February 26, 2024
hydrogen buses market

Hydrogen Buses Market is Expected to be Propelled by Rising Demand for Clean Fuel Alternatives

Hydrogen buses utilize hydrogen fuel cells to generate electricity from hydrogen gas stored on board, emitting only water and heat. Fuel cells offer two main benefits – they are more energy efficient than conventional internal combustion engines and produce zero direct emissions. Various governments are promoting the adoption of hydrogen buses to reduce air pollution and carbon emissions from public transportation. For example, the European Union launched the JIVE (Joint Initiatives for hydrogen Vehicles across Europe) program to deploy hundreds of fuel cell buses and trucks in cities across seven countries.

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 47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Rising demand for clean fuel alternatives: Growing concerns regarding air pollution and environmental degradation have increased the focus on cleaner fuel options for public transportation. Hydrogen fuel cell technology provides a zero-emission solution and helps address environmental goals. This rising demand for clean alternatives to diesel and CNG buses is expected to drive the growth of the hydrogen buses market over the forecast period.

Promotion of hydrogen infrastructure: Various government initiatives aim to enhance the hydrogen refueling infrastructure which is crucial for the widespread adoption of fuel cell vehicles including buses. For instance, the European Clean Hydrogen Alliance plans to install over 160 hydrogen refueling stations across Europe by 2025. Improvement in the availability of hydrogen will boost the feasibility of fuel cell buses for public transportation agencies.

Segment Analysis

The hydrogen buses market is segmented by propulsion type into fuel cell electric vehicles (FCEV), battery electric vehicles (BEV). The fuel cell electric vehicles (FCEV) segment accounted for over 80% of the market share in 2023 and is expected to continue its dominance over the forecast period. Fuel cell buses use hydrogen as fuel and emit only water. They have better travel range and faster refueling capability compared to BEV buses, making them suitable for long-distance transportation.

PEST Analysis

Political: Governments across countries are supporting the development and adoption of hydrogen technology through funding, incentives and fleet targets. The European Union, United States and China have rolled out Hydrogen strategies and roadmaps to boost clean hydrogen production and use in transport sector.
Economic: Hydrogen buses have higher upfront costs than conventional diesel buses but offer long term savings on fuel costs. Falling battery prices and economies of scale from mass production are expected to lower the costs of fuel cell and hydrogen technologies over time.
Social: Rising environmental awareness and push for zero-emissions is driving the acceptance of cleaner fuel technologies like hydrogen. Many cities and transit agencies want to reduce local air pollution and meet sustainability goals through electric buses.
Technological: Advancements in fuel cell and battery technologies are increasing the travel range and reliability of hydrogen buses. Lighter composite materials, hydrogen storage solutions and efficient power management systems are improving the performance and bringing down the costs of hydrogen-powered buses.

Key Takeaways

The Global Hydrogen Buses Market Size is expected to witness high growth over the forecast period supported by favorable policies and funding for clean hydrogen technologies.

North America and Europe currently dominate the market and are anticipated to grow at a CAGR of over 45% each through 2030. China is also emerging as a major market for hydrogen buses as the government aims to incorporate over 20,000 fuel cell buses in its public transportation system by 2025.

Asia Pacific region is expected to be the fastest growing market for hydrogen buses led by China and South Korea. Chinese busmakers including Ankai, Yutong and Zhongtong have started manufacturing fuel cell buses at mass scale to meet the rising domestic demand. Countries like India and Japan are also initiating pilot projects and fleet demonstration programs.

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. Key players are investing heavily in fuel cell and system integration technologies. They have supplied thousands of fuel cell buses globally and are exploring partnerships for hydrogen refueling infrastructure development.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it