E-fuels Market by Renewable Source (Solar, Winds), Fuel Type (E-Methane, E-Kerosene, E-methanol, E-Ammonia, E-Diesel E-Gasoline), State (Gas, Liquid), End Use Application (Transportation, Chemicals, Power Generation) & Region - Forecast to 2030
[203 Pages Report] The global e-fuels market is estimated to grow from USD 6.2 billion in 2023 to USD 49.4 billion by 2030; it is expected to record a CAGR of 34.5% during the forecast period. The e-fuels market is rising due to their potential to decarbonize hard-to-electrify sectors like aviation and shipping. E-fuels, produced with renewable energy, address carbon emissions and offer energy storage solutions, aligning with global efforts to reduce environmental impact and transition to sustainable energy sources.
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E-fuels Market Dynamics
Driver: Favorable government policies to promote use of e-fuels
Governments around the world are increasingly investing in renewable energy and supporting the development of e-fuels. This is helping to reduce the cost of e-fuels and make them more competitive with fossil fuels. Government support is essential for the development and commercialization of e-fuels. E-fuels are still a relatively new technology, and they are currently more expensive to produce than fossil fuels. Government support can help to reduce the cost of e-fuels and make them more competitive with fossil fuels. Governments around the world are increasingly providing support for the development and commercialization of e-fuels. This support is taking a variety of forms, including:
- Financial support: Governments can provide financial support to e-fuels companies in the form of grants, loans, and tax breaks. This can help to reduce the cost of producing e-fuels and make them more competitive with fossil fuels.
- Mandates: Governments can mandate that a certain percentage of transportation fuels come from e-fuels. This can help to create a market for e-fuels and stimulate investment in the e-fuels industry.
- Public awareness campaigns: Governments can launch public awareness campaigns to educate the public about the benefits of e-fuels. This can help to build support for e-fuels and encourage people to switch to e-fueled vehicles and use e-fuels in other applications.
- Infrastructure investment: Governments can invest in the infrastructure needed to produce, distribute, and store e-fuels. This can help to make e-fuels more widely available and accessible.
Here are some specific examples of government support for e-fuels:
- The European Union has committed to investing €14 billion in the development and commercialization of e-fuels by 2030.
- The United States government has provided $100 million in funding for e-fuel research and development.
- The Japanese government is providing subsidies to produce e-fuels.
The Chinese government has set a target of producing 100 million tons of e-fuels per year by 2060.
Restraint: Requiremnet of high initial capital investment
The requirement of high initial capital investment is a restraint of the e-fuel market. E-fuels are synthetic fuels that are produced from renewable energy sources and captured carbon dioxide. The production of e-fuels requires a significant investment in capital equipment and infrastructure. The high initial capital investment requirement is a barrier to entry for new companies and can make it difficult for existing companies to expand their production capacity. This can limit the supply of e-fuels and drive up prices. There are a number of factors that contribute to the high initial capital investment requirement for e-fuels production, including:
- The cost of renewable energy: Renewable energy sources, such as solar and wind power, require a significant investment in capital equipment.
- The cost of e-fuels production technology: The technology used to produce e-fuels is still in its early stages of development and is therefore expensive.
- The scale of production: E-fuels production facilities need to be large in scale in order to be efficient. This requires a significant investment in capital equipment and infrastructure.
Opportunities: High rate of depletion of fossil fuels
Fossil fuels are made from decomposing plants and animals. These fuels are found in the crust of the Earth and contain hydrogen and carbon that can be burned to produce energy. An example of a fossil fuel is coal, as well as oil and natural gas. Fossil fuel reserves in the earth's subsurface are limited. A finite resource will eventually run out if it is continuously used up. The demand for fuels is increasing day by day, it will directly impact the rise in cost continuously due to less availability of oil in the earth’s crust. Increased mining and extraction of high quantity of fossil fuels is directly impacting the depletion of fossil fuels. According to Oil–Statistical Review of World Energy 2021 the earth has only the next 53 years of oil reserves left at the current rate of consumption.
According to Bp Statistical Review of World Energy 2021, fossil fuels accounted for 82% of primary energy use in 2020 and in 2019 it was 83%, whereas five years ago it used to be around 85%. So as the amount of fossil fuel reduces because of higher demand and less availability of crude oil it will automatically impact its use every year. As the world faces the depletion of fossil fuels problem many governments promote the use of e-fuels instead of fossil fuel and it creates a great opportunity for the e-fuels industry.
Challenges: Variable and high cost of feedstock
The variable and high cost of feedstock is a challenge for the e-fuels. Feedstock is the raw material used to produce e-fuels. The most common feedstocks for e-fuels are renewable energy sources, such as solar and wind power, and captured carbon dioxide. The cost of feedstock can vary depending on a number of factors, including the cost of renewable energy, the cost of carbon capture and storage (CCS) technology, and the availability of feedstock. The high and variable cost of feedstock can make it difficult for e-fuels companies to produce e-fuels at a competitive price. This can hinder the adoption of e-fuels by businesses and consumers.
E-fuels Market Ecosystem
In this market, prominent companies stand out as well-established and financially stable providers of e-fuels products and services. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking e-fuels solutions. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include as Saudi Arabian Oil Co. (Saudi Arabia), Audi AG (Germany), Siemens Energy (Germany), Sunfire GmbH (Germany), Mitsubishi Corporation (Japan), Repsol (Spain), Porsche AG (Germany), Uniper SE (Germany) and Orsted (Denmark).
The power generation, by end use application, is expected to be the second-fastest growing market during the forecast period.
This report segments the market based on end use application into different types: transporation, chemicals, power generation and others. The power generation segment of the e-fuels market is growing due to its role in supporting grid stability and energy storage. E-fuels can store excess renewable energy, releasing it when needed to meet peak demand or during periods of low renewable energy generation. This aids in reducing grid variability, ensuring a reliable and consistent power supply, and thus contributing to the integration of more renewable energy sources into the power grid.
By state, gas segment is is expected to be second-largest market during the forecast period.
This report segments the e-fuel market based on state into two segments: gas and liquid. The gas segment is expected to be the second-largest market during the forecast period. E-gas, such as e-methane or e-hydrogen, can be used in various applications, including transportation, power generation, and industrial processes, providing a versatile solution for decarbonization.
“Europe: The largest in the e-fuels market.”
Europe is expected to be the largest region in the e-fuels market between 2023–2030, followed by Asia Pacific. Europe has been leading the market. The e-fuels market is experiencing growth due to the presence of leading solution providers like Saudi Arabian Oil Co. (Saudi Arabia), Audi AG (Germany), Siemens Energy (Germany), Sunfire GmbH (Germany), and Norsk E-fuel (Norway). Notably, in 2020, Siemens Energy and Porsche AG and other partners have partnered up to produce e-fuels. These innovations from Germany is to industrialize synthetic fuels and decarbonize the mobility sector. As part of Germany’s national hydrogen strategy, to support the project Siemens Energy will get a grant of some 8 million euros from the Federal Ministry for Economic Affairs and Energy.
Key Market Players
The market is dominated by a few major players that have a wide regional presence. The major players in the e-fuels market include as Saudi Arabian Oil Co. (Saudi Arabia), Audi AG (Germany), Siemens Energy (Germany), Sunfire GmbH (Germany), and Norsk E-fuel (Norway). Between 2018 and 2023, Strategies such as contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the market.
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Report Metric |
Details |
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Market size available for years |
2022–2030 |
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Base year considered |
2022 |
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Forecast period |
2023–2030 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
E-fuels Market by Renewable Source, Fuel Type, State, End use application and Region. |
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Geographies covered |
Europe, Asia Pacific, North America, RoW |
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Companies covered |
Saudi Arabian Oil Co. (Saudi Arabia), Audi AG (Germany), Siemens Energy (Germany), Sunfire GmbH (Germany), Mitsubishi Corporation (Japan), Repsol (Spain), Porsche AG (Germany), Uniper SE (Germany), Orsted (Denmark), MAN Energy Solutions (Germany), Perstorp Holding AB (Sweden), HIF Global (Chile), INFINIUM (US), INERATECH GmbH (Germany), and Liquid Wind (Sweden). |
This research report categorizes the market based on renewable source, fuel type, state, end use application, and region.
On the basis of renewable source, the e-fuels market has been segmented as follows:
- Solar
- Winds
- others
On the basis of fuel type, the e-fuel market has been segmented as follows:
- E-methane
- E-kerosene
- E-methanol
- E-ammonia
- E-diesel
- E-gasoline
On the basis of state, the e-fuels market has been segmented as follows:
- Gas
- Liquid
On the basis of end use application, the e-fuel market has been segmented as follows:
- Transportation
- Chemicals
- Power generation
- Others
On the basis of region, the e-fuels market has been segmented as follows:
- Europe
- Asia Pacific
- North America
- RoW
Recent Developments
- In September 2023, Saudi Arabian Oil Co. and Stellantis have collaborated to check the compatibility of e-fuels with the European engine facilities. The companies have been working together using surrogate eFuels for the testing, according to existing fuel standards, as part of their pursuit of lower-carbon energy solutions. With this collaboration Aramco will be utilising its e-fuel production in vehicles.
- In March 2023, Uniper joins forces with the Swedish firm Liquid Wind, which is developing electro-fuel based on hydrogen to enable carbon-neutral shipping. Uniper will be the company's second largest investor, and it is now establishing its first eMethanol production facility in rnsköldsvik, on Sweden's north east coast.
- In May 2023, Siemens Energy, a global energy technology leader, had partnered with Liquid Wind to produce eFuel, reducing shipping emissions. Siemens Energy provides equity investment, technology, and expertise for eMethanol facility development.
- In April 2022, Mitsubishi Heavy Industries (MHI) had entered into a Memorandum of Understanding with Infinium, a pioneer in Electrofuels based in California. This agreement, an extension of MHI's prior investment in Infinium in 2021, is primarily centred around investigating the potential introduction of Infinium's exclusive Electrofuels technology into the Japanese market.
Frequently Asked Questions (FAQ):
What is the current size of the e-fuels market?
The current market size of the e-fuels market is USD 2.9 billion in 2022.
What are the major drivers for the e-fuels market?
Rising demand for sustainbale transportation and technological advancememts and increased investments in e-fuels market.
Which is the largest region during the forecasted period in the e-fuels market?
Europe is expected to dominate the e-fuels market between 2023–2030, followed by Asia Pacifc.
Which is the largest segment, by fuel type, during the forecasted period in the e-fuels market?
The e-ammonia segment is expected to be the largest market during the forecast period.
Which is the fastest segment, by state, during the forecasted period in the e-fuels market?
The liquid segment is expected to be the fastest market during the forecast period.
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The study involved major activities in estimating the current size of the e-fuels market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the e-fuel market involved the use of extensive secondary sources, directories, and databases, such as Hoover’s, Bloomberg, Factiva, IRENA, International Energy Agency, and Statista Industry Journal, to collect and identify information useful for a technical, market-oriented, and commercial study of the market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The e-fuels market comprises several raw material supplier technology and EPC providers, e-fuels suppliers, and the end use applications in the supply chain. The demand side of this market is characterized by the rising demand for types of e-fuels such as e-methane, e-methanol, e-ammonia, e-diesel, e-kerosene and e-gasoline. The supply side is characterized by rising demand for contracts from the industrial sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the e-fuel market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share has been determined through primary and secondary research.
- The industry’s value chain and market size, in terms of value, have been determined through both primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
E-fuels Market Size: Top-Down Approach
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E-fuels Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the above estimation process, the total market has been split into several segments and subsegments. Data triangulation and market breakdown processes have been employed to complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand- and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
Renewable or low-carbon liquid or gaseous fuels, known as e-fuels or electrofuels, are produced by combining renewable electricity, often sourced from wind or solar power, with carbon dioxide (CO2). This process creates synthetic hydrocarbon-based fuels, such as e-diesel or e-kerosene, that are intended to replace conventional fossil fuels. E-fuels are particularly useful for aviation and heavy industries, where direct electrification is difficult. However, producing e-fuels requires a significant input of renewable energy and faces challenges in terms of cost and scalability. Despite these challenges, e-fuels can play a crucial role in achieving a sustainable and carbon-neutral energy landscape, helping to combat climate change and reduce greenhouse gas emissions.
The market for e-fuels is the sum of revenues generated by global companies through the sales of e-fuels.
Key Stakeholders
- E-fuels vendors
- Consulting companies in the energy & power sector
- Consulting companies related to the energy & power sector
- Energy regulators
- Government and research organizations
- Power and energy associations
- Repairs and maintenance service providers
- State and national regulatory authorities
- Research and consulting companies in the clean energy generation sector
- Organizations, forums, alliances, and associations
- Industrial authorities and associations
- State and national regulatory authorities
- Research institutes
Objectives of the Study
- To define, describe, segment, and forecast the e-fuels market by renewable source, fuel type, state, end use application, and region, in terms of value
- To describe and forecast the market for six key regions: North America, Europe, Asia Pacific, and RoW along with their country-level market sizes, in terms of value
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing market growth
- To strategically analyze the micro markets with respect to individual growth trends, prospects, and contributions to the overall market size
- To provide supply chain analysis, trends/disruptions impacting customer business, ecosystem/market map, pricing analysis, Porter’s five forces analysis, case study analysis, and regulatory standards pertaining to e-fuels
- To analyze opportunities for stakeholders in the e-fuels and draw a competitive landscape of the market
- To strategically analyze the ecosystem, tariffs and regulations, patents, and trading scenarios pertaining to e-fuels
- To compare key market players based on product specifications and applications
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as contracts and agreements, investments and expansions, mergers and acquisitions, partnerships, joint ventures, and collaborations, in the e-fuels.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
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Company Information
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Growth opportunities and latent adjacency in E-fuels Market