Solar Fuel Market Report 2024

This Solar Fuel market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The solar fuel market size has grown strongly in recent years. It will grow from $12.16 billion in 2023 to $13.06 billion in 2024 at a compound annual growth rate (CAGR) of 7.4%. The growth during the historic period can be attributed to groundbreaking research in solar technology, favorable government incentives, rising energy costs, heightened public awareness of climate change, and the implementation of renewable energy standards.

The solar fuel market size is expected to see strong growth in the next few years. It will grow to $17.52 billion in 2028 at a compound annual growth rate (CAGR) of 7.6%. The growth in the forecast period can be attributed to an increase in industrialization, increasing investments in renewable energy, government incentives and subsidies, rising demand for clean energy solutions, and improvements in energy storage systems. Major trends in the forecast period include advancements in solar cell efficiency, expansion of large-scale solar farms, integration with energy storage solutions, development of hybrid solar technologies, and technological advancements.

The growing demand for renewable energy is expected to drive the expansion of the solar fuel market in the coming years. Renewable energy, derived from continuously replenished natural sources such as solar, wind, and hydropower, supports sustainable power generation and reduces dependence on fossil fuels. The increasing demand for renewable energy is fueled by environmental concerns, declining costs of renewable technologies, government incentives, energy security needs, and advancements in energy storage solutions. Solar fuel enhances renewable energy production by providing a reliable method to store and convert solar power into usable energy, thereby improving overall energy accessibility and sustainability. For instance, in March 2022, the U.S. Energy Information Administration, a U.S.-based government agency, projected that renewable energy's contribution to power generation would nearly triple, rising from 21% in 2021 to 44% by 2050, primarily driven by new wind and solar power developments. Thus, the increasing demand for renewable energy is propelling the growth of the solar fuel market.

Leading companies in the solar fuel market are focusing on strategic partnerships to develop solar fuels for aviation and enhance the efficiency and effectiveness of solar fuel production and utilization. For example, in June 2024, Synhelion SA, a Switzerland-based cleantech company, partnered with Pilatus Aircraft Ltd., a Switzerland-based aerospace company, to develop advanced solar fuels for its flight operations. This partnership aims to accelerate the development of large-scale solar fuel production facilities, improve the efficiency of solar-to-fuel conversion processes, and reduce costs through innovative engineering solutions. By combining their expertise, Synhelion and Pilatus aim to promote the adoption of solar fuels, contributing to sustainable energy solutions and reducing carbon emissions.

In September 2024, Clean Royalties Holdings, LLC, a U.S.-based provider of energy transition solutions, acquired iSun Energy, Inc., based in Williston, for an undisclosed amount. This acquisition offers strategic benefits, including the expansion of Clean Royalties' renewable energy portfolio and access to iSun's established solar energy infrastructure. It strengthens Clean Royalties' presence in the solar market, aligning with its long-term sustainability objectives and driving growth in the clean energy sector. iSun Energy, Inc. is a U.S.-based solar energy company.

Major companies operating in the solar fuel market are Royal Dutch Shell plc, TotalEnergies SE, Reliance Industries Ltd., Linde plc, Sharp Corporation, Plug Power Inc., Pilatus Aircraft Ltd., Waaree Energies Limited, Azure Power Global Limited, Sunfire Solar Energy LLC, BrightSource Energy, Ballard Power Systems Inc., Motech Industries Inc., Green Hydrogen Systems A/S, eSolar Inc., Solar Energy Industries Association, Synhelion SA, Heliogen Inc., Synhelion SA, SolarFuel GmbH.

Asia-Pacific was the largest region in the solar fuel market in 2023. The regions covered in the solar fuel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the solar fuel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Solar fuel is a form of energy derived from solar power, converted into a storable and usable fuel. This process utilizes sunlight to produce chemical fuels, which can be stored and later used similarly to traditional fuels such as gasoline or hydrogen. Solar fuels offer a promising method for storing and utilizing solar energy, enhancing the sustainability and flexibility of renewable energy systems.

The primary types of solar fuels include hydrogen, ammonia, and others. Hydrogen as a solar fuel involves producing hydrogen gas through solar energy processes such as water splitting or photochemical reactions. This clean hydrogen serves as a fuel for various applications, offering an eco-friendly alternative to fossil fuels and helping to reduce carbon emissions. The applications of solar fuels include power generation, transportation, and more, serving end users across residential, commercial, industrial, and utility sectors.

The solar fuel market research report is one of a series of new reports that provides solar fuel market statistics, including solar fuel industry global market size, regional shares, competitors with a solar fuel market share, detailed solar fuel market segments, market trends, and opportunities, and any further data you may need to thrive in the solar fuel industry. This solar fuel research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The solar fuel market consist of revenues earned by entities by providing services such as testing and validation, installation and integration, and operational and maintenance support. The market value includes the value of related goods sold by the service provider or included within the service offering. The solar fuel market also includes sales of solar hydrogen, solar reactors, photovoltaic electrolyzers, solar fuel cells, and solar-powered storage systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.