The global Hydrogen Aircraft Market is estimated to be valued at US$ 6.73 Bn in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Hydrogen Aircraft Market comprises aircraft that utilize hydrogen as fuel to power their propulsion systems, either through combustion in modified jet engines or through fuel cells to create electricity to power electric motors. Hydrogen fuel produces zero carbon emissions and offers significant advantages over traditional kerosene-based jet fuel by reducing emissions and noise. Several airframe manufacturers are investing in research and development of hydrogen-powered aircraft, with test flights of concept airplanes scheduled over the next decade.
Market key trends:
One of the major trends in the Hydrogen Aircraft Market is growing investment in sustainable aviation fuel technologies. Strict emission norms have compelled airplane manufacturers to invest in alternative fuels and propulsion methods to reduce environmental impact of air travel. Hydrogen fuel can enable zero-carbon flight and help the aviation industry meet sustainability targets. Major companies like Airbus, Boeing and Zeroavia are developing hydrogen-electric and hydrogen-combustion powertrains for passenger airplanes. Test flights of smaller hydrogen aircraft are planned in the coming years, with commercial planes expected in the late 2020s. Such demonstrations aim to validate hydrogen as a viable aviation fuel of the future.
Porter’s Analysis
Threat of new entrants: Low startup costs and lack of proprietary technologies keeps the threat of new entrants low for this industry. However, established players have considerable brand recognition and economies of scale.
Bargaining power of buyers: Buyers in this industry have moderate bargaining power. As an emerging technology, buyers have limited options to choose from currently. However, their needs for cost competitiveness keeps pricing pressure on suppliers.
Bargaining power of suppliers: Suppliers involved in hydrogen technologies and fuel cell development have high bargaining power currently due to limited number of players and skills. Established players can influence prices to some extent.
Threat of new substitutes: Threat of substitutes is high as various alternative fuels and electric aircraft concepts are evolving. Hydrogen needs to prove higher performance advantages over competition to sustain its market potential long term.
Competitive rivalry: Intense as major OEMs are investing heavily in developing hydrogen-powered aircraft concepts. Continuous innovations and design improvements will define success in this competitive landscape.
Key Takeaways
The global Hydrogen Aircraft Market is expected to witness high growth, exhibiting a CAGR of 22% over the forecast period, due to increasing focus on sustainable aviation fuel technologies. The market size for 2023 is estimated to be US$ 6.73 Billion.
European region currently dominates the market due to strong government support for hydrogen technologies. Major players have announced plans to develop and deploy hydrogen-powered aircraft in the region by 2035. North America is also emerging as a major market driven by ongoing projects by aviation majors such as Boeing and Airbus.
Key players operating in the hydrogen aircraft market are Aerodelft, Aerovironment, Inc., Airbus S.A.S., Alakaâ€TMi Technologies, Hes Energy Systems, Pipistrel D.O.O., PJSC Tupolev, and The Boeing Company. Major players are investing in developing hydrogen-powered propulsion systems, Fuel-Cells, and associated infrastructure to gain a foothold in this niche but high growth market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it