Hybrid, electric bus sales to grow 21% by 2020, report says

Posted on October 15, 2013

Sales of hybrid and electric (H&E) buses will grow at a compound annual growth rate of 20.6% by 2020, according to Frost & Sullivan's latest research focused on the global heavy-duty transit bus market.

It is estimated that global penetration of hybrid buses will reach 9.7% by 2020, while electric buses will attain 5.7%  penetration. Together, H&E transit bus unit shipments will reach close to 42,000 units.

RELATED: "Global sales of electric-drive buses to quadruple by 2018."

"Hybridization and electrification of powertrain is poised to become a global phenomenon in transit buses by 2020," said Frost & Sullivan Automotive and Transportation senior research analyst Chandramowli Kailasam. "This trend will be driven by cash incentives, tax subsidiaries, stringent emission laws, regulations mandating green powertrains in transit buses for urban use, and overall financial aid for green technology."

Developed countries all over the world have already started adopting advanced powertrains, such as H&E drives for transit buses, to reduce emissions and fuel consumption. These green powertrain systems are expected to improve fuel efficiency, and hedge against hikes in fuel price and ridership cost.

While transit bus systems are an integral part of society in the BRIC and other emerging economies, the success of transit bus systems in North America and Europe depends on public perception. Promoting transit buses as an environmentally friendly, convenient, and economical mode of transport can help bring in more ridership and encourage a switch from personal to public transport, according to the report.

"The recent increase in the growth of bus rapid transit systems in many American and Canadian cities shows that hub-and-spoke mass transit systems are being developed to solve urban mobility and in this scheme of things, H&E buses will play an integral role," noted Kailasam.

Many major Chinese bus OEMs are expected to go global and establish manufacturing bases overseas in both developed and emerging markets. Other global bus OEMs will seek potential partners in China to maximize revenue and set up production bases in this country to gain a price advantage.

Despite environmental concerns precipitating into stricter emission laws and eventually, stimulus packages, the uptake of H&E transit buses is more likely to be influenced by the global economy. The cash-strapped transit bus authorities will prefer to invest in low-cost solutions that also satisfy emission laws. Most H&E suppliers are expected to pursue vertical integration in the coming years to increase their revenues. Gradually, by 2020, there could be a tilt toward parallel hybrids and ultracaps-based energy storage systems.

For a copy of a market insight previewing Frost & Sullivan's upcoming research, Strategic Analysis of Global Hybrid and Electric Heavy-Duty Transit Bus Market (NC7C-18), send an e-mail to Jeannette Garcia.

View comments or post a comment on this story. (0 Comments)

More News

Fla.'s JTA sets launch date for new BRT service

The 9.4 mile Green Line on the North Corridor will feature direct, high-frequency service; 18 branded stations; complimentary Wi-Fi, a Park-n-Ride lot, and real-time bus arrival information.

Canadian bus service to block Internet streaming

Some customers have reported slow internet service, while others couldn't connect at al, due to Internet streaming issues.

Nova Bus names new east coast regional sales manager

Prior to joinging Nova, John Manzi served as eastern regional transit sales manager for a major transmission manufacturer.

Shuttle, circulator routes drawing thousands of riders in Miami

These services carried more than eight million passengers last year in 27 municipalities and are praised by riders and public officials alike as successful transit programs.

Calif.'s VVTA unveils Google trip planner update, web app

VVTA staff coordinated with the county and cities to maintain route and stop accuracy throughout the release cycle. Meeting the needs of the many departments at each agency added to the complexity of the project.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment



Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close