Hydrogen Aircraft Market Is Estimated To Witness High Growth Owing To Opportunity Of Reducing Emissi

Author : Raj Dhote | Published On : 22 Jan 2024

Hydrogen aircraft uses hydrogen as fuel for powering aircraft propulsion systems. Hydrogen fuel cell-powered aircraft are more efficient and emit less pollution compared to conventional jet fuel-powered aircraft. Hydrogen as an aviation fuel can help reduce greenhouse gas emissions from the aviation industry substantially. The use of hydrogen fuel cells avoids the emission of carbon dioxide and other pollutants during flight operations.

The global hydrogen aircraft market is estimated to be valued at US$ 7.76 Mn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity of reducing emission footprint from the aviation industry is driving growth of the hydrogen aircraft market. Aviation currently accounts for nearly 3% of total carbon emissions globally. With increasing air passenger traffic worldwide, carbon emissions from air travel are projected to rise exponentially in the coming years if no measures are taken. The deployment of hydrogen-powered aircraft can help reduce up to 50% of direct carbon emissions from commercial aviation. Many airlines and aircraft manufacturers are actively working on prototype hydrogen-powered aircraft designs to transition to cleaner aviation fuel and lower the industry's environmental impact over the long run.

Porter's Analysis
Threat of new entrants: The stringent regulations regarding aviation safety pose a high threat for new players. The capital requirements for aircraft production and maintenance infrastructure are also very high limiting new competition.

Bargaining power of buyers: The buyers have moderate bargaining power owing to limited options available currently. However, as more players enter the market, the bargaining power is expected to increase for buyers.

Bargaining power of suppliers: The key technology suppliers for fuel cells and hydrogen storage systems hold higher bargaining power due to limited alternatives and intellectual property protection. This power is expected to reduce with more technology patents expiring.

Threat of new substitutes: There is a constant threat of new aviation fuel technologies like biofuels posing a substitute. However, hydrogen provides an opportunity for greenhouse gas reductions providing it an edge over other alternatives.

Competitive rivalry: Intense as major players are investing heavily in developing the technology.

SWOT Analysis
Strength: Hydrogen poses minimal environmental impact and provides an opportunity for emission reductions. The fuel cell technology provides efficient power generation for aircraft propulsion.
Weakness: High costs associated with setting up the infrastructure for hydrogen as a fuel. Technology challenges remain regarding hydrogen storage onboard and achieving flight endurance comparable to conventional fuels.
Opportunity: Growing policy support and regulations to reduce emissions present a market opportunity. Established industrial hydrogen markets can provide synergies to the emerging aircraft application.
Threats: Delays in technology breakthroughs can dampen interest from airlines and reduce investments in the sector. Alternative energy sources may emerge as more viable substitutes.

Key Takeaways

The global Hydrogen Aircraft Market Share  is expected to witness high growth over the forecast period from 2024 to 2031 supported by regulations to cut emissions. The market size is estimated to be valued at US$ 7.76 Mn in 2024 and projected to reach over US$ 15 Bn by 2031, indicating substantial growth opportunities.

Regional analysis indicates that Europe currently dominates the hydrogen aircraft market contributing over 35% of the global market share in 2024. Countries like Germany, France and the UK are investing heavily in developing related infrastructure and technologies. North America is another major regional market spearheaded by the US. The Asia Pacific region is expected to witness the fastest growth through the forecast period led by China, Japan and South Korea.

Key players operating in the Hydrogen Aircraft Market are Arkema Group, Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro, DSM N.V., Dupont, Lanxess, LG Chem., Mitsubishi Engineering-Plastics Corporation, Saudi Basic Industries Corporation (Sabic), Solvay SA, Teijin, Toray, and Victrex Plc. Major players are collaborating with aircraft manufacturers and investing in refueling infrastructure to gain an early mover advantage in the emerging market.

For more insights, read- https://www.ukwebwire.com/hydrogen-aircraft-market-trends-size-and-share-analysis/

For more details on the report, Read- https://cmiinfopiece.blogspot.com/2024/01/the-global-luxury-travel-market-growth.html