Low-carbon Fuel Market (Type - Biofuel, Natural Gas, Advanced Diesel, Hydrogen, Electricity, and Others; Applications - Vehicles, Ships, Planes, Power Generation, and Others): Global Industry Analysis, Trends, Size, Share and Forecasts to 2028

Low-carbon Fuel Market (Type - Biofuel, Natural Gas, Advanced Diesel, Hydrogen, Electricity, and Others; Applications - Vehicles, Ships, Planes, Power Generation, and Others): Global Industry Analysis, Trends, Size, Share and Forecasts to 2028

Report Code: EIM0400 Category: Energy, Mining and Infrastructure Published: July, 2022

A recent report ongoing study by Infinium Global Research on the low-carbon fuel market provides in-depth analysis of segments and sub-segments in the global as well as regional low-carbon fuel market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional low-carbon fuel market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global low-carbon fuel market. According to the report, the global low-carbon fuel market is projected to grow at a significant CAGR over the forecast period of 2022-2028.

Market Insight

Low-carbon fuels include synthetic hydrocarbon fuels, ammonia, biofuels, and hydrogen. They offer solutions for reducing greenhouse gas emissions in hard-to-decarbonize sectors. They are produced using low-carbon methods, such as clean electricity, renewable feedstocks, or fossil resources with carbon capture, utilization, and storage. Low-carbon fuels have a wide range of applications, including aviation, maritime shipping, heavy-duty, and long-distance transport, high-temperature provision for industry, heating of certain building segments, and others. Several major oil companies have started producing low-carbon fuels either independently or in collaboration with the emerging startups in this market space. Also, research studies are underway in academic institutions.

The development of low-carbon fuels has been severely impeded by the COVID-19 pandemic, making the future of the energy transition dubious. How to advance the global energy transition in the post-pandemic period has become a topic of discussion. The COVID-19 pandemic had an extraordinary impact on the whole energy industry, slowing down the transition to a cleaner energy source. The transition to clean energy following a pandemic has given rise to growing worries. The virus was successfully confined by the pandemic lockdown procedures, preventing economic damage. The demand for low-carbon fuels suffered greatly as a result of the sharp decline in global trade that followed. Corporate capacity collapsed, a significant amount of low-carbon fuel equipment manufacturing, installation, and commissioning ceased, and much low-carbon fuel company personnel left.

The major factor driving the market is the growing focus on decarburization of transport, power generation and other sectors in order to tackle climate change issues. Net-zero greenhouse gas emissions goals are being put forward through the Paris Climate Change Agreement and the European Green Deal. Low-carbon fuels are an important alternative for decarbonizing transportation and energy generation and bringing down greenhouse gas emissions. In many situations, low-carbon fuels can be used in place of conventional fossil fuels. For instance, low-carbon fuels can be used to power a variety of vehicles, including personal cars, ships, off-road vehicles, trucks, and more. High percentages of low-carbon hydrogen and ammonia can be burned in fossil fuel power plants, giving nations another tool for decarbonizing the power sector. Also, the rising prices of conventional fuel have been instrumental in increasing the demand for low-carbon fuels. Low-carbon fuels such as biofuels, including ethanol, are low priced and are being increasingly blended with fossil fuels. The production of low-carbon fuels is also on the rise. Thus, these factors are expected to be instrumental in driving the growth of the market. However, the high cost of transition for low and middle-income developing countries is hampering the growth of the market. It is costly for low and middle-income developing countries to transition to clean or low-carbon fuels as the cost of production technology, relevant infrastructure, and other things is high. However, increasing investments in R&D are expected to offer growth opportunities in the market.

The global low-carbon fuel market is segmented into North America, Asia-Pacific, Europe, and the RoW region. In terms of revenue, North America dominated the low-carbon fuel market. North America is one of the leading regions in the process of decarbonizing transportation and energy generation. The production of biofuels is increasing in countries such as the US. For instance, as per EIA, in 2021, the US produced 357,502 thousand barrels of ethanol fuel, 39,019 thousand barrels of biodiesel, and 19,407 barrels of renewable diesel. Furthermore, oil conglomerates such as Shell Corporation are collaborating with startups in order to develop low-carbon fuels. Also, a Low-carbon Fuel Standard has been developed in the US for gauging the quality of low-carbon fuels. Europe has been the toughest implementer of its green and decarbonizing objectives and initiatives, which has led them to adopt low-carbon fuels for land and air transportation primarily. Low-carbon fuels are also being used for power generation in Europe. Asia-Pacific is expected to be the fastest growing region as the adoption and production of low-carbon fuels such as biofuels is growing in countries such as India and China.

Segment Covered

The report on global low-carbon fuel market covers segments such as type, and applications. On the basis of type, the sub-markets include biofuel, natural gas, advanced diesel, hydrogen, electricity, and others. On the basis of applications, the sub-markets include vehicles, ships, planes, power generation, and others.

Companies Profiled:

The report provides profiles of the companies in the market such as Shell Corporation, BP p.l.c., Total Energies SE, Valero Energy Corporation, Aemetis Inc, Velocys plc, World Energy, Neste, Green Plains, ENEOS Corporation, and Others.

Report Highlights:

The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of low-carbon fuel market. Moreover, the study highlights current market trends and provides forecast from 2022-2028. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.


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