Nearly half of the municipal buses on the road worldwide will be electric within seven years, with China expected to dominate the global market as it aims to cut urban pollution and support domestic manufacturers.
The total number of electric buses in service is forecast to more than triple, from 386,000 last year to about 1.2 million in 2025, equal to about 47 percent of the worldwide city bus fleet, according to a report from Bloomberg New Energy Finance.
“China will lead this market, due to strong domestic support and aggressive city-level targets,” wrote Aleksandra O’Donovan, an analyst for BNEF and author of the study. By 2025, the report said, the country will account for 99 percent of the world’s battery-powered buses.
Electric buses remain more expensive up front than those fueled by diesel or compressed natural gas, but BNEF found that battery-powered buses can already offer a lower total cost of ownership when fuel and maintenance expenses are considered. Projected declines in battery prices will make the upfront costs of some electric models competitive with a diesel version by 2026, according to the study.