Hydrogen Buses Market Size, Share, and Growth Forecast for 2025 - 2032

Hydrogen Buses Market Size and Trends

The global hydrogen buses market size is anticipated to rise from US$ 1,172.7 Mn in 2025 to US$ 2,625.1 Mn by 2032. It is projected to witness a CAGR of 12.2% from 2025 to 2032.

As per the studies carried out by Persistence Market Research (PMR), the market for hydrogen buses is experiencing significant growth, driven by the global push for sustainable, zero-emission public transportation solutions. PEMFC technology is one of the crucial market-driving aspects, known for its high energy efficiency, often exceeding 50% in converting the chemical energy of hydrogen into electrical power.

• Using hydrogen fuel, PEMFCs can reach efficiency as high as 65%, with water as the only byproduct. Due to its higher efficiency, several OEMs use PEM technology in fuel cell buses.

Key Highlights of the Hydrogen Buses Market

• Proton exchange membrane fuel cells lead the technology segmentation with 36% of the total market share in 2025.
• 30-foot transit buses lead the transit bus models segment with 40% market share due to efficient passenger carrying capacity
• Strong government initiatives aimed at reducing carbon emissions make Europe the leading region with 11.8% of CAGR from 2025 to 2032.
• Government initiatives and increased demand for passenger buses make Asia Pacific the fastest growing region.
• Increased implementation of hydrogen buses in public transport caters to North America's growth in the market.
• By power output, the 150 to 250 kW segment is projected to hold a share of 29% in 2025 due to rising demand from urban areas

Global Market Attributes	Key Insights
Hydrogen Buses Market Size (2025E)	US$ 1,172.7 Mn
Market Value Forecast (2032F)	US$ 2,625.1 Mn
Projected Growth (CAGR 2025 to 2032)	12.2%
Historical Market Growth (CAGR 2019 to 2024)	8.7%

Historical Growth and Course Ahead

Efforts to Reduce Urban Emissions Sparked Interest in Hydrogen Buses from 2019 to 2024

From 2019 to 2024, the adoption of hydrogen buses was in its nascent stages. The market was valued at around US$ 707.5 Mn in 2019. Stringent environmental regulations and substantial government investments in hydrogen infrastructure propelled early growth. For example,

• In 2023, Europe had 370 fuel cell buses in operation as of January 1, with plans to exceed 1,200 by 2025.

Countries like Germany and the U.K. initiated pilot projects to integrate hydrogen buses into public transit systems, aiming to reduce urban emissions.

Innovations and Investments to Position Hydrogen Buses as a Key Component of Future Public Transportation

Over the forecast period, the hydrogen buses industry is poised for exponential growth. Rising demand for hydrogen buses is anticipated to be driven by innovations in fuel cell technology, decreasing production costs, and a global emphasis on zero-emission transportation.

Asia Pacific, particularly China, is likely to play a pivotal role in this expansion due to aggressive governmental policies promoting clean energy and substantial investments in hydrogen infrastructure. For instance,

• In 2024, Wrightbus announced plans to build a green hydrogen production facility in Ballymena to fuel up to 300 buses daily, underscoring the industry's commitment to sustainable fuel solutions.

Market Dynamics

Adoption of Hydrogen Buses Reflects Global Efforts to Curb Greenhouse Gas Emissions

As global awareness of environmental issues intensifies, there's a significant push toward adopting clean and sustainable transportation. Hydrogen buses emit only water vapor and present a zero-emission alternative to traditional diesel buses.

In 2023, the European Union (EU) intensified its emission reduction targets, encouraging member states to invest in hydrogen fuel cell technology for public transit systems. The regulatory push has significantly boosted the deployment of hydrogen buses across Europe. For instance,

• In 2023, the U.S. experienced a notable 12% increase in the adoption of zero-emission buses, with hydrogen fuel cell buses leading the surge at a remarkable 76% growth.

Governments worldwide are implementing stringent environmental regulations to curb greenhouse gas emissions, propelling the adoption of zero-emission public transportation solutions like hydrogen buses.

Market Restraining Factors

High Operational Costs Deter Transit Agencies from Transitioning to Hydrogen Buses

High initial investments and infrastructural challenges hinder the adoption of hydrogen buses. The costs associated with hydrogen fuel cell technology and the necessary infrastructure for hydrogen production, storage, and refueling are significant barriers. For instance,

• In 2022, Montpellier, France, cancelled a contract for hydrogen buses upon discovering that operational costs were six times higher than those of electric buses, leading them to opt for battery-electric alternatives.

Despite their environmental benefits, hydrogen buses face challenges related to high operational costs. A 2023 study highlighted that the cost per kilometer for hydrogen buses is approximately 2.3 times higher than that of battery electric buses, primarily due to the expenses associated with hydrogen production and fuel cell maintenance.

Key Market Opportunities

Investments in New Refueling Stations Enhance Accessibility of Hydrogen, Accelerating Adoption of Buses

The development of hydrogen refueling infrastructure presents a significant opportunity for the hydrogen buses industry. Investments in building new refueling stations make hydrogen more accessible, facilitating the adoption of hydrogen buses.

In Asia Pacific, ambitious nationwide targets have been established to deploy heavy-duty hydrogen buses and build associated fueling infrastructure, indicating a strong commitment to this technology. The industry is propelled by growing demand for clean energy solutions.

It, however, faces challenges due to high initial costs and infrastructure limitations. The ongoing expansion of hydrogen infrastructure offers a promising pathway to overcome these hurdles and support the market's growth. For instance,

• In December 2024, Clean Energy was awarded a contract to design and construct a state-of-the-art hydrogen fueling station for California's Riverside Transit Agency (RTA).
• The initiative is part of RTA's plan to transition to a zero-emission vehicle fleet, starting with five hydrogen fuel cell buses and aiming to expand to over 100 hydrogen-powered buses within the next decade. The project is supported by a US$ 5.1 Mn grant from the U.S. Department of Transportation.

Hydrogen Buses Market Insights and Trends

Technology Insights

Proton Exchange Membrane Fuel Cells to Lead due to Superior Operational Features

Proton Exchange Membrane Fuel Cells (PEMFCs) are the leading technology in the hydrogen buses industry, primarily due to their efficiency, operational characteristics, and suitability for transportation applications. The segment will likely generate a 36% share in 2025.

PEMFCs can achieve energy conversion efficiencies exceeding 50%, effectively converting the chemical energy of hydrogen into electrical power. Operating at relatively low temperatures between 50 to 100°C, PEMFCs can start quickly, making these ideal for applications requiring immediate power, such as public transportation.

The compact design of PEMFCs allows for a high power-to-weight ratio, which is important for vehicles like buses where space and weight are significant considerations. Hydrogen buses equipped with PEMFCs can be refueled in around 10 minutes, offering a significant advantage over battery electric buses that require longer charging times. For example,

• Recent studies have reported that PEMFCs can achieve power densities up to approximately 716.63 mW/cm², highlighting their capability to deliver substantial power output relative to their size.

Transit Bus Models Insights

30-Foot Transit Buses Gain Popularity for Efficient Passenger Capacity in Urban Environments

30-foot transit buses are emerging as a significant segment in the market for hydrogen buses. These buses are gaining traction due to their efficient passenger capacity and cost-effectiveness, making them a preferred choice in various urban settings. The segment is anticipated to hold a share of 40% in 2025.

30-foot transit buses typically range from 20 kW to 200 kW in power output, accommodating the needs of shorter routes and areas with lower passenger volumes. Its compact size allows for easier navigation through congested city streets, and it offers a balance between capacity and operational efficiency.

• In January 2025, the MTA announced the purchase of 265 new zero-emission buses, including hydrogen fuel cell models. These 40-foot buses are designed to reduce greenhouse gas emissions by approximately 90 metric tons annually per bus, featuring lightweight electric traction drive systems that recover up to 90% of energy during braking.

The adoption of 30-foot hydrogen buses is driven by their lower operational costs compared to larger models, making them an attractive option for transit agencies aiming to implement sustainable transportation solutions without incurring excessive expenses.

• In October 2024, New Flyer secured its largest hydrogen fuel cell-electric bus contract, agreeing to supply 108 buses to California's SamTrans.

Regional Insights and Trends

Strong Government Initiatives Aiming Reduced Carbon Emissions Make Europe the Leading Region

Europe is currently the largest market for hydrogen buses and is likely to account for 38% of the global share. The dominance of Europe is attributed to the presence of prominent hydrogen bus manufacturers and strong governmental initiatives aimed at reducing carbon emissions.

Countries such as Germany, the U.K., France, and the Netherlands are leading in adopting hydrogen buses, supported by stringent environmental regulations and substantial investments in hydrogen infrastructure. Several European cities are investing in hydrogen refueling stations to support the growing fleet of hydrogen buses. For instance,

• In September 2023, Solaris secured Europe's largest hydrogen bus tender, ordering 130 Urbino hydrogen buses from TPER in Bologna, Italy.

Government Initiatives and Increased Demand for Passenger Buses to Propel Asia Pacific

Expansion of the hydrogen buses market in Asia Pacific is propelled by rapid population growth, increasing demand for passenger buses, and an escalation in manufacturing scale. The market for hydrogen buses in India is propelled by government initiatives to realize its ‘Hydrogen Vision’ of self-sufficiency, addressing climate change goals, generating jobs in the sector, and enhancing sustainable energy utilization.

• According to CAAM, China will manufacture 1,742 hydrogen fuel cell vehicles in 2021, representing a 48.2% increase from 2020. 1,586 of these vehicles were sold that year, representing an increase of 34.7%.

The Indian hydrogen buses sector will likely expand as the need for environmentally sustainable transportation increases. The dependability, rapidity of hydrogen filling, and long-range operational capacity of hydrogen fuel cell buses in China are stimulating demand.

• In June 2023, Hyundai announced plans to supply 1,300 fuel cell buses to Seoul, marking a significant step towards sustainable urban transportation.

Rising Implementation of Hydrogen Buses in Public Transport Caters to North America's Growth

North America holds a substantial share in the global market for hydrogen buses, with the U.S. and Canada being key contributors. The region's growth is fueled by increasing government initiatives to implement hydrogen buses for public transport, particularly in metropolitan areas.

The state of California has committed funds for the development of 100 hydrogen refueling stations to meet its target of 1.5 million zero-emission vehicles by 2025. Such initiatives reflect the region's dedication to reducing greenhouse gas emissions and promoting clean energy solutions in public transportation. For example,

• In December 2023, SamTrans in California approved the purchase of 108 fuel cell buses from New Flyer, reflecting the state's dedication to zero-emission public transportation.

Hydrogen Buses Market Competitive Landscape

The hydrogen buses market is becoming increasingly competitive, with key players focusing on innovation, sustainability, and infrastructure development. Leading companies are making developments in fuel cell technology to enhance efficiency and reduce costs.

Europe and Asia Pacific dominate the market, with substantial government backing and growing investments in hydrogen mobility solutions. Strategic collaborations, partnerships, and funding for hydrogen infrastructure are shaping the future of this market. As demand surges, competition intensifies, making hydrogen fuel cell buses a transformative force in public transport.

Key Industry Developments

• In January 2024, NFI Group Inc. (NFI) signed a new long-term supply agreement to acquire fuel cell modules from Ballard Power Systems in Burnaby, B.C.
• In January 2024, the renowned Germany-based operator Rheinbahn Düsseldorf ordered 10 Solaris Urbino buses and 12 hydrogen buses. The city has been executing its approach by incorporating both battery-electric and hydrogen-powered vehicles into its urban fleet.

Hydrogen Buses Market Report Scope

Report Attributes	Details
Historical Data/Actuals	2019 – 2024
Forecast Period	2025 – 2032
Market Analysis Units	Value: US$ Bn/Mn, Volume: As applicable
Geographical Coverage	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Segmental Coverage	Technology Power Output Transit Bus Models Region
Competitive Analysis	Tata Motors Limited Thor Industries Hyundai Ballard Power Systems NovaBus Corporation New Flyer Industries Ltd EvoBus New Flyer Hino Motors Ltd. SunLine Transit Agency
Report Highlights	Market Forecast and Trends Competitive Intelligence & Share Analysis Growth Factors and Challenges Strategic Growth Initiatives Pricing Analysis & Technology Roadmap Future Opportunities and Revenue Pockets Industry Market Analysis Tools
Customization and Pricing	Available upon request

Hydrogen Buses Market Segmentation

By Technology

• Proton Exchange Membrane Fuel Cells
• Direct Methanol Fuel Cells
• Phosphoric Acid Fuel Cells
• Zinc-air Fuel Cells
• Solid Oxide Fuel Cells

 By Power Output

• Less than 150 kW
• 150 to 250 kW
• More than 250 kW

 By Transit Bus Models

• 30-Foot Transit Buses
• 40-Foot Transit Buses
• 60-Foot Transit Buses

 By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa
• Latin America

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