USD 42.2 billion
Synthetic Fuel Market Size, Share, and Growth Analysis
Synthetic Fuel Market By Feedstock (Natural Gas, Methanol), By Process (Fischer-Tropsch Synthesis, Methanol Synthesis), By Fuel Type, By Market Maturity, By Environmental Impact, By Application, By End Use, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG10G2015 |
Region:
Global |
Published Date: December, 2024
Pages:
157
|Tables:
37
|Figures:
63
Format -
Synthetic Fuel Market Insights
Global Synthetic Fuel Market size was valued at USD 42.2 billion in 2023 and is poised to grow from USD 44.52 billion in 2024 to USD 68.33 billion by 2032, growing at a CAGR of 5.5% during the forecast period (2025-2032).
Fuels that are synthetic, or "carbon-neutral," collect CO2 during production. In this method, this greenhouse gas is transformed into a raw material from which power from renewable sources can be used to manufacture gasoline, diesel, and replacement natural gas. The ability to continue using the existing network of filling stations is another significant benefit of combustion engines that run on synthetic fuels. The same is true of the current combustion-engine knowledge. Furthermore, the creation of alternative fuels may be beneficial even though electric vehicles will become substantially less expensive in the next years. Depending on the type of renewable energy utilized, Bosch has estimated that the total cost of ownership of a hybrid-powered by synthetic fuel, up to a lifetime mileage of 160,000 kilometers, might be less than that of a long-range electric vehicle.
US Synthetic Fuel Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Extra-Heavy Oils
Fastest Growth
Shale Oil
Growth Rate
5.5% CAGR
Global Synthetic Fuel Market, 2024-2031 ($ Bn)
Country Share for North America Region- 2024-2031 (%)
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Synthetic Fuel Market Segments Analysis
Global Synthetic Fuel Market is segmented by feedstock, process, fuel type, market maturity, environmental impact, application, end use and region. Based on feedstock, the market is segmented into natural gas, methanol, power and other feedstocks. Based on process, the market is segmented into fischer-tropsch synthesis, methanol synthesis, electrolysis and coal liquefaction. Based on fuel type, the market is segmented into gas to liquid fuel, methanol to liquid, power to liquid fuel and other fuel types. Based on market maturity, the market is segmented into prototyping/introductory, emerging and mature. Based on environmental impact, the market is segmented into carbon-neutral/capture technologies and low-carbon/conventional. Based on application, the market is segmented into gasoline, diesel and kerosene. Based on end use, the market is segmented into transportation, industrial and chemical & others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Synthetic Fuel Market Analysis by Type
Based on the Type, the Synthetic Fuel market is bifurcated into extra-heavy oils, shale oil, liquid to gas fuels, and other. The market share that belongs to extra-heavy oils is the largest contributor at more than 27%. Methane-rich gases are converted into liquid synthetic fuels via syngas as an intermediate, for example using the Fischer Tropsch or Mobil processes. The commercial-scale shale oil production is progressing, and commercial facilities are expected to be operational. Because of completed and ongoing development work, the risks involved with transitioning to commercial-scale operation are likely manageable, while risks are never negotiable when commercializing systems for handling solid feedstocks.
Global Synthetic Fuel Market By Type , 2024-2031(%)
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Synthetic Fuel Market Regional Insights
There are currently 10 functioning e-fuel projects for the manufacture of green ammonia and methanol, as well as synthetic jet fuel and diesel. The majority of capacity additions in the period 2022-2028 are predicted to be for green ammonia and green methanol. While Asia Pacific, particularly Australia, is likely to become a global leader in green ammonia production, Europe is expected to win the race in green methanol capacity expansions, accounting for more than 86% of total production. Green or e-methanol capacity is expected to stay relatively low when compared to bio methanol produced from waste biomass, owing to the latter's lower costs. E-gasoline, on the other hand, will be mostly produced in Chile, while e-kerosene and other transportation e-fuel manufacturing will be principally supported in Europe. The production of e-fuel will progressively rise, mostly in Europe, the Asia-Pacific region, and potentially in Chile at first. Due to the high energy density requirements, long-distance road transport, aviation, and shipping industries are expected to be the primary sources of e-fuel demand in the medium future, with most of this activity expected to occur in Europe.
Global Synthetic Fuel Market By Geography, 2024-2031
- Largest
- Fastest
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Synthetic Fuel Market Dynamics
Synthetic Fuel Market Driver
- Reduced production costs, which are expected to follow the widespread deployment of variable renewable energy (VRE) sources and are the primary driving force behind cheaper green hydrogen production; and Utilization and monetization of excess renewable energy production, which is expected to increase with increasing supply, to lower the costs of green hydrogen production via electrolysis.
- The chemical industry's demand for synthetic gas is increasing. This is because syngas is used to produce synthetic natural gas (SNG), which is used in the rail, marine, and road transportation industries as liquefied natural gas (LNG) and compressed natural gas (CNG) (CNG).
Synthetic Fuel Market Restraint
- The capital cost of manufacturing plants as well as the cost of captured CO2 and hydrogen present a general obstacle to lowering the price of synthetic fuels. These choices are currently substantially more expensive than fossil-based kerosene combined with negative emission technology to mitigate the CO2 emissions, according to the UK TIMES and TIAM-UCL studies at current cost forecasts. For a better understanding of the risks associated with investing in these technologies, further techno-economic analysis is needed in order to understand the sensitivity of changing capital costs and input costs.
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Synthetic Fuel Market Competitive Landscape
The Global Synthetic Fuel market is somewhat fragmented. To maintain a competitive edge, equipment suppliers, current players searching for growth opportunities, and new players as they age. Their business is built on current facts and promising futures by identifying opportunities with other partners to support their plan.
Top Players in Synthetic Fuel Market
- Shell
- Sasol
- CHN Energy Investment Group Co., Ltd.
- Chevron Renewable Energy Group
- ExxonMobil Corporation
- TotalEnergies
- Neste
- Petro SA
- Linde Engineering
- Synthesis Energy Systems, Inc.
- Dakota Gasification Company
- Topsoe
- Maire Tecnimont S.p.A.
- Sunfire GmbH
- RWE
- QatarEnergy
- Norsk e-Fuel
- Prometheus Fuels
- SkyNRG
- Synhelion SA
Synthetic Fuel Market Recent Developments
- In Jun 2022, Tokyo Gas, Japan's top city gas supplier, said on Friday (Jun 24) it has begun a pilot program of methanation, a technology to help de-carbonize city gas, and plans to use green hydrogen sourced from renewable energy for the trial by next March. Methanation converts hydrogen and carbon dioxide (CO2) into synthetic methane, an alternative for the main component in natural gas. It is considered a way of using CO2 as a raw material that could help the company achieve carbon neutrality in 2050
- In June 2022, Uzbekistan has started producing synthetic fuel, including synthetic diesel, for the first time at its gas-to-liquids (GTL) plant. According to agreements, the first batch 5,000 tons of synthetic diesel will be sent to the Navoi Mining and Metallurgical Combine, Uzbekistan’s largest gold producer, it said. Uzbekistan launched its first GTL plant located in the Kashkadarya region
Synthetic Fuel Key Market Trends
- Green hydrogen has the potential to greatly improve sustainability. It could be termed carbon-neutral because it is created using renewable energies. Similarly, burning hydrogen produces energy and water rather than greenhouse gas. Furthermore, hydrogen could aid in the storage of intermittent renewable energies, allowing for smoother energy delivery over longer time periods as well as between regions with ample renewable supply and locations with high energy demand.
- To comply with existing climate targets, aviation must reduce its carbon emissions, which are high. Although de-carbonization of the industry is difficult, transitioning to low carbon synthetic jet fuels offers prospects. Understanding how synthetic fuels contribute to reducing global warming can be done with the use of energy system models.
Synthetic Fuel Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our Global Synthetic Fuel Market Analysis, in terms of type, the extra-heavy oil segment held the largest share of more than 27% and is estimated to maintain a similar trend over the forecast period. Followed by shale oil, liquid to gas fuels, and other. Implementation of incentive-based policies aiming at lowering overall cost barriers to carbon-neutral fuel generation and attracting new investments in the market.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 42.2 billion |
| Market size value in 2032 | USD 68.33 billion |
| Growth Rate | 5.5% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Synthetic Fuel Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Synthetic Fuel Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Synthetic Fuel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Synthetic Fuel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Synthetic Fuel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Synthetic Fuel Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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