South Korea Electric Bus Market to Grow with a CAGR of 14.67% through 2030

Growing government investment in clean transportation, rapid urban transit electrification, and advancements in battery technology are the factors driving the market in the forecast period 2026–2030.

According to TechSci Research report, “South Korea Electric Bus Market – By Region, Opportunity, and Forecast, 2020-2030F”, The South Korea Electric Bus Market was valued at USD 1.11 Billion in 2024 and is expected to reach USD 2.53 Billion by 2030 with a CAGR of 14.67% during the forecast period.

South Korea’s electric bus market is entering a strategic maturity phase, shaped by a convergence of energy policy alignment, grid modernization, and long-term public transport decarbonization strategies. The country’s pursuit of reducing oil dependency in urban logistics and public transit systems is a primary catalyst for the adoption of electric buses. Beyond traditional environmental motivations, the shift is being reinforced by efforts to reduce geopolitical exposure to fossil fuel imports and strengthen domestic technological self-reliance. This broader economic and strategic realignment is accelerating the transition to battery-powered buses as a resilient and future-proof public mobility option.

Another defining factor is the integration of electric buses into urban planning and land use policies. New city developments and transit-oriented projects are now embedding electric transport considerations from inception, with zoning regulations encouraging EV-compatible infrastructure layouts. This proactive urban design approach is enabling seamless electrification of municipal fleets without requiring costly retrofits. High-density population centers are leveraging electric buses to minimize ambient noise pollution, improve air quality around schools and hospitals, and comply with new low-emission zone regulations.

The innovation landscape in South Korea is also fostering the rise of next-generation powertrain designs focused on lightweight architecture and dual-motor propulsion systems. These developments are not only optimizing energy efficiency but also enabling more agile bus maneuverability on congested city roads and hilly terrains. The government’s strong emphasis on localized manufacturing of core EV components such as high-voltage wiring systems, silicon carbide inverters, and thermal control units is encouraging vertically integrated supply chains that lower dependency on imports and shorten lead times for fleet upgrades.

Moreover, institutional procurement models are evolving to create long-term demand visibility for manufacturers. Municipalities and transit agencies are adopting phased procurement frameworks that guarantee minimum volumes over five to ten-year cycles. This policy predictability is fostering stable investments in production capacity and R&D pipelines. The introduction of performance-based subsidy schemes, where incentives are linked to energy efficiency, lifecycle emissions, and fleet utilization rates, is aligning economic benefits with environmental outcomes. South Korea’s approach to standardizing route schedules, charger placement, and maintenance cycles around electric bus operations is laying the groundwork for a highly optimized transport ecosystem. This cohesive planning, coupled with cross-sector collaboration, is positioning the electric bus segment as a pillar of the country’s broader sustainable mobility ambitions.

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South Korea Electric Bus Market Is Segmented by Application, Length, Seating Capacity, Propulsion Type, and By Region.

​In 2024, fuel cell electric vehicles (FCEVs) emerged as the fastest-growing propulsion type in South Korea's electric bus market. This surge is attributed to the government's strategic initiatives aimed at reducing carbon emissions and decreasing reliance on imported fossil fuels. The Ministry of Environment's ambitious target to introduce 21,000 hydrogen-powered buses by 2030 underscores this commitment. FCEVs offer significant advantages over battery electric vehicles (BEVs), including longer driving ranges exceeding 500 km and rapid refueling capabilities, making them particularly suitable for long-distance and intercity routes. These benefits are driving increased adoption of FCEVs across various transportation sectors. ​

Within South Korea, the central region, notably Incheon, is leading the adoption of hydrogen-powered buses. Incheon has set a goal to deploy 700 hydrogen buses by 2024, reflecting the region's proactive approach to embracing clean energy solutions. This initiative is part of a broader strategy to enhance air quality and modernize the public transportation system. The region's commitment to expanding hydrogen infrastructure and integrating FCEVs into its transit network positions it at the forefront of South Korea's transition to sustainable mobility.

Major Market Players Operating in South Korea Electric Bus Market Are:

• BYD Company Limited
• Daimler Truck AG
• Proterra
• Mitsubishi Fuso Truck and Bus Corporation
• Zhengzhou Yutong Bus Co. Ltd.
• Ashok Leyland Ltd.
• Tata Motors Ltd.
• Xiamen King Long United Automotive Industry Co. Ltd.
• AB Volvo
• Scania AB

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Technological advancements in fast-charging and battery swapping are transforming the way electric buses are powered and maintained. Fast-charging stations now offer ultra-high power outputs capable of replenishing a bus battery in under 30 minutes, minimizing downtime during peak operational hours. This allows for flexible deployment on high-frequency routes and eliminates the need for oversized battery packs solely designed to extend range. Battery swapping systems, although less common, are gaining traction in scenarios where minimizing operational pauses is critical. These systems allow depleted batteries to be replaced with fully charged ones in a matter of minutes, ensuring round-the-clock service without requiring buses to be idle for long periods. Both methods are being developed with automation and robotics to reduce labor input and ensure consistent safety. These innovations are crucial in overcoming some of the core limitations of electric buses related to charging time and route design constraints", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“South Korea Electric Bus Market By Application (Transit Buses, Motor Coaches, School Buses, Others), By Length (Up to 8 m, 8 m to 10 m, 10 m – 12 m, Above 12 m), By Seating Capacity (Up to 30 seats, 31-50 seats, more than 50 seats), By Propulsion Type (BEV, FCEV), By Region, By Competition, Opportunities and Forecast, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the South Korea Electric Bus Market.

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