The hydrogen aircraft market is estimated to be valued at US$ 6.73 Bn in 2023 and is expected to exhibit a CAGR of 22. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Hydrogen aircraft uses hydrogen as fuel to power its propulsion systems. Hydrogen has many advantages over traditional jet fuel as it is a clean energy source and does not produce carbon emissions. It can help airlines and aircraft manufacturers to achieve their sustainability goals of reducing environmental impact of air travel.
Market key trends:
One of the major trends fueling the growth of hydrogen aircraft market is the increasing focus on developing zero emission aircraft. Many countries and airlines have announced target of achieving net zero carbon emission by 2050. This is driving investments in hydrogen powered aircraft technology. Major aircraft manufacturers like Airbus, Boeing are actively working on hydrogen-electric and hydrogen combustion powered aircraft concepts. They aim to launch hydrogen-powered passenger aircraft by 2035 time frame. Government initiatives and funding for hydrogen aviation projects is also boosting the development of hydrogen aircraft infrastructure and technology.
Threat of new entrants: The high capital requirements and uncertainties involved in developing hydrogen aircraft act as a barrier for new entrants in the market.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several established manufacturers in the market offering a variety of hydrogen aircraft options.
Bargaining power of suppliers: A few major companies supplying hydrogen fuel cells and other components hold strong bargaining power over aircraft manufacturers in the market.
Threat of new substitutes: Electric and conventional aircraft pose a threat, however hydrogen aircraft have lower emissions making them an attractive green alternative.
Competitive rivalry: Intense as key players invest heavily in R&D to gain a competitive edge and capture more market share.
Strengths: Hydrogen aircraft have zero emissions and offer a green alternative to traditional jet fuel. They allow aircraft manufacturers to comply with stringent environmental regulations.
Weaknesses: High production costs and lack of hydrogen refuelling infrastructure are major challenges. Hydrogen tanks require more space reducing passenger capacity.
Opportunities: Growing focus on decarbonization of air travel presents significant opportunities. Government incentives and investments in clean aviation will drive demand.
Threats: Uncertain market adoption and viability pose risks for investments in hydrogen aircraft technology and manufacturing. Volatility in hydrogen fuel prices is also a concern.
The global hydrogen aircraft market size is expected to witness high growth, exhibiting a CAGR of 22% over the forecast period, due to stringent emission norms to decarbonize air travel. Asia Pacific dominates the global market with China emerging as the largest producer and consumer of hydrogen fuel. Government plans to develop hydrogen refuelling stations and manufacture clean aircraft will boost the regional market.
Key players operating in the hydrogen aircraft market are Aerodelft, Aerovironment, Inc., Airbus S.A.S., Alaka’i Technologies, Hes Energy Systems, Pipistrel D.O.O., PJSC Tupolev, and The Boeing Company. Boeing unveiled plans for a zero-emission commercial airplane powered by hydrogen fuel cells by 2030. It also aims to demonstrate a fully functional dreamliner prototype emitting zero emissions by the end of this decade. To lead the clean aviation transition, major aircraft manufacturers are investing heavily in hydrogen-powered systems and technologies.