Dublin, Dec. 30, 2025 (GLOBE NEWSWIRE) -- The "Carbon-Neutral Fuels Market - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering.
The global market for Carbon-Neutral Fuels was valued at US$88.4 Billion in 2024 and is projected to reach US$126.5 Billion by 2030, growing at a CAGR of 6.2% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.
The growth in the carbon-neutral fuels market is driven by several intertwined factors spanning environmental targets, industrial demand, technological viability, and strategic policy support. At the core is the global push toward net-zero emissions, with more than 140 countries and thousands of corporations committing to carbon neutrality by mid-century. This sweeping commitment is translating into direct demand for low-emission alternatives in sectors that cannot easily electrify - aviation, marine shipping, heavy manufacturing, and long-haul freight.
On the technology side, the rapid maturation of green hydrogen electrolysis, CO2-to-fuel conversion, and biomass gasification is enabling large-scale, commercially viable production pathways. From an end-use perspective, industries are eager to decarbonize without overhauling existing infrastructure, making drop-in carbon-neutral fuels an attractive proposition. Consumer and corporate behavior is evolving, with rising scrutiny of Scope 3 emissions, greater interest in sustainable sourcing, and ESG frameworks pushing companies to adopt low-carbon fuel solutions.
Policy support is equally vital, with tax incentives, fuel blending mandates, infrastructure funding, and clean energy subsidies helping bridge the economic gap between conventional and carbon-neutral fuels. Additionally, geopolitical concerns over energy security and fuel independence are prompting many nations to invest in local, renewables-based fuel production, reducing reliance on imported fossil fuels.
International cooperation through climate accords and technology-sharing partnerships is further accelerating knowledge transfer and deployment. Together, these drivers are not only propelling the carbon-neutral fuels market forward but are also positioning it as a foundational pillar of the emerging global green energy economy.
Report Scope
The report analyzes the Carbon-Neutral Fuels market, presented in terms of market value (US$). The analysis covers the key segments and geographic regions outlined below:
- Segments: Feedstock (Carbon Dioxide Feedstock, Hydrogen Feedstock, Plant Starches Feedstock, Animal Fats Feedstock, Vegetable Oil Feedstock, Other Feedstocks); Type (Hydrogen Cells Type, Biodiesel Type, Bioethanol Type, Biobutanol Type, Methanol Type, Algae Type, Other Types); Application (Automobiles Application, Ships Application, Aircrafts Application, Trains Application, Power Generation Application, Chemicals Application, Other Applications).
- Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Carbon Dioxide Feedstock segment, which is expected to reach US$33.9 Billion by 2030 with a CAGR of a 4.5%. The Hydrogen Feedstock segment is also set to grow at 7.8% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $24.1 Billion in 2024, and China, forecasted to grow at an impressive 9.4% CAGR to reach $25.4 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 34 companies featured in this Carbon-Neutral Fuels market report include:
- ADM (Archer Daniels Midland)
- BP plc
- Chevron Corporation
- Cosan S.A.
- Dioxide Materials
- Enerkem Inc.
- Eni S.p.A.
- ExxonMobil Corporation
- FuelCell Energy, Inc.
- HIF Global
- Indian Oil Corporation Limited
- LanzaTech
- Neste Corporation
- PetroChina Company Limited
- Phillips 66
- Repsol S.A.
- Saudi Aramco
- Shell plc
- Sinopec Group
- TotalEnergies SE
Key Attributes
| Report Attribute | Details |
| No. of Pages | 400 |
| Forecast Period | 2024-2030 |
| Estimated Market Value (USD) in 2024 | $88.4 Billion |
| Forecasted Market Value (USD) by 2030 | $126.5 Billion |
| Compound Annual Growth Rate | 6.2% |
| Regions Covered | Global |
MARKET OVERVIEW
- Trade Shocks, Uncertainty, and the Structural Rewiring of the Global Economy
- World Market Trajectories
- How Trump's Tariffs Impact the Market? The Big Question on Everyone's Mind
- Carbon-Neutral Fuels - Global Key Competitors Percentage Market Share in 2025 (E)
- Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)
MARKET TRENDS & DRIVERS
- Global Decarbonization Targets Throw the Spotlight on Carbon-Neutral Fuels as Next-Gen Energy Alternatives
- Stricter Emission Regulations Accelerate Demand for Low-Carbon and Renewable Fuel Substitutes
- Expansion of Net-Zero Commitments by Corporates and Governments Strengthens the Business Case for Carbon-Neutral Fuel Adoption
- Growing Investment in Green Hydrogen and E-Fuels Expands the Addressable Market for Synthetic Carbon-Neutral Fuels
- Electrification Gaps in Aviation and Shipping Propel Growth in Drop-In, Carbon-Neutral Liquid Fuels
- Carbon Pricing and Emission Trading Schemes Generate Economic Incentives for Transition to Cleaner Fuel Alternatives
- Integration with Carbon Capture and Utilization Technologies Spurs Innovation in Closed-Loop Fuel Cycles
- Renewable Power Surplus Utilization Drives Adoption of Power-to-Liquid and Power-to-Gas Fuel Pathways
- Bio-Based Feedstocks and Advanced Algal Sources Open New Vistas for Sustainable Carbon-Neutral Fuel Production
- Lifecycle Emission Accounting and Scope 3 Reduction Pressures Boost Market Demand from ESG-Conscious Buyers
- Global Supply Chain Decarbonization Efforts Strengthen Market Viability of Low-Carbon Freight and Logistics Fuels
For more information about this report visit https://www.researchandmarkets.com/r/hen9ak
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