Sustainable Marine Fuel Market: Global Demand Analysis & Opportunity Outlook 2036

Research Nester’s recent market research analysis on “Sustainable Marine Fuel Market: Global Demand Analysis & Opportunity Outlook 2036” delivers a detailed competitors analysis and a detailed overview of the global sustainable marine fuel market in terms of market segmentation by type, application and by region.

Growing Usage of Cargo Ships to Promote Global Market Share of Sustainable Marine Fuel

The global sustainable marine fuel market is estimated to grow majorly on account of the increasing usage of cargo ships to carry goods. For instance, more than 80% of the world's goods are transported by cargo ships. These ships frequently utilize HFO or heavy fuel oil since it is relatively inexpensive. However, HFO is a byproduct of petroleum refining that releases substantial volumes of greenhouse gases (GHG) when burned. Therefore, to reduce emissions, sustainable marine fuels are being widely adopted as a recognized method for reducing greenhouse gas emissions.

The global sustainable marine fuel market is estimated to grow majorly on account of the rising need to improve air quality. Millions of people who live close to seaports suffer from poor air quality due to the release of sulfur oxide during the combustion of petroleum-based marine fuels. This may drive the demand for sustainable marine fuel as they help enhance the air quality in port communities without having to add expensive emissions controls to marine engines.

Some of the major growth factors and challenges that are associated with the growth of the global sustainable marine fuel market are:

Growth Drivers:

• Surge in Carbon Emissions Globally
• Rising Popularity of Environmental, Social, and Governance (ESG) Considerations

Challenges:

The high cost of fuels, and the supply chain disruptions are some of the major factors anticipated to hamper the global market size of sustainable marine fuel. As compared to conventional fossil fuels sustainable marine fuels such as hydrogen and biofuels are more expensive, owing to which some shipowners are unable to adopt sustainable fuels. Besides, this the price of feedstocks which are required to produce sustainable marine fuels keeps on fluctuating. This, as a result, can affect the cost of fuel.

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By application, the global sustainable marine fuel market is segmented into tankers/carriers, barges/cargo vessels, tugboats, defense vessels, ferries, yachts, and cruise ships. The ferries segment is to garner the highest revenue by the end of 2036 by growing at a significant CAGR over the forecast period. Vessels such as big container ships and tiny leisure boats utilize sustainable marine fuels which keep boats' range and performance intact while reducing CO2 emissions and are also used to power ships and other marine boats.

By region, the North America sustainable marine fuel market is to generate the highest revenue by the end of 2036. This growth is anticipated by increasing focus of government to reduce greenhouse gas emissions in marine sector. For instance, by 2050, the US government plans to achieve zero emissions of greenhouse gases (GHG), in all international shipping, by stepping up to lead some of the key initiatives for advancing the use of SZEFs, including Mission Innovation, and has also invested over  USD 1 trillion in clean energy.

Additionally, the huge presence of feedstocks in North America may create a huge demand for sustainable marine fuels by the year 2036. For instance, The United States has access to sufficient feedstocks to generate millions of gallons of sustainable biofuels and is capable of collecting around a billion dry tonnes of biomass annually in a sustainable manner. This may lead to an increase in the production of sustainable marine fuels in the region.

Furthermore, the sustainable market in Europe is estimated to hold the second largest share. The first green shipping fuels law in the world was approved by the EU according to which ships will have to use more sustainable fuels. Besides this, the usage of Liquefied Natural Gas (LNG) as ship fuel is also anticipated to increase in Europe, as it is often viewed as an alternative fuel for ships and has already been used by numerous ship owners.

This report also provides the existing competitive scenario of some of the key players of the global sustainable marine fuel market which includes company profiling of are Neste Oyj, GoodNRG B.V., Chevron Corporation, Nordic Marine Oil A/S, TotalEnergies, GAC, Methanex Corporation, Targray, ExxonMobil Corporation, and others.