Hydrogen Combustion Engine Market Trends in 2025 Highlight Spark Ignition Engines as Dominant Segment

Hydrogen Combustion Engine Market Size, Analysis, Demand and Growth Rate Forecast

The hydrogen combustion engine market is predicted to expand from USD 44.05 billion in 2025 to USD 102.18 billion by 2034, growing at a CAGR of 9.80% during the forecast period from 2025 to 2034. The demand for sustainable and decarbonized transportation solutions has increased, driving the adoption of hydrogen-combustion engines. The rapid shift to clean energy and reduction in fossil fuel reliance has shifted the government's focus to investing in hydrogen infrastructure. Government worldwide promoting strict emission regulations and the goal of decarbonization targets contributes to rising demands for hydrogen combustion engine (H2-ICE).

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Introduction

The global hydrogen combustion engine Market refers to the growing industry segment focused on developing and deploying internal combustion engines (ICEs) that use hydrogen gas as fuel instead of conventional fossil fuels. Unlike fuel cells, hydrogen ICEs retain much of the existing engine architecture but burn hydrogen to generate mechanical energy. This approach offers a transitional solution for decarbonizing transport and industrial applications, especially where electric or fuel cell alternatives face infrastructural or performance barriers.

Driven by climate change mandates, zero-emission regulations, and growing interest in alternative clean fuels, the hydrogen combustion engine market is gaining momentum across industries like transportation, agriculture, mining, and power generation. It serves as a potential bridge between the current ICE infrastructure and future fully electric or fuel cell systems.

Highlights of the Global Hydrogen Combustion Engine Market

• Europe generated the highest revenue of the global hydrogen combustion engine market with a share of around 40%.
• Asia Pacific is expected to rise with the highest CAGR during the forecast period.
• By engine type, the spark-ignition hydrogen engines segment led the market with a share of around 60%.
• By engine type, the direct injection hydrogen engines segment is expected to rise with the highest CAGR during the forecast period.
• By power output, the 100–250 kW segment led the market with a share of around 45%.
• By power output, the >250-kW segment is expected to grow with the fastest CAGR during the forecast period.
• By application, the road vehicles (heavy-duty trucks) segment dominated the market with a share of around 50%.
• By application, the power generation segment is expected to rise with the fastest CAGR during the forecast period.
• By end-use industry, the transportation & logistics segment led the industry with a share of around 55%.
• By end-use industry, the construction & mining segment is expected to grow with the highest CAGR during the forecast period.
• By fuel type, the pure hydrogen segment led the industry with a share of around 70%.
• By fuel type, the hydrogen blends segment is expected to grow with the highest CAGR during the forecast period.

Key Metrics and Overview

What are the Key Trends of the Global Hydrogen Combustion Engine Market?

Investments in R&D

• Governments worldwide and companies are investing heavily in hydrogen production, distribution infrastructure, and storage. For instance, in April 2024, MAN Truck and Bus (MAN) announced its small-scale production of the hydrogen model of the MAN diesel TGX truck, under a strategic plan to provide 200 units in 2025. (Source: NFINEUM)

Hydrogen Infrastructure Developments

• The increased demand for hydrogen-combustion engines has led companies to focus on the development of hydrogen infrastructure. For instance, in January 2025, Tata Motors and its partner IOCL entered the 18-month project of the National Green Hydrogen Mission to collect efficient data for enhancements of the hydrogen product and infrastructure. (Source: The Economic Times)

Hybrid System Integration

• Manufacturing companies are developing a hybrid system to combine hydrogen internal combustion engines with electric powertrains. For example, in April 2025, Cummins Inc. launched its novel turbocharger for a hydrogen internal combustion engine for heavy-duty commercial on-highway transportation in Europe. (Source: Cummins)

Segment Insights

Engine Type Insights

Which Engine Type Dominated the Global Hydrogen Combustion Engine Market?

In 2024, the spark-ignition hydrogen engines segment dominated the market, due to its ability to use existing engine platforms with modifications. The spark-ignition hydrogen engines reduce carbon emissions compared to conventional engines, making them an ideal type for transportation and logistics.

The direct injection hydrogen engines segment is the second-largest segment of the market, driven by its higher power output and efficiency. The high-pressure direct injection is gaining popularity in hydrogen combustion engines for efficient fuel injection and combustion. The direct injection enhances engine performance and reduces carbon emissions.

Power Output Insights

Why the 100–250 kW Segment Dominated the Global Hydrogen Combustion Engine Market in 2024?

The 100–250 kW segment dominated the market in 2024, due to its wide use in applications like heavy-duty vehicles, such as trucks and buses. The 100–250 kW power range strikes a balance between power output and application versatility. The wide use of 100–250 kW power for power generation, heavy machinery, and construction equipment contributes to segment growth.

The >250-kW segment is the fastest-growing segment of the market, driven by its use in heavy-duty vehicles, high-power applications, and power generation. The >250-kW power range is suitable for large-scale industrial power generation applications like grid stabilization and backup power systems.

Application Insights

Which Application Leads the Global Hydrogen Combustion Engine Market in 2024?

The road vehicles (heavy-duty trucks) segment led the market in 2024, due to increased demand for sustainable and low-emission alternatives to conventional engines in road vehicles. The rising environmental concern and the need to comply with strict regulations contribute to segment growth.

The power generation segment is expected to grow fastest over the forecast period, due to increased prioritization of clean power sources in the automotive industry. The hydrogen combining engines are highly reliable and flexible for power generation and use in applications like backup power systems and grid stabilization.

End-use Industry Insights

What Made Transportation & Logistics Dominate the Global Hydrogen Combustion Engine Market in 2024?

In 2024, the transportation & logistics segment dominated the market, due to increased use of hydrogen-combining engines in transportation & logistics, especially heavy-duty vehicles. The demand for sustainable transportation has increased. Government initiatives in hydrogen infrastructure enabling the adoption of the hydrogen-combining engine in transportation & logistics.

The construction & mining segment is expected to lead the segment in the forecast period, due to increased use of hydrogen-powered machinery in the construction and mining sector, driven by increased demand for sustainable and zero-emission solutions. The hydrogen combustion engine is suitable for heavy-duty equipment and machinery used in construction & mining.

Fuel Type Insights

Which Fuel Type Dominates the Global Hydrogen Combustion Engine Market?

The pure hydrogen segment dominated the market in 2024, due to a growing focus on decarbonisation and demand for clean energy sources in various industries. The hydration combination engine provides a zero-carbon emission mix; it is a suitable solution in sectors like transportation and power generation.

The hydrogen blends segment is the second-largest segment, leading the market, due to its crucial role in enhancing engine performance and reducing emission footprints. The mix blend, such as hydrogen-biofuel blends, hydrogen-diesel blends, and hydrogen-gasoline blends, is gaining significant traction in the global market.

Geographical Insights

How Europe Dominated the Global Hydrogen Combustion Engine Market in 2024?

Europe dominates the global hydrogen combination engine market due to its robust commitment to greenhouse gas emission reduction and focus on sustainable energy solutions. The European Union’s Green Deal is committed to achieving climate neutrality by 2050. The strong existence of key market players like Toyota and JCB is bringing significant innovations, development, and certifications in the hydrogen combustion engine. The ongoing technological advancements, like battery electric vehicles and fuel cell vehicles, are further contributing to the market growth.

Germany is a major player in the regional market, contributing to the growth due to the country’s robust manufacturing base, with a focus on environmental concerns and strict regulatory requirements. Germany's commitment to reducing carbon emissions has boosted areas of innovation and development in hydrogen combustion engine solutions.

Asia Pacific Hydrogen Combustion Engine Market

Asia Pacific is the fastest-growing region in the global market, driven by the region's growing environmental concerns and shift toward clean transportation solutions. Governments in countries like China, India, South Korea, and Japan have implemented several policies and investments for hydrogen infrastructure. The demand for sustainable energy solutions has boosted innovations in hydrogen combustion engines. Technological advancements like hydrogen production, storage, and engine designs are fostering the market growth.

China is a major player in the regional market, contributing to the growth due to the country's strong focus on fuel cell technology and investments in hydrogen production and storage. The strong automotive industry and manufacturing base contribute to the adoption of zero-emission solutions, including hydrogen combustion engines.

China’s government has targeted 50,000 FCEVs to be on the road by 2025, along with 100,000-200,00 tonnes of annual renewable operations of hydrogen production capacity. (Source: Hydrogen Insight)

Industry Leader’s Announcements

• In March 2025, John Krzeminski, Co-founder & CTO of Alpha-Otto Technologies, announced that “the demonstration of the Company's patented operating methodology has cleared the limited role of hydrogen-powered engines. He explained that hydrogen-enabled engines are a groundbreaking innovation for the clean energy transition.” ( Source: Fuelcellsworks)
• In January 2025, Lord Bamford, JCB Chairman, said, “JCB started its new year with its spectacular approval for hydrogen combustion technology in place in various European countries.” ( Source: JCB)

Recent Developments

• In March 2025, Alpha-Otto Technologies (AOT) showcased its REV Force engine technology for clean, resilient power generation. These technologies stabilize the hydrogen combustion with high-power output and zero carbon emissions. (Source: Fuel Cells Works)
• In January 2025, JCB received approval for its fully working hydrogen combustion engine from multiple European licensing authorities. The JCB is the world’s first construction equipment company to develop a hydrogen combustion engine with a 150-engine team. (Source: JCB)
• Hyundai and Kia are leaning into the innovations of hydrogen combustion engine technologies in 2025. The company has collaborated to comply with stringent Euro 6d emissions standards. Hyundai and Kia are partnering with prominent companies, including W.L. Gore & Associates, to enhance their expertise in fuel cell technology. This partnership is aiming to improve PEM technology for electric vehicles, with Gore’s expertise in PEM and related technologies.
• Volvo has unveiled its plan to test hydrogen engines in trucks by 2026. The company aims that the engine will match diesel trucks in reliability and performance, while traveling about 1,000km, while reducing carbon footprints. These trucks are equipped with fuel cells with a production of 300 kW, making them suitable for hauling heavy loads.(Source: Carbon Click)

Key Hydrogen Combustion Engine Market Players

• Toyota Motor Corporation
• Cummins Inc.
• Yamaha Motor Co., Ltd.
• Kawasaki Heavy Industries
• BMW Group (Hydrogen ICE R&D)
• MAHLE GmbH
• Liebherr Group
• MAN Energy Solutions
• Caterpillar Inc.
• Westport Fuel Systems
• Hyundai Motor Company
• Isuzu Motors Ltd.
• AVL List GmbH
• FEV Group
• Ricardo plc
• INNIO Jenbacher
• Mitsubishi Heavy Industries
• Rolls-Royce Power Systems
• Hino Motors
• JCB (Construction Equipment with H2 ICE)

Hydrogen Combustion Engine Market Segments

By Engine Type

• Spark-Ignition Hydrogen Engines
• Compression-Ignition (Dual-Fuel) Hydrogen Engines
• Direct Injection Hydrogen Engines

By Power Output

• <100 kW
• 100–250 kW
• >250 kW

By Application

• Road Vehicles (Trucks, Buses, Cars)
• Off-Road Vehicles (Construction, Agriculture, Mining Equipment)
• Marine Engines
• Power Generation (Stationary Engines)
• Locomotives

By End-Use Industry

• Transportation & Logistics
• Agriculture
• Construction & Mining
• Power Utilities
• Marine
• Industrial Manufacturing

By Fuel Type

• Pure Hydrogen
• Hydrogen Blend (with natural gas or diesel)

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa