Synthetic Fuel Market

Synthetic Fuel Market Size by Raw Material (Coal, Natural Gas, Food-Crop/Plant Based, Non-food Crop Based and Others), Type (Extra Heavy Oils, Gas to Liquid Oils, Shale Oils, Coal to Liquid, Biomass to Liquid, and Others), Application (Gasoline, Diesel, and Kerosene), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14020
  • Published Date: Jan, 2024
  • Pages: 237
  • Category: Energy & Power
  • Format: PDF
Buy @ $4700.00 Request Sample PDF

The global synthetic fuel market was valued at USD 5 billion in 2023 and grew at a CAGR of 20% from 2024 to 2033. The market is expected to reach USD 30.95 billion by 2033. The growing emphasis on reducing carbon emissions and environmental conservation policies will drive the growth of the global synthetic fuel market.

Market Introduction:

Synthetic fuel refers to fuels produced through processes other than natural geological methods. They are a potential alternative to conventional fossil fuels. These fuels can be derived from carbon-containing feedstocks such as coal, natural gas, and biomass. Synthetic fuels ensure or have similar properties as traditional fuels in terms of compatibility with existing combustion engines and infrastructure for a seamless transition and greater adoption. The production of synthetic fuels involves various methods, including Fischer-Tropsch synthesis, methanol synthesis, and hydrogenation. Synthetic fuels are versatile, produce low emissions, and offer storage stability and customizability. The versatility arises from the ability to design fuels with specific properties. These fuels find use in automobiles, trucks, aeroplanes, ships, and power plants, showcasing their versatility in different contexts. Since these fuels can exhibit lower greenhouse gas emissions, they contribute to environmental sustainability. Synthetic fuels are a means to ensure energy security, carbon reduction, and compatibility with existing systems. Synthetic fuels find application in various sectors, including transportation, power generation, and industrial processes.

Synthetic Fuel Market Size

Get an overview of this study by requesting a free sample

Recent Development
  • Selling only synthetic fuels is authorised by the German government. In Germany, the sales of synthetic fuels like renewable diesel (HVO) and e-fuels have mostly been restricted to fuel blends, where these fuels have made up a maximum of 26% of the gasoline mix. With the government's anticipated permission, Germany will soon be able to sell and utilise 100% renewable diesel unblended in all segments.
  • Bunker Holding and NeoGreen Hydrogen Corporation signed a Memorandum of Understanding (MOU) to work together on green ammonia and synthetic fuels throughout NeoGreen's global project portfolio.

Market Dynamics:


The growing emphasis on meeting rising energy demands while addressing environmental challenges like carbon emissions – synthetic fuels offer a potential alternative to fossil fuels, which can be adopted quickly across industries to replace traditional fossil fuels for reducing carbon emissions in response to climate change mitigation efforts. Their potential to produce fewer greenhouse gas emissions during combustion positions them as a cleaner alternative to traditional fossil fuels, meeting sustainability goals in various industries. They also facilitate energy security by diversifying fuel sources and reducing dependency on imported oil, enhancing resilience to supply chain disruptions. Therefore, the growing emphasis on meeting rising energy demands while addressing environmental challenges like carbon emissions will make synthetic fuels an ideal choice for stakeholders and drive the growth of the global synthetic fuel market.

  • By 2025, Saudi Aramco hopes to have two demonstration plants up and running to create synthetic fuels with lower carbon dioxide emissions during combustion. The largest crude oil exporter in the world will make test batches of jet fuel and synthetic petrol before looking for long-term customers. Aramco would construct refineries for synthetic fuels on a commercial scale if buyers approved the fuels. Aramco will contribute several hundred million dollars to developing the synthetic jet fuel facility in collaboration with Repsol S.A. of Spain and the petrol plant.

The high production costs of synthetic fuel the high production costs and energy-intensive nature of synthesis processes will reduce the economic competitiveness of synthetic fuels and limit the market’s growth. The availability of suitable feedstocks, such as biomass or renewable energy sources, is reeling from scarcity, making accessibility challenging for the market. Using biomass as a feedstock raises environmental concerns related to land use changes, deforestation, and biodiversity loss, which runs against the goals of environmental conversation. Therefore, the high production costs and other limitations related to resource availability, scalability and environmental impact will limit the market’s growth.


Technological advancements technological advancements and increased investment and innovation in synthetic fuel production will significantly advance the adoption and application of synthetic fuels across industries. Technological advancements enhancing the efficiency and sustainability of synthetic fuel production will ensure economic scalability, addressing cost-related challenges of the market and furthering its growth. These advancements contribute to lower production costs, increased yields, and reduced environmental impact, making synthetic fuels more competitive with traditional fossil fuels. Investments from public and private players and collaborative partnerships will accelerate the development and commercialization of synthetic fuel technologies. Technological progress and increased financial backing will offer lucrative market expansion opportunities and contribute to the market’s development during the forecast period.

  • To make the use of carbon-neutral fuels, or e-fuels, feasible in Chile and to move forward in the upcoming months with the collaborative creation of a business model that permits this type of fuel to be commercialised products, the National Petroleum Company and HIF Global signed a Memorandum of Agreement. According to the agreement, HIF's prospective factory in the Cabo Negro, Magallanes region, will produce and market between 22.5 million and 37.5 million litres of e-gasolines, accounting for between 30% and 50% of the company's projected yearly production.
Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the most significant global synthetic fuel market, with a 40% market revenue share in 2023.

Rapid industrialization, urbanization, and economic growth in the region have led to a substantial increase in energy demand. In response to environmental concerns and a growing need for sustainable energy solutions, synthetic fuels present a viable alternative to conventional fossil fuels and meet the rising energy demands. Supportive government policies, incentives, and regulations fostering the adoption of synthetic fuels will also augment the market’s growth. The region's transportation sector is a major consumer of synthetic fuels, which will bode well for the market's future growth. Innovation and technological advancements in synthetic fuel technologies and their fast adoption in the region will also foster the market's growth.

Asia Pacific Region Synthetic Fuel Market Share in 2023 - 40%

Check the geographical analysis of this market by requesting a free sample

Raw Material Segment Analysis

The raw material segment is divided into coal, natural gas, food-crop/plant-based, non-food crop-based and others. The natural gas segment dominated the market, with a market share of around 39% in 2023. Natural gas is a prominent source of synthetic fuel production, primarily due to its abundant methane content and versatile chemical composition. The adaptability of existing natural gas infrastructure, including pipelines and processing facilities, contributes to the economic viability of synthetic fuel production from natural gas. The abundance of natural gas makes it a reliable and widely available resource for meeting the growing demand for cleaner energy alternatives. Natural gas emerges as a dominant source given its abundance, existing infrastructure compatibility, and potential for economical and environmentally viable properties of reducing carbon emissions.

  • Saudi Aramco, a major energy company, has partnered with ENOWA to establish a demonstration plant for synthetic electro-fuel, or e-fuel. The e-fuel plant will use collected carbon dioxide (CO₂) and hydrogen from renewable sources to manufacture 35 barrels of synthetic gasoline per day with reduced carbon emissions. This will show the project's technical and financial feasibility. The Hydrogen Innovation and Development Centre (HIDC) of ENOWA will house it. The city of NEOM's energy and water business, ENOWA, will oversee the facility's construction. Aramco and ENOWA will work together to oversee operations and provide financial support for pertinent research projects.
Type Segment Analysis

The type segment is divided into extra heavy oils, gas to liquid oils, shale oils, coal to liquid, biomass to liquid, and others. The coal-to-liquid segment dominated the market, with a market share of around 37% in 2023. Coal-to-liquid (CTL) synthetic fuel is a process that converts coal into liquid hydrocarbons. Synthetic fuels undergo refining to meet quality standards and resemble traditional fuels. CTL synthetic fuels have advantages such as abundant coal, which serves as a stable feedstock, and infrastructure compatibility with existing coal facilities, reducing the need for extensive new investments.

  • Lafarge France inked a memorandum of understanding for a synthetic fuel production experiment with research firm IFP Energies Nouvelles, utilities supplier EDF, and green hydrocarbons specialist Axens. The partners will construct a kerosene production plant utilising captured CO2 from a carbon capture project at the Saint-Pierre-La-Cour cement mill owned by Lafarge France. The Take Kair project seeks to produce fuel for Air France-KLM Group and other aviation companies.
Application Segment Analysis

The application segment is divided into gasoline, diesel, and kerosene. The kerosene segment dominated the market, with a market share of around 38% in 2023. The versatile applications of kerosene across industries drive its increased demand in the market. Its primary use as an aviation fuel provides a sustainable alternative to reduce the carbon footprint of air travel. It also offers a suitable alternative to heating and lighting in residential and commercial spaces. Kerosene's potential as a power generation fuel and Military applications also contribute to demand. It is also used in the transportation and marine sector. Its role in emergency power generation and suitability for remote or off-grid areas enhances its market demand. As regulatory frameworks increasingly emphasize sustainability and technology advances to enhance production efficiency, the diverse applications of synthetic kerosene position their dominance as significant in the global market.

  • Zero, an energy firm established in the U.K., will collaborate with Rolls-Royce to showcase Zero synthetic fuels, also known as synfuels, on several Rolls-Royce engines for use in aviation, maritime, and defence applications. The multinational engineering behemoth will employ Zero's array of synfuels—including diesel, jet fuel, and gasoline—to cut down on the carbon emissions of burning fossil fuels. The credentials needed to meet international fuel certification criteria will be demonstrated using data from engine testing conducted during the partnership.
Some of the Key Market Players:
  • Bosch Ltd
  • Exxon Mobil Corporation
  • Indian Oil Corporation Ltd
  • L'Air Liquide S.A.
  • PetroChina Company Limited
  • Phillips 66 Company
  • Reliance Industries Ltd
  • Sasol Limited
  • Shell Plc.
  • Synhelion SA

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 5 Billion
Market size value in 2033 USD 30.95 Billion
CAGR (2024 to 2033) 20%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level.
Segments Raw Material, Type and Application

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global synthetic fuel market was valued at USD 5 billion in 2023 to USD 30.95 billion by 2033.

Global synthetic fuel market is growing at a CAGR of 20% during the forecast period 2024-2033.

The market's growth will be influenced by the growing emphasis on meet rising energy demands while addressing environmental challenges like carbon emissions.

The high production costs of synthetic fuel could hamper the market growth.

Request Table of Content


This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global synthetic fuel market based on below mentioned segments:

Global Synthetic Fuel Market by Raw Material:

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

Global Synthetic Fuel Market by Type:

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

Global Synthetic Fuel Market by Application:

  • Gasoline
  • Diesel
  • Kerosene

Global Synthetic Fuel Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


Research has its special purpose to undertake marketing efficiently. In this competitive scenario, businesses need information across all industry verticals; the information about customer wants, market demand, competition, industry trends, distribution channels etc. This information needs to be updated regularly because businesses operate in a dynamic environment. Our organization, The Brainy Insights incorporates scientific and systematic research procedures in order to get proper market insights and industry analysis for overall business success. The analysis consists of studying the market from a miniscule level wherein we implement statistical tools which helps us in examining the data with accuracy and precision. 

Our research reports feature both; quantitative and qualitative aspects for any market. Qualitative information for any market research process are fundamental because they reveal the customer needs and wants, usage and consumption for any product/service related to a specific industry. This in turn aids the marketers/investors in knowing certain perceptions of the customers. Qualitative research can enlighten about the different product concepts and designs along with unique service offering that in turn, helps define marketing problems and generate opportunities. On the other hand, quantitative research engages with the data collection process through interviews, e-mail interactions, surveys and pilot studies. Quantitative aspects for the market research are useful to validate the hypotheses generated during qualitative research method, explore empirical patterns in the data with the help of statistical tools, and finally make the market estimations.

The Brainy Insights offers comprehensive research and analysis, based on a wide assortment of factual insights gained through interviews with CXOs and global experts and secondary data from reliable sources. Our analysts and industry specialist assume vital roles in building up statistical tools and analysis models, which are used to analyse the data and arrive at accurate insights with exceedingly informative research discoveries. The data provided by our organization have proven precious to a diverse range of companies, facilitating them to address issues such as determining which products/services are the most appealing, whether or not customers use the product in the manner anticipated, the purchasing intentions of the market and many others.

Our research methodology encompasses an idyllic combination of primary and secondary initiatives. Key phases involved in this process are listed below:


Data Procurement:

The phase involves the gathering and collecting of market data and its related information with the help of different sources & research procedures.

The data procurement stage involves in data gathering and collecting through various data sources.

This stage involves in extensive research. These data sources includes:

Purchased Database: Purchased databases play a crucial role in estimating the market sizes irrespective of the domain. Our purchased database includes:

  • The organizational databases such as D&B Hoovers, and Bloomberg that helps us to identify the competitive scenario of the key market players/organizations along with the financial information.
  • Industry/Market databases such as Statista, and Factiva provides market/industry insights and deduce certain formulations. 
  • We also have contractual agreements with various reputed data providers and third party vendors who provide information which are not limited to:
    • Import & Export Data
    • Business Trade Information
    • Usage rates of a particular product/service on certain demographics mainly focusing on the unmet prerequisites

Primary Research: The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. Primary research mainly involves in telephonic interviews, E-mail interactions and face-to-face interviews with the raw material providers, manufacturers/producers, distributors, & independent consultants. The interviews that we conduct provides valuable data on market size and industry growth trends prevailing in the market. Our organization also conducts surveys with the various industry experts in order to gain overall insights of the industry/market. For instance, in healthcare industry we conduct surveys with the pharmacists, doctors, surgeons and nurses in order to gain insights and key information of a medical product/device/equipment which the customers are going to usage. Surveys are conducted in the form of questionnaire designed by our own analyst team. Surveys plays an important role in primary research because surveys helps us to identify the key target audiences of the market. Additionally, surveys helps to identify the key target audience engaged with the market. Our survey team conducts the survey by targeting the key audience, thus gaining insights from them. Based on the perspectives of the customers, this information is utilized to formulate market strategies. Moreover, market surveys helps us to understand the current competitive situation of the industry. To be precise, our survey process typically involve with the 360 analysis of the market. This analytical process begins by identifying the prospective customers for a product or service related to the market/industry to obtain data on how a product/service could fit into customers’ lives.

Secondary Research: The secondary data sources includes information published by the on-profit organizations such as World bank, WHO, company fillings, investor presentations, annual reports, national government documents, statistical databases, blogs, articles, white papers and others. From the annual report, we analyse a company’s revenue to understand the key segment and market share of that organization in a particular region. We analyse the company websites and adopt the product mapping technique which is important for deriving the segment revenue. In the product mapping method, we select and categorize the products offered by the companies catering to domain specific market, deduce the product revenue for each of the companies so as to get overall estimation of the market size. We also source data and analyses trends based on information received from supply side and demand side intermediaries in the value chain. The supply side denotes the data gathered from supplier, distributor, wholesaler and the demand side illustrates the data gathered from the end customers for respective market domain.

The supply side for a domain specific market is analysed by:

  • Estimating and projecting penetration rates through analysing product attributes, availability of internal and external substitutes, followed by pricing analysis of the product.
  • Experiential assessment of year-on-year sales of the product by conducting interviews.

The demand side for the market is estimated through:

  • Evaluating the penetration level and usage rates of the product.
  • Referring to the historical data to determine the growth rate and evaluate the industry trends

In-house Library: Apart from these third-party sources, we have our in-house library of qualitative and quantitative information. Our in-house database includes market data for various industry and domains. These data are updated on regular basis as per the changing market scenario. Our library includes, historic databases, internal audit reports and archives.

Sometimes there are instances where there is no metadata or raw data available for any domain specific market. For those cases, we use our expertise to forecast and estimate the market size in order to generate comprehensive data sets. Our analyst team adopt a robust research technique in order to produce the estimates:

  • Applying demographic along with psychographic segmentation for market evaluation
  • Determining the Micro and Macro-economic indicators for each region 
  • Examining the industry indicators prevailing in the market. 

Data Synthesis: This stage involves the analysis & mapping of all the information obtained from the previous step. It also involves in scrutinizing the data for any discrepancy observed while data gathering related to the market. The data is collected with consideration to the heterogeneity of sources. Robust scientific techniques are in place for synthesizing disparate data sets and provide the essential contextual information that can orient market strategies. The Brainy Insights has extensive experience in data synthesis where the data passes through various stages:

  • Data Screening: Data screening is the process of scrutinising data/information collected from primary research for errors and amending those collected data before data integration method. The screening involves in examining raw data, identifying errors and dealing with missing data. The purpose of the data screening is to ensure data is correctly entered or not. The Brainy Insights employs objective and systematic data screening grades involving repeated cycles of quality checks, screening and suspect analysis.
  • Data Integration: Integrating multiple data streams is necessary to produce research studies that provide in-depth picture to the clients. These data streams come from multiple research studies and our in house database. After screening of the data, our analysts conduct creative integration of data sets, optimizing connections between integrated surveys and syndicated data sources. There are mainly 2 research approaches that we follow in order to integrate our data; top down approach and bottom up approach.

Market Deduction & Formulation: The final stage comprises of assigning data points at appropriate market spaces so as to deduce feasible conclusions. Analyst perspective & subject matter expert based holistic form of market sizing coupled with industry analysis also plays a crucial role in this stage.

This stage involves in finalization of the market size and numbers that we have collected from data integration step. With data interpolation, it is made sure that there is no gap in the market data. Successful trend analysis is done by our analysts using extrapolation techniques, which provide the best possible forecasts for the market.

Data Validation & Market Feedback: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helps us finalize data-points to be used for final calculations.

The Brainy Insights interacts with leading companies and experts of the concerned domain to develop the analyst team’s market understanding and expertise. It improves and substantiates every single data presented in the market reports. The data validation interview and discussion panels are typically composed of the most experienced industry members. The participants include, however, are not limited to:

  • CXOs and VPs of leading companies’ specific to sector
  • Purchasing managers, technical personnel, end-users
  • Key opinion leaders such as investment bankers, and industry consultants

Moreover, we always validate our data and findings through primary respondents from all the major regions we are working on.

Some Facts About The Brainy Insights


Free Customization


Fortune 500 Clients


Free Yearly Update On Purchase Of Multi/Corporate License


Companies Served Till Date