[SMM Analysis] Hydrogen-powered Drones Attract Market Attention, Broadening Hydrogen Application Scenarios

Against the backdrop of the global pursuit of clean energy and the promotion of sustainable development, hydrogen energy, as a highly promising energy carrier, is continuously expanding its application fields. Among them, the niche segment of hydrogen-powered drones is gradually emerging, attracting widespread market attention and further broadening the application scenarios of hydrogen energy.

I. Significant Technological Advantages of Hydrogen-Powered Drones​

(I) Long Driving Range Breaks Through Application Bottlenecks​

Compared with traditional lithium battery-powered drones, hydrogen-powered drones possess overwhelming advantages in terms of driving range. Limited by the energy density of lithium batteries, the flight time of lithium battery-powered drones is typically only around 30 minutes, which severely restricts their application scope, especially for tasks requiring long-distance operations or prolonged monitoring, such as power line inspections and logistics distribution. Frequent returns for recharging significantly impair work efficiency. In contrast, hydrogen-powered drones, powered by hydrogen fuel cell systems, can achieve an energy density 3 to 5 times that of lithium batteries, substantially increasing their flight time to 3 to 10 hours. For instance, the "Hydrogen Rotor II" drone adopted by Guangzhou Power Supply Bureau can achieve a flight time of 80 minutes in actual operations, with a daily operational area equivalent to the workload of 20 people conducting line inspections. This greatly enhances the efficiency and coverage of power line inspections, successfully breaking through the bottleneck of short flight times in traditional drones and providing more efficient operational solutions for related industries.​

(II) Strong Environmental Adaptability Broadens Application Boundaries​

Hydrogen-powered drones exhibit remarkable environmental adaptability, capable of stable operation under extreme temperature conditions. In frigid environments of -40℃, the performance of lithium batteries can decline sharply, even to the point of failure to start, whereas hydrogen-powered drones can operate normally, which is of great significance for infrastructure inspections and resource exploration in northern China during winter. In scorching environments of 60℃, hydrogen-powered drones remain unaffected and can perform tasks such as mapping and vegetation monitoring in high-temperature areas like deserts. Additionally, in harsh environments with high humidity and altitude, hydrogen-powered drones can also maintain good flight performance. Their strong environmental adaptability significantly broadens the application boundaries of drones, enabling operations in more complex environments.​

II. Enterprises Across the Industry Chain Actively Deploy​

(I) Upstream Core Component Enterprises Tackle Technological Challenges​

In the upstream of the hydrogen-powered drone industry chain, enterprises engaged in the R&D and production of core components such as hydrogen storage cylinders and hydrogen fuel cells are increasing their technological investments and achieving a series of significant breakthroughs. Taking hydrogen storage cylinders as an example, Guofu Hydrogen Energy, as a leading enterprise in onboard hydrogen storage systems, is actively collaborating with Wankel Aviation to deploy in the low-altitude sector. The hydrogen storage cylinders developed by the company have reached internationally advanced levels in terms of lightweight design and high hydrogen storage density, effectively enhancing the hydrogen carrying capacity and flight performance of drones. Enterprises such as Beijing Jingcheng Machinery Electric Co., Ltd. and Sinoma Science & Technology Co., Ltd. are also continuously innovating in high-pressure hydrogen storage cylinder technology. Their products have been widely applied in transport drones, promoting the localisation of hydrogen storage components, reducing reliance on imported products, and ensuring the security of the industry chain and supply chain. In the field of hydrogen fuel cells, Yuntao Hydrogen Energy (held by Suntak Power Technology Co., Ltd.) successfully completed the maiden flight of its "Yunhang S20" hydrogen-powered drone, demonstrating its strength in hydrogen fuel cell technology. Hanhydro Power (held by Shanghai Shenkai Petroleum & Chemical Equipment Co., Ltd.) holds nearly 90% of the domestic market share for drone hydrogen supply systems, with significant advantages in the R&D and production of hydrogen supply systems, providing stable and reliable hydrogen supply solutions for hydrogen-powered drones.​

(II) Complete Aircraft Producers Build Industrial Ecosystems​

Enterprises in the complete aircraft manufacturing sector are also actively positioning themselves to build comprehensive industrial ecosystems. Xie Hydrogen New Energy has successfully established an "entire industry chain" encompassing "batteries + complete aircraft + hydrogen production and storage," with capabilities spanning from the R&D and production of core components to the integration of complete aircraft, as well as hydrogen production and storage. Leveraging this unique advantage, Xie Hydrogen New Energy can swiftly respond to market demands, launching multiple hydrogen-powered drone products suitable for various scenarios, becoming a benchmark enterprise in the industry. In December 2024, Xie Hydrogen New Energy secured orders worth 600 million yuan, a significant commercial breakthrough marking the official transition of hydrogen-powered drones from the technology verification stage to the stage of large-scale market application. Hydrogen Aviation Technology has also demonstrated outstanding performance, with a diverse product line covering models for logistics distribution, power line inspection, emergency rescue, and other application scenarios. It has formulated a plan for an annual production capacity of 3,000 units, actively expanding capacity to meet the growing market demand and seizing the initiative in market competition. Hydrogen Source Intelligence has taken a unique approach by collaborating with Guohong Hydrogen Energy to launch the world's first solid hydrogen storage-powered drone, standing out in the market with a distinctive technological path and providing new ideas and directions for the development of hydrogen-powered drones.​

III. Policy Support Safeguards Industrial Development​

(I) National Level Lays the Foundation for Technology and Industry​

The state attaches great importance to the development of the hydrogen-powered drone industry and has introduced a series of policies and regulations to safeguard its growth. The national standard "Hydrogen Fuel Cell Power Generation System for Drones," issued in June 2020, laid a solid foundation for the industry's technical specifications, unifying product technical standards, regulating market order, and promoting standardized and normalized production of products. The convening of relevant seminars, such as the "Evaluation Specification for Driving Range Levels of Hydrogen-Powered Drones" in December 2024, further advanced the process of technical standardization, contributing to the establishment of a scientific and reasonable product evaluation system, guiding enterprises to enhance product performance and quality, and accelerating the pace of commercialization and industrialization of hydrogen-powered drones.

(II) Local governments promote industrial implementation based on local conditions

Local governments have also taken measures based on local conditions, introducing relevant policies to support the development of the hydrogen-powered drone industry. In February 2025, Chongqing, Zhongshan, Jiangsu, and other regions successively issued policies, explicitly proposing to support the R&D innovation of hydrogen-powered drones and the construction of hydrogen infrastructure. For example, some regions have established special industrial funds to support enterprises in carrying out key technology R&D and industrialisation projects for hydrogen-powered drones. In terms of hydrogen infrastructure construction, enterprises are encouraged to build hydrogen refueling stations to provide sufficient hydrogen supply guarantees for the operation of hydrogen-powered drones. The introduction of these local policies has fully leveraged the guiding role of local governments, integrated local resources, and created a favourable policy environment and industrial development conditions for the hydrogen-powered drone industry to take root locally.

IV. Broad Market Prospects Further Expand Hydrogen Application Scenarios

(I) Industrial Sector Takes the Lead in Achieving Large-Scale Application

Currently, hydrogen-powered drones have taken the lead in achieving large-scale application in the industrial sector. In the power industry, in addition to the application case of Guangzhou Power Supply Bureau mentioned earlier, State Grid Harbin Power Supply Company has also conducted application tests of hydrogen-powered drones in power transmission line inspection operations. This is also the first application of hydrogen-powered drones in power grid inspection in high-altitude and cold regions, effectively addressing the challenges of difficult and inefficient power inspections in such regions. In oil and gas pipeline inspection, hydrogen-powered drones can fly along pipelines for extended periods, using high-precision sensors onboard to monitor in real-time for potential safety hazards such as leaks and corrosion. Compared with traditional manual inspections, this significantly improves detection accuracy and efficiency while reducing safety risks. In the logistics and distribution sector, in November 2024, China's first FC30 DJI cargo drone equipped with a hydrogen power system achieved cross-island material transportation flights in Zhoushan, successfully completing material delivery tasks in complex environments and demonstrating the great potential of hydrogen-powered drones in the logistics and distribution sector. These successful application cases in the industrial sector have not only brought tangible benefits to enterprises but also provided demonstrations and references for the promotion and application of hydrogen-powered drones in other sectors, effectively driving the development of the hydrogen-powered drone market.

(II) Continuous Expansion of Emerging Application Scenarios

With the continuous maturation of technology and the gradual expansion of the market, hydrogen-powered drones also demonstrate broad development prospects in emerging application scenarios. In the field of emergency rescue, when natural disasters or emergencies occur, hydrogen-powered drones, with their long driving range and strong environmental adaptability, can quickly arrive at the scene, providing real-time on-site footage and data to the rescue command center, assisting in formulating rescue plans, and improving rescue efficiency. In the field of urban delivery, faced with increasingly congested urban traffic, hydrogen-powered drones can bypass ground traffic congestion and rapidly deliver urgently needed items such as medical supplies and emergency documents to their destinations, meeting the demand for efficient urban delivery. In terms of material resupply in remote areas, for regions with inconvenient transportation such as mountainous areas and islands, traditional logistics delivery is difficult to cover. Hydrogen-powered drones can leverage their long-distance flight advantages to achieve precise delivery of materials, solving the "last mile" delivery challenge. The continuous expansion of these emerging application scenarios has led to a sustained growth in market demand for hydrogen-powered drones, providing a strong boost to the hydrogen energy market in the short term. This has attracted more enterprises and capital to enter the field, further promoting the development and expansion of the industry.​