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.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~51.2% |
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Base Year Market Size (2023) |
~ USD 46 Billion |
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Forecast Year Market Size (2036) |
~ USD 325 Billion |
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Regional Scope |
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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:
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Type |
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Application |
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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.
Author Credits: Payel Roy, Dhruv Bhatia
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