by Hydrogen buses are zero-emission vehicles that use hydrogen as fuel through fuel cell to power electric motors. They produce electricity through an electrochemical reaction between oxygen and hydrogen with water being the only byproduct. Hydrogen buses offer long driving range of up to 400 km on a single charge and refueling can be done in less than 10 minutes similar to diesel or gasoline buses. Asia Pacific has largest fleet of hydrogen buses in the world led by China which has over 12,000 units across various major cities. Countries like Japan, South Korea and Australia are also strongly supporting adoption of hydrogen buses through subsidy programs and large scale demonstration projects.
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 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
One of the key driver for growth of hydrogen buses market is rising government support for adoption of clean energy solutions in public transportation sector. Countries worldwide are providing sizable subsidies to procure hydrogen buses and build associated refueling infrastructure. For instance, Chinese government has earmarked over $1 billion investment for promotion of hydrogen fuel cell vehicles including buses through 2022. Similarly, European Union’s Joint Undertaking (FCH JU) project worth $1.5 billion aims to support the demonstration of clean hydrogen buses across select cities of Europe. Another driver is increasing focus of bus fleet operators and public transport authorities to reduce emissions and improve air quality in urban centers. Hydrogen buses offer zero tailpipe emissions over their life time helping improve local air quality significantly as well as meet increasingly stringent emission regulations.
Segment Analysis
The hydrogen buses market is segmented by type into fuel cell electric buses and battery electric buses. The fuel cell electric buses segment dominates the market and accounts for over 70% share due to the zero emission properties of fuel cells. These buses run on hydrogen as fuel and emit only water and heat. This makes them environment friendly mode of transportation suitable for public transport fleets to meet stringent emission norms.
PEST Analysis
Political: Governments across regions are supporting the adoption of clean fuel technologies through incentives and subsidies. For instance, the European Commission has allocated funding to deploy 12,000 fuel cell buses by 2025.
Economic: The total cost of ownership of hydrogen buses is comparable to that of diesel buses over their lifespan due to lower maintenance costs despite higher capital costs. Lower energy costs per kilometer also attract public transport operators.
Social: Hydrogen buses help reduce air and noise pollution in cities and improve public health. This encourages social acceptance of these zero emission vehicles for public mobility needs.
Technological: Advancements in fuel cell and hydrogen storage technologies are improving the efficiency and durability of these buses. Larger scale manufacturing is also bringing down the component costs, making the technology commercially viable.
Key Takeaways
The global Hydrogen Buses Market Demand is expected to witness high growth at a CAGR of 14% during the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific region dominates the market with over 50% share due to major government initiatives and availability of low-cost fuel cell components from Chinese manufacturers. Countries like China, South Korea and Japan are rapidly adopting hydrogen buses in their public transport networks.
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). Key players are investing in expanding manufacturing capacities and developing low-cost technologies to gain leadership positions in this emerging industry
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
