The hydrogen buses market is witnessing substantial growth owing to the increasing investments in infrastructure development for fuel cell technologies. Hydrogen buses offer eco-friendly transportation as they only emit water and heat. They provide higher mileage and quicker refueling compared to electric buses.
The Global Hydrogen Buses Market is estimated to be valued at US$ 12.42 Bn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 To 2031.
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 players are focusing on adopting organic and in-organic growth strategies to expand their global presence.
Key Takeaways
Key players: Toray Industries and Kuraray Co are the prominent players providing innovative fuel cell systems and components for hydrogen buses. Their extensive R&D capabilities are helping reduce production costs.
Growing demand: Stringent emission norms and the need for sustainable transportation are driving the demand for Hydrogen Buses Market Growth across major cities. Countries worldwide are deploying more number of these buses in their public transit fleets.
Technological advancements: OEMs are focusing on improving fuel cell durability, hydrogen storage capacity, and performance. The use of composite materials and 3D printing techniques are helping optimize design and reduce weight. Battery management systems are also becoming more efficient.
Market Trends
Joint ventures: Collaboration between automakers, energy companies and transit agencies is growing to develop the required refueling infrastructure. This will help expand deployment.
Fuel-cell drivetrains: Integrating hydrogen fuel cells directly with electric powertrains is emerging as an efficient way to improve performance. It will facilitate the production of zero-emission buses.
Market Opportunities
Infrastructure development: large investments by governments in building hydrogen production plants and setting up refueling stations present lucrative business potential.
Regional expansion: Countries like Germany, France, China that are aggressively pushing for net-zero targets offer high chances of market penetration.
Impact of COVID-19 on Hydrogen Buses Market
The COVID-19 pandemic has impacted the growth of hydrogen buses market. In the initial phases of pandemic, manufacturing facilities were closed down and supply chains were disrupted due to lockdowns imposed across various countries. This led to decline in production volumes of hydrogen buses during 2020. However, with relaxation in lockdown measures from mid-2020, production and sales started reviving gradually. Various governments announced economic stimulus packages to boost manufacturing sector, which helped hydrogen bus market to recover faster.
Post pandemic period will see higher demand for hydrogen buses as they provide clean transportation solution. Concerns around pollution and sustainability have increased due to the pandemic. Customers will prefer eco-friendly modes of transportation like hydrogen buses over convention fuels. Government policies supporting development of hydrogen infrastructure will attract private investment in this sector. Bus operators are expected to replace aging fleets with hydrogen models to reduce operating costs in long run. Original equipment manufacturers are focusing on capacity expansion and new product development to cater rising demand.
Key strategies for market players include integrating latest fuel cell and battery technologies, offering fleet management services, collaborating with infrastructure developers and explore new geographic markets. Hydrogen economy is gaining traction globally and buses offer viable application of the technology at commercial scale. The sector is well positioned for strong growth in the coming years owing to favorable economic conditions and policy pushes for cleaner mobility solutions.
In terms of value, the hydrogen buses market is concentrated in China, United States and Germany. China is currently the largest market for hydrogen buses globally due to strong government support for developing hydrogen fuel infrastructure and fleet projects with leading OEMs. The US market is expanding at a significant pace led by initiatives of major transit agencies to introduce hydrogen buses in their networks. Germany has emerged as a key European market with pilot projects underway in several cities.
The Asia Pacific region excluding China offers high growth potential for hydrogen buses. Countries like India, Japan, South Korea and Australia are investing heavily in building hydrogen economy. Rising demand for public transport and focus on reducing pollution levels from vehicular emissions will drive the hydrogen buses market across major Asian economies. Government incentives for fleet modernization and partnership with global manufacturers are helping the region to emerge as the fastest growing market. Development of refueling infrastructure remains a critical factor for market expansion in Asia Pacific.
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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. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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