Hydrogen Combustion Engine Market Growth Analysis, Emerging Trends & Future Projections to 2037

Research Nester's latest report, " Global Hydrogen Combustion Engine Market: Supply & Demand Analysis, Growth Forecasts & Statistics Report 2026-2037," delivers a comprehensive overview of market trends, drivers, and segment-level insights. The report categorizes the market by technology, type, power output, and application, while examining the rising adoption of hydrogen-powered combustion engines. It highlights the growing influence of environmental regulations, demand for sustainable hydrogen combustion engines in the heavy-duty commercial transportation sector, and sustainability-driven innovations that are reshaping the landscape of hydrogen combustion engines worldwide.

According to a recent study by Research Nester, the global hydrogen combustion engine market size is projected to cross USD 155.8 billion by 2037, expanding at a CAGR of 10.2% during the forecast period 2026-2037.

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Rising Low-Investment Projects by Governments Fuel The Hydrogen Combustion Engine Market Growth

The widespread availability of the existing infrastructure of internal combustion engines provides the opportunity to leverage hydrogen into the same. Thus, the production of hydrogen combustion engines is likely to cost less compared to alternative propulsion systems, including electric vehicles and vehicles equipped with fuel cell engines. Low production costs of hydrogen combustion engines eliminate the entry barriers for manufacturers. Low production cost is expected to keep the costs of the finished products lower, which is likely to lead to an increased adoption of the technology by consumers.

By undertaking promotional projects, governments are supporting automotive companies and entrepreneurs to be involved in the production of hydrogen combustion engines, fueling the market's growth. According to the report by the Press Information Bureau in March 2026, the government of India undertook five pilot projects as part of its National Green Hydrogen Mission to encourage the use of hydrogen in buses and trucks. A total of 22 vehicles that are equipped with hydrogen combustion engines were approved by the government for trial.

Key Drivers and Challenges Impacting the Additives Market
Growth Drivers:

• The familiarity of the internal combustion engine among people engaged in the automotive sector
• The reliability of hydrogen combustion engines even in cold weather conditions
• Suitability of hydrogen combustion engines to be integrated in various types of vehicles
Challenges:
• The need to use fossil fuels in the manufacturing of hydrogen combustion engines
• The refueling infrastructure related to hydrogen combustion costs relatively high

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The proton membrane exchange (pem) segment is expected to account for a 60.2% market share by the end of 2037, owing to its high capacity to tolerate CO concentration. Rapid involvement of companies in the mass production of the technology also fuels the segment dominance. For instance, in June 2026, a leading company, Doosam, announced the development of a new hydrogen fuel cell model using biogas. This indicates that companies are not only maintaining the dominance of the segment in terms of productivity, but also sustainability.

North America is anticipated to emerge as an expanding hydrogen combustion engine market at a 48.7% market share during the forecast period, due to stringent regulatory mandates for decarbonization. Involvement of companies across the region in producing relevant technologies is also boosting the market growth. For example, in September 2023, BASF unveiled its partnership with ZeroAvia for the development of the high-temperature proton exchange membrane (HT-PEM) fuel cells. The technology is suitable for incorporation into hydrogen-fueled aviation.

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The global market is highly competitive, and with the acquisition of the majority of the revenue share, larger businesses keep the market fragmented. However, the emergence of new start-ups makes the market concentrated at the same time. Commonalities between the key players in the market include focus on research and development, activities to increase the production of the hydrogen combustion engines, and enhance the capacity of the engines. Phosphoric Acid Fuel Cell, Toyota Motor Corporation, Yuchai International Imp & Exp, Cummins Inc, DEUTZ AG, INNIO Group, Mazda, Honda Motor Co, Stellantis N.V, Ford Motors, CNH Industrial N.V., MAN Trucks, Rio Tinto, BMW Group, Komatsu, and Hyundai Motor are the key players in the global hydrogen combustion engine market.

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