US Electric Bus Battery Pack Market Size

US Electric Bus Battery Pack Market Analysis

The US Electric Bus Battery Pack Market size is estimated at 46.23 million USD in 2024, and is expected to reach 194 million USD by 2029, growing at a CAGR of 33.22% during the forecast period (2024-2029).

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46.23 Million

Market Size in 2024 (USD)

194 Million

Market Size in 2029 (USD)

43.00 %

CAGR (2017-2023)

33.22 %

CAGR (2024-2029)

Largest Segment by Propulsion Type

100 %

value share, BEV, 2023

BEVs lead the US electric bus battery pack market, driven by pollution reduction, quieter operations, and promoting sustainable transportation solutions for the future.

Largest Segment by Battery Chemistry

58.81 %

value share, NMC, 2023

NMC batteries dominate due to safety, long cycle life, low cost, and affordability making them a more affordable option for electric bus manufacturers in the US.

Largest Segment by Battery Form

60.66 %

value share, Cylindrical, 2023

Cylindrical batteries are often favored for their ease of integration into bus chassis and efficient space utilization makes these batteries useful in buses in Canada.

Leading Market Player

51 %

market share, Proterra Operating Company Inc., 2022

Proterra has a strong presence in the United States market, and it has delivered over 1,000 electric buses to cities and transit agencies across the country.

Largest Segment by Capacity

66.97 %

value share, 40 kWh to 80 kWh, 2023

This capacity range offers a balance between the driving range and weight considerations, ensuring optimal performance and operational efficiency for electric buses.

Rising demand and robust government backing propel the adoption of battery electric buses in the United States

US 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.

• From 2017 to 2023, electric bus sales and adoption surged in the US. A Bloomberg NEF report highlighted that in 2020, battery electric buses (BEBs) constituted 16% of all new bus sales, a significant jump from a mere 1% in 2015. In the same year, California, New York, and Washington emerged as the leading states for electric bus uptake, collectively accounting for 57% of the national sales. The National Renewable Energy Laboratory (NREL) noted that the US had around 2,200 electric buses in operation in 2017, a figure that swelled to over 5,500 by 2020.
• A key driver behind the electric bus surge is the mounting demand for cleaner and sustainable transportation. Driven by ambitious climate targets, numerous cities and states have ramped up government funding and incentives to encourage the adoption of battery electric vehicles. As battery costs decline, BEBs are becoming increasingly cost-competitive with their diesel counterparts. Governments are also enacting regulations to spur electric bus adoption. For instance, the California Air Resources Board aims to transition all transit buses in the state to zero-emission vehicles by 2040.
• Projections indicate that by 2030, electric buses will make up over 50% of new bus sales in the US. Major North American cities like New York City, Los Angeles, and Vancouver have already embarked on the electric bus transition. Electric buses are poised to become more efficient and economical as battery technology advances. The burgeoning network of charging stations, catering to the rising fleet of electric buses, may further fuel the demand for these vehicles across the region.