E-Kerosene Market Size - By Renewable Source, By Technology, By Application, Analysis, Share, Growth Forecast, 2024 – 2032

E-Kerosene Market Size

The global e-kerosene market was valued at USD 600 million in 2023 and is set to grow at a CAGR of over 32.9% from 2024 to 2032. The Rising concern towards decarbonization in aviation sector along with favorable government policies & incentives encouraging the fuel adoption will complement the business landscape. E-kerosene, a synthetic fuel due to growing efforts to decarbonize the aviation sector is gaining traction as traditional kerosene is a major source of carbon emissions, airlines and regulators are focusing on sustainable alternatives, driving demand for e-kerosene.
 

Governments worldwide are promoting low-carbon fuels through policies and incentives such as carbon taxes, emission trading systems, and subsidies. These initiatives encourage investment in e-kerosene production and help increase market growth. For instance, in 2024, the U.S. government had deployed several measures to support the growth of the domestic SAF market, particularly using tax credits and subsidies as key mechanisms, which in turn will influence the business scenario down the line.
 

E-Kerosene Market Trends

Increasing technological advancements in Power-to-Liquid (PtL) for e-kerosene production along with rising renewable energy integration will spur the market growth. E-kerosene production is dependent on PtL technology, which converts renewable energy into synthetic fuel. Continued improvements in PtL efficiency and scalability are expected to reduce production costs, making e-kerosene a more viable option in the coming years. Furthermore, the European Union’s Green Deal and international agreements like the Paris Accord are enforcing stricter environmental regulations on aviation, further accelerating the transition towards e-kerosene as a preferred alternative fuel.
 

E-Kerosene Market Analysis

Based on renewable source, the on-site solar produced e-kerosene industry will exceed over USD 4.1 billion by 2032. production of e-kerosene requires renewable energy sources such as wind or solar and the rapid expansion of renewable energy infrastructure is a key enabler for scaling e-kerosene production, contributing to market growth.
 

Based on application, the automotive application wil grow at a CAGR of over 33% through 2032. The automotive sector is exploring e-kerosene as part of a broader shift towards sustainable fuels, particularly for heavy-duty and long-haul vehicles. While electric and hydrogen vehicles dominate the market, e-kerosene is gaining attention for its potential in specialized applications like freight transport, offering a low-carbon alternative to conventional diesel.
 

The U.S. e-kerosene market will surpass USD 1.8 billion by 2032. The market is gaining traction primarily in the aviation sector as a sustainable alternative to conventional jet fuel. Federal initiatives, such as the Sustainable Aviation Fuel (SAF) Grand Challenge are pushing for the large-scale adoption of alternative fuels like e-kerosene to decarbonize air travel. As regulatory frameworks strengthen around emission reductions, e-kerosene will become significant in specific sectors beyond aviation over the forecast timeline.
 

Cost competitiveness, consumer awareness, and strong regulatory support are driving the adoption of e-kerosene in Europe. As production technologies improve and economies of scale are realized, the cost of e-kerosene is expected to decline, enhancing its competitiveness against fossil fuels. This reduction in cost is likely to further stimulate market growth in countries across the Europe.
 

E-kerosene Market Share

Ballard Power Systems, Inc., ExxonMobil, HIF Global, Climeworks, and Norsk e-fuel are among the key players in the e-kerosene industry. Strategic partnerships and collaborations are essential for the development and commercialization of e-kerosene. Automakers, energy companies, technology providers, and governments are joining forces to advance research, exchange expertise, and create integrated supply chains, driving the progress and adoption of e-kerosene technology.
 

E-Kerosene Market Companies

Major key players operating across the e-kerosene industry are:

• Arcadia eFuels
• Archer Daniels Midland
• Ballard Power Systems
• Ceres Power Holding
• Clean Fuels Alliance America
• Climeworks
• eFuel Pacific
• Electrochaea
• ExxonMobil
• FuelCell Energy
• HIF Global
• INERATEC
• LanzaJet
• Liquid Wind
• Norsk E-Fuel
• Porsche
• Sunfire
• Synhelion
   

E-Kerosene Industry News

• In July 2024, the governments of Germany, Lithuania, and Japan signed the "Berlin Declaration" to accelerate the e-fuels market. This agreement adopts a technology-neutral approach and emphasizes joint research and development along with standardized practices to support the production of e-fuels, including e-gasoline, in pursuit of carbon neutrality.
   
• In June 2024, Synhelion inaugurated the world’s first industrial-scale facility in Jülich for producing synthetic fuels using solar heat. These renewable fuels will showcase the technology’s ability to decarbonize the transportation sector, with a focus on aviation, which in turn will fuel the market growth.
   

This E-kerosene market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Billion’ from 2021 to 2032, for the following segments:

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Market, By Renewable Source

• On-Site Solar
• Wind

Market, By Technology

• Fischer-Tropsch
• eRWGS
• Others

Market, By Application

• Automotive
• Marine
• Aviation
• Industrial
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina