The global hydrogen aircraft market was valued at $27.7 billion in 2030, and is projected to reach $489 billion by 2050, growing at a CAGR of 15.4% from 2030 to 2050.
A hydrogen airplane is an aircraft that utilizes hydrogen as its primary fuel source instead of conventional jet fuel. Hydrogen-powered aircraft is expected to be a solution to decarbonize the aviation sector, aligning with global initiatives to combat climate change and reduce greenhouse gas emissions. The two main models of hydrogen aircraft are combustion hydrogen planes, and fuel cell hydrogen planes. Combustion hydrogen planes rely on modified engines that use hydrogen as fuel. In fuel cell hydrogen planes model, hydrogen is converted into electricity within fuel cells, which then power electric propulsion systems to turn propellers. The only by-products of this process are heat and water, resulting in zero emissions during flight. Research on hydrogen as a potential fuel to power zero-emission aircraft has been on rise in the recent years. The aviation sector is working to develop technologies to tackle challenges associated with hydrogen storage, public perceptions for safety and cost.
Key Takeaways:
- On the basis of passenger capacity, the less than 100 segment held the largest share in the hydrogen aircraft market in 2022.
- By range, the short haul segment held the largest share in the market in 2022.
- On the basis of application, the passenger segment held the largest market share in 2022.
- On the basis of power source, the liquid hydrogen aircraft segment held the largest market share in 2022.
- On the basis of power output, the 0 to 100 KW segment held the largest market share in 2022.
- On the basis of region, Europe held the largest market share in 2022.
With increasing concerns about climate change and the environmental impact of aviation, there is a growing imperative to develop sustainable alternatives to traditional fossil fuels. Hydrogen has emerged as a promising contender for mitigating aviation's carbon footprint, owing to its elevated energy density, zero-emission potential, and compatibility with fuel cell technology. Hydrogen fuel cells facilitate the conversion of hydrogen gas and oxygen from the atmosphere into electricity via an electrochemical process, yielding only water vapor as a byproduct. Research endeavors are concentrated on enhancing the efficacy and durability of these fuel cells to bolster their power output, efficiency, and longevity. This encompasses the development of innovative catalysts, membrane materials, and cell configurations capable of operating reliably under the rigorous conditions inherent to aviation.
The pace of development of hydrogen aircraft in Europe is high, owing to rise in demand for carbon-neutral airplanes. Increase in investments in R&D in prominent countries such as Germany, France, Spain, and other countries are expected to supplement the market growth. In addition, strong presence of leading market players such as Airbus S.A.S., GKN Aerospace, Pipistrel, and AeroDelft, along with rise in investments in hydrogen-powered aircraft is anticipated to boost development of hydrogen aircraft in the region during the forecast timeframe. For instance, in September 2020, a British multinational aerospace component company GKN Aerospace, announced around $71 million (£54 million) collaborative H2GEAR program to push hydrogen technology and accelerate aerospace decarbonization to zero emissions.
The hydrogen aircraft market size, influenced by technological advancements and environmental concerns, has grown steadily over the past decade, reaching a significant valuation in recent years. European aviation firms, including Airbus, are intensifying their exploration of hydrogen as a sustainable alternative for aviation fuel. For instance, in January 2924, Airbus, along with four Scandinavian partners, is embarking on a study to assess the feasibility of hydrogen infrastructure at airports across Norway and Sweden. This collaboration, covering over 50 airports in two countries, marks a significant step toward transitioning from traditional jet fuel to hydrogen. Moreover, in December 2020, Zeroavia, Inc. secured around $15 million (£12.3 million), the UK government granted to deliver a 19-seat hydrogen-electric powered aircraft (HyFlyer II project) to market by 2023. In addition, the UK test and research center- European Marine Energy Centre (EMEC) announced that it will provide clean hydrogen and associated fueling systems to support Zeroavia, Inc. and conduct flight tests with hydrogen-powered aircraft. As pioneers in sustainable aviation continue to innovate, the hydrogen aircraft market share is expected to witness a notable increase, with key players vying for dominance in this burgeoning industry.
Moreover, companies form collaborations to develop hydrogen fuel cell propulsion technology for greener and more sustainable aviation. For instance, in November 2023, UK aerospace companies Reaction Engines and Cranfield Aerospace Solutions have announced an expanded collaboration to develop hydrogen fuel cell propulsion for aircraft. This partnership aims to explore additional aerospace applications for their jointly developed zero-emission propulsion technology. The agreement builds upon their existing research and development partnership and seeks to advance applications for their hydrogen fuel cell-based powertrain design. The hydrogen aircraft market size has been steadily increasing as the demand for sustainable aviation solutions rises.
Increase in air passenger traffic across the globe, high suitability of hydrogen as an aviation fuel, and rise in the environmental awareness and zero emission targets driving the hydrogen aircraft market. However, the high costs associated with production and handling of hydrogen, and technical challenges related to aircraft design, and hydrogen storage hinders the growth of the market. Furthermore, development of green hydrogen ecosystem, proactive government initiatives toward hydrogen powered aircraft provides growth opportunities for the players operating in the hydrogen aircraft industry.
Segment Review
The global hydrogen aircraft market is segmented into passenger capacity, range, application, power source, power output, and region. By passenger capacity, the market is divided into less than 100, 101 to 200, and more than 200. On the basis of range, it is classified into short haul (less than 1000 km), medium haul (1000 to 2000 km), and long haul (above 2000 km). Depending on end use, it is fragmented into passenger aircraft, and cargo aircraft. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Passenger Capacity
On the basis of passenger capacity, the less than 100 segment generated maximum revenue in 2022, owing to the rise in the development of sustainable aviation solutions, concept hydrogen aircraft with maximum seating capacity of 100 to mitigate climate change and reduce the environmental footprint of the aviation industry. For instance, in July 2023, ZeroAvia completed its initial prototype ZA600, retrofitted 19-seat aircraft flight testing campaign at Cotswold Airport in the UK. The campaign involved testing a Dornier 228 aircraft retrofitted with ZeroAvia's hydrogen-electric engine.
By Range
On the basis of range, the short haul segment generated maximum revenue in 2022, owing to rise in number of startups and companies such as AeroDelft and ZeroAvia to manufacture small passenger hydrogen powered aircraft. Moreover, the study by the International Council on Clean Transportation (ICCT) titled 'Performance Analysis of Evolutionary Hydrogen-Powered Aircraft,' published in January 2022, explores the potential of hydrogen-powered aircraft to dominate the small and medium-haul aircraft market by 2050.
By Power Source
On the basis of power source, the liquid hydrogen aircraft segment was the highest revenue contributor to the market in 2022, owing to surge in initiatives and strategies taken by leading market players to develop liquid hydrogen aircraft. For instance, in January 2021, GKN Aerospace announced a UK collaboration program, called H2GEAR, to develop the company’s first hydrogen propulsion system for sub-regional aircraft. H2GEAR aims to develop a liquid hydrogen propulsion system for sub-regional aircraft that could be scaled up to larger aircraft. Such factors are expected to fuel the growth of the liquid hydrogen aircraft market during the forecast period.
By Region
Based on region, Europe dominated the hydrogen aircraft market in 2022 owing to increase in the exploration of hydrogen as a sustainable alternative for aviation fuel by aviation firms, including Airbus in the region. For instance, in January 2924, Airbus, along with four Scandinavian partners, is embarking on a study to assess the feasibility of hydrogen infrastructure at airports across Norway and Sweden. Moreover, companies form collaborations to develop hydrogen fuel cell propulsion technology for greener and more sustainable aviation that drives the growth of the market.
Competitive Analysis
Some of the major companies that operate in the global hydrogen aircraft market are Thales, AeroVironment, Inc., GKN AEROSPACE, PIPISTREL, URBAN AERONAUTICS LTD, Alaka'I, Airbus, AeroDelft, HES Energy Systems, and ZeroAvia, Inc.
Increase In Air Passenger Traffic Across the Globe
A surge has been witnessed in the number of individuals seeking and utilizing air transportation services due to various factors such as economic growth, enhanced affordability of air travel, the expansion of travel and tourism, and globalization. For instance, according to International Air Transport Association (IATA), total air traffic, measured in revenue passenger kilometers (RPKs), increased by an impressive 55.5% in February 2023 as compared to the same month in 2022. Globally, the overall traffic level reached 84.9% of the levels recorded in February 2019. The hydrogen aircraft market growth has accelerated in recent years, driven by advancements in hydrogen fuel technology and increasing pressure to reduce carbon emissions in the aviation sector.
Moreover, according to Eurostat, in 2021, there was a substantial increase of 34.9% in the number of passengers traveling by air in the European Union (EU), totaling 373 million people. This increased demand directly impacts on the aircraft industry, leading to a rise in the need for additional aircraft to accommodate the growing numbers of passengers. As air travel becomes increasingly popular, there is a heightened awareness of its environmental impact, prompting the aviation industry to prioritize sustainability. This pressure drives the adoption of alternative fuels like hydrogen, which offer both cost-effectiveness and environmental benefits. As airlines strive to minimize operational expenses, the attractiveness of hydrogen as a sustainable aviation fuel grows alongside the rising demand for air travel
Rise In the Environmental Awareness And Zero Emission Targets
Increased environmental awareness among consumers, policymakers, and stakeholders has spurred a greater demand for sustainable transportation options. Given the significant contribution of air travel to greenhouse gas emissions, there is mounting pressure on the aviation industry to embrace cleaner technologies. For instance, in October 2021, the 77th annual General Meeting of the International Air Transport Association (IATA) committed to achieving net zero carbon emissions by 2050.
Hydrogen aircraft, offering the potential for zero emissions during operation, are well-aligned with these sustainability goals. Governments and organizations worldwide are enacting strict regulations and emission reduction targets to combat climate change and mitigate air pollution. For instance, in November 2023, the United Nations aviation meeting agreed to interim goal for emissions reductions from global aviation by 2030. This goal, set after five days of United Nations-led talks in Dubai, aims for a 5% lower carbon emissions target with cleaner energies such as sustainable aviation fuel (SAF).
These regulations often entail mandates for the aviation sector to decrease its carbon footprint and transition to low or zero-emission technologies. Hydrogen aircraft present a promising solution to meet these regulatory requirements and achieve compliance with emission reduction targets. Airlines and aircraft manufacturers are increasingly prioritizing competitiveness in the market. With environmental concerns gaining prominence, airlines that demonstrate a commitment to sustainability and carbon neutrality stand to gain a competitive edge. Embracing hydrogen aircraft enables airlines to distinguish themselves as environmentally responsible and appeal to eco-conscious passengers.
High Costs Associated with Production And Handling Of Hydrogen
Hydrogen (in gaseous form) is usually extracted from water by the electrolysis process, which includes passing a high electric current through water to isolate oxygen and hydrogen atoms. The electrolysis process is quite expensive as it includes high expenditure on energy requirements. Furthermore, hydrogen poses challenges for designers, in terms of mass and volume requirements, as well as for fuel management and storage on-board aircraft. High volume-to-energy property of liquid hydrogen (LH2) requires hydrogen aircraft to contain a huge quantity of fuel compared to legacy kerosene-fueled aircraft.
This leads to higher air drag and affects efficiency of the aircraft. A typical property of hydrogen is that it has a lower density. Its density is quite lower than gasoline. For this reason, it needs to be compressed and brought to a liquid state and stocked in the same manner at lower temperatures to sustain its effectiveness and efficiency as a power source. This is the reason why hydrogen must necessarily be transported and stored in high-pressure conditions, which makes the application of hydrogen for transportation and common use not feasible presently. Above mentioned factors are anticipated to obstruct the market growth of the hydrogen aircraft market during the forecast period.
Technical Challenges Related to Aircraft Design, And Hydrogen Storage
Accommodating hydrogen propulsion systems in aircraft design demands extensive alterations compared to conventional designs, leading to escalated development costs and complexities. Moreover, ensuring the safety and dependability of onboard hydrogen storage systems presents additional engineering challenges. Hydrogen's volatile nature mandates specialized storage solutions capable of withstanding extreme conditions encountered during flight. Redesigning commercial planes to meet hydrogen storage requirements, such as cryogenic conditions and larger storage space, significantly increases the intricacy and expenses of aircraft development.
Despite its lighter weight, hydrogen demands up to four times more storage space than traditional jet fuel for comparable speed and range, further complicating storage solutions. In addition, safely containing super-chilled liquid hydrogen poses engineering hurdles, particularly in maintaining effective insulation to prevent leaks and metal absorption. Achieving efficient hydrogen combustion in airborne turbines or developing advanced fuel cells and electric powertrains presents technical obstacles.
These systems must exhibit reliability and performance on par with or superior to existing propulsion technologies. These technical challenges prolong development timelines and heighten operational risks associated with hydrogen-powered aircraft. Consequently, aerospace manufacturers and operators hesitate to invest in or adopt hydrogen aircraft until these technical barriers are adequately addressed.
Development Of Green Hydrogen Ecosystem
The aerospace industry continues to develop technology to build the world’s first zero-emission commercial aircraft by 2035. Green hydrogen is one of the most recent developments in aviation fuel, which has been an essential component of net-zero climate strategies. For the aviation industry, green hydrogen is expected to play a key role as fuel in future aircraft. Thus, aviation authorities across the world are increasing investments in green hydrogen as it is an essential component for net-zero climate strategies. For instance, Airbus expects green hydrogen to power future zero-emission aircraft, when it reaches the market by 2035.
In addition, the European Commission recently announced that it is working on installing at least 40 GW capacity of electrolyzers or up to 10 million megatons of green hydrogen by 2030. Along with the European Union, Japan, China, South Korea, and the U.S. have also started to invest on green hydrogen for aviation fuels. However, it is also necessary to develop infrastructure to distribute green hydrogen once generated. Hence, Airbus urged airports to develop on-site facilities to produce hydrogen within close proximity to operations. However, a green hydrogen ecosystem is expected to need to take shape to ensure its availability to fuel future needs of the aviation industry. Therefore, development of green hydrogen ecosystem is expected to offer lucrative growth opportunities for the hydrogen aircraft market.
Recent Developments in the Hydrogen Aircraft Industry
• In February 2024, AeroDelft, Delft University of Technology, in the Netherlands developed a small hydrogen aircraft that includes Sling Aircraft Sling4 model. The Delft students planned a flight in 2025 using gaseous hydrogen (with a 1.45 kg storage capacity) & planned to take 10 kg of liquid hydrogen on board.
• In February 2024, Airbus developed hydrogen-powered commercial aircraft & plans to launch it by 2035. It is currently studying the use of hydrogen fuel cells with a propeller propulsion system that generate nearly zero emissions. It is laying the groundwork to establish a green hydrogen production and distribution network in the Asia-Pacific region.
• In September 2023, PIPISTREL, German Aerospace Center (DLR), EKPO Fuel Cell Technologies, Fundación Ayesa & H2FLY, a wholly owned subsidiary of Joby Aviation jointly developed piloted flight of a liquid hydrogen-powered electric aircraft. The aircraft uses liquid hydrogen to power a hydrogen-electric fuel cell system that powered the aircraft for the entire flight. H2FLY developed aircraft in partnership with Pipistrel, German Aerospace Center (DLR), EKPO Fuel Cell Technologies, and Fundación Ayesa.
• In May 2021, Thales Group in collaboration with Drones-Center and ZenT demonstrated a flight with a drone powered by hydrogen fuel cell technology. The tests were organized to demonstrate the industrial and operational feasibility of hydrogen drone.
• In July 2021, Urban Aeronautics Ltd redesigned its CityHawk VTOL aircraft while also confirming plans for the five seat vehicle's ducted fans to be powered by a combination of electric motors and hydrogen fuel cells. It is also introducing new flight controls and navigation systems and has started work on new technology.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the hydrogen aircraft market analysis from 2030 to 2050 to identify the prevailing hydrogen aircraft market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the hydrogen aircraft market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global hydrogen aircraft market trends, key players, market segments, application areas, and market growth strategies.
Hydrogen Aircraft Market Report Highlights
| Aspects | Details |
 Market Size By 2050 | USD 489 billion |
 Growth Rate | CAGR of 15.4% |
 Forecast period | 2030 - 2050 |
 Report Pages | 316 |
 By Passenger Capacity |
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 By Range |
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 By Application |
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 By Power Source |
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 By Power Output |
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 By Region |
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 Key Market Players | PIPISTREL, Thales, Alaka'i, GKN AEROSPACE, AeroDelft, ZeroAvia, Inc., Airbus, AeroVironment, Inc., HES Energy Systems, URBAN AERONAUTICS LTD |
The hydrogen aircraft market was valued at $27,680.0 million in 2030 and is estimated to surpass $488,974.7 million by 2050, exhibiting a CAGR of 15.4% from 2030 to 2050.
The largest regional market for hydrogen aircraft is Europe
The top companies to hold the market share in hydrogen aircraft are Thales, AeroVironment, Inc., GKN AEROSPACE, PIPISTREL, URBAN AERONAUTICS LTD, Alaka'I, Airbus, AeroDelft, HES Energy Systems, and ZeroAvia, Inc.
The leading application of hydrogen aircraft market is passenger aircraft
The upcoming trends of hydrogen aircraft market in the world are development of green hydrogen ecosystem, and proactive government initiatives toward hydrogen powered aircraft.
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