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 renewable and low carbon alternatives to conventional fossil fuels. They are manufactured through various production processes such as gasification and Fischer–Tropsch synthesis that convert coal, natural gas or biomass into liquid fuels. Synthetic fuels reduce dependence on petroleum and offer environmental benefits by enabling carbon capture and storage from fossil fuel conversion.
Market key trends:
One of the major trends in the synthetic fuel market is the focus on second generation biofuels. Second generation biofuels are produced from non-food biomass feedstocks like lignocellulosic biomass which includes agricultural residues, forestry residues and municipal solid wastes. These feedstocks do not require agricultural land and are more sustainable. Companies are investing in research and development of technologies like fast pyrolysis to obtain fuel from cellulosic biomass in a cost effective and environment friendly manner. This is expected to drive the demand for synthetic fuel in the coming years.
SWOT Analysis
Strength: Conversion of abundant natural gas and coal resources into liquid fuels. Reduced dependence on crude oil imports. Environment-friendly with near-zero sulfur emissions.
Weakness: High capital investment requirements for plant setup. Limited natural gas reserves in some regions.
Opportunity: Increasing focus on alternatives to conventional fuels to achieve energy security and emissions goals. Growth in non-conventional oil and gas reserves opening new feedstock sources.
Threats: Fluctuating crude oil prices impacting demand-supply dynamics. Slow commercialization of emerging synthetic fuel technologies.
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 energy security concerns worldwide.
Regional analysis
North America is expected to dominate the global synthetic fuel market during the forecast period. This is attributed to ample coal and shale gas reserves in the region. Furthermore, tax incentives and funding provided by the US Department of Energy is promoting research on synthetic fuel production from domestic resources.
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, DKRW Advanced Fuels. Sasol is the world’s leading firm in the production of synthetic fuel from coal and gas, with an annual capacity of over 100,000 barrels per day. Shell is investing in second-generation Fischer-Tropsch technology for lower-cost synthetic fuel manufacturing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
