of government regulations. Notably, in 2016, California introduced the Zero-Emission Vehicle (ZEV) program aimed at curbing carbon emissions and improving air quality. This initiative has not only spurred the growth of electric cars within California but has also influenced other states to adopt similar ZEV regulations. Consequently, the nation saw a remarkable 634% surge in demand for battery electric vehicles (BEVs) from 2017 to 2022.
- The demand for electric commercial vehicles in the United States is also on the rise. Factors such as the booming e-commerce industry, increased logistics activities, and governmental initiatives for cleaner transportation have fueled this growth. In a significant move, the governor of New York signed the Advanced Clean Truck (ACT) Rule in September 2021. This rule sets a target for all new light-duty vehicles to be zero-emission by 2035 and the same for medium- and heavy-duty vehicles by 2045. As a result, the United States witnessed a 21% surge in demand for electric commercial vehicles in 2022 compared to the previous year.
- Governmental efforts, including rebates, subsidies, and strategic plans, are further bolstering the electrification of vehicles nationwide. In May 2022, President Biden unveiled a USD 3 billion plan to expedite domestic battery manufacturing, with the aim of transitioning gas-powered vehicles to electric ones. This push is expected to significantly boost electric mobility in the country, particularly during 2024-2030, thereby amplifying the demand for battery packs.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The US population continues to grow steadily, driven by immigration and economic opportunities that require strategic planning
- The CVP is expected to experience consistent growth, driven by technological advancements, a focus on sustainable transportation, and the US's commitment to automotive innovation and reducing carbon emissions
- The recent US auto interest rate of 3.6% reflects fluctuations influenced by monetary policies, credit demand, and economic conditions, with a modest increase indicating optimism in the post-pandemic recovery
- The United States achieved a milestone of 128,000 EV Charging Stations in 2022, and the country is poised for continued growth in green mobility
- Rising demand and strategic product launches drive the electric vehicle market in the US.
- The United States remained a net crude oil importer, importing about 6.28 million bpd from 80 countries
- The US exhibits remarkable economic resilience and growth, driven by factors like robust financial markets, technological advancements, and adaptable policies
- The United States grapples with fluctuating inflation but aims for stability for long-term economic leadership
- Evolution of Mobility as a Service (MaaS) in the United States: a focus on shared rides, car rentals, car-sharing, and ride-hailing and taxi services
- Decreasing battery pack prices and government initiatives drive the US electric vehicle market
- The United States remained a net crude oil importer in 2022, importing about 6.28 million bpd of crude oil from 80 countries
United States Electric Bus Industry Overview
The United States Electric Bus Market is fairly consolidated, with the top five companies occupying 81.60%. The major players in this market are BYD Auto Co. Ltd., GreenPower Motor Company Inc., Lion Electric Company, NFI Group Inc. and Proterra INC. (sorted alphabetically).
United States Electric Bus Market Leaders
BYD Auto Co. Ltd.
GreenPower Motor Company Inc.
Lion Electric Company
NFI Group Inc.
Proterra INC.
Other important companies include Blue Bird Corporation, Daimler Truck Holding AG, GILLIG LLC, REV group Inc., Volvo Group.
*Disclaimer: Major Players sorted in alphabetical order.
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United States Electric Bus Market News
- December 2023: Proterra announced its new EV battery factory in South Carolina as demand for commercial electric vehicles increased.
- October 2023: In October 2022, Solaris launched two new electric buses, Urbino 12 Electric and Urbino 18.75 Electric, at the 6th International Fair of Public Transport – Transexpo in Kielce, Poland.
- October 2023: BYD (Build Your Dreams) announced that a partnership with the Los Olivos Elementary School District would bring a BYD Type A electric school bus to Santa Barbara County students, making the Los Olivos Elementary School District the first in the United States to have 100% zero-emission fleet of school buses.
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United States Electric Bus Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Population
- 4.2 GDP Per Capita
- 4.3 Consumer Spending For Vehicle Purchase (cvp)
- 4.4 Inflation
- 4.5 Interest Rate For Auto Loans
- 4.6 Shared Rides
- 4.7 Impact Of Electrification
- 4.8 EV Charging Station
- 4.9 Battery Pack Price
- 4.10 New Xev Models Announced
- 4.11 Fuel Price
- 4.12 Oem-wise Production Statistics
- 4.13 Regulatory Framework
- 4.14 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Fuel Category
- 5.1.1 BEV
- 5.1.2 FCEV
- 5.1.3 HEV
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles
- 6.4.1 Blue Bird Corporation
- 6.4.2 BYD Auto Co. Ltd.
- 6.4.3 Daimler Truck Holding AG
- 6.4.4 GILLIG LLC
- 6.4.5 GreenPower Motor Company Inc.
- 6.4.6 Lion Electric Company
- 6.4.7 NFI Group Inc.
- 6.4.8 Proterra INC.
- 6.4.9 REV group Inc.
- 6.4.10 Volvo Group
- *List Not Exhaustive
7. KEY STRATEGIC QUESTIONS FOR VEHICLES CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- POPULATION TRENDS, VOLUME IN UNITS, US, 2017 - 2030
- Figure 2:
- GDP PER CAPITA AT CURRENT PRICES, VALUE IN USD, US, 2017 - 2030
- Figure 3:
- AVERAGE CONSUMER SPENDING PER CAPITA ON PURCHASE OF VEHICLES, VALUE IN USD, US, 2017 - 2030
- Figure 4:
- INFLATION RATE AT AVERAGE CONSUMER PRICES, PERCENTAGE CHANGE, US, 2017 - 2030
- Figure 5:
- AUTO LOAN INTEREST RATES, PERCENTAGE, US, 2017 - 2022
- Figure 6:
- USED CAR MARKET, REVENUE IN USD, US, 2017 - 2030
- Figure 7:
- ELECTRIC VEHICLE MARKET PENETRATION RATE, BY VEHICLE TYPE, PERCENTAGE OF VOLUME, US, 2017 - 2030
- Figure 8:
- AVERAGE LITHIUM-ION BATTERY PACK PRICE, VALUE IN USD, US, 2017 - 2030
- Figure 9:
- ANNOUNCEMENT OF NEW XEV MODELS, BY VEHICLE TYPE, VOLUME IN UNITS, US, 2023 - 2027
- Figure 10:
- FUEL PRICE, BY FUEL TYPE, USD/LITER, US, 2017 - 2022
- Figure 11:
- OEM-WISE PRODUCTION STATISTICS, VOLUME IN UNITS, US, 2017 - 2022
- Figure 12:
- UNITED STATES ELECTRIC BUS MARKET, VOLUME IN UNITS, 2017 - 2030
- Figure 13:
- UNITED STATES ELECTRIC BUS MARKET, VALUE IN USD, 2017 - 2030
- Figure 14:
- UNITED STATES ELECTRIC BUS MARKET, BY FUEL CATEGORY, BY VOLUME IN UNITS, 2017 - 2030
- Figure 15:
- UNITED STATES ELECTRIC BUS MARKET, BY FUEL CATEGORY, BY VALUE IN USD, 2017 - 2030
- Figure 16:
- UNITED STATES ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 17:
- UNITED STATES ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 18:
- UNITED STATES ELECTRIC BUS MARKET, BY BEV, BY VOLUME IN UNITS, 2017 - 2030
- Figure 19:
- UNITED STATES ELECTRIC BUS MARKET, BY BEV, BY VALUE IN USD, 2017 - 2030
- Figure 20:
- UNITED STATES ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 21:
- UNITED STATES ELECTRIC BUS MARKET, BY FCEV, BY VOLUME IN UNITS, 2017 - 2030
- Figure 22:
- UNITED STATES ELECTRIC BUS MARKET, BY FCEV, BY VALUE IN USD, 2017 - 2030
- Figure 23:
- UNITED STATES ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 24:
- UNITED STATES ELECTRIC BUS MARKET, BY HEV, BY VOLUME IN UNITS, 2017 - 2030
- Figure 25:
- UNITED STATES ELECTRIC BUS MARKET, BY HEV, BY VALUE IN USD, 2017 - 2030
- Figure 26:
- UNITED STATES ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 27:
- UNITED STATES ELECTRIC BUS MARKET, BY PHEV, BY VOLUME IN UNITS, 2017 - 2030
- Figure 28:
- UNITED STATES ELECTRIC BUS MARKET, BY PHEV, BY VALUE IN USD, 2017 - 2030
- Figure 29:
- UNITED STATES ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 30:
- UNITED STATES ELECTRIC BUS MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2017 - 2030
- Figure 31:
- UNITED STATES ELECTRIC BUS MARKET, MOST ADOPTED STRATEGIES, 2017 - 2030
- Figure 32:
- UNITED STATES ELECTRIC BUS MARKET SHARE(%), BY MAJOR PLAYERS, 2021
United States Electric Bus Industry Segmentation
BEV, FCEV, HEV are covered as segments by Fuel Category.
- FTA offers a number of grant programs, many of which have been used to purchase electric buses. In 2018, the Low or No Emission Grant program awarded grants to over 50 state and local governments, totaling USD 85 million. Additionally, in 2018, FTA announced that it had awarded USD 264 million in grants to 139 projects under its Buses and Bus Facilities Infrastructure Investment Program. These programs, along with the DOT’s Congestion Mitigation and Air Quality Improvement Program and State of Good Repair Program, are grant programs that state and local governments apply for on an annual basis. Other federal grant programs include the School Bus Rebate Program, Urbanized Area Formula Funding Program, and BUILD Discretionary Grant Program.
- According to estimates, the US electric bus industry brought in USD 490.6 million in revenue in 2021 at a CAGR of 31.4% from 2021 to 2028. Environmental benefits, stricter emission-reduction regulations, the availability of local, state, federal funding for zero-emission buses, long-term economic benefits to transit agencies, declining battery costs, and increased operational efficiencies are the main driving forces behind the market's expansion.
- In the United States, the EPA and NHTSA proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) Vehicles rule to be effective from 2021 to 2028. The rule may set corporate average fuel economy standards and greenhouse gas emissions for passenger and commercial vehicles. The Zero-Emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV plan aims to put 12 million ZEVs on the road in the country by 2030.
| Fuel Category | BEV |
| FCEV | |
| HEV |
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Market Definition
- Vehicle Type - The category includes Medium and Heavy Duty Buses.
- Vehicle Body Type - This include Bus category.
- Fuel Category - The category exclusively covers electric propulsion systems, including various types such as HEV (Hybrid Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), BEV (Battery Electric Vehicles), and FCEV (Fuel Cell Electric Vehicles).
| Keyword | Definition |
|---|---|
| Electric Vehicle (EV) | A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles. |
| BEV | A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models. |
| PEV | A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids. |
| Plug-in Hybrid EV | A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally. |
| Internal combustion engine | An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel. |
| Hybrid EV | A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking. |
| Commercial Vehicles | Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV). |
| Passenger Vehicles | Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat. |
| Light Commercial Vehicles | Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category. |
| M&HDT | Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category. |
| Bus | A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses. |
| Diesel | It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed. |
| Gasoline | It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. |
| LPG | It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study. |
| CNG | It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines. |
| HEV | All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices. |
| PHEV | PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly. |
| Hatchback | These are compact-sized cars with a hatch-type door provided at the rear end. |
| Sedan | These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage. |
| SUV | Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles. |
| MPV | These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all its reports.
- Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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