Hydrogen buses are zero-emission buses that use fuel cells powered by hydrogen as their propulsion system. They are an emerging alternative to traditional diesel and CNG buses as they only emit water vapor and heat. Hydrogen buses provide longer range than battery electric buses and can be refueled much faster than recharging batteries. The growing need for public transportation systems that reduce urban air pollution and carbon emissions is fueling the adoption of hydrogen buses by government transportation agencies around the world. Several cities have started pilot projects and are expanding their hydrogen bus fleets to transition to cleaner fleets.
The global Hydrogen Buses Market is estimated to be valued at US$ 10.78 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Establishing hydrogen refueling stations is crucial for the adoption of hydrogen buses as it reduces range anxiety. Both private companies as well as public-private partnerships are working on building hydrogen stations along major bus routes in cities. Another key trend is the reduction in the purchase cost of hydrogen buses through technological advancements and mass production. As fleets expand and suppliers gain more experience, the cost of key components like fuel cells and hydrogen storage systems is declining. This is improving the business case for hydrogen buses and encouraging more cities to integrate them into their public transit systems.
Threat of new entrants: Low investment required to enter the market poses threat. However, established brands have strong distribution network and customer loyalty which acts as a barrier.
Bargaining power of buyers: Large fleet operators have strong bargaining power due to high volume purchases. They can negotiate on price and demand better services.
Bargaining power of suppliers: Few big players dominate the supply side giving them control over pricing and supply. Supply side consolidation is reducing bargaining power of buyers.
Threat of new substitutes: Electric and CNG buses are emerging as potential substitutes. However, hydrogen technology position it as long term green substitute to diesel/petrol with improving refueling infrastructure.
Competitive rivalry: Intense competition among existing global players to gain market share through expanded product portfolio, fuel cell technology advancement and geographic expansion.
The Global Hydrogen Buses Market Size is expected to witness high growth over the forecast period aided by supportive government policies and initiatives encouraging adoption of emission free vehicles.
Regional Analysis: Asia Pacific dominates the market owing to presence of large fleet operators, focused R&D efforts and growing refueling infrastructure in countries like China and Japan. China represents the biggest hydrogen bus fleet currently and is focusing heavily on developing a hydrogen economy.
Key players operating in the hydrogen buses market are Toray Industries, Inc., Kuraray Co. Ltd., E-Leather Ltd., Mayur Uniquoters Ltd., Zhejiang Hexin Industry Group Co., Ltd., Yantai Wanhua Synthetic Leather Group Co., Ltd., Clarino (Asahi Kasei Corporation), San Fang Chemical Industry Co. Ltd., Anhui Anli Material Technology Co. Ltd., Nan Ya Plastics Corporation. The companies are focused on investments in fuel cell and hydrogen technology development to enhance product capabilities and gain leadership position in the emerging market.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it