by A hydrogen bus is a medium or heavy-duty vehicle powered by hydrogen fuel cells that emit only heat and water. Hydrogen buses provide advantages of extended range, high energy density, reduced refueling time and nearly-zero emissions compared to traditional buses. The growing concerns over urban air pollution and rise in oil prices have accelerated the demand for clean energy vehicles like hydrogen buses.
The global hydrogen buses market is estimated to be valued at US$ 12.42 Mn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031
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.
The key opportunities in the Hydrogen Buses Market Demand include growing investments by governments and manufacturers in developing hydrogen infrastructure and expanding fleet size. The market is also witnessing increasing number of partnerships to develop advanced fuel cell technology.
The demand for hydrogen buses is growing globally with major automakers focusing on expanding operations in China, Europe and North America. Regional governments are providing substantial subsidies and grants to promote adoption of zero-emission vehicles.
Market drivers
The main driver for the Hydrogen Buses Market is the rising focus of governments worldwide on reducing vehicle emissions. Stringent emission norms and policies promoting use of electric and alternative fuel vehicles are encouraging transit agencies and municipal authorities to adopt hydrogen buses. Growing investments in building hydrogen refueling infrastructure is another key factor accelerating the demand.
PEST Analysis
Political: The transition towards clean energy fuels and electricity powered transportation is gaining political support in many nations due to environmental regulations promoting zero emissions vehicles. This is driving investments and subsidies for hydrogen fuel cell buses.
Economic: As hydrogen infrastructure and bus production scales up, the total cost of ownership for hydrogen buses is decreasing making them more economically competitive with diesel buses. Wider adoption could help stimulate local green jobs and industries around fueling stations.
Social: Concerns around urban air pollution and carbon emissions are increasing public support for clean, emission-free transportation options. Hydrogen fuel cell technology provides quiet operation and comparable refueling times to diesel which appeals to transport operators and passengers.
Technological: Advancements in fuel cell and hydrogen storage technologies are extending bus ranges closer to diesel equivalents, addressing one of the key barriers slowing wider adoption. Larger fleet deployments are helping improve reliability and performance of fuel cell components through real-world testing.
In terms of geographical concentration, most hydrogen bus deployment and market value to date has been concentrated in China, California and Western Europe. China has the most aggressive national target of 1 million fuel cell vehicles including buses on the roads by 2030 and has deployed over 5,000 fuel cell buses across major cities supported by over 100 hydrogen refueling stations.
The Asia Pacific region outside of China is expected to see the fastest market growth in coming years as other countries increasingly follow China’s lead in establishing strategic plans and investments into hydrogen transport technologies. Countries like Japan, South Korea and Australia are increasing hydrogen infrastructure and vehicle targets which is expected to drive strong demand for fuel cell buses to support public transportation networks to transition to clean energy.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
