BOULDER, Colo.--(BUSINESS WIRE)--No other category of heavy duty vehicles has seen more adoption of electric drivetrains than buses. In North America, hybrid models have captured as much as 40 percent of new transit bus purchases in recent years. Electric drivetrains – whether for hybrid systems, battery electric, or fuel cell – hold appeal for the bus market for many of the same reasons they do for light duty vehicles: the promise of moving away from oil, efficiency gains, limiting greenhouse gas emissions, and, in many cases, lower operating costs. According to a recent report from Pike Research, a part of Navigant’s Energy Practice, the global market for electric drive buses is expected to grow steadily over the next six years, with a compound annual growth rate of 26 percent from 2012 to 2018. By 2018, the report concludes, more than 75,000 electric drivetrain buses will be in service around the world.
“The biggest challenge for electric drive technologies has been the cost premium over conventional diesel buses or buses that run on compressed natural gas,” says senior research analyst Lisa Jerram. “This premium has maintained for hybrids, even as they have seen significant adoption in the North American market. Fuel economy savings are critical to making the case for bus operators to pay more, especially in developed countries that are facing increasing austerity in their public budgets. Typically, hybrid buses need to show fuel economy improvements of around 40 percent, at current U.S. diesel prices, to pay off the price premium over the life of the bus.”
While growth in the e-bus market will accelerate strongly in certain regions, including Eastern Europe and Latin America, by far the largest sales volumes will come in Asia Pacific, the study finds. More than 15,000 electric buses will be sold in Asia Pacific in 2018 – 75 percent of the world total. North American sales are expected to reach just fewer than 2,500 in the same year.
The report, “Electric Drive Buses”, examines the opportunities and challenges in the global market for hybrid electric, plug-in hybrid, battery electric, and fuel cell buses. The report covers the full range of bus applications including transit, motor coach, shuttle, school buses, and paratransit, in addition to the most prevalent bus sizes: full-size, articulated, medium duty or midibuses, and minibuses. The report provides an assessment of the top markets for electric buses, the likely next markets, and key drivers and barriers to market growth including public policy, cost, domestic content regulations, and competing technologies. Market forecasts are included for hybrid, battery, and fuel cell buses in heavy duty and medium duty segments through 2018, and key market players are also profiled. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant’s global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYSE: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, “Electric Drive Buses,” is a summary and reflects Pike Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.