Low Carbon Fuels Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2034
Page: 215 | Report Code: EP240930 | Research Suite: Report (PDF) & Market Data (Excel)
Energy sources that emit significantly lower levels of
greenhouse gases compared to traditional fossil fuels are called low-carbon
fuels. The transition towards a more sustainable energy landscape requires the
use of these fuels, especially in industrial applications that require high
thermal energy. By using less carbon-intensive
fuels, air quality and exposure to dangerous pollutants are improved,
potentially leading to better public health outcomes.
MARKET
OVERVIEW
The low carbon fuels market is valued at approximately USD xx billion in 2023 and is projected to reach USD xx billion by 2034 exhibiting a compound annual growth rate (CAGR) of xx% during the forecast period of 2024-2034. The main objective of using low-carbon fuels is to reduce emissions of carbon dioxide (CO2) and other pollutants that worsen human health and contribute to climate change.
GROWTH
DRIVERS
The demand for effective and sustainable transportation
solutions increases as population growth and urbanization accelerates.
Low-carbon fuels, like hydrogen and biofuels, provide greener fuel substitutes
for conventional fossil fuels, supporting the increased focus on lowering
greenhouse gas (GHG) emissions in the transportation industry. Therefore, the
market for low-carbon fuels is significantly driven by this rising demand for
transportation fuels worldwide.
Concerns about the environmental effects of traditional
energy sources and energy sustainability have become increasingly popular among
companies and customers. According to the European Environment Agency, air
pollutants from fossil fuel combustion are the primary cause of urban air
pollution. This shift in perception leads to the demand for low-carbon fuels
that contribute to a more sustainable future.
MARKET
SEGMENTATION:
By Type
-
·
Natural Gas
·
Biofuels
·
Hydrogen
·
Ammonia
·
Others
By End
User –
·
Oil & Gas
·
Power & Utilities
·
Petrochemical
·
Agriculture
·
Transportation
·
Manufacturing
·
Others
By
Region –
·
North America
·
Europe
·
Asia Pacific
·
Latin America
·
Middle East and Africa
Low
Carbon Fuels Market By Type Segment Review:
Natural gas is regarded as one of the most environmentally
friendly fossil fuels. When burned, its main component, methane (CH4), produces
a lot less CO2 than coal or oil. Natural gas manufacturing and utilization have
been rising worldwide as nations seek cleaner approaches to meet their energy needs
while still abiding by strict environmental laws.
Biofuels, which are produced from organic materials like plant biomass or waste products, are an essential segment of the low-carbon fuel market. Government regulations all over the world promote the use of biofuels because they have the ability to lessen dependency on fossil fuels and lessen the effects of climate change.
Low
Carbon Fuels Market By End User Segment Review:
The power and utilities industry are quickly moving toward
low-carbon and renewable energy sources. This includes the
manufacturing of electricity using hydrogen and biofuels, which is
increasing demand for low carbon fuels in this sector.
The increasing inclination of consumers towards sustainable
products is driving oil and gas corporations to expand their portfolios to
include low-carbon alternatives.
Low
Carbon Fuels Market By Region Segment Review:
The market is anticipated to be dominated by North America
due to stringent environmental regulations and a growing emphasis on reducing
greenhouse gas emissions. Asia Pacific is expected to expand at the maximum
rate during the forecast period due to strong requirements for ammonia and
methanol production in developing countries.
Low
Carbon Fuels Market Regional Synopsis:
The low carbon fuels industry is thriving in North America
due to a significant focus on decarbonizing transportation and energy
generation. Standards, such as the Low Carbon Fuel Standard (LCFS), also play a
crucial role in promoting cleaner fuel alternatives.
Europe is also leading the way in the adoption of
low-carbon fuels due to strict environmental laws and regulations that are
designed to lower emissions of greenhouse gases. European nations have put
strict policies in place to encourage the use of renewable energy sources in
the transportation and electricity producing sectors.
Over the course of the projection period, the Asia Pacific
market is expected to rise at its maximum rate due to increasing energy demands
and government policies favoring cleaner fuel alternatives across its
countries. In addition to the growing production of biofuels in these nations,
there is a significant need for hydrogen, especially for use in the
manufacturing of ammonia and other industrial processes.
The market in Latin America is gradually expanding due
to established bioethanol industry, and government policies supporting
renewable energy projects. The growth of the market is further supported by the
abundance of natural resources, such as biomass and agricultural waste.
The market in the Middle East & Africa region is also growing moderately due to increasing awareness of environmental issues, and initiatives aimed at establishing renewable energy infrastructure.
Low
Carbon Fuels Market Key Challenges:
The cost difference between regular fossil fuels and
renewable fuels, such renewable diesel (RD) and sustainable aviation fuel
(SAF), is one of the major obstacles in this market. The production of
renewable fuels is often more expensive due to the complexity involved
in acquiring and processing feedstocks. The cost difference prevents renewable
fuels from being widely used until they become more economically
viable, or the price of fossil fuel rises.
Infrastructure investments, including as manufacturing
plants, distribution systems, and refueling stations designed for renewable
fuel varieties, are crucial for the switch from fossil fuels to low-carbon
alternatives. This high upfront investment is expected to discourage smaller
companies or those with limited budgets from implementing these systems, which
is expected to hinder market expansion.
Low
Carbon Fuels Market Competitive Landscape:
The global market for Low Carbon Fuels is characterized by a
competitive environment that includes a mix of well-established players and
emerging companies. Several companies in the low-carbon fuels market are
collaborating and developing strategic alliances to strengthen their
competitive advantage. Through these partnerships, companies leverage each
other's strengths, share resources, and accelerate innovation.
Furthermore, the competitive environment is heavily
influenced by incentives and regulations. For example, The Renewable Energy
Directive of the European Union and the Renewable Fuel Standard in the United
States create a favorable atmosphere for the production of low-carbon fuels.
Companies that quickly respond to regulations, such as meeting or exceeding
renewable fuel mandates, mostly obtain a competitive advantage.
Low
Carbon Fuels Key Players:
·
Global Partners LP
·
Gevo
·
Shell Global
·
Exxon Mobil Corporation
·
Linde PLC
·
Air Liquide
·
ADM
·
Green Plains
·
CropEnergies AG
·
Iberdrola S.A
· Other Key & Niche Players