Hybrid & Electric Buses and Trucks Market Outlook 2032: Leading Players Include BYD, Volvo, Daimler, Yutong, and Tesla

The global hybrid and electric buses and trucks market is witnessing remarkable growth as governments, fleet operators, and logistics companies increasingly embrace sustainable transportation solutions. According to Persistence Market Research, the market is expected to be valued at USD 80.7 billion in 2025 and reach USD 198.3 billion by 2032, registering a CAGR of 13.7% during the forecast period. The growth is driven by accelerating climate policies, ambitious clean mobility targets, and the adoption of electric and hybrid vehicles across commercial fleets.

The rising demand is further fueled by large-scale fleet electrification programs in public transit and logistics sectors. Declining battery costs, improvements in charging infrastructure, and government incentives are making electric buses and trucks increasingly viable for fleet operators. Among the vehicle types, hybrid buses and trucks currently dominate the market due to their longer range and lower upfront costs compared to fully electric vehicles. Regionally, North America leads in market share because of early adoption of electric mobility, regulatory mandates, and strong incentives for fleet electrification, while Europe is rapidly catching up due to stringent emission norms and proactive government policies.

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The key players studied in the report include:

Key players operating in the Hybrid and Electric Buses and Trucks Market include:

• BYD Auto Co., Ltd.
• Tesla Inc.
• AB Volvo / Volvo Group
• Daimler Truck AG / Mercedes-Benz Group
• Ford Motor Company
• PACCAR Inc.
• Scania AB
• MAN Truck & Bus SE
• Tata Motors
• Ashok Leyland
• Iveco Group
• Mitsubishi Fuso Truck and Bus Corporation
• Isuzu Motors Ltd.
• Dongfeng Motor Corporation
• XL Fleet Corp.
• Bollinger Motors

Key Highlights from the Report

➤ The global hybrid and electric buses and trucks market is projected to grow from USD 80.7 billion in 2025 to USD 198.3 billion by 2032, at a CAGR of 13.7%.
➤ Large-scale fleet electrification and government mandates for clean mobility are major growth drivers.
➤ Battery cost reductions are significantly improving the economic feasibility of hybrid and electric commercial vehicles.
➤ Hybrid buses and trucks currently dominate due to longer range and cost-effectiveness.
➤ North America leads the regional market with Europe following due to strong policies and incentives.
➤ Expansion of charging infrastructure and smart fleet management solutions are accelerating market adoption globally.

Market Segmentation

By Propulsion Type

• Battery Electric Vehicles (BEVs)
• Fuel Cell Electric Vehicles (FCEVs)
• Hybrid Electric
o Hybrid Buses
o Hybrid Trucks

By Vehicle Type Outlook

• Buses
o Mini / Mid Buses
o Standard Buses
o Articulated Buses
• Trucks
o Light-Duty Trucks (LDT)
o Medium-Duty Trucks (MDT)
o Heavy-Duty Trucks (HDT)

By Application Outlook

• Public Transport
• Long-Haul Freight
• Last-Mile Delivery
• Waste Management
• Municipal/Utility Services
• Construction & Mining
• Airport & Industrial Operations
• School & Institutional Fleets

By Range

• Up to 150 km
• 151-300 km
• Above 300 km

By Sales Channel

• OEMs
• Aftermarket

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia Oceania
• Middle East Africa

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Regional Insights

North America leads the hybrid and electric buses and trucks market due to early adoption of electric mobility, strong regulatory mandates, and extensive government incentives. The United States, in particular, is focusing on electrification of public and commercial fleets to reduce greenhouse gas emissions, while Canada is investing in charging infrastructure and smart energy solutions to support EV adoption.

Europe follows closely, with countries like Germany, France, and the Netherlands leading in hybrid and electric bus and truck adoption. Stringent emission norms, coupled with incentives for fleet electrification, have created favorable conditions for market growth. Asia-Pacific is an emerging market driven by increasing EV adoption in China, Japan, and South Korea, supported by government-led infrastructure development and environmental regulations promoting cleaner mobility solutions.

Market Drivers

The primary drivers of the hybrid and electric buses and trucks market include government mandates, regulatory frameworks, and environmental policies. Governments worldwide are implementing policies that mandate reduced emissions and encourage clean mobility, prompting fleet operators to transition from traditional diesel-powered vehicles to hybrid and electric alternatives.

Another key driver is the continuous decline in battery costs. Advances in battery technology, economies of scale, and improved energy density are reducing the total cost of ownership for electric and hybrid commercial vehicles. In addition, the expansion of charging infrastructure, including fast chargers for fleet operations, enhances vehicle uptime and operational efficiency, further encouraging fleet electrification.

Market Restraints

Despite strong growth potential, the hybrid and electric buses and trucks market faces certain restraints. The high upfront cost of electric vehicles, particularly heavy-duty trucks, poses a challenge for fleet operators in price-sensitive markets. While operating costs are lower in the long term, the initial investment remains a barrier to widespread adoption.

Infrastructure limitations also restrain market growth. Insufficient charging stations, long charging times, and lack of standardized charging protocols can delay fleet electrification plans. Technical challenges related to battery life, range limitations, and vehicle performance in extreme climates also need to be addressed to accelerate adoption on a larger scale.

Market Opportunities

The hybrid and electric buses and trucks market presents substantial opportunities for growth, particularly in regions with growing urbanization and stricter emission standards. Emerging markets in Asia-Pacific and Latin America offer potential for new fleet deployments as governments encourage clean mobility initiatives.

Technological innovations also create opportunities, such as advanced battery management systems, fast-charging solutions, and smart fleet telematics. Collaboration between EV manufacturers, logistics companies, and public transport authorities is creating new business models for fleet electrification. Additionally, companies can capitalize on government subsidies and incentives to lower the total cost of ownership and promote large-scale adoption of electric buses and trucks.

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Recent Developments:

• BYD launched a new range of electric buses for urban transit in Europe, focusing on extended range and fast-charging capabilities.
• Volvo Group announced a strategic partnership with logistics companies in North America to electrify commercial truck fleets, including hybrid and fully electric models.

Frequently Asked Questions

➤ What are the main factors influencing the Hybrid and Electric Buses and Trucks Market 2025-2032?
➤ Which companies are the major sources in this industry?
➤ What are the market's opportunities, risks, and general structure?
➤ Which of the top Hybrid and Electric Buses and Trucks Market 2025-2032 companies compare in terms of sales, revenue, and prices?
➤ How are market types and applications and deals, revenue, and value explored?

Future Opportunities and Growth Prospects

The future of the hybrid and electric buses and trucks market is promising, with significant growth expected beyond 2032. Governments globally are increasing incentives for zero-emission vehicles, while fleet operators continue to seek solutions that reduce carbon footprints and improve operational efficiency.

Technological advancements in battery technology, fast-charging infrastructure, and smart fleet management are likely to accelerate adoption. Regions such as Asia-Pacific, Latin America, and the Middle East are emerging as key growth markets due to increasing EV adoption, urbanization, and proactive policy support. With declining battery costs and expanding clean mobility initiatives, the hybrid and electric buses and trucks market is set to play a central role in global transportation electrification and sustainable logistics.

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