Concerns over the environment's degradation and the depletion of natural resources are the main factors driving the market for hydrogen buses. This has sped up the development of technology that supports the idea of eco-friendly modes of transportation for maintaining the ecosystem. Additionally, the adoption of hydrogen fuel cell buses is accelerating due to the increase in individuals irritated by the negative impacts of air pollution, rising traffic, and GHG emissions. These buses are environmentally friendly and provide a sustainable transportation choice, in contrast to traditional modes of transportation like cars with gas or diesel engines. Furthermore, technological advancements in hydrogen-powered vehicles significantly impact the market, expanding the potential for hydrogen-powered buses over the forecast period. It is estimated that the market for hydrogen-powered buses will have multiple chances to reach its potential over the anticipated time frame. Additionally, it is anticipated that rising expenditures in the infrastructure for hydrogen fuel cell buses and the associated charging stations would stimulate market growth.
The COVID 19 pandemic has not been good for the electric fuel sector, particularly the hydrogen bus industry. The market suffered significantly from a scarcity of raw materials supply, a lack of workforce on manufacturing sites, and a lack of good business strategy execution during the health emergency, which resulted in global lockdowns and the closure of most manufacturing facilities. However, as the cost of gasoline and diesel climbs, so does consumer demand for greener automobiles.
Growing Eco-Friendly Mobility Importance Offers Market Opportunities for Hydrogen Buses
New hydrogen bus models are being introduced by market participants while taking their usefulness and relevance into consideration. Shortly, favorable market conditions for the industry's players are anticipated by proactive steps to construct infrastructure for hydrogen buses. The operation of hydrogen buses is anticipated to increase due to the growing commercialization initiatives, particularly in Europe. As a result, the market for hydrogen buses is expected to develop over the forecast period.
High Hydrogen Bus Costs May Limit Market Growth
Compared to conventional buses, the initial cost of hydrogen buses is higher. This is a major impediment to implementing hydrogen buses in public transportation by several governments and administrations. Furthermore, governments are providing subsidies for the purchase of private electric vehicles, which may positively impact this market for those looking to buy commercial fleets. Furthermore, even standard hydrogen buses cost more than twice as much as their conventional counterparts, which may hinder the market growth.
Based on technology, the hydrogen buses market is segmented into Proton Exchange Membrane Fuel Cells, Direct Methanol Fuel Cells, Phosphoric Acid Fuel Cells, Zinc-Air Fuel Cells and Solid Oxide Fuel Cells. The proton exchange membrane fuel cells category dominated the market in 2021. The electrochemical reaction between hydrogen and oxygen releases chemical energy, which is converted into electrical energy using this technology. One of the most popular fuel cell technologies in the EV sector, proton exchange membrane fuel cells are perfect for fuel cell buses.
By Power Output
By power output, the market is segmented into <150 KW, 150–250 KW and >250 KW. The <150 KW category dominated the market in 2021. Passenger cars, buses, and commercial vehicles employ fuel cells with power outputs under 150 kW. Less than 150 kW fuel cells have a greater sales rate, so they control the global market.
By Transit Bus Models
By transit bus models, the market is segmented into 30-foot transit buses, 40-foot transit buses and 60-foot transit buses. The 30-Foot transit buses category dominated the market in 2021. The hydrogen bus has a power range of 20 kW to 200 kW for transit buses measuring 30 to 40 feet. Due to its effective passenger capacity and competitive pricing, this form of transit model I is widely used in the automotive sector.
Europe is projected to hold the largest share of the hydrogen buses market over the forecast period. The presence of leading fuel hydrogen bus manufacturers is a key driver boosting the market's growth in Europe. The managing director of Ebusco recently handed the first 90 Ebusco buses to Germany's largest public transportation business in light of the country's growing awareness of EV technology and the high adoption of passenger hydrogen vehicles in the area.
On the other hand, the North American hydrogen buses market is anticipated to grow significantly over the forecast period due to the population's rapid growth, the demand for passenger buses increasing demand and the manufacturing scale's quick growth. Eco-friendly hydrogen electric buses are operating for the first time in Korea. In addition, they can reduce fine dust and pollutant emissions while operating as regular public transportation buses.
LIST OF KEY COMPANIES PROFILED:
- Tata Motors Limited
- Thor Industries
- Ballard Power Systems
- NovaBus Corporation
- New Flyer Industries Ltd
- New Flyer
- Hino Motors Ltd.
- SunLine Transit Agency
KEY INDUSTRY DEVELOPMENTS:
- July 2022: The Indian Oil Corporation Limited (IOCL) awarded a tender to Tata Motors, the country's largest commercial vehicle maker and top bus builder, for the provision of 15 hydrogen-based proton exchange membrane (PEM) fuel cell buses (IOCL).
- June 2021: Domenico Nucera, the head of Iveco's bus business unit, stated that the company intended to produce more than 3,000 zero and low-emission buses in the ensuing years, beginning in southern Italy 2023. If the market's response is positive, they intend to proceed with a rate of 1,000 units annually.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Technology, By Power Output, By Transit Bus Models and By Geography|
|By Power Output||
|By Transit Bus Models||