The market for ITS that supports electric bus operations is on track for significant growth in Europe and North America, according to new analysis from Berg Insight. 

According to Smart Cities World, the market value of ITS for e-buses in European public transport operations was €110.4 million in 2024, and forecast to reach €359.1 million by 2029, representing a compound annual growth rate (CAGR) of 27 per cent.  

Similarly in North America the ITS market is forecasted to expand from €39.7 million in 2024 to a €101.6 million by 2029, a CAGR of 21 per cent. 

Berg Insight is of the opinion that the ITS solutions market for electric buses is in a growth phase that will last for several years to come. Mega-challenges such as urbanisation, local pollution, climate change and traffic congestion continue to encourage investments in electric buses and ITS, contributing to a positive outlook for the market.

The findings reported that integration of electric buses and charging stations increases the value of comprehensive ITS solutions, connecting all the necessary infrastructure. While a basic monitoring solution may suffice in the early stages, scaling up electric bus fleets requires the addition of advanced subsystems for dispatching, scheduling, charging station oversight and depot management. Electric buses are more sensitive to external factors such as topography, weather and road conditions, which increases the complexity of planning and operations and makes integrated ITS solutions essential for efficient fleet performance. 

“Implementations of electric bus fleets are really starting to take off and there are already several cities in Europe with fleets operating several hundred electric buses,” said Caspar Jansson, IoT Analyst at Berg Insight. “A greater reliance on advanced connected solutions to operate electric bus fleets introduces more cybersecurity risk into the system. Modern ITS solutions must therefore combine advanced capabilities with robust cybersecurity to safeguard data and ensure reliable operations,” he concluded.

(Pic: First Bus Scotland)