Vantage Market Research
Feb 22, 2024
In a significant stride towards sustainable transportation, the United Kingdom has again emerged as the vanguard in deploying battery-electric buses across Europe. With a remarkable 76.1% increase in electric bus registrations in 2023, the UK solidifies its position as a leader in the transition to zero-emission public transportation.
The Zero Emission Bus Regional Areas (ZEBRA) 2 scheme underscores the UK government's commitment to fostering green transportation. A substantial £129 million investment will drive the introduction of zero-emission buses (ZEBs) across various regions, spanning towns, villages, and cities. This initiative promotes environmental sustainability and stimulates economic growth by creating green jobs in the bus manufacturing sector. Driving innovation in the electric bus market, BYD UK and Alexander Dennis, a subsidiary of NFI Group Inc., have joined forces to deliver cutting-edge electric vehicles. Their recent collaboration has resulted in a repeat order of 141 battery-electric buses for Go-Ahead London, contributing to a total fleet of 299 vehicles set for delivery in 2023.
In February 2023, the European Union proposed ambitious CO2 standards for new trucks, coaches, and urban buses, signaling a collective commitment to emissions reduction. Mandates such as a 100% zero-emission city bus sales target by 2030 underscore the continent's dedication to sustainable mobility solutions. Southern European nations are witnessing a surge in electric bus adoption, fueled by environmental consciousness and government incentives. Spain and Italy, in particular, experienced remarkable growth rates of 261.0% and 230.6% in electric bus registrations, respectively, demonstrating a profound shift towards electrification in the region.
The electric bus market continues its upward trajectory, with projections indicating substantial growth. Valued at USD 49.88 billion in 2023, the market is expected to reach USD 178.2 billion by 2032, driven by cost reductions, supportive policies, and environmental imperatives. Asia Pacific commands the largest market share, closely followed by Europe, where regulatory measures propel the transition towards electrification.