Joey Moore
Member
Market Overview
The Europe electric bus market was valued at USD 3.38 Billion in 2024 and is expected to reach USD 17.19 Billion by 2033. The market is projected to grow at a CAGR of 18.82% during the forecast period from 2025 to 2033. Key growth factors include government incentives, advancements in battery technologies, and increasing environmental awareness.
Study Assumption Years
Market Growth Factors
The European electric bus market is primarily driven by the implementation of favorable government policies aimed at restricting urban air pollution and reducing greenhouse gas (GHG) emissions. Government programs such as the European Green Deal and national initiatives provide financial incentives, subsidies, and tax credits to shift public transport to electric buses. Cities are also establishing low emission zones to comply with air quality regulations, creating demand for zero-emission buses.
Advancements in battery technology significantly contribute to market growth. Lithium-ion batteries, which lead the battery type segment with a 94.3% share in 2024, offer higher energy density, longer lifespan, and cost-effectiveness. These improvements enable buses to travel longer distances and reduce charging time. Additionally, wireless charging innovations and deployment of fast-charging infrastructure in cities enhance operational efficiency and market expansion.
Growing public awareness about environmental issues and demand for cleaner transportation options are fostering the adoption of electric buses. Transit authorities and operators are increasingly transitioning from diesel buses to electric alternatives to lower emissions and operating costs. For example, Polish public transport company MZK introduced hydrogen buses in 2022 as part of this trend. Investments in sustainable manufacturing, such as the climate-neutral factory by VDL Bus&Coach in Belgium, also bolster market growth.
Market Segmentation
By Propulsion Type:
Germany dominates the Europe electric bus market with a 28.7% share in 2024. The country benefits from a strong economy that invests heavily in clean energy technologies, supported by government incentives such as subsidies and policies like the National Hydrogen Strategy, which allocated EUR 7 Billion towards hydrogen-based public transport. German cities' implementation of emission zones further drives demand for zero-emission buses.
Recent Developments & News
About Us
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, considerations studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
The Europe electric bus market was valued at USD 3.38 Billion in 2024 and is expected to reach USD 17.19 Billion by 2033. The market is projected to grow at a CAGR of 18.82% during the forecast period from 2025 to 2033. Key growth factors include government incentives, advancements in battery technologies, and increasing environmental awareness.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
- Current Market Size: USD 3.38 Billion in 2024
- CAGR: 18.82% (2025-2033)
- Forecast Period: 2025-2033
- Germany held the largest market share of 28.7% in 2024
- Battery electric buses accounted for 90.1% of the market share in 2024
- Lithium-ion batteries dominated with a 94.3% market share in 2024
- The 9-14 meters bus length segment led with 69.7% market share
- Public awareness and government policies supporting clean transportation are significant growth drivers
Market Growth Factors
The European electric bus market is primarily driven by the implementation of favorable government policies aimed at restricting urban air pollution and reducing greenhouse gas (GHG) emissions. Government programs such as the European Green Deal and national initiatives provide financial incentives, subsidies, and tax credits to shift public transport to electric buses. Cities are also establishing low emission zones to comply with air quality regulations, creating demand for zero-emission buses.
Advancements in battery technology significantly contribute to market growth. Lithium-ion batteries, which lead the battery type segment with a 94.3% share in 2024, offer higher energy density, longer lifespan, and cost-effectiveness. These improvements enable buses to travel longer distances and reduce charging time. Additionally, wireless charging innovations and deployment of fast-charging infrastructure in cities enhance operational efficiency and market expansion.
Growing public awareness about environmental issues and demand for cleaner transportation options are fostering the adoption of electric buses. Transit authorities and operators are increasingly transitioning from diesel buses to electric alternatives to lower emissions and operating costs. For example, Polish public transport company MZK introduced hydrogen buses in 2022 as part of this trend. Investments in sustainable manufacturing, such as the climate-neutral factory by VDL Bus&Coach in Belgium, also bolster market growth.
Market Segmentation
By Propulsion Type:
- Battery Electric Vehicle (BEV): Dominated with 90.1% market share in 2024, preferred for zero-emission transport and operational cost savings.
- Fuel Cell Electric Vehicle (FCEV): Emerging segment supported by hydrogen strategies, eg, Germany's EUR 7 Billion investment.
- Plug-in Hybrid Electric Vehicle (PHEV): Noted as a category but specific details not provided.
- Lithium-ion Battery: Led with 94.3% market share in 2024 due to superior energy density, lifespan, and cost-efficiency.
- Nickel-Metal Hydride Battery (NiMH): Recognized but specific share not provided.
- Others: Mentioned without further details.
- Less than 9 Meters: Segment mentioned without specific market share.
- 9-14 Meters: Led with 69.7% market share in 2024, popular for urban and suburban transit.
- Above 14 Meters: Included without detailed data.
- Less than 200 Miles: Led with 64.3% market share in 2024, suitable for typical urban routes.
- More than 200 Miles: Included but specific market share not mentioned.
- Up to 400 kWh: Led the market in 2024, balancing energy capacity and operational costs.
- Above 400 kWh: Mentioned without detailed data.
- Germany: Led with 28.7% market share in 2024, backed by strong government policies and investments.
- France: Included without specific figures.
- United Kingdom: Included without specific figures.
- Italy: Included without specific figures.
- Spain: Included without specific figures.
- Others: Included as a category.
Germany dominates the Europe electric bus market with a 28.7% share in 2024. The country benefits from a strong economy that invests heavily in clean energy technologies, supported by government incentives such as subsidies and policies like the National Hydrogen Strategy, which allocated EUR 7 Billion towards hydrogen-based public transport. German cities' implementation of emission zones further drives demand for zero-emission buses.
Recent Developments & News
- March 2025: Scania launches a new electric powertrain for its e-bus platform with four power options, a new 312 kWh battery pack, and a rear fast-charging interface supporting up to 325 kW.
- January 2025: Wrightbus introduced new electric bus and truck models under its Rightech brand, including 6m and 9m buses.
- October 2024: Volvo Buses unveils the Volvo 8900 Electric and upgraded 7900 Electric models with capacity up to 540 kWh and power of 400 kW.
- October 2024: JBM Group launches its European-homologated electric city bus in Germany, with an updated electric coach planned for October 2025.
- November 2023: Alexander Dennis introduced next-generation battery-electric buses Enviro100EV and Enviro400EV designed for UK and Ireland, offering up to 285 miles on a single charge.
- Van Hool
- Switch Mobility
- MZK (Konin)
- Solaris Bus & Coach
- VDL Bus & Coach
- Scania
- Wrightbus
- Volvo Buses
- JBM Group
- Alexander Dennis
About Us
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, considerations studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
