The hydrogen buses market consist of buses powered by hydrogen fuel cells, which generate electricity to power the electric motor of the bus. Hydrogen buses offer zero emission mobility and are increasingly being adopted by transit agencies and municipalities as a sustainable alternative to conventional diesel buses. Hydrogen buses utilize hydrogen fuel cells to efficiently convert chemical energy from hydrogen into electricity through an electrochemical reaction with oxygen from the air. The fuel cells onboard hydrogen buses produce only water and heat as byproducts, providing clean, emission-free transportation. Major players manufacturing hydrogen buses include BYD, Toyota Motor Corporation, New Flyer Industries, Solaris Bus & Coach S.A, and Wrightbus Ltd.
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 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Stringent emission regulations and policies promoting zero-emission vehicles are encouraging transit agencies globally to replace ageing fleets of diesel buses with hydrogen fuel cell electric buses (FCEB). Various cities and countries have launched initiatives to expand their hydrogen refuelling infrastructure and hydrogen bus fleets to reduce urban air pollution and meet sustainability goals. For example, in March 2022, the Indian state of Karnataka unveiled plans to induct 1,000 hydrogen buses in Bengaluru by 2026.
Another driver is the comparable or lower total cost of ownership of hydrogen buses compared to diesel or battery electric buses over their lifetime. Hydrogen fuel cell technology helps extend the daily driving range of buses beyond 300 km, avoiding downtime for lengthy charging. Additionally, hydrogen refueling takes under 10 minutes, similar to diesel buses, providing operational convenience to transit agencies. Continuous improvements in hydrogen fuel cell and hydrogen storage technologies are further lowering the upfront capital costs of hydrogen buses, driving their increased commercial adoption.
Segment Analysis
The global hydrogen buses market is dominated by the fuel cell electric bus segment, which accounted for over 90% share in 2024. Fuel cell electric buses use hydrogen as fuel through a fuel cell to generate electricity, with water and heat as by products. They offer long range capability compared to battery electric buses with no emission. As a result, many cities and public transport authorities are replacing existing diesel and CNG fleets with fuel cell electric buses to reduce carbon footprint of public transportation.
PEST Analysis
Political: Many countries and local governments are offering subsidies and tax incentives to promote adoption of zero-emission hydrogen buses. For example, the California Air Resources Board in the US has allocated $50 million annually till 2024 for deployment of fuel cell buses.
Economic: The total cost of ownership of hydrogen buses is still higher than conventional diesel buses due to high initial capital cost. However, operating costs are comparable or lower due to less frequent maintenance needs. Many transit agencies operate hydrogen buses as pilot projects to evaluate commercial viability.
Social: Concerns around air pollution and climate change have increased public support for transition to clean energy buses. Moreover, hydrogen buses are more comfortable with low noise and vibration levels compared to diesel buses. This improves passenger experience of public transportation.
Technological: Advancements in PEM fuel cell and hydrogen storage technologies have improved reliability and driving range of buses. Fueling infrastructure is also expanding in major cities to support larger fleets of hydrogen buses.
Key Takeaways
The Global Hydrogen Buses Market Size is expected to witness high growth at a CAGR of 7.5% during the forecast period of 2023 to 2030.
Regional analysis: The North American region is also expected to offer significant growth opportunities for hydrogen bus manufacturers and suppliers during the forecast period. Major transit authorities in Canada and United States such as New York MTA, Los Angeles MTA and Seattle have been operating pilot fleets of hydrogen buses and have plans to scale up over the coming years. Increasing availability of modular fueling stations from companies such as Nel Hydrogen and McPhy Energy is supporting the expansion of hydrogen bus fleets in the region.
Key players operating in the hydrogen buses market are Toray Industries, Inc., Kuraray Co. Ltd., E-Leather Ltd., Mayur Uniquoters Ltd., Zhejiang Hexin Industry Group Co., Ltd., Yantai Wanhua Synthetic Leather Group Co., Ltd., Clarino (Asahi Kasei Corporation), San Fang Chemical Industry Co. Ltd., Anhui Anli Material Technology Co. Ltd., and Nan Ya Plastics Corporation. These industry players are focusing on new product development and partnerships with bus OEMs and public transit operators to cater to the growing demand of hydrogen buses globally.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it