The Rapid Growth of Hydrogen Buses Market is driven by Environmental Concerns
The Global Hydrogen Buses Market is estimated to be valued at US$ 12.42 billion in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 To 2031.
Growth of the market is attributed to stringent emission norms and policies promoting use of clean fuels in public transportation.
Key Takeaways
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., Nan Ya Plastics Corporation. These market leaders are investing in increasing production capacities and partnering with bus manufacturers and transit agencies in developing hydrogen infrastructure.
The demand for Hydrogen Buses Market Size is growing significantly owing to benefits such as zero tailpipe emissions and operational performance comparable to conventional diesel buses. Various cities and transit agencies across major markets have adopted hydrogen buses or are currently piloting them, aiming to transition to cleaner public transport.
Major vehicle manufacturers have also intensified focus on hydrogen buses and have unveiled multiple models with improved fuel cell and hydrogen storage technologies. Several European and Asian countries are extensively supporting demonstration projects and fleet deployments, which would aid global expansion of the hydrogen buses market in the coming years.
Market drivers
The main driver for the hydrogen buses market is stringent emission regulations worldwide for public transportation. Transmission agencies are under pressure to reduce greenhouse gas emissions and many countries have set deadlines to phase out pure internal combustion engine buses. Hydrogen fuel cell technology provides a commercially viable zero-emission solution. Growing consumer preference for greener transportation and government subsidies for fueling infrastructure development are also expected to boost demand for hydrogen buses over the forecast period.
The current geopolitical situation is impacting the growth of the hydrogen buses market in many ways. The ongoing Russia-Ukraine conflict has disrupted global energy markets and supply chains. It has accentuated concerns around energy security and dependence on fossil fuels for many countries in Europe. This is driving greater interest and investments in clean and indigenous energy alternatives like hydrogen. Several European nations have announced plans to ramp up their hydrogen economy and fuel cell vehicle industries in the coming years to reduce reliance on Russian natural gas and oil. This offers new opportunities for the adoption of hydrogen buses and other FCEVs to replace diesel buses.
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