Electric Shuttle Market

Electric Shuttle Market Outlook (2022-2032)

Rapid penetration of battery-powered vehicles has led to the development of electric shuttles. Although the electric shuttles were initially used for sightseeing and short-distance transportation across golf courses, airports, wineries, stadiums, national parks, and theme parks, they are gaining steady application in public communication.

With increasing awareness regarding environmental issues and the consumption of natural resources, the adoption of the electric shuttle is likely to rise significantly in the coming years. The electric shuttles bring a wide range of advantages, most importantly the reduction of air pollution levels. These are some of the factors influencing the development of the electric shuttle market.

Relatively low cost of maintenance and less requirement of services are directly translating into a growth of the electric shuttle market. Electric shuttles comprise fewer moving parts as compared to conventional internal combustion motors that cause fewer operational and maintenance issues which in turn increases their demand.

The global electric shuttle market is valued at USD 16157.1 Million in 2022. The market is estimated to surpass a valuation of USD 56819.05 Million by 2032. The forecast duration of this report is 2022- 2032. The market is anticipated to expand with a CAGR of 13.4% in the assessment period.

Rising government initiatives on replacing natural gas transit public vehicles with electric shuttles in order to address climate change and reduce air pollution are expected to fuel the growth of the electric shuttle market. The continued focus of manufacturers on battery advancements and heavy investments in innovative technology will possibly open new growth opportunities for the electric shuttle market.

Report Attributes	Details
Market size (2022 A)	USD 16157.1 Million
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 56819.05 Million
Global Market Growth rate (2022-2032 E)	CAGR of 13.4%
Key Companies Profiled	Blue Solutions Bellore Group, BlueSG Pte Ltd

What are the impulses for growth in electric shuttles?

In an effort to lower emission levels, governments across countries are imposing stringent regulations on manufacturers in various industries. According to the European Commission, cars are responsible for nearly 12% of the overall EU emission of greenhouse gas. To comply with the stringent emission regulations, automotive manufacturers are shifting their focus toward the development of electric vehicles for public transport such as electric shuttles.

In a recently conducted survey, the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW) stated that the number of electric vehicles recorded on the roads increased to 3.2 million in 2018. According to the survey conducted, leading brands in China - BAIC, and BYD will account for the largest number of new registrations. However, the market for electric vehicles is concentrated in a few countries such as the U.S., Norway, China, Canada, Japan, Germany, Britain, Sweden, the Netherlands, and France.

To maintain pace with the recent trends in the automotive industry, leading manufacturers are focusing on incorporating innovative software and hardware, radical designs, and lightweight materials. For instance, a French transport company, Bollore Group has developed electronic shuttles that contains a battery backup system, supercapacitors, and LMP battery. The backup power system provides a distance coverage of 30 km LMP and the battery enables the customers to cover 2 km on a single charge.

In addition, a subsidiary of Blue Solutions that is owned by Bellore Group, BlueSG Pte Ltd in collaboration with Nanyang Technological University has recently launched the first flash-charging electric shuttle in Singapore. The shuttle undergoes charging at the charging station when passengers alight or board the vehicle. In addition, the electric shuttle is equipped with quick charging and emission-free features, which enables the vehicle to travel long distances.

What trend drives the electric shuttle market?

“Quick and convenient services as individuals can book their seats.”

For quick and convenient services, individuals prefer booking their seats on the public transport through online rental services while returning back home, traveling to the office, or other events. In order to improve their position in the competitive market, the leading companies are engaging in collaborations with online rental service providers. This has translated into an increasing number of passengers for electric shuttles.

In addition, to offer enhanced connectivity in the cities, service providers are offering commutation services to individuals near the metro stations and bus stations. Convenience in booking seats in public transportation such as electric shuttles has led to an increase in the number of passengers. Passengers are logging on to various online portals to book their seats in electric shuttles in advance. Some of these rental service portals include OLA, Feedmanseating.com, and Super Shuttle.

A competitive landscape that drives commutation toward solutions

To sustain their lead in the competitive market, major companies are concentrating on entering into collaborations and acquisitions. For instance, Toyota has partnered with various e-commerce portals such as Pizza Hut, Amazon, China’s DiDi, and Uber to create a mobility service platform for e-commerce and shared rides, and develop robot-van-like pods. Through the collaboration, the companies are focusing on broadening the scope of deployment of these robotic vans for delivering services, ridesharing or rolling office, and various other mobility services.

As electric shuttles are becoming a popular mode of public communication, ruling authorities across countries are focusing on accommodating connectivity through these shuttles. For example, ruling authorities in the U.S. are encouraging leading companies to develop electric shuttles to offer effective solutions for public commutation. The ruling authorities are concentrating on creating autonomous test tracks and investing nearly US$ 2 million in the same. Prototype Prime, a hardware and software startup is also focusing on launching an “advanced vehicle accelerator” and bringing more partners for the project through collaborations.

In addition, the ruling authorities in Singapore are taking initiatives to encourage the deployment of electric shuttles in various educational institutions such as Nanyang Technological University (NTU). The fully automated Group Rapid Transit (GRT) services will be operating autonomous shuttle services that offer connectivity between the main academic centers and halls of residences. Nearly 200 to 300 passengers will benefit from the convenience of the conveyance offered by the GRT services.

Initiatives taken by the ruling authorities are encouraging the companies to shift their focus towards the development of electric shuttles for public conveyance and enhanced connectivity in various cities. Through strategic collaborations and product innovations, leading companies are focusing on improving their position in the competitive market significantly.

Crucial information pertaining to the recent trends and developments identified in the global market is compiled in the report for the perusal of readers, investors, and stakeholders. Insights provided in the report give the stakeholders and investors a broader view of the global electric shuttle market.

Regional outlook

The Asia Pacific region is anticipated to gain maximum revenue share in the forecast period. This growing share is attributed to eco-friendly transportation demand in countries like China, India, and Japan. China is likely to emerge as a major market for leading electric bus manufacturers. The stringent government regulations and rising environmental concerns are propelling demand for electric shuttles in the forecast period.

North America is anticipated to notice the fastest CAGR in upcoming years owing to government support for vehicle pollution control measures. Furthermore, governments have started to support and invest in green transportation solutions.

Electric Shuttle Market- Segmentation

• By Vehicle Type :

  • Battery electrical vehicle
  • Plug-in in hybrid EVM
  • Fuel cell EVM

• By Application :

  • Intercity
  • Intracity

• By End-User :

  • Public
  • Private

• By Region :

  • North America
    • U.S.
    • Canada
  • Latin America
    • Mexico
    • Brazil
  • Western Europe
    • Germany
    • Italy
    • France
    • U.K,
    • Spain
  • Eastern Europe
    • Poland
    • Russia
  • Asia Pacific
    • China
    • India
    • ASEAN
    • Australia & New Zealand
  • Japan
  • Middle East and Africa
    • GCC
    • S. Africa
    • N. Africa