The global focus on sustainable energy is driving the remarkable expansion of hydrogen-powered internal combustion engines, especially in heavy-duty applications. With stringent emission regulations being enforced globally, industries are turning to cleaner fuel solutions, where hydrogen-fueled engines are presenting themselves as a compelling option. Unlike battery-electric vehicles, hydrogen-powered engines offer rapid refueling and extended operational range, making them ideal for long-haul transportation and industrial use. The market is segmented based on combustion technology, with high-pressure direct injection technology holding dominance due to its superior power output and thermal efficiency. This technology is preferred for commercial vehicles and industrial machinery, especially in heavy-duty transportation. The below 300 HP segment is witnessing significant growth, driven by applications in light and medium-duty vehicles like trucks, buses, and construction equipment. Europe stands out as a key player in the global H2-ICE market, with substantial market share and valuation in 2025. The region is projected to experience exponential growth, supported by investments in hydrogen infrastructure and policies promoting sustainable energy. As countries transition to cleaner energy solutions, hydrogen-powered engines are poised to play a pivotal role in transforming transportation and industrial sectors. The article also covers market impact forces, industry insights, comprehensive market analysis and forecasts, and competitive landscapes. It delves into growth drivers such as the need to reduce greenhouse gas emissions, government regulations, and investments in hydrogen infrastructure while highlighting challenges like high production costs and storage issues for hydrogen. The market analysis includes trends, challenges, opportunities, and regulatory landscapes, providing a holistic view of the hydrogen-powered engine market.