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Report Overview
The global e-fuels market size reached around USD 7.78 Billion in 2023. The market is projected to grow at a CAGR of 30.20% between 2024 and 2032 to reach nearly USD 83.65 Billion by 2032.
2023
Base Year
2018-2023
Historical Year
2024-2032
Forecast Year
- Methanol production has nearly doubled in the past decade, largely driven by China. If trends persist, it could reach 500 million tons annually by 2050, emitting 1.5 billion tons of CO2 each year from fossil fuels.
- Denmark and Spain are leading the way in the emerging European e-fuels sector, aiding the growth of the e-fuels market.
- It is projected that as renewable power prices decline, the cost of e-methanol will likely fall to a range of USD 250-630 per ton by the year 2050.
Global E-Fuels Market Growth
In February 2024, Chevron New Energies revealed its plans to establish a 5 MW hydrogen production project in California’s Central Valley. This facility aims to generate lower-carbon energy by harnessing solar power. Through electrolysis, low-carbon intensity (LCI) electrolytic hydrogen will be produced, with an output of 2 tons per day, supporting the development of a growing hydrogen refuelling network. Chevron is already providing lower-carbon fuels, including SAF and renewable diesel.
Moreover, many European legislation promotes the adoption of e-fuels, such as the Renewable Energy Directive (RED) III, ReFuelEU Aviation, and FuelEU Maritime. The RED III, which was adopted in October 2023, seeks to elevate the share of renewable energy in the European Union’s overall energy consumption to 42.5% by 2030, with an additional indicative target of 2.5%. The ReFuelEU aviation initiative aims to boost both the demand for and supply of SAF, aligning air transport with the EU’s climate objectives for 2030 and 2050, with penalties imposed for non-compliance regarding SAF and renewable liquids, leading to a favourable e-fuels market outlook.
The United Kingdom is also dedicated to enhancing the proportion of e-fuels utilised in aviation and has committed to having a minimum of five commercial sustainable aviation fuel (SAF) facilities under construction by the year 2025. In April 2024, it was confirmed that the power-to-liquid mandate would commence in 2028, starting at 0.2% of jet fuel demand and escalating to 3.5% by 2040.
Compound Annual Growth Rate
Value in USD Billion
30.2%
2024-2032
E-Fuels Market Outlook
*this image is indicative*
Key Trends and Developments
E-fuels market development can be attributed to the implementation of strict climate regulations, adoption of renewable energy sources, and escalating demand for sustainable aviation fuels.
Strict Climate Regulations
Globally, governments and regulatory agencies are establishing ambitious objectives aimed at decreasing greenhouse gas emissions, thereby generating a significant demand for cleaner fuel alternatives. E-fuels present a viable solution for sectors that are challenging to electrify, including aviation, maritime, and heavy-duty transportation.
Rising Investment in Renewable Energy Sources
The expansion of renewable energy infrastructure, particularly in solar and wind energy, lays the groundwork to produce e-fuels. As renewable energy becomes increasingly cost-effective, the feasibility and economic viability of producing e-fuels through electrolysis and carbon capture technologies improve, supporting the e-fuels market expansion.
Progress in Carbon Capture and Utilisation (CCU) Technologies
Innovations in technologies designed to capture carbon dioxide from industrial emissions or the atmosphere are advancing swiftly. The production of e-fuels can utilise this captured carbon, integrating it with hydrogen generated through electrolysis to produce synthetic fuels, thereby enhancing demand.
Escalating Demand for Sustainable Aviation Fuel (SAF)
As per e-fuels market analysis, the aviation sector faces significant pressure to minimise its carbon emissions. E-fuels are regarded as a promising substitute for sustainable aviation fuel, enabling airlines to achieve carbon reduction goals without necessitating alterations to existing engine designs.
Global E-Fuels Market Trends
E-fuels are gaining traction in sectors such as aviation and shipping, where the transition to electrification presents significant challenges. The European Union has also established a requirement for sustainable aviation fuels (SAFs) starting in 2030, thereby encouraging the use of e-kerosene in the aviation sector. Concurrently, the maritime sector is investigating the use of e-methanol and e-ammonia to achieve the decarbonisation goals set by the International Maritime Organisation for 2030, consequently driving up the e-fuels market share.
Furthermore, the combination of policies aimed at reducing carbon emissions and substantial investments from corporations is driving the expansion of the market. Additionally, advances in electrolysis and carbon capture technologies are contributing to lower production costs, enhancing the competitiveness of e-fuels.
Global E-Fuels Industry Segmentation
The EMR’s report titled “Global E-Fuels Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Breakup by State
- Liquid
- Gaseous
Breakup by Type
- E-Diesel
- E-Gasoline
- Ethanol
- E-Kerosene
- E-Methane
- E-Methanol
- Others
Breakup by Renewable Source
- Solar
- Wind
- Others
Breakup by End use
- Automotive
- Marine
- Industrial
- Aviation
- Others
Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Global E-Fuels Market Share
Based on end use, the market is segmented into automotive, marine, industrial, and aviation, among others. AS per e-fuels market analysis, over the forecast period, the aviation sector is expected to grow at a CAGR of 38.3%. E-fuels, such as e-kerosene, are gaining recognition as sustainable aviation fuels (SAFs) that contribute to the reduction of emissions within the aviation sector. The European Union has established a requirement for the use of SAFs by 2030, thereby positioning e-fuels as crucial components in achieving the sector's overarching decarbonisation objectives.
Leading Companies in the Global E-Fuels Market
Major players are focusing on the adoption of sustainable production practices to gain a competitive e-fuels market share
Sunfire GmbH
Established in 2010, Sunfire GmbH is based in Dresden, Germany. The firm is dedicated to the production of e-fuels utilising electrolysis and renewable energy sources, fostering advancements in hydrogen and fuel cell technologies to facilitate a sustainable energy transition.
Audi AG
Audi AG, founded in 1909 and based in Ingolstadt, Germany, is a prominent player in the automotive sector, pro...
Dr. Ing. h.c. F. Porsche AG
Porsche AG, founded in 1931 and headquartered in Stuttgart, Germany, is renowned for its high-end sports cars....
Liquid Wind AB
Liquid Wind AB, founded in 2017 and based in Gothenburg, Sweden, specialises in the production of e-methanol b...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players included in the e-fuels market report are HIF Global, Norsk e-Fuel AS, Saudi Arabian Oil Co., and Infinium Holdings, Inc., among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2023, the market attained a value of nearly USD 7.78 Billion.
The market is assessed to grow at a CAGR of 30.20% between 2024 and 2032.
The market is estimated to witness a healthy growth in the forecast period of 2024 -2032 to reach about USD 83.65 Billion by 2032.
The market is being driven by the strict climate regulation by international organisations and rising adoption of renewable energy resources.
The major end uses of the market are automotive, marine, industrial, and aviation, among others.
The major regions considered in the market are North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Key players in the market are Sunfire GmbH, Audi AG, Dr. Ing. h.c. F. Porsche AG, Liquid Wind AB, HIF Global, Norsk e-Fuel AS, Saudi Arabian Oil Co., and Infinium Holdings, Inc., among others.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by State |
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| Breakup by Type |
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| Breakup by Renewable Source |
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| Breakup by End Use |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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