Hydrogen peroxide, traditionally known for its cleaning and disinfecting properties, has emerged as a promising fuel source, especially in propulsion systems. The hydrogen peroxide fuel market is experiencing significant growth, with projections indicating an increase from 1.65 (USD Billion) in 2024 to 2.4 (USD Billion) by 2032, showcasing a compound annual growth rate (CAGR) of 4.83% during the forecast period. The versatility of hydrogen peroxide has led to its adoption in various applications, including aerospace propulsion, defense systems, automotive niche uses, and energy storage in fuel cells. The market is primarily driven by factors such as stringent environmental regulations promoting clean energy alternatives, advancements in aerospace technologies, innovation in hydrogen peroxide stabilization, military modernization emphasizing cleaner propulsion systems, and opportunities in emerging markets. However, challenges like storage risks, high production costs, infrastructure limitations, competition from alternative fuels, and regulatory complexities pose hurdles to market expansion. The regional landscape of the hydrogen peroxide fuel market varies, with North America leading in applications, Europe prioritizing sustainability, Asia-Pacific driving demand through industrialization, Latin America exploring new opportunities, and the Middle East & Africa focusing on energy source diversification. Technological trends such as catalyst development, high-purity production, hybrid systems integration, and advanced storage solutions are propelling the market forward. Future opportunities lie in space exploration missions and the pursuit of decarbonization goals, indicating a positive outlook for hydrogen peroxide as a fuel source in the coming years.