Hydrogen Combustion Engine Market Report 2026

The hydrogen combustion engine market size has grown rapidly in recent years. It will grow from $47.1 billion in 2025 to $52.11 billion in 2026 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to emission reduction regulations, dependence on fossil fuel engines, internal combustion engine dominance, automotive manufacturing scale, early hydrogen research programs.

The hydrogen combustion engine market size is expected to see rapid growth in the next few years. It will grow to $79.39 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to government hydrogen roadmaps, investment in clean combustion technologies, commercial fleet decarbonization, hydrogen fuel availability expansion, low carbon mobility demand. Major trends in the forecast period include development of hydrogen ready ice platforms, focus on engine efficiency optimization, adaptation of existing ice architectures, expansion of pilot fleets and demonstrators, integration with hybrid powertrains.

The increasing use of fuel-cell cars is expected to propel the growth of the hydrogen combustion engine market going forward. Fuel-cell cars are electric vehicles that generate electricity for propulsion using hydrogen fuel cells. They are more efficient than conventional internal combustion engines and produce no harmful exhaust emissions. The rising adoption of fuel-cell cars is driving demand for hydrogen combustion engines. For instance, in January 2024, according to the U.S. Department of Energy, a US-based government agency, plug-in electric vehicles accounted for 9.8% of all light-duty vehicle sales in December 2023, up from 7.8% in December 2022. Throughout 2023, plug-in vehicles consistently made up at least 8% of monthly sales, whereas in 2022 their share ranged between 5.5% and 7.8%. Therefore, the growing use of fuel-cell cars is boosting the hydrogen combustion engine market.

Major companies in the hydrogen combustion engine market are developing innovative technologies such as advanced hydrogen fuel cell systems to enhance performance and reduce emissions. Advanced hydrogen fuel cell systems generate electricity by combining hydrogen and oxygen, producing only water as a byproduct, and efficiently powering vehicles while lowering greenhouse gas emissions. For example, in February 2023, Bayerische Motoren Werke AG (BMW), a Germany-based luxury vehicle manufacturer, launched its first hydrogen-operated BMW iX5 Hydrogen models. BMW developed specialized hydrogen components for its fuel cell system, including intercoolers, air filters, control units, and sensor technologies, designed to optimize performance while paralleling elements of conventional combustion engines.

In February 2023, Reliance Industries Limited (RIL), an India-based manufacturing company, partnered with Ashok Leyland Limited to introduce India’s first heavy-duty truck powered by hydrogen combustion engine technology. This collaboration aims to promote sustainable transportation solutions, accelerate adoption of hydrogen-powered commercial vehicles, and reduce carbon emissions in India’s logistics sector. Ashok Leyland Limited is an India-based manufacturer of commercial vehicles and engines.

Major companies operating in the hydrogen combustion engine market are Toyota Motor Corporation, Stellantis N.V., Ford Motor Company, General Motors Company, Honda Motor Co., Ltd., Hyundai Motor Company, Cummins Inc., Caterpillar Inc., MAN Energy Solutions SE, Rolls-Royce Holdings plc, Mitsubishi Heavy Industries, Ltd., Komatsu Ltd., Mahindra & Mahindra Limited, AGCO Corporation, Renault S.A., Mazda Motor Corporation, Yamaha Motor Co., Ltd., AVL List GmbH, Bosch Mahle Turbo Systems GmbH & Co. KG, Liebherr Group, DEUTZ AG, Scania AB, IVECO Group N.V., Ricardo plc, Origin Engines Inc.

North America was the largest region in the hydrogen combustion engine market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hydrogen combustion engine market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydrogen combustion engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hydrogen combustion engine market consists of sales of combustion chambers, cylinder heads, installation parts, intake systems, fuel injection systems, ignition systems, crankshafts, pistons or rotors, and control and monitoring systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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