Asia Pacific Electric Bus Market size was over USD 26 billion in 2020 and is projected to observe around 10% growth rate between 2021 and 2027. The high population in several Asia Pacific countries has resulted in a sharp rise in the pollution levels from vehicles over recent years. There is a rise in the number of people owning cars and two-wheelers, contributing to the rise in air pollution levels. This has boosted the demand for clean mobility and alternative transportation solutions such as electric buses.
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Supportive government regulations are key factors propelling the demand for electric buses. For instance, in January 2019, the Government in Guangzhou invested over USD 1.2 billion in the installation of around 4,000 charging stations. Furthermore, the increasing popularity of electric buses owing to their technical features will drive the segment growth in the region. Governments have announced tax exemption and subsidies on electric bus purchasing to boost sales. For instance, in April 2020, China announced a subsidy for new energy vehicles purchased between 2020 – 2022. The new energy vehicles including electric, hydrogen & electric hybrid vehicles will also receive discounts on road & registration tax from the government.
The COVID-19 pandemic has adversely impacted Micro, Small, and Medium-sized Enterprises (MSMEs), which account for majority of the economic activity and employment in many Asia Pacific countries. The COVID-19 outbreak halted raw material & electronic component supply to the global market from China. The manufacturing sector in China had regained its momentum shortly after March 2020 as the country succeeded in controlling the spread of COVID-19. The shortage of raw materials and disruptions in the distribution of finished products has affected the electric bus market growth in the region.
Asia Pacific Market, By Type
FCEV buses are witnessing huge demand due to their low operating costs and easy technical maintenance compared to EVs in Asia Pacific. Newly developed hydrogen cells possess increased fuel cell capacity and improved battery performance, thereby reducing operating costs. Rising research & development activities in hydrogen fuel are set to support the demand for FCEV buses. The various benefits offered by hydrogen fuel cells, such as almost zero-emission, enhanced efficiency, and renewability, make them an ideal choice for zero-emission mobility initiatives.
Competitive Industry Landscape
Key electric bus manufacturers operating in the Asia Pacific region include Anhui Ankai Automobile Co., Ltd., Beiqi Foton Motor Co., Ltd., BYD Company Ltd., Daimler AG, Irizar S.C., King Long United Automotive Industry Co., Ltd., NFI Group, Inc., Scania AB, TATA Motors, VDL Bus & Coach B.V., AB Volvo, Xiamen Golden Dragon Bus Co., Ltd., Zhengzhou Yutong Bus Co., Ltd., Zhongtong Bus Co., Ltd., and MAN SE.