Synthetic Fuels Market: Introduction
- Synthetic fuels are obtained from synthetic gas, which is a mixture of carbon monoxide and hydrogen.
- It is a liquid fuel, which is not derived from the naturally occurring crude oil. Synthetic fuels are manufactured by using renewable energy.
- Under the first stage, hydrogen is produced from water. Carbon is then added to hydrogen to produce liquid fuel. The carbon which is used can be recycled by industrial processes. It can even can be captured from the air using filters. The combination of CO2 and H2 results in the formation of synthetic fuels.
Key Drivers of Synthetic Fuels Market:
- The synthetic fuels market is driven by the rise in prices of oil and increase in focus on these fuels by government and energy companies since the last few years.
- Political instability in oil-producing countries and depletion of natural resources are also boosting the synthetic fuels market. However, usage of synthetic fuel results in less pollution. However, the production process of synthetic fuel leads to just as much pollution as that caused by traditional gasoline. Synthetic fuels are much more expensive than conventional fuels. Further research, development, and investment are necessary to make the production economically viable. This is one of the key factors restraining the synthetic fuels market.
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Extra-heavy oil Type Segment and Gasoline Application Segment to Offer Attractive Opportunities:
- The synthetic fuels market can be segmented based on type, raw material, application and region.
- Based on raw material, the global synthetic fuels market can be segmented into coal, natural gas, plant waste, corn, non-food crop sources which can be fermented, and others. Synthetic fuels can be produced without volume limitation through the chemical conversion process. The method could be either direct conversion into liquid transportation fuels or indirect conversion, wherein the source substance is converted initially into synthetic gas and then goes through additional conversion process to become liquid synthetic fuels.
- Based on type, the synthetic fuels market can be divided into extra-heavy oils, gas-to-liquids fuels, shale oil, oil sands, coal-to-liquid (CTL) fuels, biomass-to-liquids fuel, fuel from waste, fuel from atmospheric carbon, and others. Extra-heavy oil is one of the sources of synthetic crude, which is a type of synthetic fuels that closely resembles crude oil. It occurs naturally and forms when oil is buried deep in the Earth. Gas-to-liquids fuels entail the process of converting natural gas into liquid form. Shale oil is another form of synthetic crude produced form marlstone, which is a naturally occurring rock commonly known as oil shale. Oil sand is also known as tar sand. It occurs naturally with mix of water, clay, sand, and bitumen. Coal-to-liquids fuels are produced by isolating hydrocarbons in the existing fossil fuels and converting them into synthetic fuels.
- Based on application, the synthetic fuels market can be segregated into gasoline, diesel, and kerosene. Any fuel that is produced from the synthesis of hydrogen gas is considered synthetic fuel. Synthetic gasoline and synthetic diesel are produced in higher quantities than kerosene.
Asia Pacific expected to hold Significant Share in the Global Synthetic Fuels Market:
- In terms of region, the synthetic fuels market can be segregated into North America, Asia Pacific, Europe, Latin America and Middle East & Africa.
- The market in Asia Pacific is expected to expand at a significant pace during the forecasted period, due to the rise in demand for these fuels in the automotive industry in the region.
- China is estimated to be a major producer and consumer of synthetic fuels in Asia Pacific. In terms of production, India is also anticipated to exhibit strong growth due to the rise in demand for synthetic fuels in the alternative fuel industry.
- The market in North America is projected to expand at a moderate pace during the forecasted period owing to technological advancements in the region.
- Europe is likely to be a stable region of the synthetic fuels market, led by the steady demand for these fuels in the automotive industry.
- The market in Latin America and Middle East & Africa is expected to expand at a sluggish pace during the forecast period.
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Key Players Operating in the Market:
- Demand within synthetic fuels market is highly concentrated with top producers accounting approximately 45-50% of the market. Few of the key players operating in the synthetic fuels market include
- Indian Oil Corporation Ltd
- Royal Dutch Shell Plc.
- Phillips 66
- Exxon Mobil Corporation
- Petrochina International Jinzhou Petrochemical Co., Ltd.
- Reliance Industries Ltd.
- Robert Bosch GmbH
Global Synthetic Fuels Market: Research Scope
Global Synthetic Fuels Market, by Raw Material
- Natural Gas
- Plant Waste
- Non-Food Crop Sources
Global Synthetic Fuels Market, by Type
- Extra-Heavy Oils
- Gas-To-Liquids Fuels
- Shale Oil
- Oil Sands
- Coal-To-Liquid (CTL) Fuels
- Biomass-To-Liquids Fuel
- Fuel From Waste
- Fuel From Atmospheric Carbon
Global Synthetic Fuels Market, by Application
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