The global electric bus market size was valued at $35.95 billion in 2025 and is projected to climb to a market valuation of $117.57 billion by 2035, with annualized growth of 12.58% during the period 2026-2035, per a study from Astute Analytica.
The electric bus market has become well-established globally, driven by robust government policies and infrastructure advancements. Major manufacturers operate in regions like China, Europe, and North America, with operational fleets serving urban transit, schools, and intercity routes. It faces logistics and geopolitical challenges, and relies on supply chain nimbleness, grid intelligence and workforce preparedness.
The Environmental Protection Agency invigorated the electric bus market by opening the 2024 Clean School Bus Rebate Program with $965 million in funding. Applicants could request up to $325,000 per vehicle for Class 7+ zero-emission models. To support scale, the EPA raised the application cap to 50 buses per dossier. State-level initiatives mirrored federal aggression. New Jersey awarded $32 million in January 2026 specifically for fleet electrification.
New Jersey agencies and municipalities have made a push to electrify their bus fleets for years. In 2022, New Jersey Transit introduced the agency’s first battery electric bus in Camden as it endeavored to reach its goal of transitioning to a 100% zero-emissions bus fleet by 2040. That same year, Princeton University’s first all-electric bus made its first trip on campus as the school aimed to reach net-zero emissions by 2046.
A year later, Hamilton-based Bryan Electric completed the installation of five Level 2 charging stations for Jersey City’s electric school buses. Last year, Teaneck, Midland Park and Ramsey public school districts received fully electric Type B school buses operated by D&M Tours in Paterson.  Â
New Jersey businesses are also involved in bus electrification. As far back as 2017, Flanders-based First Priority Group began deploying electric school buses in California. Fort Lee-based Pioneer Power Solutions in 2023 received an initial order from the city of Fairfield, Calif., for one e-Boost trailer-mounted unit to service the electric portion of Fairfield’s public bus fleet.
