Electric Bus Market to Reach USD 68.11 Billion by 2031, Driven by Zero-Emission Transit, Reports Mordor Intelligence

The electric bus market is growing as governments promote zero-emission transit, fleet electrification, and cleaner public transport.

HYDERABAD, TELANGANA, INDIA, October 29, 2026 /EINPresswire.com/ — According to the latest report by Mordor Intelligence, the electric bus market size is projected to grow from USD 28.77 billion in 2026 to USD 68.11 billion by 2031, registering an 18.81% CAGR during the forecast period. The transition toward low-emission public transportation, stricter environmental regulations, and government-backed fleet electrification programs is encouraging transport operators to replace conventional diesel buses. Declining battery costs and improvements in energy efficiency are strengthening the economic case for electric fleets. However, limited charging infrastructure, depot electrification costs, and grid connection delays remain important challenges, prompting operators to adopt phased deployment strategies and explore flexible financing arrangements.

Electric Bus Market Trends and Drivers

Wider Adoption of Electric Vehicle Mandates in Major Cities: Stricter emission regulations in major cities are encouraging public transport operators to replace diesel buses with electric alternatives sooner. However, the transition requires investment in depot upgrades, charging infrastructure, and staff training. Smaller operators may struggle with these costs, while simultaneous electrification plans across Asian cities are increasing pressure on manufacturers and supply chains, potentially delaying fleet deployment.

Battery Prices Falling Below USD 85/kWh: Large-scale battery production in Asia is helping reduce costs and improve the affordability of electric buses. Emerging options such as sodium-ion batteries may offer further savings, while used batteries are finding new applications in energy storage. These developments could improve battery resale value and support more flexible financing options for electric vehicle buyers.

Electric Bus Market Recent Industry Developments

March 2026: India’s Ministry of Heavy Industries reported progress in government-backed electric bus procurement, with tenders concluded for 6,228 buses under the PM-eBus Sewa Scheme and letters of award issued for 4,720 buses as of February 28, 2026. The update also outlined procurement activity under the PM E-DRIVE scheme, reflecting continued public-sector efforts to expand electric bus deployment

February 2026: SWITCH Mobility deployed 272 electric buses in Delhi as part of a 950-bus contract under a public transport procurement program. The deployment included low-floor buses with accessibility features and fire detection systems, supporting the expansion of electric buses in the city’s public transport fleet.

Electric Bus Market Share by Region

Europe’s electric bus market is gaining momentum as EU regulations and government incentives encourage the shift to zero-emission public transport. Countries such as Germany and France are supporting fleet electrification, while major cities are tightening restrictions on diesel vehicles. Investments in local battery manufacturing are also helping strengthen regional supply chains and support the transition to electric mobility.

Asia-Pacific leads electric bus adoption, supported by China’s large electric bus fleet and India’s government incentives for cleaner public transport. These measures are helping reduce the upfront cost gap between electric and diesel buses. Meanwhile, Japan and South Korea are investing in hydrogen-powered buses and related infrastructure to expand cleaner transport options.

“Electric bus adoption depends on fleet replacement cycles, operating costs, charging infrastructure, and public transport investment. Mordor Intelligence evaluates these factors alongside market data and industry developments, offering decision-makers a structured view of demand, competitive conditions, and potential growth opportunities.” says, Phani Kumar, Senior Research Manager, Mordor Intelligence.

Electric Bus Industry Segmentation

By Propulsion

Battery Electric Bus (BEB)

Plug-in Hybrid Electric Bus (PHEB)

Fuel Cell Electric Bus (FCEB)

By Application

City / Transit

Intercity / Regional

Coach / Tourist

School Bus

Airport

Others

By Battery Chemistry

Lithium Iron Phosphate (LFP)

Nickel Manganese Cobalt (NMC) / Nickel Cobalt Aluminum (NCA)

Lithium Titanate (LTO)

Others (Sodium-ion, emerging / pilots)

By Length

Below 9 m

9-14 m

14-18 m

Above 18 m

By Motor Architecture

Permanent Magnet Synchronous Motor (PMSM)

Induction Motor / Asynchronous AC

Switched Reluctance Motor (SRM)

Others

By Motor Power

Below 100 kW

100-150 kW

151-200 kW

201-250 kW

251-320 kW

Above 320 kW

By Range

Below 100 km

100-200 km

201-300 km

300-450 km

Above 450 km

By End Use

Public

Private

The Electric Bus Research Report is also available in the following languages:

Japanese: https://www.mordorintelligence.com/ja/industry-reports/electric-bus-market?utm_source=einpr

French: https://www.mordorintelligence.com/fr/industry-reports/electric-bus-market?utm_source=einpr

German: https://www.mordorintelligence.com/de/industry-reports/electric-bus-market?utm_source=einpr

Spanish: https://www.mordorintelligence.com/es/industry-reports/electric-bus-market?utm_source=einpr

Portuguese: https://www.mordorintelligence.com/pt/industry-reports/electric-bus-market?utm_source=einpr

Electric Bus Industry Companies

BYD Company Ltd.

Yutong Bus Co. Ltd.

CRRC Electric Vehicle Co. Ltd.

NFI Group

Volvo Group AB

Proterra Inc.

Alexander Dennis Ltd.

VDL Bus and Coach

Ebusco Holding N.V.

Solaris Bus and Coach

Switch Mobility Ltd.

Wrightbus

Tata Motors Ltd.

Ashok Leyland Ltd.

Daimler Truck Holding AG

King Long United Automotive

Zhongtong Bus Co. Ltd.

Anhui Ankai Automobile

Chery Automobile Co. Ltd.

Chongqing Changan Automobile

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About Mordor Intelligence

Mordor Intelligence is a global market intelligence firm, founded in 2014, helping businesses make informed decisions through data-driven insights, industry expertise, and advanced analytics. With 550+ domain experts and on-ground specialists across 150+ countries, the company delivers comprehensive intelligence across aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics.

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