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 during the forecast period of 2023 to 2030 supported by favorable policies and initiatives boosting adoption.

The Asia Pacific region dominates the hydrogen buses market currently due to the presence of leading automakers and availability of necessary fueling infrastructure in countries like China and Japan.

The European region is also expected to emerged as a major market for hydrogen buses during the forecast years due to stringent emission regulations and supportive FCEV policies of governments. Countries like Germany, France and UK are focusing on developing hydrogen vale chains and fuelling infrastructure networks for commercial vehicles.

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), MAN Energy Solutions. Ballard Power Systems and Toyota Motor Corporation have established fuel cell technologies and are focusing on infrastructure development to boost hydrogen bus deployment.

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