The synthetic fuels market size was USD 48.6 billion in 2023. Further, by the end of this decade, it will power at a compound annual growth rate of 5.6%, to touch a value of USD 70.6 billion by 2030.
The transportation category, has 40% share in 2023. The use of EVs is snowballing rapidly at the global level, but the transportation sector still hinges on heavily on fossil fuels. Moreover, ICEs provide added advantages in heavy automobiles and sports cars, or even in remote areas, where the supply of power is insufficient.
The industrial category also has a substantial share in the industry. According to reports, the CO2 emissions of the industrial sector in 2022 were 9 Gt, where electricity and heat generation contributed 15.83 billion tonnes of emissions. This is for the reason that fossil fuels have wide use in industries as energy sources and raw-materials.
Likewise, natural gas is used throughout the manufacturing of dyes, fertilizers and plastics, along with in glass foundries and aluminum smelters, both as a natural resource and energy source.
The APAC synthetic fuels market is the leader of the pack, with a share, of about 50%, in 2023. Asia has numerous emerging economies, most of which are also highly contaminated. To advance the air quality, these nations are working tirelessly to decrease GHG emissions, by introducing guidelines for industries and at the individual level. Moreover, governments are taking measures to organize actions to manufacture 2G ethanol at scale.
It is because of the active participation of private players in research and development, and the growing number of initiatives of the government all over the world, the demand for synthetic fuels will keep on increasing in the years to come.
