Electric Bus Market in U.S. to boom in coming years, says P&S Intelligence

adminOctober 19, 2020

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Electric Bus Market in U.S. to boom in coming years, says P&S Intelligence — P&S Intelligence

According to the market research report published by P&S Intelligence. U.S. electric bus market is predicted to grow to $1,554.5 million by 2024 from, witnessing a CAGR of 23.9% during 2019–2024. Some of the prominent policies under which the state governments have been offered grants for purchasing such automobiles are the Low or No Emission Grant, Urbanized Area Formula Funding program, School Bus Rebate program, and Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grant program.

Battery electric buses are registering faster growth in demand across the country, primarily due to the support of federal and state governments (in form of subsidies and grants) for the adoption of zero-emission buses. Furthermore, plug-in hybrids may not play any significant role in the near future in the U.S. electric bus market, mainly due to their manufacturing complexity, high cost, and tailpipe emissions.

Electric buses with length more than 40 feet are expected to remain the larger category in the market during 2019–2024. This is primarily due to the difference in fuel mileage in diesel hybrid and diesel buses, which favors hybrid technology for longer articulated buses.

Electric buses that run on lithium-ion batteries are gaining popularity and witnessing considerable growth in demand in the U.S. electric bus market. Lithium-ion batteries are safer than other batteries in the market and are, therefore, more preferred for large-sized electric buses. Furthermore, falling prices of these batteries, coupled with their advantages such as lower maintenance cost, smaller size, lighter weight, higher energy density, and lower self-discharge over nickel–metal hydride batteries, are supporting the market growth in this category.

During the forecast period, inductive charging is expected to be the fastest-growing category in the U.S. electric bus market, as it facilitates faster charging, thus reducing the range anxiety of operators. Owning to this factor, several charging system manufacturers are collaborating with electric bus makers and public transit authorities to boost the adoption of these systems in the country.