Article -> Article Details

Market Overview

The Europe electric bus market size was valued at USD 3.38 Billion in 2024 and is expected to reach USD 17.19 Billion by 2033, exhibiting a CAGR of 18.82% during 2025-2033. Germany dominates the market with a 28.7% share in 2024, driven by supportive government policies, technological advancements in battery efficiency, and increased environmental awareness. The market growth is supported by government incentives and expansion of electric bus infrastructure.

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Europe Electric Bus Market Key Takeaways

• In 2024, the market size was USD 3.38 Billion with a CAGR of 18.82% forecasted for 2025-2033.
• Germany held the largest market share of 28.7% in 2024.
• Battery-electric buses accounted for 90.1% of the market in 2024.
• Lithium-ion batteries led the market with a 94.3% share in 2024.
• Mid-sized buses (9-14 meters) dominated with a 69.7% share in 2024.
• Electric buses with less than 200 miles range captured 64.3% of the market in 2024.
• Buses with battery capacities up to 400 kWh led the market in 2024.

Sample Request Link: https://www.imarcgroup.com/Europe-Electric-Bus-Market/requestsample

Market Growth Factors

Governmental policies and regulations focusing on reducing carbon emissions and improving air quality drive the growth of the electric bus market throughout Europe. The European Union initiates, like the European Green Deal, fund by subsidies and tax incentives to encourage municipalities and operators when they convert diesel buses to electric. Low-emission zones appear in cities, and authorities could adopt zero-emission buses and vehicles to meet air quality standards.

Lithium-ion batteries also improve in and contribute to the market. Energy density increases and buses can recharge faster. Buses then drive longer distances between charges and recharge faster. The industry responds by scaling up to more advanced electric bus technologies. The technologies are efficient. They include hydrogen fuel cells. They include wireless charging capabilities that charge the bus during driving.

As passengers become more aware of environmental sustainability, there are demands for low-emission (or zero-emission) public transport and transit authorities are replacing their fleets of ICE buses with electric equivalents, including hydrogen buses in Poland and climate-neutral production plants in Belgium. These factors are leading to a rapid scale up in the deployment of electric buses.

Market Segmentation

Propulsion Type:

• Battery Electric Vehicle (BEV): Led the market with 90.1% share in 2024, preferred due to sustainability, zero emissions, lower operating costs, and regulatory support.
• Fuel Cell Electric Vehicle (FCEV): Present as a growing segment with investments in hydrogen technology.
• Plug-in Hybrid Electric Vehicle (PHEV): Available but less prominent than BEV.

Battery Type:

• Lithium-ion Battery: Held 94.3% share in 2024, favored due to superior energy density, longevity, cost-effectiveness, and fast charging.
• Nickel-Metal Hydride Battery (NiMH): Present but with lower market share.

Length:

• 9-14 Meters: Dominated with 69.7% market share in 2024, preferred for urban and suburban routes balancing capacity and efficiency.

Range:

• Less than 200 Miles: Led the market with 64.3% share, suitable for daily city operations with lower operating costs.

Battery Capacity:

• Up to 400 kWh: Leading segment, providing optimal balance of energy, range, and cost effective for urban/intercity routes.

Country:

• Germany: Dominates with 28.7% market share in 2024, supported by strong economy, government incentives, and regulatory policies promoting clean energy and hydrogen strategies.
• France
• United Kingdom
• Italy
• Spain
• Others

Regional Insights

Germany leads the Europe electric bus market with a significant 28.7% share in 2024. This leadership is driven by strong government policies such as the National Hydrogen Strategy with EUR 7 Billion investment, implementation of strict emission zones, and increased public demand for sustainable transport. Germany's robust economy supports substantial investments in clean technologies, propelling growth in the electric bus sector.

Recent Developments & News

• March 2025: Scania launched a new electric powertrain for its e-bus platform with four power options (240–330 kW), a new 312 kWh battery pack, fast-charging interface (up to 325 kW), and flexible configurations.
• January 2025: Wrightbus introduced new electric bus and truck models under the Rightech brand in UK and Europe, including 6m and 9m buses.
• October 2024: Volvo Buses unveiled the Volvo 8900 Electric and upgraded 7900 Electric models with capacities up to 540 kWh and 400 kW; production supported by a new MCV facility in Egypt.
• October 2024: JBM Group launched its European-homologated electric city bus starting in Germany, with a new electric coach expected at Busworld Europe in 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 per charge.

Key Players

• Van Hool
• Switch Mobility
• Solaris Bus & Coach
• VDL Bus&Coach
• Scania
• Wrightbus
• Volvo Buses
• JBM Group
• Alexander Dennis

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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, feasibility 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.