The preference for electric vehicles has increase significantly all across the globe. This can be attributed to the surging air pollution levels, caused due to conventional ICE vehicles, rapid depletion of fossil fuels, and growing focus on renewable energy sources. Since electric vehicles can aid in curbing the emission of greenhouse gases into the atmosphere, their adoption has been increasing among people since the past few years.
While previously, the focus has majorly been on electrification of private vehicles, such as motorcycle, cars, and schools, now governments of several countries are also focusing on electrifying the public transport systems of their countries. Owing to this, the global electric bus charging station market is expected to register substantial growth in the years to come. The adoption of electric buses has particularly been increasing because of various incentive programs, including grants, tax rebates, and subsidies. Therefore, as the adoption of electric buses will rise, the need for related charging infrastructure will grow as well.
For example, the European Commission allotted a budget of $82.7 (EUR 70 million) for the deployment for plug-in electric and electric buses in the public fleet and for the construction of related charging infrastructure that is needed for the operation of these buses, in February 2018. Moreover, the Chinese government has also taken the initiative for installing 500,000 new public charging stations during the time period 2015–2020 for encouraging the adoption of electric buses in the country.
The global electric bus charging station market is predicted to attain a revenue of $12.3 billion by 2025, increasing from $6.6 billion in 2019, and is predicted to grow at a 9.7% CAGR during the forecast period (2019–2025). On the basis of type, the market is divided into inductive charging, depot charging, and opportunity charging, among which, the depot charging division contributed the largest revenue share to the market in 2018. As these buses have similar operations as diesel buses, they are easier to operate.
When charger is taken into consideration, the market is bifurcated into on-board and off-board, between which, the on-board bifurcation accounted for the larger share of the market in 2018, in terms of volume. The off-board bifurcation is expected to grow at a faster pace during the forecast period, owing to the fact that this way the weight of the vehicle will be decreased. Moreover, off-board charger offer swift charging at higher power levels.
The Asia-Pacific region held the major share of the electric bus charging station market in 2018, which can primarily be attributed to fact that China is the largest electric bus market across the globe. The country accounts for 99.0% of the total sales of electric buses around the world. This increasing penetration of electric buses in the country is bound to create high demand for related charging infrastructure, including electric bus charging stations.
In conclusion, the market is growing due to the surging pollution across the globe, increasing use of electric buses, and government initiatives.