Synthetic Fuel Market - Global Industry Size, Share, Trends, Opportunity, & Forecast, 2020-2030

Natural Gas is the fastest growing segment, Asia-Pacific is the largest market globally

The Global Synthetic Fuel Market, valued at USD 49.40 Billion in 2024, is projected to experience a CAGR of 6.19% to reach USD 70.83 Billion by 2030. Synthetic fuel, also known as e-fuel or synfuel, represents a liquid fuel manufactured from syngas, a blend of carbon monoxide and hydrogen derived from diverse feedstocks such as biomass, natural gas, or captured carbon dioxide and renewable hydrogen. The market for these fuels is primarily driven by the imperative to reduce global greenhouse gas emissions and enhance energy security through the diversification of energy portfolios.

Key Market Drivers

The global synthetic fuel market is profoundly influenced by stringent environmental regulations and ambitious decarbonization goals, which compel industries to adopt low-carbon alternatives. Regulatory frameworks, such as the European Union's ReFuelEU Aviation initiative, establish clear targets for synthetic fuel integration in hard-to-abate sectors. According to the Council of EU ministers, October 2023, 'Final approval given | 1.2% of aviation fuel in EU must be derived from green hydrogen by 2030', an average of 1.2% of the fuel used by planes leaving EU airports in 2030 and 2031 must be synthetic kerosene, directly stimulating demand and investment in production capabilities. These mandates provide the necessary policy certainty for long-term investments in synthetic fuel production, driving technological advancements and scale-up efforts across the value chain.

Key Market Challenges

A significant challenge impeding the expansion of the global synthetic fuel market is the substantial capital investment required for establishing production facilities and the inherent difficulty in achieving economies of scale. These factors directly contribute to higher production costs compared to conventional fossil fuels. Such elevated costs diminish the economic competitiveness of synthetic fuels, thereby hindering their widespread adoption by industries seeking cost-effective energy solutions. This financial disparity limits the ability of synthetic fuels to penetrate existing markets, even with strong environmental drivers and policy support, as end-users face considerable additional expenses.

Key Market Trends

Technological innovations in production efficiency are significantly enhancing the viability and scalability of synthetic fuels by addressing key cost and operational hurdles. Advancements encompass improvements in catalyst development, reactor design, and integrated process technologies that streamline the conversion of raw materials into usable fuels. For example, Prometheus Fuels announced in September 2025 that it had reduced the cost of direct air capture (DAC) of carbon dioxide to below $50 per ton, a substantial decrease compared to previous industry averages, thereby making carbon-neutral fuels more cost-competitive. These efficiencies are critical for lowering the overall production expense, fostering greater investment, and accelerating market penetration by making synthetic fuels more economically attractive to end-users across various sectors.

Key Market Players Profiled:

• Sasol Limited
• Shell plc
• Robert Bosch GmbH
• L’Air Liquide S.A
• Air Products and Chemicals, Inc.
• John Wood Group Plc
• Amyris, Inc.
• Chevron Corporation
• Gevo, Inc.
• Exxon Mobil Corporation

Report Scope:

In this report, the Global Synthetic Fuel Market has been segmented into the following categories:

By Raw Material:

• Coal
• Natural Gas
• Food-crop/Plant Based
• Non-food Crop Based

By Type:

• Extra Heavy Oils
• Gas to Liquid Oils
• Shale Oils
• Coal to Liquid
• Biomass to Liquid
• Others

By Application:

• Gasoline
• Diesel
• Kerosene

By Region:

• North America
• Europe
• South America
• Middle East & Africa
• Asia Pacific

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Synthetic Fuel Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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