Hydrogen aircrafts utilize electric engines charged by fuel cells running on hydrogen. They provide a zero-emission solution for air travel as the only exhaust emitted is water vapor. Hydrogen fuel cells are highly efficient in converting chemical energy to electrical energy and have a higher energy density than lithium-ion batteries. Aircrafts powered by hydrogen fuel cells offer longer flying range, quicker refueling, and lower weight compared to battery-powered electric aircrafts.
The increasing regulations on carbon emissions from aircrafts are forcing manufacturers to shift towards more sustainable technologies. As per International Civil Aviation Organization (ICAO), emissions from air travel are projected to rise significantly in coming decades if business continues as usual. The major airlines and aircraft manufacturers have accelerated their investments in hybrid and hydrogen technologies to reduce emissions.
The global Hydrogen Aircraft Market is estimated to be valued at US$ 6.73 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
One of the major trends gaining momentum in the market is the growing focus of aircraft manufacturers on hydrogen-powered aircraft prototype development and testing. Companies like ZeroAvia, HES Energy Systems, and HY4 are investing heavily in developing and testing prototype aircrafts powered by hydrogen fuel cells, with a view to bringing them to commercial markets by early 2030s. Some key prototypes in development and testing include ZeroAvia’s ZA-600 and ZA-1000, HES Energy Systems’ Hydrogen Flight Integrated System (HFIS), and HY4’s hydrogen-electric Pipistrel Alpha Electro aircraft among others. Successful trials and certification of these prototype aircrafts according to aviation safety standards will accelerate the market prospects of hydrogen aircrafts.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the hydrogen aircraft market is low as significant investments are required to manufacture aircrafts. Moreover, established players have strong brand recognition and economies of scale which act as entry barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are few aircraft manufacturers providing hydrogen-powered aircraft globally. However, large commercial buyers can negotiate on price and delivery schedules.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material and component manufacturers have established relationships with aircraft OEMs. However, switching costs are low.
Threat of new substitutes: The threat of new substitutes is low as hydrogen has significant advantages over traditional fuels in terms of reduced carbon emissions.
Competitive rivalry: The competitive rivalry is high owing to presence of few large established manufacturers globally. Companies compete based on technological innovations, production capabilities, and pricing.
Key Takeaways
The Global Hydrogen Aircraft Market Size is expected to witness high growth over the forecast period supported by stringent emission norms.
Regional Analysis: North America currently dominates the market owing to presence of major aircraft manufacturers and supportive government policies for clean aviation.
The European region is expected to grow at a significant rate during the forecast period supported by initiatives to decarbonize aviation sector. Key countries including Germany and France are investing heavily in development of hydrogen-powered aircraft.
Key players operating in the hydrogen aircraft market are Arkema Group, Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro, DSM N.V., Dupont, Lanxess, LG Chem., Mitsubishi Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic), Solvay SA, Teijin, Toray, and Victrex Plc. Players are focusing on new product launches and collaborations to gain higher market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it