The United States electric bus market reached a value of around USD 1060.19 Million in 2025. The market is estimated to grow at a CAGR of 19.20% between 2026 and 2035, reaching a market value of nearly USD 6139.69 Million by 2035.
Base Year
Historical Period
Forecast Period
BYD has delivered over 1,000 electric buses to transit agencies across the United States, including major cities like Los Angeles, New York, and Seattle.
The West Coast, including California, Oregon, and Washington, accounts for 41% of the total zero-emission buses in the country, with California having the most ZEBs at 1,977 vehicles.
As of 2023, there were approximately 1,873 electric buses on the road in the United States, which accounts for 3% of the total 60,995 buses in the nation.
Compound Annual Growth Rate
19.2%
Value in USD Million
2026-2035
*this image is indicative*
Buses that run on electricity are called electric buses or e-bus, and they are powered by electricity completely or partially. Buses running partially on electricity and combustion engines are known as hybrid buses. Electric buses are not only beneficial for the environment but also provide financial benefits due to their lower operational costs.
The United States electric bus market expansion can be attributed to the increasing focus on decarbonisation and the switch towards electric vehicles. Electric buses in the United States witnessed a significant increase of 66% in 2022. As of September 2022, there were 5,480 full-size battery-electric and fuel-cell electric transit buses, compared with 3,297 e-buses in 2021.
Increasing demand for zero-emission buses, growing focus on improving air quality, and favourable government initiatives are factors that have influenced United States electric bus market development
The demand for sustainable transportation options like electric buses is increasing in the United States, driven by concerns over greenhouse gas emissions. This is evident in a survey conducted by the Natural Resources Defense Council (NRDC), which indicates that 40% Americans prefer sustainable transportation options over highway expansions to mitigate pollution and traffic.
The average price of lithium-ion battery packs fell by 14% in 2023, reaching INR 139 per kilowatt hour (kWh), compared to INR 161/kWh in 2022. As battery costs decrease, the total cost of ownership for electric buses is expected to decrease, making them more attractive to transit agencies.
California introduced the Zero-Emission Vehicle (ZEV) program, which has spurred the growth of electric vehicles in the state. Similarly, the Advanced Clean Truck (ACT) Rule in New York has set a target for all new heavy-duty vehicles to be zero-emission by 2045, which is driving the demand for electric buses.
Public transportation agencies are increasingly adopting electric buses due to their environmental benefits and lower operating costs. For instance, in the United States, nearly 6,147 new full-size zero-emission transit buses were on the road in September 2023, a 66% increase over the previous year.
Stringent environmental regulations aimed at reducing emissions and promoting zero-carbon emission vehicles also drive the market’s growth. Under the scheme Zero Emission Bus (ZEB), the United States aims to transition all public transit agencies to 100% zero-emission bus fleets by 2040. Moreover, the usage of electric buses is likely to reduce dependence on fossil fuels in the coming years and can hence, provide a stable United States electric bus market outlook.
Ongoing advancements in electric vehicle (EV) technology, particularly improvements in battery technology and charging infrastructures, are enhancing the feasibility of electric buses. For example, BYD's new electric bus models, such as the K7 and K9S, feature the company's proprietary iron phosphate battery technology, which is non-toxic and 100% recyclable. These advancements contribute to making electric buses more competitive, economically viable, and sustainable compared to traditional fossil fuel-powered buses.
The EMR’s report titled “United States Electric Bus Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments
Market Breakup by Propulsion Type
Market Breakup by Length
Market Breakup by Range
Market Breakup by Battery Capacity
Market Breakup by Power Output
Market Breakup by Region
Battery EVs and PHEVs are high in demand due to their lower operational costs and better driving range
Battery electric bus (BEB) holds a notable portion of the market share as these buses offer a good transitioning alternative to combustion engines. BEBs have lower operating costs than diesel buses, as they do not require expensive fuel or frequent oil changes. The charging infrastructure for BEBs is rapidly expanding, making it easier to keep them charged and operational. Examples of BEVs include the Proterra Catalyst and the New Flyer XE60.
Meanwhile, plug-in hybrid electric buses are expected to attain a significant share in the forecast period due to their ability to operate in both electric and hybrid modes and notable investments in infrastructural developments. They also offer a longer driving range compared to BEVs and can be charged from the grid. Examples of PHEVs include the BYD K9 and the Gillig Brite.
As per United States electric bus market analysis, fuel cell electric vehicles (FCEVs) are gaining popularity due to advancements in hydrogen technology and the increasing availability of hydrogen fueling infrastructure. Examples of FCEVs include the Toyota SORA Fuel Cell Bus and the Hyundai ELEC CITY Fuel Cell Bus.
Buses with a range of 200 miles and above are gaining traction in the market, driven by the demand for cost-effective transportation solutions
Buses with a range of less than 200 miles are popular for intracity transportation, such as city routes and local services. These buses are commonly used where the distances are shorter and the demand for frequent stops is higher. The demand for these buses is driven by the need for efficient and cost-effective transportation solutions, as well as the growing focus on reducing emissions and improving air quality.
According to United States electric bus market report, Buses with a range of more than 200 miles are used for intercity transportation, such as long-distance routes and highway services. These buses are often used for regional or national transportation. The demand for these buses is driven by the need for efficient and reliable transportation solutions, as well as the growing focus on reducing emissions and improving air quality. Companies like BYD Motors Inc. offer electric bus models with a range of up to 215 miles and these buses can be fully charged in 3-4 hours.
Market players are focused on manufacturing battery electric buses, hybrid electric buses, and fuel cell electric buses, with a strong emphasis on reducing carbon emissions
Blue Bird Corporation, based in Georgia, the United States, is a bus manufacturer. The company primarily focuses on school buses, pupil activity buses (SPAB), and speciality vehicle derivatives. The company has a presence in more than 60 countries and sales in Africa, Asia, Latin America, Europe, and the Middle East.
Gillig LLC, headquartered in California, the United States, is a bus designer and manufacturer company founded in 1890. The company is the leading manufacturer of heavy-duty transit buses in the United States. The company has maintained a reputation as the lowest-cost buses to maintain and operate.
Proterra Inc. is a California-based automotive and energy storage company that designs and produces battery electric transit buses, battery systems, and charging solutions for heavy-duty vehicles. The company was established in 2004. The company has 3 facilities, one in California and two in South Carolina.
BYD Motors Inc. is a leading electric vehicle manufacturer, focusing on zero-emission transportation solutions. It is headquartered in Los Angeles, California, and was founded in 1995. The company is a wholly owned subsidiary of BYD Company Ltd, the largest domestic auto-manufacturer and electric-bus manufacturer in China.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the United States electric bus market include Volvo AB, Daimler Truck Holding AG, Hyundai Motor Company, Lion Electric Company, NFI Group Inc., Motiv Power Systems Inc., and GreenPower Motor Company Inc., among others.
Regions like Southeast, Far West, and Southwest leads the market due to the sufficient availability of EV charging stations
The growing infrastructural development, increasing government initiatives, and consumer initiatives to reduce carbon emissions are factors positively impacting the market in regions like Southeast and New England. Moreover, the rising adoption of fuel cell electric buses and increasing number of charging stations in regions like Far West and Southeast is also expanding the overall United States electric bus market share. As per industry reports, California’s 14 states with transit agencies have adopted the highest number of fuel cell electric buses in US.
Additionally, as of November 2022, there were 56,256 electric vehicle (EV) charging stations in the United States, of which 52,375 were public electric vehicle charging stations and 3,816 were private electric vehicle charging stations. States like California, Florida, and New York are the leading states for the number of electric vehicles charging stations installed.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the United States electric bus market reached an approximate value of USD 1060.19 Million.
The market is expected to grow at a CAGR of 19.20% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to USD 6139.69 Million by 2035.
The market is driven by the need for efficient and cost-effective transportation solutions, as well as the growing focus on reducing emissions and improving air quality.
Key trends aiding market expansion include the rising demand for clean transportation, infrastructural development activities, and the increasing research and development (R&D) activities by key players.
Regions considered in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
Fuel cell electric vehicles (FCEV), battery electric vehicle (BEV), and plug-in hybrid electric vehicle (PHEV) are the major propulsion types for electric buses.
The major segments based on the length of electric buses in the market are less than 9 meters, 9-14 meters, and above 14 meters.
Key players in the market are BYD Motors Inc., Volvo AB, Daimler Truck Holding AG, Hyundai Motor Company, Proterra Inc., Gillig LLC, Blue Bird Corporation, Lion Electric Company, NFI Group Inc., Motiv Power Systems Inc., and GreenPower Motor Company Inc., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Propulsion Type |
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| Breakup by Length |
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| Breakup by Range |
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| Breakup by Battery Capacity |
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| Breakup by Power Output |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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