The mushrooming deployment of electric buses, on account of the implementation of favorable policies by the governments of several European countries and the escalating air pollution levels, is driving the demand for electric bus charging stations in Europe. With the enactment of the Paris Climate Agreement, the European Union (EU) is now more than ever committed toward the large-scale adoption of eco-friendly electric vehicles in order to become a low-carbon economy.
Moreover, many governments in the continent are launching incentive programs in the form of subsidies, tax rebates, and grants for improving the electric bus infrastructure in the region. For example, the Federal Ministry for the Environment, Nature Conservation, and the Building, and Nuclear Safety (BMUB) collectively developed a fund of $82.7 million (EUR 70 million) for the procurement of plug-in hybrid and electric buses and the development of associated electric charging infrastructure needed for the smooth operation of these buses in Germany in March 2018.
Additionally, at the regional level and in cities, many transport organizations and manufacturers signed the European Clean Bus Deployment Initiative in order to augment the deployment of electric buses. Besides these factors, the soaring adoption of electric buses in public transport fleets is also propelling the growth of the European electric bus charging station market. Due to the surging air pollution levels, many local governments are adopting electric buses in their public or municipal transit fleets. For example, Holland intends to electrify the entire public transport bus fleet (5000+ buses) in the country by 2025.
Furthermore, the Netherlands aims to mandate 100% sales of zero emission vehicle (ZEV) public transport buses by 2025, which would then be followed by 100% ZEV fleet by 2030, thereby replacing all petrol and diesel-powered vehicles in the country. Likewise, in Sweden, at least 50% of the buses purchased in 2030 and at least 30% of those bought in 2025 will be electric ones. Due to these factors, the demand for electric bus charging stations will shoot up, which will, in turn, propel the expansion of the European electric bus charging station market.
According to the estimates of the market research company, P&S Intelligence, the revenue of the market will rise from $221.2 million in 2018 to $697.7 million by 2025, while the market will advance at a CAGR of 17.8% from 2019 to 2025. Depending on type, the electric bus charging stations are classified into opportunity charging and depot charging. Between these, the demand for opportunity charging stations was found to be higher during the last few years. This was because of the greater ease of functioning of these chargers than the depot charging stations.
In Europe, the U.K. witnessed the highest deployment of electric bus charging stations in the years gone by. This was because of the fact that the country is actively focusing on adopting a green mobility solution, which is augmenting the electrification rate of its public transport fleets. In addition, the soaring deployment of electric vehicles, owing to the provision of various financial incentives and the enactment of favorable policies by governments, is further boosting the requirement for electric bus charging stations in the region.
Hence, it can be safely said that the demand for electric bus charging stations will soar in Europe in the coming years, primarily because of the increasing adoption of electric buses and the surging focus of many governments in the region on electrifying the public transport fleets.