According to a recent study from market research firm Graphical Research, the North America electric bus market size is set to register significant growth during the forecast timeframe due to rising focus on the reduction of harmful emissions from transportation sector. The regional governments are bringing out favorable initiatives in the form of tax benefits and feed-in tariffs to encourage companies to develop technologies that produce electric buses.
The technologies used in the regional transportation sector are undergoing some incredible transformations to help develop advanced electric buses. North America is also seeing a steady rise in tourism activities, which will help increase the production of electric buses that will be useful for long-distance transportation.
North America electric bus market share will be valued at more than $850 million by 2027. Governments in the U.S. and Canada are chalking out plans to create advanced charging infrastructure across the region. In June 2021, the Federal Transit Administration (FTA), which comes under the U.S. Department of Transportation, allocated nearly $182 million in the form of grants. These grants will be used in 49 electric bus projects across 46 states.
The Low-No Program by the FTA will help transportation agencies in leasing out or purchasing electric & hydrogen buses and other vehicles that use green fuels and technologies. All these plans are aimed at supporting the U.S. government’s goal to reduce the overall emission rates by 50% by 2030.
North America electric bus market share from all-electric buses will grow at a significant rate in the future. The regional government is increasing its focus on developing innovative charging infrastructure for a wide range of electric vehicles. The main focus of the regional authorities is on reducing the carbon footprint of different sectors. Along with the implementation of strict rules regarding the permissible emission rates for each sector in the region, the administration is heavily investing in green technologies like all-electric buses to support their production and sales.
Electric buses with 70+ seating capacity will gain momentum across North America up to 2027. These buses have large and space-efficient interiors. They can be used for both intercity and intracity travels and have a wide range of benefits. They include wide-angle views, high luggage capacity for long-distance journeys, expansive floor design, and comfortable seats.
Electric buses do not require a lot of maintenance services and the cost for the same is much lesser when compared to the conventional ones. Diesel, CNG, and hybrid buses require frequent maintenance such as oil changes, filter replacements, periodic tune-ups, exhaust system repairs, and water & fuel pump replacements. However, since electric buses use lithium-ion batteries, they need minimal maintenance. Battery capacity with more than 300 kWh will be highly used in North America electric bus market.
Electric bus manufacturers in North America, such as Daimler, Volvo, Scania AB, BYD Company Limited, and GreenPower Motor Company Inc., among a few others are introducing different types of buses, such as Plug-In Hybrid Electric Vehicle (PHEV), Fuel Cell Electric Vehicles (FCEV), and all-electric units. They are implementing advanced technologies to enhance the performance of batteries with different capacities which include, below 100 kWh, 100-300 kWh, and above 300 kWh. Buses with seating capacities below 40, 40-70, and above 70 seats will are suitable across intercity and intracity travel applications.