Hydrogen IC Market Size, Share, By Vehicle Type, State Of Hydrogen, Technology, Power Output, Application, and Region - Trends, Analysis, and Forecast till 2035

• By 2024, the hydrogen IC market size was valued at USD 21.7 Billion.
• The projected target market size is USD 67.3 Billion by 2035.
• The market being targeted is growing at a CAGR of 10.3%.

Hydrogen IC engine represent an innovative approach to reducing carbon emissions by using hydrogen as fuel in modified conventional engines. Hydrogen IC market is expected to grow significantly due to the rising demand for sustainable transport solutions and advancements in hydrogen fueling infrastructure. This growth is underpinned by increasing government investments in hydrogen technology

For instance, In July 2024, Electric vehicle manufacturer Triton EV introduced a hydrogen internal combustion engine (ICE), which is integrated into various vehicle categories, from compact cars to large commercial trucks. Developed in India, the powertrain technology aims to provide an eco-friendly and zero-carbon-emission alternative to traditional gasoline engines.

Key Takeaways:

• North America held the largest share of the market in 2024. Owing to increasing investment and funding for different project.
• Europe is projected to be the fastest-growing market in the coming years. Due to increasing research and development activities across region.
• Globally the laws restricting greenhouse gas emissions from automobiles are becoming strict.
• Key industries such as automotive, heavy machinery, and power generations are increasingly integrating hydrogen IC technology.

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Key Drivers of Target Market:

Rising Demand for Clean Energy Solutions is expected to Drive Market Growth

Consumers are increasingly aware of the environmental impact of their choices, including transportation choices. This growing awareness drives demand for cleaner and more sustainable alternatives to traditional fossil fuel vehicles. IC hydrogen engines with low emissions are becoming the preferred choice of environmentally conscious consumers.  

• For instance, in June 2024, Plaksha University announced the launch of the Indorama Ventures Center for Clean Energy, a research center that aims to lead a clean energy transition through education and research. The maiden research center envisages supporting India’s transition to a net zero-carbon, self-reliant, and energy-secure future. It also contributes to global efforts in reducing carbon emissions through research, industry and government partnerships, and public awareness campaigns on clean energy.

Increasing Advancements in Fuel Cell Technology Propel Market Growth

The chemical energy in hydrogen can be transformed into electrical power by hydrogen fuel cells using an electrochemical process. Pure water and heat are the only products of this process where both can be diverted for beneficial use.  

• For instance, a standard combustion-based power plant, normally produces electricity with an efficiency of 33% to 35%, according to the U.S. Department of Energy in July 2023. Fuel cell systems, in contrast, have an efficiency of up to 60% when it comes to producing power.

Restrains:

Limited Infrastructure For Hydrogen Storage And Distribution Can Hamper Market Expansion

One of the major barriers to the broad use of hydrogen technologies is the present deficiency of infrastructure for hydrogen delivery and storage. Hydrogen's low density makes transportation difficult and necessitates expensive specialized storage methods.    

• For instance, in October 2024, according to recent research report by MDPI, the potential risks of hydrogen high-pressure storage include the risks that metals may become more brittle upon contact with hydrogen, the temperature may increase during fast infilling, and hydrogen leakage leads to detonation.           
• Counterbalance Statements: As more public and private organizations realize hydrogen's promise as a sustainable energy source they are investing more in hydrogen infrastructure. Further, there are ongoing projects to build refueling stations and upgrade storage technologies which increases accessibility and aid in the target market expansion.

Opportunities & Market Trends:

Advancements in Green Hydrogen Production to Boost Market Opportunities

The development of green hydrogen through electrolysis using renewable energy sources presents a major opportunity for the market expansion in the future.

• For instance, in February 2024, in preparation for its anticipated launch, Indonesia government set up its first hydrogen refueling station for automobiles that run on hydrogen. The hydrogen station is a component of Indonesia’s commitment to the development of new renewable energy and the future car ecosystem, which involves delivering green hydrogen for transportation needs, according to the president and director of the nation’s state owned electricity firm, PLN.

The hydrogen IC market is classified into vehicle type, state of hydrogen, technology, power output, application, and region.

Vehicle Type Insights:

Hydrogen IC market is divided into three segments based on vehicle type. Commercial vehicles, on-road vehicles, and others. It is projected that the On-Road Vehicles sector will accelerate the expansion of the intended market growth.

• For instance, in February 2024, In Korea, Hyundai and Kia introduced a hydrogen engine with zero emissions that could remake the EV industry. Both manufacturers are at the center of hydrogen technology development by focusing on fuel cell technologies and investigating the possibilities of advanced hydrogen engines.

State of Hydrogen Insights:

There are two segments in the state of hydrogen type, including liquid and gas. The gas segment dominates the most in the focused market trend as this form of hydrogen offers advantages, such as higher energy density and easier handling compared to liquid hydrogen.

For instance, Mitsubishi Heavy Industries Engine & Turbocharger (MHIET) has taken the next step in commercialization of a hydrogen-fuelled generator set in June 2024. Additionally, safety checks including associated criteria will be conducted which includes safe stop practices, venting tests to avoid gas buildup and leak detection and prevention throughout the IC engine.

Technology Insights:

Hydrogen IC market by technology is segmented into Compression Ignition (CI), Spark Ignition (SI) Engine, Dual-Fuel Engines, and Others. Spark Ignition (SI) Engine is expected to dominate the focused market as these engines with hydrogen produces near zero emission of CO2 and NOx when managed properly, which makes them attractive for applications aiming to meet strict environmental standards.

Power Output Insights:

The market for hydrogen IC is divided into three segments based on power output. Power below 100 kW, power between 100 kW and 300 kW, and power above 300 kW. power between 100 kW and 300 kW is expected to be the focus of market expansion since hydrogen ICE in the respected power range are best suited for commercial cars, buses, and trucks all of which are seeing growing adoption in the hydrogen transition.

Application Insights:

The Hydrogen IC market by application is segmented into automotive, power generation, and others. Due to significant investments made by major automotive firms in hydrogen IC technology, which seeks to produce hybrid systems and even pure hydrogen fuelled IC engines, further boosting the hydrogen IC market share.

Regional Insights

North America: This region is expected to fuel the target market growth due to increasing investment and funding during the forecast period.

• For instance, in June 2022, the U.S. Department of Energy (DOE) issued a Notice of Intent (NOI) to provide funding for the USD 8 billion program to create regional clean hydrogen hubs (H2Hubs) across the U.S. under the Bipartisan Infrastructure Law. To speed up the use of hydrogen as a clean energy carrier, H2Hubs will establish networks of hydrogen producers, consumers, and local connecting infrastructure.    

Europe: This region is also expected to boost the target market owing to increasing government initiatives to promote research and development.

• For instance, in July 2022, in accordance with EU state assistance regulations, the commission has authorized an important project of common European interest to promote research and development and the initial industrial implementation of hydrogen technology.   

Hydrogen IC Market Report Scope:

Segmentation:

By Vehicle Type:

• On-Road Vehicles
• Commercial Vehicles
• Others

By State of Hydrogen:

• Gas
• Liquid

By Technology:

• Compression Ignition (CI)
• Spark Ignition (SI) Engine
• Dual-Fuel Engines
• Others

By Power Output:

• Power Below 100 kW
• Power Between 100 kW and 300 kW
• Power Above 300 kW

By Application:

• Automotive
• Power Generation
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherland
  • Switzerland
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Company Profile:

The key players operating in the hydrogen IC market include GARRETT MOTION INC., BeHydro, DEUTZ AG, and MAN Energy Solutions, among others. The key players operating in market are adopting strategies, such as innovations in hydrogen storage, high efficiency hydrogen IC engines, and partnerships with fuel cell developers for their product development, ensuring competitive advantage in the market.

• For instance, in October 2024, Hyundai demonstrates its unwavering dedication to hydrogen mobility and sustainability with the introduction of the INITIUM hydrogen fuel cell electric concept vehicle. The idea embodies Hyundai Motor's customer-centric philosophy and highlights the company's new design language, Art of Steel.

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• In October 2024, According to recent reports, Ashok Leyland, an Indian truck manufacturer, anticipated that the first of its trucks with hydrogen engines would leave the assembly lines in next two years.
• In May 2024, Volvo introduced trucks with IC engines that run on hydrogen. Volvo's range of alternative vehicles, including battery electric trucks, fuel cell electric trucks, and trucks that run on renewable fuels, will be enhanced by the hydrogen-powered combustion engine trucks.
• In July 2024, Electric vehicle manufacturer Triton EV introduced a hydrogen internal combustion engine (ICE), which is integrated into various vehicle categories, from compact cars to large commercial trucks. Developed in India, the powertrain technology aims to provide an eco-friendly and zero-carbon-emission alternative to traditional gasoline engines.

Analyst View:

Hydrogen fueled internal combustion engines (ICEs) presents a viable solution for long haul and heavy duty applications where electric batteries struggle with range and recharging times. The automotive sector especially trucking and heavy machinery is likely to remain a dominant factor for focused market growth due to hydrogen rapid refueling a high energy density advantages over electric batteries.

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• GARRETT MOTION INC.
• BeHydro
• DEUTZ AG
• MAN Energy Solutions
• Cummins Inc.
• Hyundai Motor Company
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• Kawasaki Heavy Industries, Ltd.
• Toyota Motor Corporation
• Mazda Motor Corporation
• BMW Group
• The Liebherr Group
• J C Bamford Excavators Ltd.
• YANMAR HOLDINGS CO., LTD.
• AVL
• AB Volvo Penta
• KEYOU GmbH