Hydrogen Buses Market Overview:
As per MRFR analysis, the Hydrogen Buses Market Size was estimated at 1.07 (USD Billion) in 2022. The Hydrogen Buses Market Industry is expected to grow from 1.87 (USD Billion) in 2023 to 61.05 (USD Billion) by 2032. The Hydrogen Buses Market CAGR (growth rate) is expected to be around 48.30% during the forecast period (2024 - 2032).
Key Hydrogen Buses Markeat Trends Highlighted
The increasing hydrogen fuel cell technology development is one of the factors supporting the growth of the global hydrogen bus market as they provide zero-emission transportation. The growing concern regarding the environment, government support policy on clean energy sources, and growing need to transform the public transport sector to be cleaner and more efficient drives further expansion.
These aspects come from improvements in the existing features of hydrogen storage and refueling infrastructures, which further makes it possible to increase the distance that can be traveled and decrease operational interruptions. Trends are moving in that direction as hydrogen buses could be increasingly used in cities with governments and transportation agencies working on emission-reduction agendas. In addition, the combination of government, business and scientific potential enhances creativity and speeds up the development of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydrogen Buses Market Drivers
Government Support and Incentives
As found from empirical research, government support and division contribute efficiently to advancing the market of hydrogen buses across the globe. This is because hydrogen fuel cell buses are known to help in reducing emissions of harmful particulates and greenhouse gases. As a result, pursuing the goal of reducing congestion, the hydrogen bus technology is introduced together with other measures. For example, The Chinese government sees the possibility of driving 1000000 hydrogen fuel cell vehicles in 2030.
So, in order to facilitate that, the government is also providing various activities such as providing subsidies for the purchase of hydrogen buses or constructing hydrogen refilling stations. And besides those that involve national support, there are those private sectors that are also making great strides towards creating hydrogen fuel cell buses. For instance, Toyota has made an announcement that it will spend $1.3 billion on hydrogen fuel cell vehicle development for the next 10 years.
Such investments are expected to assist in bringing down the costs related to hydrogen fuel cell buses, thereby encouraging more operators to purchase hydrogen fuel cell buses. Such combined efforts on the part of the government and the private sector are predicted to accelerate the development of the market for hydrogen buses in the coming years. Hydrogen fuel cell buses are viewed as a viable substitute for diesel buses and are likely to be more prominent in the shift from diesel to clean energy.
Growing Demand for Sustainable Transportation
Another driving factor of the increased growth of the global hydrogen bus market is the rising demand for sustainable transportation. Nowadays, people become more concerned about the impact of transportation on the environment and air pollution and seek to decrease their carbon footprint. In this regard, if there are sustainable transportation opportunities that could help to minimize greenhouse gas emissions and air pollution, riders would certainly use them.Thus, hydrogen fuel cell buses provide a zero-emission solution that could be implemented to decrease pollution through sustainable transportation. Some primary factors that drive the increasing demand for sustainable transportation include but are not limited to, the emerging awareness of the impact of transportation on the environment, the tendency of governments and authorities to restrict air pollution and greenhouse gas emissions, the increasing price of fossil fuel the development of new technologies that contribute to the relatively low-cost and effective use of hydrogen fuel cell buses Thus, as the demand for sustainable transportation continues to increase, it will also drive the growth of the global hydrogen bus market.
Technological Advancements
Technological advancements are also playing a key role in the growth of the global hydrogen bus market. Hydrogen fuel cell technology has been under development for many years, and it is now reaching a point where it is becoming more affordable and efficient. This is making hydrogen fuel cell buses more attractive to operators and consumers. Some of the key technological advancements that are driving the growth of the hydrogen bus market include the development of more efficient and durable fuel cells and the reduction in the cost of hydrogen fuel. The development of new hydrogen storage technologies. The development of new hydrogen refueling stations These technological advancements are expected to continue to drive the growth of the global hydrogen bus market in the coming years.
Hydrogen Buses Market Segment Insights:
Hydrogen Buses Market Fuel Type Insights
Green hydrogen is produced from renewable energy sources, such as solar and wind power, through electrolysis. Blue hydrogen is produced from natural gas through a process called steam reforming, which captures and stores the carbon dioxide produced as a byproduct. Grey hydrogen is produced from natural gas through a process called steam reforming, which releases the carbon dioxide produced as a byproduct into the atmosphere. In 2023, the green hydrogen segment is expected to account for the largest share of the Hydrogen Buses Market revenue, followed by the blue hydrogen segment and the grey hydrogen segment.The growth of the green hydrogen segment is being driven by the increasing demand for renewable energy sources and the falling costs of electrolysis. The growth of the blue hydrogen segment is being driven by the increasing demand for low-carbon fuels and the development of carbon capture and storage technologies. The growth of the grey hydrogen segment is being driven by the increasing demand for hydrogen in industrial applications.
The Hydrogen Buses Market is expected to grow significantly over the next ten years. The increasing demand for renewable energy sources and the falling costs of electrolysis are expected to drive the growth of the green hydrogen segment.The increasing demand for low-carbon fuels and the development of carbon capture and storage technologies are expected to drive the growth of the blue hydrogen segment. The increasing demand for hydrogen in industrial applications is expected to drive the growth of the grey hydrogen segment. The growth of the market is expected to be driven by the increasing demand for renewable energy sources, the falling costs of electrolysis, the increasing demand for low-carbon fuels, the development of carbon capture and storage technologies, and the increasing demand for hydrogen in industrial applications.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydrogen Buses Market Bus Type Insights
The following is the forecast of the market size in terms of value for the period 2023-2032 in the Global Hydrogen Buses Market of the bus type segment. Bus type segments include Single-Decker Hydrogen Buses, Double-Decker Hydrogen Buses, Fuel Cell Hybrid Buses, and Battery Electro Buses. In the bus type segment, Single-Decker Hydrogen Buses had the highest market share in 2023 and are expected to predominate throughout the forecast period due to the increasing number of public transportation authorities and private operators using them. Double-decker hydrogen Buses, which increase passenger capacity, are increasingly used in densely populated urban areas.Fuel Cell Hybrid Buses combine hydrogen fuel cells with conventional diesel engines, which are part of an acceptable compromise among efficiency and range suitable for long-distance travel. Battery Electric Hydrogen Buses, which are still in the early stages of development, will be adopted in the future as battery technology evolves.
Hydrogen Buses Market Propulsion Type Insights
The Propulsion Type segment of the Hydrogen Buses Market is bifurcated into Internal Combustion Engine (ICE) and Fuel Cell Electric Vehicle (FCEV). In 2023, the FCEV segment held the larger share of the market, owing to the increasing adoption of zero-emission vehicles. The ICE segment is expected to witness a significant growth rate over the forecast period, driven by the rising demand for low-cost and efficient buses. The Hydrogen Buses Market is projected to reach USD 14.54 billion by 2032, exhibiting a CAGR of 51.62% during the forecast period.The FCEV segment is anticipated to maintain its dominance throughout the forecast period, owing to favorable government regulations and the growing awareness about environmental sustainability. FCEVs offer several advantages over ICE vehicles, including zero emissions, longer range, and faster refueling time. The increasing availability of hydrogen fueling stations is further expected to boost the adoption of FCEVs. The ICE segment is expected to witness steady growth over the forecast period, primarily driven by the demand for low-cost and efficient buses.ICE buses are more affordable than FCEVs, making them a more viable option for budget-conscious operators. Additionally, ICE buses are well-suited for short-distance applications, where the need for long-range and fast refueling time is less critical.
Hydrogen Buses Market Application Insights
Public transportation is expected to hold the largest share of the Hydrogen Buses Market in 2023, owing to favorable government policies and the increasing adoption of hydrogen-powered buses in public transportation fleets. Private transportation is projected to witness significant growth during the forecast period, driven by rising consumer awareness about the environmental benefits of hydrogen vehicles and government incentives for hydrogen fuel cell vehicles. School transportation is anticipated to grow steadily, supported by the increasing adoption of hydrogen buses in school districts due to their zero-emission nature and lower operating costs compared to diesel buses.Tourism and airport transportation are expected to experience moderate growth, driven by the increasing demand for sustainable transportation solutions in the tourism and hospitality industry. Overall, the Hydrogen Buses Market is expected to exhibit robust growth over the coming years, driven by increasing environmental concerns, government initiatives, and technological advancements in hydrogen fuel cell technology.
Hydrogen Buses Market Regional Insights
The regional landscape of the Hydrogen Buses Market exhibits significant variations in market growth and adoption trends. North America is anticipated to dominate the market with a notable share, driven by supportive government policies, technological advancements, and a growing focus on sustainable transportation. Europe follows closely, showcasing a favorable regulatory environment and a strong emphasis on emissions reduction targets. The APAC region is projected to witness substantial growth owing to rising environmental concerns, urbanization, and government initiatives promoting hydrogen-powered vehicles.South America and MEA are anticipated to contribute a smaller yet steadily growing share as these regions explore the potential of hydrogen buses to address transportation challenges and reduce carbon emissions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydrogen Buses Market Key Players And Competitive Insights:
To remain ahead in the highly competitive Hydrogen Buses Market, the industry's major players are now focusing on developing advanced technologies and increasing their global presence through partnerships and acquisitions. For example, Toyota Motor Corporation and Woven Planet Holdings, Inc. agreed in 2023 to form a strategic partnership to design an autonomous hydrogen-powered bus and deploy it. Moreover, the companies operating in the Hydrogen Buses Market space are developing advanced technologies and low-cost, high-performance hydrogen fuel cell systems. In addition to that, they are rapidly enhancing the durability and performance of the hydrogen storage systems. Hence, all this is expected to project the Hydrogen Buses Market requirements in the upcoming years.
One of the industry's major players in the area of Hydrogen Buses Market is the Toyota Motor Corporation. The company is considered an industry major player in the gasoline and diesel vehicles sector. Additionally, the Toyota Motor Corporation has been the first one to develop and commercialize a hydrogen fuel cell vehicle and a hydrogen fuel bus. Moreover, the company has a wide number of hydrogen-powered buses, is the hydrogen fueling infrastructure developer, and has a global network of suppliers and partners.The Hyundai Motor Company is currently the company competitor operating in the Hydrogen Buses Market. The company is the other major player in the development and deployment of hydrogen fuel cell vehicles. Consequently, the company’s presence in the Asia-Pacific markets and the ongoing expansion of its global network are considered to be a threat to the Toyota Motor Corporation. Moreover, the Hyundai Motor Company is developing hydrogen-powered buses and improving the efficiency and effectiveness of the hydrogen fuel cell systems.
Key Companies in the Hydrogen Buses Market Include:
- Hyundai Motor Company
- Wrightbus
- ITM Power
- Chart Industries
- Shell
- Van Hool
- Nel Hydrogen
- Plug Power
- Proton Motor Power System
- Toyota Motor Corporation
- Daimler Truck AG
- Cummins
- AFC Energy
- Ballard Power Systems
- Air Liquide
Hydrogen Buses Market Industry Developments
The global hydrogen bus market is experiencing rapid growth due to increasing government support, declining costs, and rising environmental concerns. In 2023, the market was valued at USD 0.34 billion, and it is projected to reach USD 14.54 billion by 2032, exhibiting a CAGR of 51.62%. Key players in the market include Ballard Power Systems, Toyota Motor Corporation, and Hyundai Motor Company.Recent developments include the launch of new hydrogen bus models, such as the Toyota Sora and the Hyundai Elec City Fuel Cell. Additionally, governments worldwide have implemented supportive policies, such as subsidies and tax incentives, to promote the adoption of hydrogen buses. Furthermore, advances in hydrogen production and distribution technologies are making hydrogen more accessible and cost-effective.Despite these positive developments, challenges remain, including the high upfront cost of hydrogen buses and the limited availability of hydrogen fueling stations. However, as the technology continues to mature and the infrastructure improves, the hydrogen bus market is expected to continue its strong growth trajectory
Hydrogen Buses Market Segmentation Insights
Hydrogen Buses Market Fuel Type Outlook
- Green Hydrogen
- Blue Hydrogen
- Grey Hydrogen
Hydrogen Buses Market Bus Type Outlook
- Single-Decker Hydrogen Buses
- Double-Decker Hydrogen Buses
- Fuel Cell Hybrid Buses
- Battery Electric Hydrogen Buses
Hydrogen Buses Market Propulsion Type Outlook
- Internal Combustion Engine (ICE)
- Fuel Cell Electric Vehicle (FCEV)
Hydrogen Buses Market Application Outlook
- Public Transportation
- Private Transportation
- School Transportation
- Tourism and Airport Transportation
Hydrogen Buses Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.07 (USD Billion) |
| Market Size 2023 |
1.87 (USD Billion) |
| Market Size 2032 |
61.05 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
48.30% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Hyundai Motor Company, Wrightbus, ITM Power, Chart Industries, Shell, Van Hool, Nel Hydrogen, Plug Power, Proton Motor Power System, Toyota Motor Corporation, Daimler Truck AG, Cummins, AFC Energy, Ballard Power Systems, Air Liquide |
| Segments Covered |
Fuel Type, Bus Type, Propulsion Type, Application, Regional |
| Key Market Opportunities |
Growing demand for clean energy transportation Government incentives for hydrogen fuel adoption Technological advancements Increasing environmental concerns Expanding hydrogen fueling infrastructure |
| Key Market Dynamics |
Increased government subsidies, growing concerns over emissions, technological advancements, rising hydrogen production capacity and favorable regulatory policies |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global hydrogen bus market was valued at approximately USD 1.07 billion in 2023.
The global hydrogen bus market is expected to grow at a CAGR of 48.30% from 2024 to 2032.
North America is expected to dominate the global hydrogen bus market throughout the forecast period.
Major applications of hydrogen buses include public transportation, employee transportation, and tourism.
Key competitors in the global hydrogen bus market include Ballard Power Systems, Daimler AG, and Van Hool.
Challenges faced by the global hydrogen bus market include high upfront costs, lack of refueling infrastructure, and limited vehicle range.
Opportunities for growth in the global hydrogen bus market include government incentives, technological advancements, and increasing demand for sustainable transportation.
The global hydrogen bus market is expected to reach a valuation of USD 61.05 billion by 2032.
Key trends shaping the global hydrogen bus market include increasing environmental concerns, government support for clean energy initiatives, and technological advancements.
Major factors driving the growth of the global hydrogen bus market include rising fuel costs, growing awareness of environmental issues, and government regulations promoting zero-emission vehicles.
