PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886937
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886937
The global e-kerosene market is experiencing rapid acceleration as the aviation sector intensifies its commitment to reducing carbon emissions and transitioning toward sustainable fuels. According to the latest industry assessment, the global e-kerosene market was valued at USD 6.14 billion in 2024, driven by rising awareness of climate change and the need for cleaner fuels in global aviation. The market is expected to grow significantly to USD 8.16 billion in 2025 and surge to USD 57.19 billion by 2032, representing a strong CAGR of 32.08% during the forecast period. This sharp rise is attributed to advancements in Power-to-Liquid (PtL) technologies, expanding renewable energy generation, and robust policy support for Sustainable Aviation Fuel (SAF).
North America held the largest share of the global e-kerosene market in 2024, accounting for 48.2%, supported by initiatives such as the U.S. SAF Grand Challenge, large-scale decarbonization commitments, and growing investments in synthetic fuel plants. Companies such as Gevo, Inc. are leading the shift toward renewable, carbon-neutral aviation fuels by investing heavily in e-fuel production facilities and innovative SAF technologies.
Market Trends
Rising Government Mandates Accelerate Adoption
Governments worldwide are implementing strong policy frameworks aimed at decarbonizing aviation. The EU's ReFuelEU Aviation initiative mandates progressive blending requirements for synthetic aviation fuels, starting in 2030, while the U.S. and U.K. have introduced aggressive financial incentives to boost production. Subsidies, tax credits, grants, and SAF purchasing mandates are narrowing the cost gap between e-kerosene and fossil-based jet fuel, enabling early-stage projects to scale efficiently. These policy-driven advancements are expected to significantly expand global production capacity between 2025 and 2032.
Market Dynamics
Driver: Growing Demand for Sustainable Aviation Fuels
The aviation industry's commitment to achieving net-zero carbon emissions by 2050 is the biggest driver of the e-kerosene market. In 2025, the Japanese government announced fresh subsidies to expand SAF production, including e-kerosene, and set an ambitious goal of replacing 10% of petroleum-based fuels with alternatives by 2030. These commitments highlight strong government and industry alignment toward decarbonizing air travel through synthetic fuels.
Restraint: High Production Costs and Energy Requirements
Despite strong growth prospects, high production costs remain a major barrier. E-kerosene production requires a large supply of renewable electricity, advanced electrolyzers, carbon capture systems, and high-investment PtL facilities. The scale required to reach cost-efficiency is substantial, making early-stage development capital-intensive.
Opportunity: Decarbonizing Hard-to-Electrify Sectors
The rising need to decarbonize aviation and marine transport creates major opportunities for e-kerosene producers. The European Commission aims for 5% low-carbon fuel use by 2030, with plans to exceed 60% by 2050, ensuring long-term demand for synthetic fuels. Beyond aviation, marine transport and industrial sectors are exploring e-kerosene as a sustainable alternative for high-heat processes and long-distance shipping.
By Production Process
By Application
The aviation sector leads demand in 2024 and is expected to remain the dominant application through 2032. The EU's mandates requiring 1.2% SAF blending in 2030, rising to 35% by 2050, ensure long-term adoption. Marine and industrial sectors follow as secondary applications driven by carbon-reduction commitments.
North America - Leading Region in 2024
North America accounted for USD 2.96 billion of the global market in 2024. Strong policy support, expanding SAF production plants, and decarbonization targets for U.S. commercial aviation reinforce its dominant position.
Europe
Europe is rapidly scaling its SAF infrastructure due to stringent climate laws. EU blending mandates, net-zero commitments from major airports, and large-scale PtL investments will significantly increase e-kerosene demand.
Asia Pacific
Asia Pacific's demand is driven by rising aviation activity, expanding middle-class air travel, and government commitments to carbon neutrality. Japan, China, and Singapore are investing heavily in SAF production technologies.
Rest of the World
Growth is led by rising aviation activity in the Middle East & Africa and growing opportunities for PtL fuel production in Latin America.
Conclusion
With the global e-kerosene market rising from USD 6.14 billion in 2024 to USD 8.16 billion in 2025, and expected to reach USD 57.19 billion by 2032, the sector is set for transformative growth. Driven by policy mandates, aviation decarbonization, and rapid technological advancements, e-kerosene is poised to become a cornerstone of sustainable aviation fuel strategies worldwide.
Segmentation By Production Process
By Application
By Region