Solar Fuel Market Report 2026

The solar fuel market size has grown strongly in recent years. It will grow from $14.09 billion in 2025 to $15.18 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to early-stage research investments, pilot solar fuel projects, rising interest in hydrogen economy development, availability of solar-driven electrolysis technologies, government-funded clean fuel initiatives.

The solar fuel market size is expected to see strong growth in the next few years. It will grow to $20.19 billion in 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to expansion of industrial decarbonization strategies, rising demand for seasonal energy storage, increasing investments in green hydrogen infrastructure, growing adoption of synthetic fuels, advancements in solar-driven chemical conversion technologies. Major trends in the forecast period include expansion of green hydrogen production pathways, growing focus on solar-to-fuel conversion efficiency, rising integration of solar fuels in energy storage systems, development of scalable solar fuel production plants, increased emphasis on long-duration energy storage.

The rising demand for renewable energy is expected to drive the growth of the solar fuel market in the coming years. Renewable energy refers to power generated from natural sources that are continually replenished, such as solar, wind, and hydropower, supporting sustainable electricity production and reducing dependence on fossil fuels. The growing demand for renewable energy stems from environmental concerns, falling costs of renewable technologies, government incentives, the need for energy security, and advances in energy storage solutions. Solar fuels enhance renewable energy development by providing a dependable way to store and convert solar energy into usable power, improving overall accessibility and sustainability. For example, in December 2024, Eurostat, a Luxembourg-based government organization, reported that renewable energy sources accounted for 24.5% of the EU’s gross final energy consumption in 2023, an increase of about 1.4 percentage points compared with 2022. Therefore, the increasing demand for renewable energy is contributing to the expansion of the solar fuel market.

Leading companies in the solar fuel market are focusing on strategic partnerships to develop solar fuels for aviation and enhance the efficiency and effectiveness of solar fuel production and utilization. For example, in June 2024, Synhelion SA, a Switzerland-based cleantech company, partnered with Pilatus Aircraft Ltd., a Switzerland-based aerospace company, to develop advanced solar fuels for its flight operations. This partnership aims to accelerate the development of large-scale solar fuel production facilities, improve the efficiency of solar-to-fuel conversion processes, and reduce costs through innovative engineering solutions. By combining their expertise, Synhelion and Pilatus aim to promote the adoption of solar fuels, contributing to sustainable energy solutions and reducing carbon emissions.

In September 2024, Clean Royalties Holdings, LLC, a U.S.-based provider of energy transition solutions, acquired iSun Energy, Inc., based in Williston, for an undisclosed amount. This acquisition offers strategic benefits, including the expansion of Clean Royalties' renewable energy portfolio and access to iSun's established solar energy infrastructure. It strengthens Clean Royalties' presence in the solar market, aligning with its long-term sustainability objectives and driving growth in the clean energy sector. iSun Energy, Inc. is a U.S.-based solar energy company.

Major companies operating in the solar fuel market are Air Products and Chemicals Inc, Air Liquide, BP PLC, ENGIE, Fortescue Future Industries, ITM Power PLC, Linde PLC, Nel ASA, Plug Power Inc, Reliance Industries Ltd, Siemens Energy AG, Synhelion SA, Sunfire SE, Infinium, INERATEC, HIF GLOBAL, TES H2, ACME Group, AMAG Group, Greenko Group.

Asia-Pacific was the largest region in the solar fuel market in 2025. The regions covered in the solar fuel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the solar fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The solar fuel market consist of revenues earned by entities by providing services such as testing and validation, installation and integration, and operational and maintenance support. The market value includes the value of related goods sold by the service provider or included within the service offering. The solar fuel market also includes sales of solar hydrogen, solar reactors, photovoltaic electrolyzers, solar fuel cells, and solar-powered storage systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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