To explore the development trends and industrialization potential of hydrogen aviation technology, the evolution of hydrogen aviation propulsion technologies and the associated market and technical challenges were reviewed. Globally, research on hydrogen-powered aviation and its propulsion systems began relatively early. Although China started later, its publication output has grown significantly in recent years. Hydrogen aviation propulsion forms include hydrogen fuel cells, hydrogen internal combustion engines, hydrogen turbine engines, and hybrid systems. Technical research hotspots primarily focus on hydrogen combustion control, thermal management, and fuel cell efficiency optimization, with the first two also representing key technical challenges for hydrogen turbine engines. In terms of market applications, short-haul regional aviation and military unmanned aerial vehicles constitute the primary scenarios for initial commercialization. An analysis of the progress trends in hydrogen aviation and propulsion technologies can provide a scientific basis for decision-making regarding China’s hydrogen aviation technology roadmap and the collaborative innovation development of its industrial chain.