Report : Middle East & Africa Electric Bus Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Vehicle Type (Battery Electric Bus, Hybrid electric Bus, and Plug-in Hybrid Electric Bus), Hybrid Powertrain (Series Parallel Hybrid, Parallel Hybrid, and Series Hybrid), Battery [Lithium Iron Phosphate (LFP) and Lithium Nickel Manganese Cobalt Oxide (NMC)], and End User (Public and Private)
At 16.0% CAGR, the MEA Electric Bus Market is speculated to be worth US$ 1,163.89 million by 2028, says Business Market Insights
According to Business Market Insights’ research, the MEA electric bus market was valued at US$ 410.66 million in 2021 and is expected to reach US$ 1,163.89 million by 2028, registering an annual growth rate of 16.0% from 2021 to 2028.
Emergence of autonomous and semi-autonomous transportation systems and rising production of low-cost lithium ion-phosphate batteries are the critical factors attributed to the market expansion.
Autonomous and semi-autonomous transportation systems have emerged due to advancements in instrumentation, actuation, and sensing technologies. Light detection and ranging (LiDAR), odometer, a global positioning system (GPS), and computer-aided vision are all advancements that let autonomous buses perceive their environment. Autonomous driving has gained popularity in the electric bus industry due to advanced technology (more predictable transit times) and lower fuel, labor, and maintenance costs. Original equipment manufacturers (OEMs) embrace autonomous driving and create autonomous bus shuttles. For instance, the first full-sized self-driving urban electric bus has arrived in the region. Cities will soon be home to electric and self-driving buses. Meanwhile, a multinational company, Huawei has built a 4 km test track for self-driving buses. Thus, the emergence of autonomous and semi-autonomous transportation systems is expected to drive the electric bus market in the near future across the region.
On the contrary, high initial and development cost hurdles the growth of MEA electric bus market.
Based on vehicle type, the MEA electric bus market is segmented into the battery-electric bus, hybrid electric bus, and plug-in hybrid electric bus. The battery-electric bus segment held 80.6% market share in 2021, amassing US$ 330.95 million. It is projected to garner US$ 961.14 million by 2028 to expand at 16.5% CAGR during 2021–2028.
Based on hybrid powertrain, the MEA electric bus market is segmented into series-parallel hybrid, parallel hybrid, and series hybrid. The parallel hybrid segment held 55.4% market share in 2021, amassing US$ 227.46 million. It is projected to garner US$ 651.20 million by 2028 to expand at 16.2% CAGR during 2021–2028.
Based on battery, the MEA electric bus market is bifurcated into lithium iron phosphate (LIP) and lithium nickel manganese cobalt oxide (NMC). The lithium iron phosphate (LIP) segment held 83.4% market share in 2021, amassing US$ 342.28 million. It is projected to garner US$ 988.27 million by 2028 to expand at 16.4% CAGR during 2021–2028.
Based on end user, the MEA electric bus market is bifurcated into public and private. The public segment held 79.4% market share in 2021, amassing US$ 326.18 million. It is projected to garner US$ 895.47 million by 2028 to expand at 15.5% CAGR during 2021–2028.
Based on country, the MEA electric bus market is segmented into the UAE, Saudi Arabia, South Africa, and rest of MEA. Our regional analysis states that Saudi Arabia captured 43.3% market share in 2021. It was assessed at US$ 177.89 million in 2021 and is likely to hit US$ 467.30 million by 2028, exhibiting a CAGR of 14.8% during the forecast period.
Key players dominating the MEA electric bus market are AB Volvo; BYD Company Ltd; CAF Group (Solaris Bus & Coach); Daimler AG; and King Long United Automotive Industry Co., Ltd among others.
- In 2021, Volvo Buses is expanding its electromobility offering around the region. Volvo Buses now offers a solid platform for sustainable and efficient public transportation in cities around the region and reliable and profitable operations for customers, with the introduction of the new Volvo BZL Electric chassis.
- In 2021, Daimler AG offered the next generation of batteries to eCitaro in 2021; in the end of 2020, eCitaro has available with solid-state batteries (lithium-polymer batteries). In 2022, a range extender for the battery bus will be available (hydrogen-based fuel cell will provide the high-voltage battery with power). In 2020, an articulated bus model variant of the eCitaro will be available.