Synthetic Fuel Market By Raw Material (Coal, Natural Gas, Food-crop/Plant Based, Non-food Crop Based), By Type (Extra Heavy Oils, Gas to Liquid Oils, Shale Oils, Coal to Liquid, Biomass to Liquid, Others), By Application (Gasoline, Diesel, Kerosene): Global Opportunity Analysis and Industry Forecast, 2021-2031
The global synthetic fuel market was valued at $3.9 billion in 2021 and is projected to reach $22.5 billion by 2031, growing at a CAGR of 19.7% from 2022 to 2031.
Synthetic fuel is man-made fuel that exhibits similar properties to that of conventional fuels. They are synthesized through a particular production process. They can be produced by capturing carbon from the atmosphere or from industrial processes. They are claimed to be carbon neutral since they capture carbon dioxide from the atmosphere, which offsets the emissions from the vehicles on the road. Moreover, hydrogen is produced through electrolysis for producing hydrocarbon chains. The input power for all processes involved is from renewable resources. This makes synthetic fuel carbon neutral.
Natural gas is a naturally occurring mixture of different gases which after processing are used in various applications suitable for human needs. It mainly consists of hydrocarbons such as methane and other gases in small amounts such as carbon dioxide, nitrogen, hydrogen sulfide, and helium. Natural gas is an abundant and major source of energy. It is a non-renewable energy resource and produces lower pollution and carbon emissions in comparison with other fossil fuels. Natural gas is converted into liquid form for storage, transportation, and use through gas-to-liquid technology (GTL). The global natural gas demand grew by 5.3% in 2021. China led the growth in increased global demand with around 60% contribution. GTL technology is used often to produce synthetic fuels, especially for use in diesel engines and heavy-duty diesel vehicles. GTL kerosene is one of the synthetic products that is made from natural gas which is applicable in jet fuels and metal cleaning.
Food crops or plant-based waste such as oils and fats including corn, and virgin vegetable oils, such as canola, soybean, and camelina are used for producing synthetic fuels and oils. Starch, cellulose, hemicellulose, and oils present in the crop are used for manufacturing ethanol, butanol, and other long hydrocarbon chains. The food crops are used as additives for diesel, gasoline, and jet fuels. Since synthetic fuel is produced from plant-based waste and captures carbon dioxide in the process, the fuel obtained is considered to be carbon neutral and hence encourages synthetic fuel market growth.
The synthetic fuel industry is majorly driven by rising investments in research and development activities along with diversification of the energy mix. As global leaders are pushing towards a carbon-neutral economy, the rise in the search for sustainable and renewable sources of fuel is observed. This scenario is expected to provide great potential for the synthetic fuel industry. However, the presence of renewable alternatives and the high cost of synthetic fuels discourage market growth. Meanwhile, growing concerns over carbon emissions and rising awareness among consumers willing to switch to synthetic fuels is expected to offer wide opportunities for the industry.
The synthetic fuel market size is segmented into raw material, type, application, and region. By raw material, the market is divided into coal, natural gas, food-crop/plant-based, and non-food crop based. The natural gas segment is expected to grow at a higher CAGR followed by coal segment. Depending on the type, the synthetic fuel market bifurcation is done into extra heavy oils, gas to liquid oils, shale oils, coal to liquid, biomass to liquid, and others. gas to liquid segment is projected to grow at a higher pace during the projection period. it is estimated to be followed by coal to liquid and biomass to liquid segment. extra heavy oils will grow at a relatively slower pace owing to the energy transition from a fossil fuel-based economy to a cleaner low-carbon economy.
By application, the market is segmented into gasoline, diesel, and kerosene. The gasoline segment is expected to grow at a higher CAGR during the projection years. This is owed to the potential demand from the transportation industry for sustainable fuel. Region-wise, the synthetic fuel market analysis is done across North America, Europe, Asia-Pacific, and LAMEA (Latin America, The Middle East, and Africa). North America dominated the market growth ad is also expected to continue its dominance during the projection years.The key players operating in the synthetic fuel industry are Sasol, Indian Oil Corporation, Shell Plc, Exxon Mobil Corporation, Reliance, Robert Bosch GmbH, Air Liquide, PetroChina, Phillips 66, And SG Preston Company. Royal Schiphol Group is participating in two start-ups – Zenid and Synkero – that are making big leaps in the development and production of synthetic kerosene.
The growth drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it includes porter’s five forces analysis to understand the competitive scenario of the industry and the role of each stakeholder. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to increase their market share and sustain the intense competition in the industry.
Key Benefits For StakeholdersThis report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the synthetic fuel market analysis from 2021 to 2031 to identify the prevailing synthetic fuel 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 synthetic fuel 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 synthetic fuel market trends, key players, market segments, application areas, and market growth strategies.
Key Market SegmentsBy TypeExtra Heavy Oils
Gas to Liquid Oils
Shale Oils
Coal to Liquid
Biomass to Liquid
Others
By Raw MaterialCoal
Natural Gas
Food-crop/Plant Based
Non-food Crop Based
By ApplicationGasoline
Diesel
Kerosene
By RegionNorth America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa,
Saudi Arabia
Rest of LAMEA
Key Market Players
Indian Oil Corporation Ltd
Sasol Limited
L'Air Liquide S.A.
Exxon Mobil Corporation
PetroChina Company Limited
Bosch Ltd
Reliance Industries Ltd
Phillips 66 Company
Shell Plc.
Synhelion SA
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