Sustainable Marine Fuels Market Size, Share, and Trends 2024 to 2033

Sustainable Marine Fuels Market (By Type: Hydrogen, Ammonia, Methanol, Biofuels, Others; By Application: Tankers/Carriers, Barges/Cargo Vessels Tugboats, Défense Vessels, Ferries, Yacht, Cruise Ships, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

  • Last Updated : June 2024
  • Report Code : 4487
  • Category : Energy and Power

Sustainable Marine Fuels Market Size and Growth

The global sustainable marine fuels market size was USD 8.80 billion in 2023, calculated at USD 13.22 billion in 2024, and is expected to reach around USD 514.99 billion by 2033. The market is expanding at a solid CAGR of 50.22% over the forecast period 2024 to 2033. Increasing awareness about environmental changes due to high emission of carbon and to combat this, supportive regulatory policies by authorities for clean energy and low carbon use fuelling the market growth exceptionally across the globe.

Sustainable Marine Fuels Market Size 2024 to 2033

Sustainable Marine Fuels Market Key Takeaways

  • Asia Pacific dominated the global market with the largest revenue share of 54% in 2023.
  • Europe, conversely, is experiencing a notable growth rate.
  • By type, the hydrogen segment accounted for the largest market share in 2023 and thus dominated the market globally.
  • By application, the ferries segment has held a major revenue share of 30% in 2023.

Asia Pacific Embedded Finance Market Size and Growth 2024 to 2033

The Asia-Pacific embedded finance market size surpassed USD 4.75 billion in 2023 and is projected to attain around USD 280.67 billion by 2033, poised to grow at a CAGR of 50.36% from 2024 to 2033.

Asia Pacific Sustainable Marine Fuels Market Size 2024 to 2033

Asia Pacific held the largest share of the sustainable marine fuels market in 2023. The growth of this region includes several factors, such as developing economies like China, India, Japan, and Korea, which are the major countries located in the Asia Pacific region. Due to the fastest-growing nature of these regions, maritime transportation activities have seen a surge in the Asian region, making it a dominant region of the market. Private institutions and governments in the Asia Pacific region have shown a responsible and proactive approach to the practice of transportation using environmentally sustainable fuels like biofuels and hydrogen fuels for cleaner energy aims worldwide.

Embracing the stringent regulations set by authorities like the international maritime organization Asia Pacific creates a conducive environment for a sustainable marine fuels market to foster notably. With the rising emphasis on cleaner energy, Asian consumers and major players are showing interest in companies that Favor green practices over conventional methods of using fuels. Such an eco-friendly preference by consumers led shipping enterprises to adopt sustainable marine fuels in the Asian region, further fostering the growth of the sustainable marine fuels market globally.

  • For instance, in September 2022, the refueling of the CMA CGM vessel was completed with sustainable marine biofuels by TotalEnergies marine fuels enterprise in Singapore.

Sustainable Marine Fuels Market Share, By Region, 2023 (%)

Europe, on the other hand, is experiencing a notable growth rate in the sustainable marine fuels market. The growth factor of this region is stringent compliance set by the European government, which aims to reduce greenhouse gas-GHG by more than 30% by the end of 2050, which is produced by the maritime industry and activities in the marine shipment market within the European region.

  • In February 2024, as one of the biggest container shipping firms in the world and a significant client of X-Press Feeders, Evergreen demonstrates its dedication to a sustainable, environmentally friendly future with this arrangement). In order to power the first feeder network in Europe using green methanol, the two firms will collaborate to launch it. Prior to covering ports in the Baltic Sea and Scandinavia, these dual-fuel ships will first be based at the Port of Rotterdam. These tanks are intended to be operated in Europe by X-Press Feeders using green methanol.

Market Overview

The sustainable marine fuels market refers to the industry that revolves around providing climate-friendly and sustainable marine fuels; it further involves the distribution and utilization of these fuels. The global market is expected to grow significantly with rising CAGR during the foreseeable period. The market is emerging within the maritime sector. Maritime transportation holds a larger margin in the transportation sector. Thus, marine fuels are designed to support climate by using hydrogen fuels. Synthetic fuels and biofuels. These fuels help reduce the emission of greenhouse gases to mitigate the adverse effects of the fuels used by marine transportation.

The major key factors driving the sustainable marine fuels market include stringent rules for decarbonization, partnerships and collaborations between key industry players and government, and ongoing research and development to improve the efficiency of marine fuels, which in turn helps in reducing the toxic byproducts from marine fuels. Since the anticipation for cleaner energy resources has risen, the maritime industry has grown exponentially in terms of producing environmentally friendly fuels that have lower sulfur content. Thus, due to such initiatives and mandate rules for cleaner energy, the sustainable marine fuels market is poised to grow globally.

Sustainable Marine Fuels Market Growth Factors

  • There is global pressure to practice the use of environment-friendly fuels such as biofuels across the maritime industry.
  • Stringent regulations and acts decided by the International Maritime Organization fuel the sustainable marine fuels market notably.
  • To reduce the pollution created by air and water transportation systems.
  • Compulsion for the shipowners and operators to use a fuel that contains a low amount of sulfur.
  • Several organizations are compelled to follow the regulations set to reduce carbon emissions as a part of responsible corporate activities, including the marine industry.
  • Ambitious aims to decarbonize the climate.
  • The volatility of crude oil prices and the market around it present an attractive option to use sustainable marine fuels like biofuels than conventional fossil fuels.
  • Continues advancements in technology to produce sustainable fuels for marine transportation, like carbon capture/ storage methods.

Sustainable Marine Fuels Market Scope

Report Coverage Details
Market Size by 2033
USD 514.99 Billion
Market Size in 2023 USD 8.80 Billion
Market Size in 2024 USD 13.22 Billion
Market Growth Rate from 2024 to 2033 CAGR of 50.22%
Largest Market Asia Pacific
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered Type, Application, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

 

Sustainable Marine Fuels Market Dynamics

Driver

Initiatives to mitigate carbon emission

The major driving factor for the sustainable marine fuels market is the increasing prevalence of government initiatives while collaborating with corporate industries and private institutions to decarbonize the environment due to the shipping activities, which in turn fuels the use of sustainable fuels for the maritime market broadly. Initiatives like eco-port policies and green shipping encourage shipowners to incorporate a fuel that is climate-friendly throughout the shipping process.

Green shipping practices must be in alignment with government policies to contribute to the wider adoption of sustainable marine fuels. For instance, the International Maritime Organization has been realising the urgency of reducing carbon emissions; to achieve this goal, they mandate an emission reduction of about 50% for every vessel up to 2050. To comply with this mandate, the major regions, such as the United States, Japan, and the United Kingdom, have decided on a goal for net-zero carbon emission from shipping activities within the same time frame of 2050.

Restraint

Challenge to build economic infrastructure

The major challenging factor affecting the growth of the sustainable marine fuels market is economic volatility due to constantly fluctuating market prices when compared to conventional fossil fuels. Fossil fuels have a comparatively low production rate due to their establishment in the market for so long. Sustainable marine fuels like synthetic fuels, hydrogenated fuels, and biofuels are often derived from high-cost production. Such cost differences may pose a challenge to sustainable fuel uses within the maritime industry.

To produce sustainable marine fuels, various complex manufacturing processes are involved, which also need cutting-edge technologies altogether, which in turn is going to increase overall expenses. To overcome this, a substantial amount of investment will be needed with collaboration within regions across the globe, technically sound infrastructure to generate a sufficient amount of biofuels, need to increase vessel capacity for transportation and storage again assert a financial burden which eventually hinders a mass adoption of marine fuels across the globe.

Opportunity

Collaboration of major players aims for decarbonization

A significant opportunity for the sustainable marine fuels market would be investments in research and developments for marine fuels aiming to reduce carbon emissions; for instance, the US Energy Department supports the Bioenergy Technologies Office –BETO for investment in research and development to achieve the target of low-and-net-zero-carbon sustainable fuels used for marine transportation. According to the statistics, nearly 3% of greenhouse gases are emitted by the maritime industry, including massive recreational boats and small ships.

BETO works efficiently under the guidance and expertise of the U.S. Department of Energy while approaching strategic plans to build a stable economy for sustainable marine fuel production and its efficient use in the maritime market. Furthermore, due to such continued efforts, the maritime industry has developed a fuel that has the potential to emit nearly zero carbon /GHG as a residue. Such fuels can be bio-methanol, lignin-alcohol mixes, and bio-based natural gases. These gases are extremely helpful in bringing decarbonization efforts into reality. It may only take a minor change, such as mechanical modifications and innovative engine designs for ships and large sailing boats.

Type Insights

The hydrogen segment accounted for the largest market share in 2023 and thus dominated the sustainable marine fuels market globally. The growth of this segment is attributed to the fact that when hydrogen is used as a fuel, it does not produce any residue or trails behind it in any form of toxic emission, which is suitable for reducing the carbon emission by the maritime industry and thus, becoming a popular choice for shipowners and manufacturers from the maritime market as it also complies with stringent regulatory rules set by authorities to meet the low carbon emission target.

Since hydrogen is a highly stable molecule, it does not react as explosively as compared to other fuels derived from the conventional crude oil method. It is also versatile in nature as it can be derived from many processes with different forms. For instance, green hydrogen can be produced in large amounts from renewable energy sources. Hydrogen has a highly dense energy, making it a potential energy carrier, which in turn can drive the engines of large marine ships. Moreover, ongoing technological advancements and their applications in the maritime industry to separate the hydrogen so that it can be used as a sustainable marine fuel are promoting this hydrogen segment globally.

  • In May 2024, Bureau Veritas, a classification society, has given Genevos the approval in principle for its recently introduced 250 kW Hydrogen Power Module naval fuel cell. With the introduction of the HPM-250, a next-generation maritime fuel cell, Genevos has achieved a significant advancement in their development plan.

Application Insights

The ferries segment dominated the sustainable marine fuels market in 2023. A ferry is a small or large watercraft vehicle or vessel that carries passengers or sometimes cargo, vehicles depending upon the demand and type of the ferry, over a short, fixed distance with a pre-decided route in the water or ocean.

Ferry transportation has risen in recent years due to the comfort and luxury of riding by the water route. It is also less expensive than other transportation modes to reach their destination. Moreover, advancements in vessels that carry passengers encompass various entertainment sources and safety features, which further drive the ferry segment’s growth. Hence, manufacturers and ferry owners need to comply with stringent regulatory rules for low carbon emissions in the maritime industry and practice sustainable fuel uses for ferries to avoid violation of rules.

  • In March 2024, Prime Minister Narendra Modi officially built India's first hydrogen fuel cell ferry in-house. Delivered for duty to Varanasi in Uttar Pradesh, the vessel was built by Cochin Shipyard Limited (CSL). The ferry cost Rs 18 crore to construct, and following extensive testing, CSL will turn it over to the Inland Waterways Authority of India.

Sustainable Marine Fuels Companies

Sustainable Marine Fuels Market Companies

  • Neste Corp.
  • FincoEnergies
  • Liquid Wind AB
  • A.P.Moller-Maersk A/S
  • TotalEnergies SE
  • Exxon Mobil Corp.
  • Shell plc
  • Chevron Corp.
  • BP plc
  • Gevo Inc.

Recent Developments

  • In February 2024, Hafnia Bunkers collaborated with member units and Goodfuels supplier Finco Energies. This collaboration presents a revolutionary way the vessels can be fuelled by introducing its progress in advanced sustainable marine fuel solutions.
  • In September 2022, a global membership organization roundtable made a partnership with a new line cruise enterprise, Virgin Voyages for Sustainable Biomaterials, which includes a commitment to reach net zero emissions by the year 2050.

Segments Covered in the Report

By Type

  • Hydrogen
  • Ammonia
  • Methanol
  • Biofuels
  • Others

By Application

  • Tankers/Carriers
  • Barges/Cargo Vessels
  • Tugboats
  • Défense Vessels
  • Ferries
  • Yacht
  • Cruise Ships
  • Others

By Geography

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • Middle East & Africa

Frequently Asked Questions

The global sustainable marine fuels market size is expected to increase USD 514.99 billion by 2033 from USD 8.80 billion in 2023.

The sustainable marine fuels market is anticipated to grow at a CAGR of over 50.22% between 2024 and 2033

The major players operating in the sustainable marine fuels market are Neste Corp., FincoEnergies, Liquid Wind AB, A.P.Moller-Maersk A/S, TotalEnergies SE,, Exxon Mobil Corp., Shell plc, Chevron Corp., BP plc, Gevo Inc., and Others.

The driving factors of the sustainable marine fuels market are the initiatives to mitigate carbon emission and increasing prevalence of government initiatives.

Asia-Pacific region will lead the global sustainable marine fuels market during the forecast period 2024 to 2033.

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