by The Hydrogen Buses market is estimated to be valued at US$ 10.78 Bn in 2023 and is expected to exhibit a CAGR of 47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The hydrogen buses market involves production and operation of buses powered by fuel cells that convert chemical energy from hydrogen and oxygen into electricity. Fuel cell buses provide zero-emission transportation and are gaining popularity as governments across regions focus on transitioning public transportation to cleaner fuels. Key players offer various passenger and mini fuel cell bus models with seating capacity ranging from 10 to 50 passengers. Fuel cell technology integration allows buses to travel over 350 km on a single charge and refueling takes less than 10 minutes, making them a reliable public transit solution.
Market Dynamics:
Increasing investments toward deploying hydrogen infrastructure is a key driver fueling the growth of hydrogen buses market. For instance, the European Union has earmarked $420 billion under the European Green Deal to promote production and use of renewable and low-carbon hydrogen. In addition, rising government support in the form of subsidies for commercialization of fuel cell electric vehicles (FCEVs) is also facilitating the adoption of hydrogen buses. Several cities and public transit agencies have received funding to purchase fuel cell buses and set up related refueling stations. However, high initial purchase and maintenance costs of hydrogen buses compared to conventional diesel buses remains a challenge. But large-scale manufacturing and improving technology is expected to bring down the costs over the coming years.
SWOT Analysis
Strength: Hydrogen buses have zero emission and provide clean transportation. They produce only water as by product during use. The refuelling time for hydrogen buses is similar to diesel buses. Various governments are supporting the development of hydrogen infrastructure which will help the growth of hydrogen buses market.
Weakness: High initial investment is required to develop hydrogen infrastructure including production, storage and dispensing facilities. The capital cost of hydrogen buses is also higher than conventional diesel buses currently. There are still challenges in reducing the costs of key components like fuel cells and hydrogen storage systems.
Opportunity: Many cities and public transport operators are shifting towards cleaner fuel alternatives to reduce air pollution and meet sustainability goals. The growing market for fuel cell vehicles will help develop the required hydrogen ecosystem. Various nations have announced targets and funding to boost the adoption of hydrogen technology in the transportation sector.
Threats: Established diesel and CNG bus markets continue to dominate presently due to cost competitiveness. Availability of hydrogen fuelling stations still remains a major challenge especially in developing nations. Technology developments in battery electric buses can reduce their costs and pose competition to hydrogen buses.
Key Takeaways
The Global Hydrogen Buses Market Demand is expected to witness high growth, exhibiting CAGR of 47% over the forecast period, due to increasing investments by governments and manufacturers on clean mobility solutions. Countries like China, Germany and South Korea have ambitious hydrogen roadmaps and are leading the adoption of fuel cell buses which is driving the market growth.
Regional analysis: Asia Pacific dominated the global hydrogen buses market in 2023 with highest number of fuel cell buses on road, led by China. China has over 20,000 fuel cell buses which is more than 95% of worldwide fleet. Several other Asian nations like Japan, South Korea and India are also actively promoting hydrogen mobility with pilot projects and infrastructure development plans. Europe is another major market for hydrogen buses with Germany and UK emerging as early adopters.
Key players operating in the Hydrogen Buses market are Ballard Power Systems, Toyota Motor Corporation, Hyundai Motor Company, New Flyer Industries, Van Hool, Wrightbus, Solaris Bus & Coach, CaetanoBus, Alexander Dennis Limited (ADL), MAN Energy Solutions. These companies are investing in expanding their fuel cell component manufacturing and introducing newer hydrogen bus models. Strategic partnerships are being formed between vehicle manufacturers, energy companies and governments to commercialize hydrogen buses globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
