Global eFuel Market 2022-2028

Global eFuel Market 2022-2028

The global E-Fuel Market is anticipated to grow at a CAGR of around 22.8% during the forecast period. E-fuels are in the form of synthetic fuels that are generally produced by storing electrical energy from renewable sources. These are produced in the form of liquid or gaseous state and are created with the support of CO2, electricity, renewable energy, and water. The production of E-fuel does not need any large space and does not pollute the environment.

The factors attributing to the growth of the market include the growth of the automobile sector due to increasing urbanization and industrialization. According to National Investment Promotion and Facilitation Agency, India is forecasted to be the third-largest passenger vehicle market by 2021 globally. The sales of the passenger vehicle market in 2021-19 increased by 2.70%. Additionally in 2021, the automobile exports also grew by 14.50%.

However, higher investment for resource, development, transportation, storage, and extractions is one of the major challenge faced by the market such as installing pipelines for transportation of hydrogen requires digging and machinery cost and setup. Additionally, lack of awareness among people about the e-fuels is further projected to hamper the growth of the market. However, many private companies are moving towards development such as Audi, Hyundai is developing vehicles that are powered by e-fuels including hydrogen, gasoline, ethane, and others is bringing upon an opportunity for the growing market.

Segmental Outlook

The global E-Fuel Market is segmented based on fuel type into E-Diesel, E/synthetic gasoline, synthetic ethanol, and hydrogen. Among fuel type, the e-diesel segment projected to grow significantly during the forecast period. The growth of this segment is attributed to the research activities by the market players. In addition, the companies are collaborating with other organizations for setting up new facilities for the production of e-diesel. For instance, Audi in November 2017, has stepped up the research into synthetic fuels with the new e-diesel pilot plant. E-diesel does not extract new carbon and the energy sources used for driving the process are from the carbon-neutral sources, hence e-diesel is considered to be a carbon-neutral fuel.

Regional Outlooks

The global E-Fuel market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World. Europe is expected to have a significant share in the market owing to factors such as increasing R&D investment in the production of clean fuels, such as ethanol, increasing government initiatives to reduce CO2 in the vehicles. The increasing automobile sector in the region is also acting as a lucrative opportunity for the growth of the market. Many countries such as France, Germany, and UK have already announced that they will be banning gasoline vehicles in the coming future and this as a result will be increasing the usage of e-fuels in vehicles.

Asia-Pacific is projected to have considerable growth in the global e-fuel market

Asia-Pacific is projected to have lucrative market growth in the global e-fuel market during the forecast period. The growth is attributed to increasing hydrogen-powered electric vehicles in countries including Japan and China. The well-established e-fuel infrastructure in Japan is creating opportunities for the growth of the market in the region. In-country such as China the demand is increasing for alternative green energy fuels and increased production of biofuels can also be seen in the region.South Korea is also a key economy for the growing demand for e-fuel where the government is planning to install around 500 hydrogen fueling stations by 2030.

Market Players Outlook

Some of the key players of the E-fuel market include AUDI AG, Carbon Recycling International, Sunfire, Climeworks, Poet, ADM., and others. The market players are considerably contributing to the market growth by adopting various strategies including mergers, and acquisitions, collaborations, and new product launches, to stay competitive in the market. For instance, in October 2021, Toyota and Hitachi Ltd entered into a partnership to develop railway vehicles that are equipped with hybrid systems by using hydrogen-powered fuel cells and storage batteries as the source of electricity. With this collaboration both the companies are aiming to improve environmental living, contributing to a carbon-free society, and forming a sustainable society.

The Report Covers

Market value data analysis of 2021 and forecast to 2028.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global E-fuel market

Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market entry and market expansion strategies.

Competitive strategies by identifying 'who-stands-where in the market.