Synthetic Fuels Market Size To Reach $25.85 Billion By 2033

Synthetic Fuels Market Growth & Trends

The global synthetic fuels market size is projected to reach USD 25.85 billion by 2033, growing at a CAGR of 16.3% during the forecast period, according to a new report by Grand View Research, Inc. The market is experiencing robust growth, driven by the accelerating global transition toward decarbonization, rising demand for sustainable liquid fuels, and increasing investments in carbon capture, utilization, and storage (CCUS) technologies. As industries and the transportation sector seek to reduce greenhouse gas emissions, synthetic fuels produced from renewable electricity, green hydrogen, and captured CO? are emerging as a viable alternative to conventional fossil-based fuels. These fuels can be directly used in existing engines, pipelines, and refineries, offering a drop-in solution that enables faster adoption without requiring major infrastructure changes.

The synthetic fuels industry is gaining traction as governments, energy majors, and technology developers invest heavily in pilot projects and commercial-scale plants to accelerate production capacity. Strategic collaborations between oil and gas companies, renewable energy providers, and technology innovators are fostering advancements in Fischer-Tropsch, Power-to-Liquid, and Methanol-to-Gasoline processes. In addition, favorable policy frameworks, such as low-carbon fuel standards and mandates for sustainable aviation fuel (SAF), are stimulating market expansion. Continuous improvements in process efficiency, cost reduction of green hydrogen, and integration with renewable power generation are expected to further boost market penetration. With the ongoing shift toward circular carbon economies and global commitments to achieve net-zero emissions, synthetic fuels are poised to play a pivotal role in decarbonizing sectors such as aviation, shipping, and heavy-duty transport that are difficult to electrify, paving the way for a cleaner and more resilient energy future.

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Synthetic Fuels Market Report Highlights

• By feedstock, the natural gas segment accounted for the largest market share, approximately 34%, in 2024. This dominance is attributed to the extensive availability of natural gas resources, well-established production infrastructure, and mature Gas-to-Liquids (GTL) technologies, which enable the efficient conversion of natural gas into synthetic hydrocarbons. The segment benefits from lower feedstock costs, high energy content, and compatibility with existing refining and transportation systems

• By fuel, the synthetic diesel segment held the largest share, around 37.7%, in 2024. The segment’s leadership is driven by its widespread applicability across automotive, marine, and industrial sectors, where diesel remains a dominant energy source. Synthetic diesel offers comparable performance to conventional diesel but with substantially lower lifecycle carbon emissions when produced using renewable electricity, green hydrogen, and captured CO?. Its drop-in compatibility with existing diesel engines and distribution networks further accelerates adoption without requiring infrastructure modifications.

• In terms of region, the European market held the largest market share of 38% in 2024, driven by robust policy support, rapid integration of renewable energy, and the continent’s strong decarbonization agenda.

Synthetic Fuels Market Segmentation

Grand View Research has segmented the global synthetic fuels market based on feedstock, fuel, and region.

Synthetic Fuels Feedstock Outlook (Revenue, USD Million, 2021 - 2033)

• Coal

• Natural Gas

• Biomass

• CO? + Hydrogen

Synthetic Fuels Outlook (Revenue, USD Million, 2021 - 2033)

• Synthetic Diesel

• Synthetic Gasoline

• Synthetic Jet Fuel (SAF)

• Others

Synthetic Fuels Regional Outlook (Revenue, USD Million, 2021 - 2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

• Middle East & Africa

  • Saudi Arabia

  • UAE

List of Key Players in the Synthetic Fuels Market

• Shell Plc

• ExxonMobil Corporation

• Sasol Limited

• Chevron Corporation

• Airbus SE

• TotalEnergies SE

• Neste Oyj

• Johnson Matthey Plc

• Repsol S.A.

• Synhelion SA