The global hydrogen internal combustion engine (ICE) market was valued at US$ 18.2 Bn in 2023. It is projected to expand at a CAGR of 9.9% from 2024 to 2034 and surpass US$ 51.3 Bn by 2034, driven by increasing demand for clean fuel alternatives in heavy-duty transport and the rising focus on decarbonization.
Market Dynamics: The Shift Toward Zero-Emission Transport
The transportation sector is undergoing a major transformation as governments and industries worldwide shift toward net-zero emission targets. Hydrogen internal combustion engines have emerged as a key transitional technology in this journey, particularly for heavy-duty vehicles like trucks and buses that face limitations in fully electrifying their powertrains.
Hydrogen ICEs offer a compelling alternative by combining the familiarity of internal combustion systems with zero CO₂ emissions when using green hydrogen. These engines provide several advantages such as low pollutant emissions, low ignition energy, and high thermal efficiency through advanced technologies like in-cylinder direct injection and dual-channel turbocharging.
Surge in Hydrogen Truck Launches Accelerating Growth
The launch of hydrogen-powered trucks is fueling market expansion. Leading vehicle manufacturers are investing in hydrogen ICEs to reduce carbon footprints in logistics and long-haul operations.
In April 2024, MAN Truck & Bus unveiled the MAN hTGX, a hydrogen truck slated for release in 2025, targeting European markets including Germany and the Netherlands. Similarly, Cummins Inc. began production of its new hydrogen ICEs for Tata Motors at a new facility in Jamshedpur, India.
These advancements signal strong industry momentum and highlight the growing commercial interest in scalable, hydrogen-based combustion technology for real-world applications.
Clean Energy Adoption as a Core Driver
Hydrogen’s appeal lies in its clean-burning characteristics. When combusted, hydrogen produces only water vapor, making it an ideal substitute for fossil fuels. This aligns well with global climate initiatives aimed at reducing greenhouse gas emissions.
Governments are actively investing in hydrogen to decarbonize transport. In May 2024, the European Commission awarded €720 million to fund seven renewable hydrogen projects, reinforcing the EU’s commitment to green fuels. Likewise, the U.S. Department of Energy has committed US$ 7 billion to establish regional hydrogen hubs, supporting hydrogen production and distribution.
These efforts are creating a fertile policy and investment landscape for hydrogen ICE technologies.
Regional Insights: Asia Pacific Leading the Charge
Asia Pacific held the largest share of the hydrogen ICE market in 2023, driven by ambitious green hydrogen programs and technological advancements in countries like India and China.
India’s National Green Hydrogen Mission, launched in 2023, aims to establish the country as a global hub for green hydrogen production and electrolyzer manufacturing. Meanwhile, in China, the unveiling of a 100kg liquid hydrogen fuel system by China Aerospace is setting new standards in vehicle range—allowing trucks to travel 1,300km without refueling.
In contrast, Europe is bolstering hydrogen adoption through regulatory support. The European Hydrogen Bank, launched in 2023 with an initial €800 Mn fund, is supporting hydrogen producers with premium pricing structures to accelerate commercialization.
Market Challenges: Storage, Range & Regulatory Landscape
Despite rapid progress, the hydrogen ICE market faces challenges. Hydrogen’s low volumetric energy density means larger or pressurized tanks are needed, which can impact vehicle design and cost. Moreover, inconsistent regulatory frameworks across regions can slow adoption, although this is improving with proactive policies in Europe and Asia.
Technology costs, safety concerns, and infrastructure availability also remain key barriers. However, ongoing innovations and policy incentives are expected to gradually address these issues over the forecast period.
Competitive Landscape: Innovation at the Forefront
Leading companies are ramping up investments in hydrogen ICE development. Key players include:
- TOYOTA MOTOR CORPORATION – Launched the Hilux prototype hydrogen vehicle
- Cummins Inc. – Producing hydrogen ICEs for Tata Motors
- Yuchai International, AVL, INNIO Group, Rolls-Royce, DEUTZ AG, and Mazda – All contributing with strategic developments in hydrogen engine design and efficiency
These firms are pioneering technologies that facilitate homogeneous combustion, improved fuel efficiency, and enhanced engine stability, making hydrogen ICEs a commercially viable clean energy solution.
Outlook: Hydrogen ICEs as a Bridge to the Future
The hydrogen internal combustion engine market is poised for robust growth over the next decade. As global pressure mounts to reduce emissions from transportation, especially in heavy-duty applications, hydrogen ICEs offer a pragmatic and impactful solution. With rising investments, expanding hydrogen infrastructure, and accelerating vehicle deployments, hydrogen ICEs are set to become a key component in the clean energy ecosystem—bridging today’s technology with tomorrow’s sustainable mobility goals.
