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:
Hydrogen buses are special buses that use hydrogen as a fuel stored either in compressed or liquid tanks, along with electric motors and batteries to power the buses. Hydrogen buses create zero emissions at point of use and produce water vapor as the only byproduct of the fuel cell powering the bus. These buses have high mileage range compared to electric buses and require less time to refuel than conventional diesel or CNG buses.
Market key trends:
The key trend driving the growth of the hydrogen buses market is the increasing focus on adoption of zero-emission vehicles across different countries and regions. Governments are introducing supporting policies and initiatives to promote production and adoption of hydrogen and fuel cell technologies in transportation sector. For instance, the European Commission aims to have at least 1 million zero-emission buses on European roads by 2025. Similarly, the US Department of Energy aims to enable widespread commercial roll-out of fuel cell technologies by 2020. Such initiatives are encouraging adoption of hydrogen buses as a feasible clean alternative to traditional diesel buses.
Porter’s Analysis
Threat of new entrants: Low capital requirements limit the threat of new entrants. However, dominant position of existing players and technological barriers increases entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and fragmented nature of the market.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated technology and availability of substitutes.
Threat of new substitutes: Threat of new substitutes is high due to development of battery electric buses and presence of well-established public transport infrastructure.
Competitive rivalry: Intense competitive rivalry exists among existing players due to technological innovation.
SWOT Analysis
Strength: Growing demand for zero emission fuels, favorable government policies and investments boosting adoption.
Weakness: High capital costs, lack of fueling infrastructure, range limitations.
Opportunity: Increasing emphasis on reducing pollution and carbon emissions from public transportation. Potential for development of refueling infrastructure.
Threats: Slow rate of refueling vs diesel buses, uncertainties regarding future government support. Technological advancements in battery capacity extending range of electric buses.
Key Takeaways
The Global Hydrogen Buses Market Size is expected to witness high growth, exhibiting CAGR of 47% over the forecast period, due to increasing investments by governments worldwide to promote adoption. The Asia Pacific region dominates the market currently due to presence of China, which accounts for over 90% of global hydrogen bus fleet. Europe is expected to witness fastest growth due to stringent emission regulations.
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), and MAN Energy Solutions.
Regional analysis
The Asia Pacific region currently dominates the global hydrogen buses market. China dominates the region with over 12,000 units currently in service. This accounts for over 90% of the global hydrogen bus fleet. The country has introduced ambitious targets to deploy over 1 million fuel cell vehicles including buses by 2030. Government incentives and developing refueling infrastructure are driving significant growth in China. Europe is expected to be the fastest growing regional market, rising at a CAGR of over 50% during the forecast period. Countries like Germany, France and UK are aggressively promoting hydrogen technologies through funding and pilot programs. Stringent emission norms are increasing adoption of zero emission fuels in public transportation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
