Synthetic Fuels Market by Type, Refining Method, Raw Material, Application, End-user

List of Tables

[189 Pages Report] The Synthetic Fuels Market size was estimated at USD 46.53 billion in 2023 and expected to reach USD 49.10 billion in 2024, at a CAGR 5.79% to reach USD 69.02 billion by 2030.

Synthetic fuels are liquid fuels with identical properties to fossil fuels but are created artificially and can be used the same way fossil fuels are used worldwide. Synthetic fuel is generally obtained from a mixture of hydrogen and carbon monoxide, which are synthetic gases. Rapid surges in fossil fuel prices worldwide can create demand for synthetic fuels. Moreover, increasing environmental issues and stringent regulations on carbon emissions propel the market expansion. The higher cost associated with the production and distribution of synthetic fuel than conventional fuels remains a significant restraint for market growth. Pollution caused by manufacturing processes of synthetic fuels might hinder market developments. Ongoing research activities to reduce oil dependence and integrate synthetic fuels with the existing transportation infrastructure provide lucrative industry growth opportunities.

KEY MARKET STATISTICS
Base Year [2023]	USD 46.53 billion
Estimated Year [2024]	USD 49.10 billion
Forecast Year [2030]	USD 69.02 billion
CAGR (%)	5.79%

Regional Insights

With the increase in oil prices, synthetic fuels have become more practical. The U.S. government has undertaken several projects to look into the process. In particular, the Defense Department has studied synthetic fuels to supply transportation fuel without depending on overseas suppliers. Moreover, there is growing investment in the public and private sectors for promoting synthetic fuel manufacturing and usage in North America. In Europe, synthetic fuel is gaining traction owing to the developed automotive sector and growing interest in reducing conventional fuel consumption and greenhouse gas emissions. The Asia-Pacific has witnessed significant growth in the synthetic fuel market owing to the clean energy initiative and efforts to reduce carbon emissions. Several economies, including India, China, Japan, South Korea, and Australia, actively invest in synthetic fuel technologies.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Synthetic Fuels Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Increasing focus on decarbonization and transition to renewable energy sources
- Government support for the development of e-fuels and stringent regulations on carbon emissions associated with fossil fuels

Market Restraints
- High cost associated with the production of synthetic fuels

Market Opportunities
- Advancements in technology for producing sustainable fuels
- Growing integration of synthetic fuels across the aviation sector

Market Challenges
- Pollution and technical issues with manufacturing processes of synthetic fuels

Market Segmentation Analysis
- Raw Material: Increasing demand for synthetic fuel made from Coal, owing to its abundant availability
- Refining Method: Wider adoption of fischer-tropsch synthesis for relatively pure hydrogen output
- Type: Growing popularity of power-to-liquid fuel owing to its advantages of low consumption of water and land
- Application: Rising use of synthetic kerosene for sustainable flying
- End-user: Growing utilization of synthetic fuel in the transport sector to reduce reliance on fossil fuels

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Synthetic Fuels Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Synthetic Fuels Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Aramco Plans to Produce Synthetic Fuels by 2025 at Test Plants

Saudi Aramco invested in developing two demonstration plants to produce synthetic fuels by 2025. These fuels emit less carbon dioxide when burned, contributing to a more sustainable energy future. The plant is anticipated to focus on testing the production of synthetic gasoline and jet fuel. Aramco aims to double its refining capacity from 5 million barrels to 10 million barrels, further solidifying its position as a global energy leader. [Published On: 2023-10-25]

Aramco and ENOWA to Develop E-Fuel Demonstration Plant

Saudi Arabian Oil Company (Aramco) and ENOWA, NEOM's energy and water company, have signed a joint development agreement to construct and establish a synthetic electro-fuel (e-fuel) demonstration plant. This proposed plant is located in ENOWA's Hydrogen Innovation and Development Center (HIDC) to demonstrate commercial viability and technical feasibility by producing 35 barrels of low-carbon, synthetic gasoline from renewable hydrogen and captured carbon dioxide (CO2) per day. [Published On: 2023-10-24]

Successful Production of FT Synthetic Fuel from Synthesis Gas with an Admixture of 20% Carbon Dioxide

Sumitomo Heavy Industries, Ltd. (SHI) has achieved significant progress in producing FT synthetic fuel from synthesis gas containing 20% carbon dioxide (CO2). SHI has developed its unique catalyst that enables the conversion of CO2 sourced from power plants, factories, and other sources into liquid fuel. [Published On: 2023-10-19]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Synthetic Fuels Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Synthetic Fuels Market, highlighting leading vendors and their innovative profiles. These include Abu Dhabi National Oil Company, BP PLC, Celanese Corporation, Chevron Corporation, China National Petroleum Corporation, Dakota Gasification Company, DGFuels, LLC, Dr. Ing. h.c. F. Porsche AG, Ekobenz Sp. z o. o., ENEOS Group, Exxon Mobil Corporation, HIF Global, Honeywell International Inc., Idemitsu Kosan Co.,Ltd., Indian Oil Corporation Limited, INERATEC GmbH, Linde PLC, Maire Tecnimont S.p.A., Mitsubishi Corporation, Neste Corporation, Norsk e-Fuel AS, ORLEN S.A., Osaka Gas Co., Ltd., PetroSA, Phillips 66, QatarEnergy, RWE AG, Sasol Limited, Saudi Arabian Oil Company, Shell PLC, Siemens Energy AG, Sumitomo Heavy Industries, Ltd., Sunfire GmbH, Synhelion SA, Synthesis Energy Systems, Inc., Toho Gas Co., Ltd., Tokyo Gas Co., Ltd., Topsoe A/S, TotalEnergies SE, Upcycle Technologies, Yokogawa Electric Corporation, and Zero Petroleum Limited.

Market Segmentation & Coverage

This research report categorizes the Synthetic Fuels Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- Biomass to Liquid Fuel
- Gas to Liquid Fuel
- Methanol to Liquid Fuel
- Power to Liquid Fuel
  - Sun to Liquid Fuel
  - Wind to Liquid Fuel
Refining Method
- Coal Liquefaction
- Fischer-Tropsch Conversion
- Methanol to Gasoline Conversion

Raw Material
- Biomass
- Coal
- Natural Gas

Application
- Diesel
- Gasoline
- Kerosene

End-user
- Industrial
- Manufacturing
- Transportation

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-2E76C3E47F51

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Increasing focus on decarbonization and transition to renewable energy sources
  - 5.1.1.2. Government support for the development of e-fuels and stringent regulations on carbon emissions associated with fossil fuels
- 5.1.2. Restraints
  - 5.1.2.1. High cost associated with the production of synthetic fuels
- 5.1.3. Opportunities
  - 5.1.3.1. Advancements in technology for producing sustainable fuels
  - 5.1.3.2. Growing integration of synthetic fuels across the aviation sector
- 5.1.4. Challenges
  - 5.1.4.1. Pollution and technical issues with manufacturing processes of synthetic fuels
5.2. Market Segmentation Analysis
- 5.2.1. Raw Material: Increasing demand for synthetic fuel made from Coal, owing to its abundant availability
- 5.2.2. Refining Method: Wider adoption of fischer-tropsch synthesis for relatively pure hydrogen output
- 5.2.3. Type: Growing popularity of power-to-liquid fuel owing to its advantages of low consumption of water and land
- 5.2.4. Application: Rising use of synthetic kerosene for sustainable flying
- 5.2.5. End-user: Growing utilization of synthetic fuel in the transport sector to reduce reliance on fossil fuels
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Synthetic Fuels Market, by Type

6.1. Introduction
6.2. Biomass to Liquid Fuel
6.3. Gas to Liquid Fuel
6.4. Methanol to Liquid Fuel
6.5. Power to Liquid Fuel

7. Synthetic Fuels Market, by Refining Method

7.1. Introduction
7.2. Coal Liquefaction
7.3. Fischer-Tropsch Conversion
7.4. Methanol to Gasoline Conversion

8. Synthetic Fuels Market, by Raw Material

8.1. Introduction
8.2. Biomass
8.3. Coal
8.4. Natural Gas

9. Synthetic Fuels Market, by Application

9.1. Introduction
9.2. Diesel
9.3. Gasoline
9.4. Kerosene

10. Synthetic Fuels Market, by End-user

10.1. Introduction
10.2. Industrial
10.3. Manufacturing
10.4. Transportation

11. Americas Synthetic Fuels Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

12. Asia-Pacific Synthetic Fuels Market

12.1. Introduction
12.2. Australia
12.3. China
12.4. India
12.5. Indonesia
12.6. Japan
12.7. Malaysia
12.8. Philippines
12.9. Singapore
12.10. South Korea
12.11. Taiwan
12.12. Thailand
12.13. Vietnam

13. Europe, Middle East & Africa Synthetic Fuels Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. Aramco Plans to Produce Synthetic Fuels by 2025 at Test Plants
- 14.3.2. Aramco and ENOWA to Develop E-Fuel Demonstration Plant
- 14.3.3. Successful Production of FT Synthetic Fuel from Synthesis Gas with an Admixture of 20% Carbon Dioxide
- 14.3.4. ORLEN Partners With Yokogawa to Develop Technology for Sustainable Aviation Fuel Production
- 14.3.5. Rolls-Royce and Zero Petroleum Join Forces to Develop Sustainable Future
- 14.3.6. Vertimass EMEA Signs Agreement to Acquire European Renewable Fuel Company Ekobenz
- 14.3.7. Intertek and Zero Petroleum Partner to Accelerate the Transition to Synthetic Fuels
- 14.3.8. Babcock and Zero to Test, Develop and Produce a Synthetic Drop-in Fuel
- 14.3.9. Zero to Open a First Fully Featured Synthetic Fuel Facility in June Alongside Accelerated International Growth Plan
14.4. Strategy Analysis & Recommendation

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio