Hydrogen Buses Market is Estimated to Witness High Growth Owing to Opportunity in Clean Transportation
Hydrogen buses utilize hydrogen fuel cells that produce electricity through an electrochemical reaction between oxygen and hydrogen, generating only heat and water as by-products. Hydrogen buses offer several advantages compared to traditional diesel buses, such as zero direct emissions, longer range capacity, and cheaper operating costs. With growing environmental concerns and stringent emission norms worldwide, hydrogen buses have emerged as a viable clean transportation alternative to conventional buses.
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 47% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity in clean transportation presents lucrative prospects for growth of the hydrogen buses market. Many countries and cities worldwide are adopting hydrogen buses to replace aging diesel fleets and lower carbon footprint of their public transportation systems. For instance, 1,000 hydrogen buses are planned to operate in the Paris region by 2025 under European initiatives to promote clean mobility. Growing investments by governments and transit agencies in building hydrogen refueling infrastructure is encouraging mass adoption of hydrogen buses. Furthermore, technology advancements are making hydrogen buses more affordable compared to battery electric buses, increasing their desirability among transit agencies. Widespread availability of affordable hydrogen could accelerate fleet replacements and significantly boost the hydrogen buses market over the forecast period.
Porter's Analysis
Threat of new entrants: The hydrogen buses market has moderate threat of new entrants as it requires large investments in R&D for fuel cell technology and infrastructure development. However, supportive government policies and initiatives boost new companies.
Bargaining power of buyers: Buyers have moderate bargaining power as they can choose between hydrogen buses and traditional fuel buses. However, environmental regulations are increasing demand for zero-emission buses.
Bargaining power of suppliers: Fuel cell technology suppliers have moderate bargaining power due to limited availability and patents. Suppliers of other bus components have low-to-moderate bargaining power.
Threat of new substitutes: There is threat from other zero-emission bus technologies like battery-electric buses. However, hydrogen has longer range capabilities suitable for heavy-duty applications.
Competitive rivalry: Intense as major manufacturers compete in technology innovations and infrastructure development.
SWOT Analysis
Strengths: Zero-emissions, longer range than electric buses, supportive government policies.
Weaknesses: High costs, lack of hydrogen fueling infrastructure.
Opportunities: Growing environmental regulations, increasing demand for emission-free public transportation.
Threats: Competition from other zero-emission technologies, challenges in achieving cost parity with diesel buses.
Key Takeaways
The Global Hydrogen Buses Market Size is expected to witness high growth over the forecast period from 2023-2030 driven by supportive government initiatives and regulations mandating zero-emission public transport.
Regional analysis shows that China has emerged as the largest as well as the fastest growing market for hydrogen buses currently owing to strong investments and rollout plans of cities such as Beijing, Shanghai and Chongqing. Europe is also emerging as a promising regional market led by countries like Germany, France and the UK that have set targets to transition a major share of their bus fleet to zero-emission hydrogen and battery technologies by 2025-2030.
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. The market is witnessing consolidation as major vehicle manufacturers collaborate with fuel cell companies and infrastructure developers to offer an integrated hydrogen solution. Leaders are focused on bringing down the costs through innovations, scaling of manufacturing, and deployment of larger fleets. The development of hydrogen valley projects and coordinated efforts on refueling infrastructure will be critical for the widespread adoption of hydrogen buses globally.
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