HYDROGEN AIRCRAFT MARKET ANALYSIS

Market Challenges And Opportunities

Global Hydrogen Aircraft Market Drivers:

Growing global air passenger traffic to boost the market growth

With increasing traveling and disposable income among population across the globe is leading to rise in air passenger traffic. For instance, as per the International Civil Aviation Organization (ICAO), in 2019, the number of air passenger increased to 4.38 billion, which was a 3.65% higher compared to the year before. As per the International Air Transport Association (IATA) October 2018 statistics, the number of passenger count with the developing air transport projects is likely to increase to 8.2 billion in 2037. Thus, this factor is expected to drive growth of the global hydrogen aircraft market over the forecast period.

High suitability of hydrogen to fuel the market growth

With increasing air traffic, the need for replacing petroleum-based jet aviation fuel is growing rapidly. The new fuel will need to be environment-friendly and accessible at a global level. It will also have to meet the fundamental need of safety performance, economic considerations, and environment. Hydrogen fuel can cater all these needs and is a potential element to be used as a substitute for aviation fuel used in present time. Thus, this factor in turn is expected to fuel demand for hydrogen-fueled aircraft, which in turn is likely to boost growth of the global hydrogen aircraft market over the forecast period.

Global Hydrogen Aircraft Market Opportunities:

Lucrative initiatives from governments are expected to create growth opportunities in the global hydrogen aircraft market over the forecast period. Turning to hydrogen fuel from kerosene in aviation needs major support from governments around the world. Governments of many countries are formulating policies and roadmaps to promote infrastructure of hydrogen-based aviation in their countries, keeping reduction of global carbon emission as a primary goal. Thus, such initiatives are in turn creating growth opportunities in the global hydrogen aircraft market over the forecast period.

Development of infrastructures for hydrogen fuel is also generating lucrative opportunities in the global hydrogen aircraft market over the forecast period. Due to the stringent regulations regarding emissions by governments and restricted fossil fuel resources, the need for developing alternative fuels is growing all over the world for reducing the carbon emissions and creating environment-friendly transport. As a result, the number of transport modes with lower carbon emission such as hydrogen fuel cell vehicles is increasing. This factor is further creating growth opportunities in the market.

Global Hydrogen Aircraft Market Restraints:

High cost of production and management of hydrogen to impede the market pace

The extraction of gaseous form of hydrogen is mostly done from water through the process of electrolysis. This process requires to pass a high electric current in the water for isolating hydrogen and oxygen atoms. This process can be expensive due to the expenditure required for energy needs. Moreover, handling hydrogen in terms of volume and mass requirements is difficult. Liquid hydrogen possesses high volume-to-energy property, for which hydrogen aircrafts need a larger fuel quantity than conventional fuels. Thus, such factors are expected to hamper growth of the global hydrogen aircraft market over the forecast period.

Large amount of investments needed for certification and approval processes to hinder the market growth

As much the process of developing a hydrogen-fueled aircraft is complex, the certification and approval processes for these aircrafts are equally complex and require high amount of investments. The processes of certification and approval are stringent, as the aircrafts have to be adhering to all the regulations around safety, emission, and economic conditions. Thus, this factor further impacts adoption of these aircrafts, which in turn is expected to hinder growth of the global hydrogen aircraft market over the forecast period.