Report Overview

The rising environmental concerns, increasing government support, and rapid infrastructure development are expected to drive India Hydrogen Bus Market during the forecast period between 2025 and 2031.

India Hydrogen Bus Market – Industry Trends & Forecast Report, 2031

India Hydrogen Bus Market size was estimated at USD 186.74 million in 2024. During the forecast period between 2025 and 2031, India Hydrogen Bus Market size is projected to grow at a CAGR of 23.5% reaching a value of USD 818.31 million by 2031. Prominent drivers of India Hydrogen Bus Market include the country's strong push for sustainable public transport, rising environmental concerns, and government-led initiatives to reduce carbon emissions. A recent demonstration of a green hydrogen fuel cell bus to the Prime Minister of Bhutan highlights India's commitment to clean mobility and its readiness to collaborate on regional green energy initiatives. Backed by the Ministry of Petroleum & Natural Gas and IndianOil, the event showcased the country’s advancements in hydrogen technology, including hydrogen blending, localized electrolyzer production, and bio-pathways for green hydrogen. Hydrogen-powered buses are gaining momentum as India seeks to lower urban pollution levels, enhance energy security, and meet its climate goals. With the support of robust regulatory frameworks and expanding hydrogen infrastructure, the market is witnessing rising deployment of hydrogen buses in key regions such as Delhi NCR and Vadodara. IndianOil’s leadership in operating fuel cell buses and developing dispensing stations underlines its pivotal role in the transition to eco-friendly transportation. As India aims to become a global hub for green hydrogen, hydrogen buses are expected to play a crucial role in decarbonizing the urban transport system.

Hydrogen Bus – Overview

A hydrogen bus is a type of electric vehicle that uses hydrogen fuel cells to generate electricity, which powers an electric motor for propulsion. Unlike traditional buses, it emits only water vapor as a byproduct, making it an eco-friendly alternative to diesel-powered public transport. Hydrogen buses offer advantages such as quick refueling, longer driving ranges, and reduced greenhouse gas emissions, making them ideal for sustainable urban and intercity mobility.

India Hydrogen Bus Market

Growth Drivers

Increasing Government Support

India Hydrogen Bus Market is witnessing strong momentum driven by increasing government support, particularly through the National Green Hydrogen Mission. In a major move to promote sustainable transportation, the government launched five pilot projects involving 37 hydrogen-powered buses and trucks, including fuel cell and internal combustion engine variants. These vehicles will operate across ten designated routes nationwide, supported by the development of nine hydrogen refueling stations. The Ministry of New and Renewable Energy has allocated INR 208 crore to fund these projects, which are expected to become operational within 18–24 months. Major industry players such as Tata Motors, Reliance Industries, NTPC, and Indian Oil Corporation have been tasked with implementing these initiatives. The objective is to evaluate the technical and economic viability of hydrogen-powered transport while demonstrating safe and efficient operation in real-world conditions. This strategic government backing not only fosters innovation and infrastructure development but also positions hydrogen buses as a key solution in India’s broader clean energy and decarbonization goals, significantly boosting market growth in the coming years.

Challenges

High Initial Costs

The growth of India Hydrogen Bus Market is restrained by the high initial costs associated with hydrogen fuel cell technology. The expensive manufacturing processes, costly raw materials like platinum used in fuel cells, and the need for specialized infrastructure such as hydrogen production, storage, and refueling stations contribute to substantial upfront investment. These financial barriers limit widespread adoption, especially among smaller operators and regional transport providers. Additionally, the high capital expenditure compared to conventional diesel or electric buses slows market penetration, making affordability a key challenge for scaling hydrogen bus deployment across India’s public transportation networks.

Impact of Escalating Geopolitical Tensions on India Hydrogen Bus Market

Escalating geopolitical tensions could significantly impact the growth of India Hydrogen Bus Market by disrupting global supply chains for critical raw materials and components needed for hydrogen fuel cell technology. Trade restrictions and increased tariffs may raise costs for essential materials like platinum and rare earth metals, slowing production and deployment of hydrogen buses. Additionally, strained international relations can delay technology transfers and cross-border collaborations vital for infrastructure development. Such uncertainties may deter investment and delay government projects, ultimately hindering the market’s growth momentum. Therefore, geopolitical stability is crucial for sustaining the expansion of India’s hydrogen bus ecosystem and achieving long-term clean transportation goals.

India Hydrogen Bus Market

Segmental Coverage

India Hydrogen Bus Market – By Technology Type

Based on technology type, India Hydrogen Bus Market is bifurcated into Proton Exchange Membrane Fuel Cell Buses and Phosphoric Acid Fuel Cell Buses segments. The proton exchange membrane fuel cell buses segment holds higher share in India Hydrogen Bus Market by technology type. PEM fuel cells (PEMFC) are gaining prominence due to their efficiency, compact size, and environmentally friendly operation, producing only water vapor as a by-product. They offer a reliable and clean energy alternative, demonstrated notably through innovative applications such as hydrogen fuel cell-based backup power for telecom towers, supporting India’s renewable energy goals and ensuring uninterrupted connectivity. Leading companies like Tata Motors have successfully developed and deployed hydrogen fuel cell buses in collaboration with industry and government partners, marking a significant step toward sustainable, zero-emission public transport in India. The development and commercialization of PEMFC technology are critical to advancing hydrogen-powered mass transit in urban areas and achieving the nation’s clean mobility aspirations.

India Hydrogen Bus Market – By Power Output

On the basis of power output, India Hydrogen Bus Market is divided into Below 150kW, 150-250kW, and Above 250kW segments.

India Hydrogen Bus Market – By Application

India Hydrogen Bus Market by application is segmented into Public Transit Buses, Corporate & Institutional Transport, and Intercity Coaches segments.

India Hydrogen Bus Market – By Region

The in-depth research report on India Hydrogen Bus Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. North India holds the highest share in India Hydrogen Bus Market and is expected to maintain its dominance during the forecast period, riven by initiatives such as IndianOil Corporation’s pioneering trial of hydrogen fuel cell buses in Delhi. Beginning with two buses and planned to expand to a fleet of 15 operating across Delhi, Haryana, and Uttar Pradesh, these buses utilize advanced polymer electrolyte membrane fuel cells, offering quick refueling times and a range of approximately 350 km per full tank. The hydrogen fuel is produced sustainably at IndianOil’s green hydrogen facility through renewable energy-powered electrolysis, supporting India’s green energy ambitions. This initiative addresses the region’s critical pollution challenges, particularly Delhi’s severe winter smog caused largely by vehicular emissions, by providing an eco-friendly alternative that emits only water vapor. In addition to reducing emissions, the hydrogen buses offer improved reliability compared to the aging diesel and CNG buses, enhancing public transport appeal. The collaboration among IndianOil, Tata Motors, and government agencies exemplifies a strategic push towards a green hydrogen economy that is expected to generate significant employment, reduce fossil fuel imports, and attract substantial investments. This strong regional focus and coordinated effort position North India as the leading market for hydrogen buses, reinforcing its anticipated dominance in the sector throughout the forecast period.

Competitive Landscape

Major players operating in India Hydrogen Bus Market include IndianOil Corporation Ltd. (IOCL), Tata Motors, Ashok Leyland, Hindustan Aeronautics Limited (HAL), Larsen & Toubro (L&T), Ballard Power Systems, Bharat Heavy Electricals Limited (BHEL), and Indian Railways (pilot projects). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2025 - Under the National Green Hydrogen Mission, the Indian government approved five pilot projects to introduce hydrogen-powered buses and trucks across ten major routes, including Delhi–Agra, Pune–Mumbai, and Kochi–Edappally. The initiative involves 37 hydrogen vehicles—15 fuel cell and 22 internal combustion engine-based—alongside nine refueling stations. Key players like Tata Motors, Reliance Industries, and Indian Oil are participating. With INR 2.08 billion allocated, the projects aim to validate the commercial viability, safety, and efficiency of hydrogen transport.

Scope of the Report

By Technology Type

• Proton Exchange Membrane Fuel Cell Buses

• Phosphoric Acid Fuel Cell Buses

By Power Output

• Below 150kW

• 150-250kW

• Above 250kW

By Application

• Public Transit Buses

• Corporate & Institutional Transport

• Intercity Coaches

By Region

• North India

• South India

• East India

• West India