Report : Asia Pacific Minibus Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Propulsion [Electric and Internal Combustion Engine (ICE)]
According to our latest market study on “Asia Pacific Minibus Market Forecast to 2028 – COVID-19 Impact and Analysis – by Propulsion,” the market is expected to grow from US$ 30,870.82 million in 2023 to US$ 43,690.33 million by 2028; it is estimated to register a CAGR of 7.2% from 2023 to 2028.
Minibus is an economical passenger-carrying vehicle with a capacity of 17–25 passengers. The increasing number of medium and large enterprises across countries in APAC, such as China, India, Singapore, and New Zealand, is creating the need for minibus services for their employees to offer affordable transportation. Additionally, the increase in public shuttle services across developing countries is further driving the demand for minibuses across the region, thereby contributing to the minibus market growth across the region.
The rise in government initiatives to promote sustainable transportation to lower carbon emissions is fueling the demand for electric minibuses. For instance, in 2021, the New Zealand government announced that electric vehicles registered after April 2022 were eligible for a discount with a maximum amount of US$ 8,625 for new vehicles and US$ 3,450 for used vehicles. Similarly, in 2022, the Ministry of Transportation of Singapore announced several tax incentives for promoting the adoption of electric vehicles for both personal and commercial uses. Such initiatives are promoting the adoption of electric minibuses across APAC. In recent years, APAC is experiencing a rise in tourism and infrastructural developments such as airports, corporates, schools, and hotels and resorts. This is expected to fuel the demand for minibuses from the owners/management of the infrastructures mentioned above to enhance the overall customer experience.
Impact of COVID-19 Pandemic on Asia Pacific Minibus Market
The onset of the COVID-19 pandemic significantly impacted APAC countries such as China, India, Japan, South Korea, Vietnam, Indonesia, and Malaysia. Government bodies across these countries imposed stringent regulations such as social distancing, travel restrictions, and trade bans, which adversely affected both supply and demand side of the minibus market. According to a study published by the Nation Center of Biotechnology Information, in February 2020, China experienced a decline of 92% in the sale of new vehicles. Similarly, according to the Society of Indian Automobile Manufacturers (SIAM), India recorded a decline of 19% in the sales of new vehicles in the FY 2020. Further, minibus manufacturers such as Tata Motors experienced a 23% decline in their commercial vehicle sales in FY 2020. Thus, these factors imoacted the APAC minibus market negatively.
The report segments the Asia Pacific minibus market as follows:
Based on propulsion, the APAC minibus market size is bifurcated into electric and internal combustion engine (ICE). The electric segment held a larger market share in 2022 in the minibus market. Electric vehicles are being rapidly adopted across Asia Pacific (APAC) owing to their high sustainability and the growing government initiatives to reduce carbon emissions. For instance, in 2022, the Australian government announced electric vehicle subsidies, registration exemptions, interest-free loans, and discounted parking charges for both private and commercial electric vehicles. The government aims to reduce its carbon footprint by proposing a 50% electric vehicle target by 2030. Further, several countries across APAC are installing electric vehicle charging stations to promote the adoption of electric vehicles. For instance, the China Electric Vehicle Charging Infrastructure Promotion Alliance (EVCIPA) announced that the country had developed and installed 87,000 new electric vehicle charging infrastructures in May 2022, showcasing a 60.5% growth compared to 2021. Thus, the easy accessibility of electric charging infrastructure across developing nations such as China, Malaysia, the Philippines, and India is influencing the adoption of electric minibusses, thereby contributing to market growth.
Contact Person: Sameer Joshi
Email Id: email@example.com