Hydrogen Ic Engines Market Report

Market Insights

“The Global Hydrogen IC Engines Market size was US$ 12.2 million in 2024 and is likely to grow at an excellent CAGR of 34% in the long run to reach US$ 69.77 million in 2030.”

Market Dynamics

Introduction

Hydrogen internal combustion engines (H2-ICEs) are engines that use hydrogen gas as a fuel to generate power through combustion, similar to conventional gasoline or diesel engines. These engines burn hydrogen in the presence of air, producing water vapor as the primary emission, offering a low-carbon alternative for transportation and industrial applications. H2-ICEs retain most of the mechanical structure of traditional IC engines, allowing manufacturers to adapt existing engine platforms with fewer changes compared to switching to fuel cells or electric drivetrains.

With growing emphasis on decarbonization, hydrogen IC engines are emerging as a promising solution for sectors where full electrification is challenging, such as heavy-duty vehicles, shipping, rail, and off-road machinery. The global hydrogen IC engines market focuses on developing and commercializing internal combustion engines that run on hydrogen fuel, using hydrogen’s clean-burning properties to reduce carbon output. The market is gaining momentum due to strict emissions regulations, growing interest in hydrogen as a clean energy source, and the need for sustainable transport and industrial solutions.

Drivers

Government Policies and Emissions Regulations
The rising global pressure to reduce emissions has put pressure on governments and the private sector, causing a surge of investments in hydrogen R&D and infrastructure. This surge in funding has directly accelerated the commercialization of hydrogen technologies. For example, Japan’s national commitment to a “hydrogen society,” along with Toyota’s vehicle innovations, illustrates how policy-driven support leads to industrial-scale implementation. Collaborative initiatives like the EU’s Hydrogen Strategy and the Hydrogen Council further amplify innovation and standardization by pooling resources and expertise. Also, Governments worldwide are implementing stringent greenhouse gas (GHG) emission norms, forcing Original Equipment Manufacturers (OEMs) to innovate and develop cleaner technologies. For instance, the European Union's Green Deal aims to make the region climate-neutral by 2050. This regulatory pressure has led to increased interest in hydrogen-powered vehicles, including trucks and buses, where long-range capability and quick refuelling are critical factors.

Cost-effective transition from traditional engines
The upgradation of existing internal combustion engines to run on hydrogen presents a cost-effective solution for industries aiming to reduce carbon emissions without the need for entirely new fleets or infrastructure. This approach is particularly attractive to industries like transportation and logistics, where fleet upgradation is often a major investment. Additionally, the existing ICE supply chain can be utilized efficiently, reducing research and development costs and accelerating the adoption of hydrogen internal combustion engines.

Challenges

Safety Concerns
Despite its environmental advantages, hydrogen faces serious safety challenges due to its high flammability and wide ignition range. These characteristics make hydrogen prone to combustion in the event of leaks, raising concerns across transportation and industrial sectors. While modern systems incorporate reinforced tanks and leak detection mechanisms, the potential for fire or explosion continues to hinder consumer and industry confidence. Hydrogen fuelling stations must operate under strict safety protocols, which increases the complexity and cost of infrastructure development. Thus, while safety technologies have improved, the risk perception associated with hydrogen use continues to be a limiting factor for broader market adoption.

Complexities in Storage and Distribution
The technical and economic difficulties associated with storing and distributing hydrogen pose serious barriers to its widespread use.  Existing techniques like liquefaction and compression require specialized infrastructure and a significant amount of energy.  For example, liquefaction requires cryogenic systems to maintain extremely low temperatures, while compressed hydrogen requires high-pressure storage tanks and sophisticated compression equipment. The low energy density of hydrogen in comparison to other fuels makes its widespread use even more challenging.  To enable the widespread deployment of hydrogen technology, many obstacles must be overcome, including the requirement for coordinated investment in storage facilities and distribution networks.

Opportunities

Rising Consumer Environmental Awareness
The increasing public focus on environmental sustainability is creating new market opportunities, particularly in transportation. Demand for low-emission alternatives is rising as consumers become more conscious of climate change and air pollution. Hydrogen-powered vehicles, emitting only water vapour, are gaining appeal as sustainable options. A Deloitte survey reveals that 77% of global consumers are willing to pay a premium for green automotive features. Technological improvements have narrowed the gap between hydrogen and gasoline vehicles in terms of range and refuelling speed, for example, the Toyota Mirai, which offers over 400 miles of range and rapid refuelling comparable to gasoline. This alignment between environmental values and technological feasibility is creating a favourable market environment for hydrogen solutions.

Recent Product Development:

• In May 2024, Cummins Inc., a global power and technology leader, completed its acquisition of Meritor, Inc., a prominent supplier of drivetrain, mobility, braking, and electric powertrain solutions for commercial and industrial markets. This acquisition enhances Cummins' capabilities, solidifying its position as a key provider of integrated powertrain systems for both internal combustion and electric vehicle applications.
• In October 2023, MAN Energy Solutions announced a collaboration with leading industry players and research institutions to develop hydrogen-fueled, medium-speed engine concepts for the maritime sector. The project, titled ‘HydroPoLEn,’ is backed by the German Federal Ministry for Economic Affairs and Climate Action. It aims to transform marine propulsion by advancing critical technologies, including hydrogen injection, ignition systems, and advanced tribology.

Segment Analysis

“During the projected period, liquid is anticipated to be the largest sector by state.”

The liquid hydrogen segment is anticipated to be the largest by state during the forecast period, driven by its superior energy density and storage efficiency compared to gaseous hydrogen.  Liquid hydrogen enables longer driving ranges and is better suited for heavy-duty applications such as commercial transport, aerospace, and large-scale industrial operations.  It is a viable option for cross-regional distribution and fueling infrastructure due to its more compact storage and transportation quantities, which promotes the wider use of hydrogen internal combustion engines in a variety of high-demand industries.

By Application Type

“During the projected period, the Transportation segment in application type is anticipated to be the largest segment.”

Due to the growing need for cleaner fuel substitutes for conventional engines in heavy-duty trucks, off-road equipment, and commercial vehicles, the transportation sector is anticipated to dominate the market for hydrogen internal combustion engines.  In addition to using current engine technologies, hydrogen-powered internal combustion engines (ICEs) provide reduced emissions, making them a viable and expandable option for decarbonizing the transportation industry.

Regional Analysis

“North America is expected to be the dominant and fastest-growing region over the forecasted period due to partnerships with other countries, such as US and Canada, which are also investing heavily in hydrogen IC engines technologies.”

The market for hydrogen internal combustion engines (IC) is dominated by North America, which is also expected to grow at the fastest rate between 2024 and 2030. Strong Investments and strategic alliances, especially with the United States and Canada, are driving the growth of a strong international supply chain and speeding up the development of hydrogen internal combustion engine technologies.

Key players

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the global hydrogen IC engines market - 

Here is the list of the Top Players (Alphabetically)

• BeHydro
• Cummins Inc.
• DEUTZ AG
• GARRETT MOTION INC.
• Kawasaki Heavy Industries, Ltd.
• MAN Energy Solutions
• Mazda Motor Corporation
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• Reliance Industries Ltd
• Rolls-Royce plc
• Toyota Motor Corporation
• Wärtsilä

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The global Hydrogen IC Engines Market is segmented into the following categories. 

Global Hydrogen IC Engines Market, by Blending Type

• Mix Blend (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Pure Hydrogen (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Hydrogen IC Engines Market, by State

• Gas (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Liquid (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Hydrogen IC Engines Market, by Application Type

• Transportation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Power generation (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Hydrogen IC Engines Market, by Power Rating

• Low (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• Medium (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
• High (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)

Global Hydrogen IC Engines Market, by Region

• North America (Country Analysis: The USA, Canada, and rest of North America)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Middle East & Africa (Country Analysis: UAE, Saudi Arabia, and Others)
  • Rest of the World (Country Analysis: Turkey, Sweden, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s global hydrogen IC engines market realities and future market possibilities for the forecast period.

• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
  • We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]