H2-ICE Market Size - By Vehicle, By Combustion, By Power Output, Growth Forecast, 2025 – 2034

H2-ICE Market Size

The global H2-ICE market value estimates at USD 3.6 million in 2024 and is estimated to register a CAGR of 142.9% between 2025 and 2034. The market is driven by strong government regulations, infrastructure expansions, and decarbonization goals.
 

Transportation accounts for being the largest source of greenhouse gas emissions globally, that is causing significant impacts on climate change. According to the U.S. government protection agency, direct and indirect emissions of greenhouse gases from transportation amount to 29% of total U.S. greenhouse gas emissions, making it third largest source. In response, the government is imposing heavy emission regulations for promoting cleaner mobility options.
 

OEMs, Tier-1 suppliers, and other stakeholders are heavily investing in developing and deploying electric vehicles (EVs) and infrastructure to support EVs. This is driven by a collective effort toward achieving carbon neutrality as well as towards meeting the world's environmental goals. H2-ICE has emerged as an alternative, by using well-established ICE technology with minor adjustments to fuel from hydrocarbons to hydrogen.
H2-ICE technology offers near-zero carbon emissions with the durability and scalability of traditional engines.
 

For instance, in December 2024, HORIBA India launched India's first Hydrogen Internal Combustion Engine (H2-ICE) Test Bed at its facility in Chakan, Pune. This milestone, part of HORIBA's commitment to green mobility, supports the Indian government's sustainability goals and the Make-in-India initiative. The test bed, designed for engines up to 380 kW, will advance hydrogen technology in the commercial vehicle sector and contribute to global carbon neutrality efforts.
 

H2-ICE Market Trends

• Hydrogen ICE technology is increasingly becoming popular with commercial fleet operators, especially logistics and transport. This has brought about the demand for hydrogen ICE trucks as green alternatives to the increasing carbon footprint in heavy-duty vehicles. The demand for such vehicles, similar in refuelling times and range to conventional diesel trucks, has started picking up their hands for long-haul applications.
   
• Hydrogen ICE vehicles could be refuelled in under 15 minutes and could also travel further. This makes the commercial application feasible, unlike for battery electric vehicles, which takes longer to recharge and has its range limited.
   
• The increasing interest in this technology is partly driven by the need to reduce greenhouse gas emissions, comply with stringent environmental regulations, and reduce dependency on fossil fuels.
   
• For instance, in January 2025, Nippon Gases Germany and HOYER Group was awarded a hydrogen-powered truck from Hylane for dry ice logistics. Such a Hyundai XCIENT fuel cell vehicle is optimized with features that include a dry box and air ducts that make it specifically suitable for carrying dry ice. With a range of 450 km and the time required for refueling being less than 15 minutes, the vehicle fits well into the daily operation of logistics.
   
• There is also a growing trend of hybridization in engine technology, otherwise termed as hydrogen internal combustion engines, assisted by electric motors. Hybrid vehicles are a perfect example of how hydrogen and electricity jointly drive the efficiency and range of the vehicle through a dual manner of delivering power: acceleration and carrying out high loads by the electric motor, while Long- range duties continue the hydrogen engine.
   

H2-ICE Market Analysis

Based on vehicles, the H2-ICE market is divided into trucks & buses, construction equipment, mining equipment, crawler excavator, tractor, and others. In trucks & buses segment held a market share of over 55% and is expected to cross USD 5.9 billion by 2034.  
 

• Trucks & buses are the heart of global logistics and public transport, often going over long distances and running long hours. H2-ICEs are therefore ideal for such heavy-duty applications because they are characterized by a high-power output, rapid refueling, and a long driving distance without need for frequent stopping.
   
• Around the world, governments are strictly enforcing emission standards to address climate change and make the air fresher.
   
• For instance, in March 2024, the U.S. Environmental Protection Agency (EPA) released the Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles. The standards have been strengthened to limit harmful air pollutants from the 2027 model year onwards.
   
• In this respect, H2-ICE technology, especially for applications using green hydrogen, significantly promotes trucks and buses to follow up on such emissions standards. Indeed, their outputs are free from carbon dioxide by the tailpipe, meaning greener and far more ecofriendly than any type of traditional heavy-duty vehicle fitted with conventional heavy-duty diesel engine.

Based on combustion, the H2-ICE market is categorized into port fuel injection with spark ignition (PFI-SI), high pressure direct injection (HPDI), early cycle direct injection with spark ignition (ECDI-SI). The HPDI segment estimates to hold a market share of 46.5% in 2025.
 

• HPDI technology is a high-pressure direct injection of hydrogen into the combustion chamber. This method provides enhanced power and thermal efficiencies over other injection techniques. It is, therefore, more favorable for trucks, buses, and industrial vehicles, where higher performance and reliability are important.
   
• For instance, in May 2024, Volvo Trucks announced the development of hydrogen-powered internal combustion engine (ICE) trucks, which will start on-road testing in 2026 and be launched commercially by the end of the decade. These trucks, fueled by green hydrogen, will supplement Volvo's existing electric and renewable fuel vehicles as a zero-emission alternative for long-distance transport where battery-electric trucks are hampered by infrastructure.
   
• Featuring High Pressure Direct Injection (HPDI) technology, the trucks promise higher efficiency, lower fuel consumption, and net-zero CO2 emissions when using renewable fuels.
   
• HPDI systems can be readily integrated within engines with very minor modifications to ensure that the manufacturers can upscale and power hydrogen-powered vehicles without making widespread alterations.
   
• HPDI technology is also suitable for dual-fuel configurations. During the transition phase, it enables operators to utilize a blend of hydrogen and conventional fuels. These benefits combined with advancements in high-pressure storage systems and injector designs make HPDI at the top of the list for performance-emission-conscious and operationally feasible industries.
   

Based on power output, the H2-ICE market is divided into below 300 HP and above 300 HP. The below 300 HP segment anticipated to dominate in the market accounting for USD 2.2 billion in 2025.
 

• Engines that deliver below 300 HP are found in most of the light and medium-duty applications. Such engines can be installed in small trucks, buses, and construction equipment, which comprise a huge proportion of transportation and industrial segments. In fact, such applications mainly function in cities and urban localities, where very strict emissions norms exist, thus providing an impetus to the adoption of hydrogen-fueled engines.
   
• Many of the OEMs are targeting the development of H2-ICE solutions for this power range, meeting the rising needs for sustainable transport and industrial equipment. The application is highly interesting for fleet operators and businesses wishing to decrease carbon footprint without a loss in operating flexibility
   
• Those above 300 HP also witness steady growth. For instance, in April 2024 MAN Truck & Bus launched the MAN hTGX, truck series powered by hydrogen combustion. Offering a maximum of 600 km with 520 HP H45 hydrogen engines that refuel under 15 minutes and comply with EU zero-emission requirements.

Europe is expected to lead the H2-ICE market in 2025 with a share of more than 40% as the European Union has ambitious policies and Germany leads in the region, generating revenue of USD 13 million and is expected to grow at a CAGR of around 140% duirng the forecasted period
 

• The European Green Deal aims to make the region’s climate neutral by the year 2050. Germany is the market leader in Europe with its “National Hydrogen Strategy”, which allocates significant resources to hydrogen related R&D as well as its production and use in transportation and other industrial applications.
   
• European countries actively invest in infrastructure and create legislation favorable to this fuel, increasing the growth for H2-ICE technology.
   
• Major hydrogen production initiatives are already on the anvil in Europe and, thus, the supply chain for H2-ICE vehicles will be reliable.
   
• For instance, in October 2024 Tenneco began expanding its testing facilities for hydrogen internal combustion engines (H2-ICE) in Germany to address the growing demand in hydrogen propulsion technologies. The firm has now added a total of two more H2-ICE test cells in Burscheid, Germany, to the single test cell they previously had.
   

The H2-ICE market in U.S is anticipated to witness lucrative growth between 2025 to 2034.
 

• As incentives are building momentum in the heavy-duty transportation segment at the federal and state levels, such as with California's Zero-Emission Vehicle mandate. Green hydrogen production will benefit from a related abundance of renewable energy resources in the region.
   
• An increasing number of OEMs and providers of hydrogen infrastructure services are teaming up to build hydrogen fueling networks across North America, starting with buses and trucks. For instance, a hydrogen powered truck with an Allison Transmission 4000 Series transmission was presented in September 2024 at the H2-ICE project held with Southwest Research Institute, Dunn said.
   
• This vehicle surpasses U.S. and European emissions standards, including the EPA/CARB 2027 and Euro 7, with a 99.7% reduction in CO2 emissions compared to traditional diesel engines.
   
• The U.S. Department of Energy’s initiatives to enhance hydrogen fuel cell technology further drive the expansion of H2-ICE applications, especially in commercial and public transport sectors.
   

The H2-ICE market in China is anticipated to witness lucrative growth between 2025 to 2034.
 

• This can be attributed to China being the world's largest automotive market and investing heavily in building its hydrogen infrastructure and promoting hydrogen-powered commercial vehicle production. Its growth is supported by a solid manufacturing base.
   
• China’s government is supporting hydrogen development with significant subsidies and policies aimed at fostering the mass production of hydrogen-powered vehicles and infrastructure.
   
• The Chinese market is experiencing rapid adoption of hydrogen technology in buses and trucks, with leading manufacturers such as SinoHytec and FAW advancing H2-ICE offerings.
   
• For instance, in 2024 December, FAW Jiefang showcased their new CA6HV3 Hydrogen internal combustion engine. With a thermal efficiency of 55%, this engine offers moderate heavy-duty power, which is 460 horsepower.
  
  It is expected that the H2-ICE market in Mexico will grow extensively between the years 2025 to 2034.
   
• Mexico continues to execute cross-border collaboration in transportation fuel production while leveraging its strategic position adjacent to the United States to construct a strong hydrogen fuel supply chain.
   
• Also, forming collaborations with global automotive majors and leading firms in the world that work with fuel cells, further securing hydrogen infrastructure to facilitate H2-ICE.
   
• The emerging auto manufacturing industry within the country would likely form one of the crucial drivers in producing hydrogen-fuelled cars that would promote H2-ICE market growth within Latin America.
   

H2-ICE Market Share

• Top 4 companies in the H2-ICE industry are Ashok Leyland, Cummins, MAN Trucks, and Deutz AG.
   
• Being in manufacturing engines for an extremely long time, along with a strategic focus on shifting to sustainable sources of energy, put Cummins Inc. in a great legacy position. There is considerable investment in hydrogen technology, such as hydrogen internal combustion engines and fuel cells.
   
• It can leverage its existing infrastructure, supply chain, and customers as a competitive advantage. It also provides partnerships with other global OEMs, such as its tie up with Tata Motors for hydrogen engine production, which is a clear step in increasing the adoption of H2-ICE in commercial and industrial markets.
   
• For instance, In May 2024, Cummins Inc. and Tata Motors Limited announced a strategic partnership under which Cummins will manufacture a 6.7-liter hydrogen internal combustion engine for Tata Motors at the company's plant in India.
   
• MAN Trucks is very renowned for its high-quality hydrogen engine technologies and its leadership in heavy-duty transportation. The company has designed hydrogen-based engines for application from marine, rail, and stationery that would fetch them great prominence in diversified sectors.
   
• in September 2024, MAN hTGX hydrogen combustion truck won the Truck Innovation Award 2025 This is the first truck for zero-emission road freight transport. It comes with an engine of 520 horsepower, for heavy-duty use, including construction and timber transportation. By 2025, MAN intends to deliver some 200 units and will go after markets where the hydrogen infrastructure has already been built.
   

H2-ICE Market Companies

Major players operating in the H2-ICE industry include:

• Ashok Leyland
• Cummins
• Deutz AG
• Garett
• JCB
• Keyou
• Liebherr
• MAN Trucks
• PACCAR
• Volvo
   
• Ashok Leyland is taking the lead in sustainable mobility, with an emphasis on developing eco-friendly technologies. It has both electric and hydrogen fuel cell trucks for the Indian market, besides developing infrastructure needed for clean energy and building key partnerships that help it to promote electric commercial vehicles in pursuit of a cleaner, more efficient transportation future.
   
• For example, in February 2023, Ashok Leyland and Reliance Industries unveiled a 19 ton to 35-ton hydrogen powered truck, which is a significant advancement in the direction of environmentally friendly transportation for heavy vehicles.
   
• Cummins is a leader in sustainable energy services and is focused on hydrogen fuel cells along with battery-powered electric drivetrains for class 8 tractors. They are heavily investing in both the ecosystem of hydrogen fuel cell technology and the infrastructure to support large-scale deployment of commercial hydrogen fuelled vehicles.
   
• In January 2025, Cummins launched X15H Hydrogen engine that produces carbon emissions at the rate of 1% and operates on a range of 400 to 530 horsepower. This model is especially compatible with mustering platforms and is meant for heavy-duty vehicles. Thus, Cummins has an upper hand compared Bosch, and Toyota.
   

H2-ICE Industry News

• In January 2025, JCB earned approval from 11 European licensing authorities for its hydrogen internal combustion engines (H2 ICE), thus allowing it to sell them to several other countries, including the UK, Germany, and Spain. Over three years and investing USD 121 million of funds, JCB created more than 130 H2 ICE prototypes for its construction and agricultural equipment.
   
• In January 2025, Cummins introduced its first turbocharger for hydrogen internal combustion engines (H2 ICE), a major step in heavy-duty applications in Europe. The turbocharger comes with bespoke aerodynamics, advanced prognostics, and meets Euro VII emissions standards.
   
• In July 2024, a hydrogen internal combustion engine (H2ICE) was showcased by Triton EV which claims to have designed and manufactured the entire thing in India. This engine replaces gasoline-powered engines completely since it has zero emissions and only produces water vapor, and does not have any harmful carbon monoxide, hydrocarbons or nitrogen oxides. The engine has been constructed to perform at least equally to a standard internal combustion engine, if not better, while utilizing advanced materials that are blended for durability and performance.
   
• In July 2024, HORIBA India and Dumarey Group partnered to offer engineering services on design and development for ICE and H2-ICE, transmissions, and EV for the Indian market. The collaboration combines HORIBA’s expertise in analytical and measurement solutions with Dumarey Group’s specialization in hydrogen and diesel technologies.
   
• In July 2023, MAHLE GmbH announced that it will be partnering with DEUTZ AG to provide critical hydrogen engine components, such as pistons and piston rings. The former will be initially applied in stationary engines starting 2024 with off-highway applications to be included in the future.
   

The H2-ICE market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and volume (Units) from 2025 to 2034, for the following segments:

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Market, By Vehicle

• Trucks & buses
• Construction equipment
• Mining equipment
• Crawler excavator
• Tractor
• Others

Market, By Combustion

• Port fuel injection with spark ignition (PFI-SI)
• High pressure direct injection (HPDI)
• Early cycle direct injection with spark ignition (ECDI-SI)

Market, By Power Output

• Below 300 HP
• Above 300 HP

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia