Sustainable Marine Fuel Market Size & Share, by Type (Hydrogen, Ammonia, Methanol, Biofuels); Application (Tankers/Carriers, Barges/Cargo Vessels, Tugboats, Defense Vessels, Ferries, Yachts, Cruise Ships) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5240
  • Published Date: Sep 18, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 - 2036

Sustainable Marine Fuel Market size is poised to cross USD 325 Billion by the end of 2036, growing at a CAGR of 51.2% during the forecast period, i.e., 2024 – 2036. In the year 2023, the industry size of sustainable marine fuel was USD 46 Billion. The reason behind the growth is impelled by the increasing carbon emissions from the shipping sector across the globe. For instance, globally over 920 million tonnes of CO2 are emitted by the shipping sector each year, which has necessitated the use of sustainable marine fuels in the sector.

Moreover, sustainable marine fuels can dramatically lower carbon emissions, when used in a dual-fuel combustion engine. Additionally, more than 50% of well-to-wake greenhouse gas emissions can be reduced by using a variety of new sustainable marine fuels. According to estimates, the shipping sector is to blame for over 2% of the world's carbon emissions.

The implementation of supportive policies are believed to fuel the market growth. For instance, The International Maritime Organisation (IMO) mandated a maximum Sulphur content of around 0.4% in marine fuels worldwide in 2020. Additionally, Ships cannot transport fuel oil that contains more than 0.50 percent m/m of sulfur starting, leading to the adoption of cleaner fuels or low-sulfur alternatives such as liquefied natural gas (LNG), or other marine diesel oil that have a sulfur content of less than or 0.50% m/m.


Sustainable Marine Fuel Market
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Sustainable Marine Fuel Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Adoption of Renewable Energy Sources – It is expected that growing environmental concern across the globe is anticipated to drive market growth. Green hydrogen is produced entirely with green energy such as sun or wind via an electrolysis process. It can be used as a key component to drastically cut GHG emissions in the marine sector. According to predictions, solar power capacity worldwide is expected to increase by over 400 gigawatts (GW) by 2024.
  • Growing Importance of Environmental, Social, and Governance (ESG) Considerations- Companies may contribute to a more sustainable and responsible society, make wise selections for firms, and greater long-term profits for investors by incorporating ESG factors into their decision-making. Moreover, the maritime sector will be strongly impacted by ESG factors starting in 2023 to maximize long-term value for all parties involved, leading to higher demand for sustainable marine fuels.

Challenges

  • High Cost of Sustainable Marine Fuels - When compared to fossil fuels, the cost of low-carbon and carbon-neutral fuels is likely to remain high as to use sustainable marine fuel some vessels may require upgrade, which can be expensive. 
  • Limited Supply
  • Lack of Infrastructure

Sustainable Marine Fuel Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~51.2%

Base Year Market Size (2023)

~ USD 46 Billion

Forecast Year Market Size (2036)

~ USD 325 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Sustainable Marine Fuel Segmentation

Type (Hydrogen, Ammonia, Methanol, Biofuels)

The methanol segment in the sustainable marine fuel market is estimated to gain a robust revenue share of 59% in the coming years impelled by the benefits offered by this type. Methanol, commonly known as methyl alcohol, is a desirable substitute for conventional fuels such as marine fuel and ship fuel since it is reliable, secure, affordable, and easily provided by more than 110 ports worldwide. Additionally, methanol as a marine fuel is gaining more and more attention from ship-owners as it has potential as a maritime fuel owing to its easier handling and less expensive infrastructure investments.

Application (Tankers/Carriers, Barges/Cargo Vessels, Tugboats, Defense Vessels, Ferries, Yachts, Cruise Ships)

The ferries segment in the sustainable marine fuel market is set to garner a notable share shortly. Ferries including ships like big container ships and tiny leisure boats use sustainable marine fuels to keep boats' range and performance intact while reducing CO2 emissions from recreational boating. Besides this, owing to its 100% renewable and carbon-free production, green ammonia holds the best future potential for the maritime industry as a great alternative to the fuel oil used in ferries which will also help achieve the IMO's (International Maritime Organisation) 2050 emissions reduction goals.

Our in-depth analysis of the global market includes the following segments:

     Type

  • Hydrogen
  • Ammonia
  • Methanol
  • Biofuels

     Application

  • Tankers/Carriers
  • Barges/Cargo Vessels
  • Tugboats
  •  Defense Vessels
  • Ferries
  • Yachts
  • Cruise Ships

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Sustainable Marine Fuel Industry- Regional Synopsis

APAC Market Forecast

Sustainable marine fuel market in Asia Pacific is predicted to account for the largest share of 54% by 2036 impelled by the implementation of regulatory policies for the adoption of clean energy in the marine sector. For instance, recently, the government of India has announced to creation of the National Centre of Excellence in Green Port and Shipping (NCoEGPS) to allow the use of sustainable biofuels and their blends as fuel in Indian ships to reduce the use of fossil fuels and promote the use of renewable energy in ship operations by identifying the technologies, alternative fuels, renewable energy sources, and targets for the shipping and port sector. This is expected to drive the demand for sustainable marine fuels in the region.

European Market Statistics

The Europe sustainable marine fuel market is estimated to hold the second largest of 33%, during the forecast timeframe led by growing initiatives to use renewable fuels in marine transport. For instance, the FuelEU Maritime legislation was one amongst the 'fit for 55' package of legislative proposals created by the European Commission in 2021, which aims to decarbonize the EU maritime industry and encourage the adoption of sustainable maritime fuels by establishing a fuel standard for ships.

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Sustainable Marine Fuel Market Size
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Companies Dominating the Sustainable Marine Fuel Landscape

top-features-companies
    • Neste Oyj
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Targray
    • ExxonMobil Corporation
    • GoodNRG B.V.
    • Chevron Corporation
    • Nordic Marine Oil A/S
    • TotalEnergies
    • GAC
    • Methanex Corporation

In-the-news

In The News

  • Neste Oyj teamed up with Nordic Marine Oil, to launch Neste Marine 0.1 certified with International Sustainability and Carbon Certification (ISCC PLUS) to cut back on greenhouse gas (GHG) emissions during their lifetime by over 60% in the maritime sector without sacrificing product quality or performance.
  • Chevron Corporation collaborated with Sembcorp Marine Repairs & Upgrades Pte. Ltd, to install innovative technologies, including a reliquefication system, hull air lubrication, and a new gas compressor to reduce cargo boil-off, deliver more cargo, and reduce the carbon footprint of LNG transportation.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 5240
  • Published Date: Sep 18, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing carbon emissions from the shipping sector across the globe and the implementation of supportive policies are the major factors driving the growth of the market.

The market size of Sustainable Marine Fuel is anticipated to attain a CAGR of 51.2% over the forecast period, i.e., 2024 – 2036.

The major players in the market are Neste Oyj, Targray, ExxonMobil Corporation, GoodNRG B.V., Chevron Corporation, Nordic Marine Oil A/S, TotalEnergies, GAC, Methanex Corporation, and others.

The methanol segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Sustainable Marine Fuel Market Report Scope
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