Hydrogen buses offer zero-emissions, clean, and efficient mass transportation while generating power through fuel cells that convert hydrogen into electricity onboard the vehicle. Hydrogen buses provide a range of 300-400 km on a single fill and can refuel in 6-10 minutes, offering convenience similar to diesel buses. Their fuel cells produce only water and heat as by-products making them attractive for public transportation providers aiming to meet sustainability goals.
The global hydrogen buses market is estimated to be valued at US$10.78 Billion 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.
The rising concerns over increasing pollution levels from public transportation systems have accelerated the demand for clean fuel alternatives like hydrogen. Public and private operators are actively replacing their fleets with zero-emission hydrogen buses. Moreover, governments across regions are supporting the adoption of hydrogen buses through subsidies and funding programs. For example, California’s Orange County Transportation Authority recently deployed 30 hydrogen fuel-cell electric buses with support from state incentives. Favorable government policies and technological advances are expected to boost the large-scale adoption of hydrogen buses globally.
Market key trends:
The key trend gaining traction in the hydrogen buses market is the development of scalable and modular hydrogen refueling infrastructure. Companies are investing in building a widespread network of hydrogen refueling stations to support the growing fleet of hydrogen buses and fuel-cell vehicles. For example, The Linde Group launched a hydrogen refueling station network project in Germany to develop over 100 stations by 2023. Similarly, Hydrogenics partnered with the Australian Gas Infrastructure Group to install hydrogen refueling stations across Sydney, Melbourne, and Brisbane by 2023. Automakers are also forming partnerships with energy companies to establish cross-industry hydrogen ecosystems. This includes joint ventures for production of hydrogen as well as delivery through pipeline and distribution networks. Such developments are poised to transform transportation while reducing dependency on fossil fuels.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low for the hydrogen buses market as it requires high capital investment and technological superiority. The existing players have established supply chains and economies of scale.
Bargaining power of buyers: The bargaining power of buyers is moderate as hydrogen buses provide environmental benefits but require investment in refueling infrastructure which limits choice.
Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the availability of substitute components. However, suppliers of fuel cell systems and hydrogen storage systems have some control over prices.
Threat of new substitutes: The threat of new substitutes is high due to emphasis on zero-emission vehicles. Battery electric buses pose competition with increasing battery capacity and falling battery prices.
Competitive rivalry: The competitive rivalry is high among the front runners due to technological edge and first mover advantage.
Key Takeaways
The Global Hydrogen Buses Market Size is expected to witness high growth over the forecast period. Regionally, Asia Pacific dominates the market and is expected to grow at the fastest pace owing to supportive government policies and technological advancements in countries like China and Japan.
Regional analysis: Asia Pacific accounts for the largest share of the global hydrogen buses market and is expected to maintain its dominance over the forecast period. This can be attributed to strong government support through subsidies and incentives in major countries like China and Japan. Significant initiatives are being taken to expand hydrogen refueling infrastructure in the region.
Key players: Key players operating in the hydrogen buses market include Ballard Power Systems, Toyota Motor Corporation, Hyundai Motor Company, New Flyer Industries, Van Hool, Wrightbus, Solaris Bus & Coach, CaetanoBus, Alexander Dennis Limited (ADL), MAN Energy Solutions. The market is currently led by Ballard Power Systems, Toyota Motor Corporation, and Hyundai Motor Company who have established technology and manufacturing capabilities for fuel cell systems.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
