by Hydrogen buses use hydrogen as a fuel to propel electric motors, emitting only water vapor and bringing zero local emissions. Hydrogen can be generated from various domestic sources and stored in compressed or liquid form onboard. Refueling a hydrogen bus takes only minutes, similar to gasoline or diesel buses. These key attributes make hydrogen buses a promising candidate to replace fossil-fueled buses, helping cities curb air pollution. Rising public demand to address climate change and improve urban air quality has accelerated the introduction of hydrogen buses. Government incentives for zero-emission buses and developing hydrogen refueling infrastructure are also fueling their adoption.
The global Hydrogen Bus Market is estimated to be valued at US$ 10.78 billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the primary trends in the hydrogen buses market is growing investments in developing hydrogen infrastructure. Countries across regions are funding projects to set up hydrogen production facilities and establish refueling stations along major bus routes. For instance, the European Union’s Fuel Cells and Hydrogen Joint Undertaking program aims to deploy around 100 hydrogen buses and install the associated refueling stations in key cities by 2023. Likewise, in China, major bus manufacturers like Yutong and Zhongtong have partnered with energy companies to build hydrogen bunkering facilities. Growing infrastructure will help increase the adoption of hydrogen buses by assuaging range anxiety. Additionally, assembly costs of fuel-cell powertrains are declining steadily with large-scale manufacturing. Key component suppliers are localizing more production to make hydrogen buses affordable for mass deployment.
Porter’s Analysis
Threat of new entrants: The hydrogen buses market requires large investment for infrastructure development. Manufacturers also need to comply with strict environmental regulations which reduce the threat of new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternative fuel options like CNG and electric buses. However, growing environmental concerns are increasing the demand for hydrogen buses.
Bargaining power of suppliers: A few major companies dominate the supply of key raw materials like fuel cells and hydrogen supply equipment. This gives them significant influence over prices.
Threat of new substitutes: Electric buses are emerging as a competing technology. However, hydrogen buses have longer range capabilities to serve routes that are difficult for electric buses.
Competitive rivalry: The global market is expanding rapidly which is attracting new players. Existing companies compete based on technology innovations, fuel efficiency and total cost of operations.
Key Takeaways
The global Hydrogen Buses Market Demand is expected to witness high growth over the forecast period.
Regional analysis: Europe currently dominates the market due to supportive government policies and investments in hydrogen infrastructure development. Countries like Germany and France are proactively promoting fuel-cell buses. Asia Pacific is an emerging market with China expected to lead the regional demand.
Key players: Key players operating in the Hydrogen Buses Market are LG Chemicals Ltd. (South Korea), Cabot Corporation (US), Jiangsu Cnano Technology Co., Ltd. (China), Resonac Corporation (Showa Denko K.K.) (Japan), and Arkema S.A. (France). Players are focused on developing improved fuel cell technologies and hydrogen storage solutions to accelerate the adoption of hydrogen powered buses.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
