DUBLIN, Oct. 24, 2023 /PRNewswire/ — The “Synthetic Fuels Market by Fuel Type (Methanol to liquid (MTL), Power to liquid (PTL), Gas to liquid (GTL)), Application (Gasoline, Diesel, Kerosene), End Use (Transportation, Industrial, Chemical ), and Region – Global Forecast to 2030” report has been added to ResearchAndMarkets.com’s offering.
The global synthetic fuels market is poised for substantial growth, projected to reach USD 70.1 billion by 2030 from USD 48.4 billion in 2023, reflecting a notable Compound Annual Growth Rate (CAGR) of 5.4%.
This burgeoning market is experiencing expansion across various regions, with Asia Pacific emerging as a prominent player, thanks to increased private sector investments fueling research and development in various applications of synthetic fuel.
In the realm of fuel types, the gasoline-to-liquid segment took the spotlight, claiming the second-largest market share in 2022. Gasoline-to-liquid (GTL) fuel is a synthetic alternative to traditional diesel and gasoline, crafted by converting natural gas into a liquid form suitable for conventional engines. This conversion process involves steam methane reforming (SMR) or autothermal reforming (ATR) to produce syngas, followed by Fischer-Tropsch (FT) synthesis using catalysts. GTL fuel is versatile and finds applications in transportation, power generation, and heating, offering a cleaner energy option.
The chemical & others end-use segment also held the second-largest market share in 2022. Synthetic fuels play a pivotal role in the chemical sector, reducing greenhouse gas emissions and dependence on fossil fuels. They serve as a carbon source for chemicals like syngas, used in methanol, ammonia, and synthetic hydrocarbon production, while also supplying hydrogen for various chemical processes. Furthermore, synthetic fuels align with green chemistry principles, offering a renewable, low-carbon alternative in chemical processes, making them a vital asset in achieving sustainability goals within the chemical industry.
In terms of applications, the gasoline segment secured the second-largest market share in synthetic fuels in 2022. Synthetic gasoline, known as syn-gasoline, mirrors traditional gasoline and is generated via Fischer-Tropsch synthesis from carbon-containing inputs such as natural gas, coal, or biomass. It serves as a cleaner energy transition option, compatible with existing infrastructure and engines. Ongoing research and innovation are pivotal in advancing the synthetic fuels market, propelling its growth and sustainability.
The rest of the world, comprising South America and the Middle East & Africa, emerged as the second-largest consumer of synthetic fuels worldwide in 2022. South America, including countries like Brazil and Chile, boasts a burgeoning synthetic fuels market due to its robust economy, manufacturing capabilities, and foreign investment. Meanwhile, in the Middle East & Africa (MEA), abundant natural resources such as natural gas, coal, and biomass provide a solid foundation for synthetic fuels production. MEA’s growing focus on hydrogen as a feedstock, particularly through green hydrogen initiatives, supports synthetic hydrocarbon production, aligning with Saudi Arabia’s ambition to become a top hydrogen supplier and contributing to the global growth of the synthetic fuels market.
Key Highlights:
Synthetic Fuels Market Driven by Increased Demand from Aerospace & Defense, Marine, and Other Sectors.
Asia-Pacific to Account for the Largest Market During the Forecast Period.
Power to Liquid Fuel to Register the Highest CAGR During the Forecast Period.
Transportation Segment Accounted for the Largest Market Share in 2023.
Kerosene to Register the Highest CAGR During the Forecast Period.
Market Dynamics:
Drivers:
Investment by Private Players Boosting Research and Development.
Diversification in Primary Energy Mix.
Restraints:
High Cost of Synthetic Fuel.
Growing Market for Electric Vehicles and Alternative Fuel.
Opportunities:
High Potential Use of Synthetic Fuels in Various Applications.
Introduction of Carbon Pricing Mechanism and Tax Credits for Synthetic Fuel Production.
Challenges:
Difficulty in Achieving Economies of Scale in Synthetic Fuel Production.
Case Study Analysis:
Porsche’s Carbon-Neutral Synthetic Fuels from Thin Air
Honeywell’s Uop Refining Technology Pioneers Sustainable Aviation Fuel
Companies Mentioned:
Chevron Renewable Energy Group
Chn Energy Investment Group Co., Ltd.
Dakota Gasification Company
ExxonMobil Corporation
Inner Mongolia Yitai Coal Co., Ltd.
Linde Engineering
Maire Tecnimont S.P.A.
Neste
Norsk E-Fuel
Petro Sa
Prometheus Fuels
Qatarenergy
Rwe
Saf+ Consortium
Sasol
Shell
Skynrg
Sunfire GmbH
Synhelion Sa
Synthesis Energy Systems, Inc.
Topsoe
Totalenergies
Virent, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/tfpbrs
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