The global Synthetic Fuel Market is estimated to be valued at US$ 5.60 Bn in 2023 and is expected to exhibit a CAGR of 19.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Synthetic fuels are liquid or gaseous fuels obtained by processing of non-petroleum fossil or renewable resources into clean burning substitutes for fossil fuels like gasoline, diesel, jet fuel and others. They provide an alternative to diesel and gasoline without many chemical changes needed to the engine or vehicle.
Market key trends:
One of the key trends in the synthetic fuel market is increasing research and development activities for hydrogen fuels. Hydrogen fuel has the potential to replace fossil fuels and can power vehicles with only water and heat as by-products. Various industries are investing heavily in developing infrastructure for affordable production and storage of hydrogen to support its use as synthetic fuel. governments across regions are also funding projects for transitioning to a hydrogen based economy and reduction of CO2 emissions.However, high production costs and lack of distribution infrastructure currently limit widespread adoption of hydrogen as synthetic fuel globally.
Segment Analysis
The global synthetic fuel market can be segmented based on type and product. Based on type, the paraffinic kerosene and naphtha segment accounted for the largest share of more than 40% of the global synthetic fuel market in 2023. Paraffinic kerosene offers superior fuel properties than conventional kerosene such as lower particulate and sulfur emissions. It can be directly used in aircrafts with no blending requirement or engine modifications.
Key Takeaways
The Global Synthetic Fuel Market Size is expected to witness high growth, exhibiting CAGR of 19.8% over the forecast period, due to increasing penetration of synthetic fuels in the transportation sector. Synthetic fuels offer reduced emissions and do not compromise fuel performance.
Regional analysis:
North America dominated the global synthetic fuel market in 2023 and is expected to continue its dominance over the forecast period. This is attributed to stringent regulations regarding fuel emissions and investments by key players in the USA for synthetic fuel production plants. Asia Pacific is expected to be the fastest growing market owing to increasing energy demand from China and India.
Key players: Key players operating in the synthetic fuel market are Sasol, Shell, Chevron, ExxonMobil, BP (British Petroleum), Synfuels China, Rentech, Inc., Fischer-Tropsch, Technology, Linc Energy. Sasol and Shell together accounted for over 25% of the global production of synthetic fuel in 2023 owing to their investments and experience in FT technology.
The global synthetic fuel market is segmented based on type and product. Paraffinic kerosene and naphtha dominate the type segment due to their superior fuel properties over conventional fuels. North America leads the regional segment attributed to stringent emission norms and investments by major players in the region. Key players like Sasol and Shell have significant market share due to investments and experience in Fischer-Tropsch technology for synthetic fuel production.
Read More: https://www.ukwebwire.com/synthetic-fuel-market-size-share-and-growth-forecast-2023-2023/
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