Solar Fuels Market Size (2023 - 2030)

The Global Solar Fuels Market is valued at USD 23.93 billion in 2023 and is projected to reach a market size of USD 36.94 billion by 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.4%.

INDUSTRY OVERVIEW

The world's reliance on diminishing fossil fuel supplies creates geopolitical as well as environmental issues. In areas where storage is a must, solar fuels, in particular hydrogen, are seen as an alternative energy source to fossil fuels. Through photovoltaics, electricity may be generated directly from sunlight, however, this source of energy is less effective at being stored than hydrogen. When and where sunshine is present, solar fuel can be made, then stored and transferred for use at a later time. As a result, it is considerably more practical because it can be used in places where there isn't direct sunshine. Chemicals used as solar fuel are capable of storing solar energy and then releasing it as heat. wide range of uses for it in the heating industry. It is a brand-new material that can replace traditional solar photovoltaics. With no need for an external battery, solar fuels provide a solution for the storage and conversion of solar energy. Light energy is stored, converted to heat inside a single substance, and then released into the atmosphere.

It doesn't decay and becomes longer in life since no chemical reaction occurs inside the material. Renewable, recyclable, and environmentally beneficial, solar fuels have no greenhouse gas emissions. In contrast to lithium-ion batteries, solar fuel is coupled with polymers to enhance energy density.

An artificial chemical fuel created by sun energy is called solar fuel. A variety of processes, including photochemical, photobiological, thermochemical, and electrochemical ones, can be used to create solar fuels. The conversion of solar energy to chemical energy, usually by reducing protons to hydrogen or carbon dioxide to organic molecules, is how light is used as a source of energy.

An alternative to fossil fuels and batteries, a solar fuel may be generated and stored for usage when sunshine is not available. When exposed to light, solar thermal fuel undergoes chemical modifications that allow it to store solar energy. When necessary, later, the stored energy is released as heat. Renewable and environmentally beneficial, solar thermal fuel emits no greenhouse gases and may be reused. The fuels that result from photochemical carbon dioxide reduction, which are more common fuels like methane and propane, and hydrogen, whose sole byproduct is water, are the two that have received the most scientific attention. Additionally, ammonia and similar compounds will be the subject of future research. By providing a more portable and secure method of hydrogen storage, they can alleviate the issues that hydrogen presents.

Solar fuels may be created directly or indirectly. Without using any intermediary energy transformations, direct processes use the energy in the sunshine to create fuel. The energy from the sun is first transformed into another kind of energy (such as biomass or electricity) via indirect processes before being utilised to create fuel. Although more convenient to use, indirect techniques have the drawback of being less effective than the direct approach. Direct procedures are therefore preferable to their fewer effective alternatives since they are more fascinating. As a result, recent research has placed more of an emphasis on this direct conversion as well as fuels that may be utilised right away to balance the power system.

COVD-19 IMPACT ON THE SOLAR FUELS MARKET

The global market for solar thermal fuel has been negatively impacted by the COVID-19 outbreak. During the continuing lockdowns, several research and development laboratories that operate in these disciplines have temporarily shut down. The crisis has also had a detrimental impact on research into alternative technologies since both the public and business sectors are holding back on funding. The market for solar thermal fuel is anticipated to quickly rebound shortly, nevertheless, thanks to favorable government relief measures that will be put in place following lockdowns. The current coronavirus epidemic has posed unprecedented difficulties for several industries, including the functioning of swimming pools. To prevent the infection from spreading to the staff, the City of Albuquerque Parks and Recreation announced in November 2020 that the Highland Pool would be temporarily closed. Given the crucial role that solar thermal energy plays in swimming pool heating applications, such interruptions throughout the swimming pool facilities may have an indirect effect on the adoption of solar thermal heating systems.  The renewable energy sector had noteworthy development in 2020 despite the obstacles brought on by the outbreak. As of 2020, there were installed solar power producing capacity totaling over 760 GW, 6.2 GW of which were produced by solar thermal power plants. The solar thermal sector may continue to grow steadily over the ensuing years as a result of this consistent increase in solar energy capacity.

MARKET DRIVERS: 

The feature of solar fuel is that it can be produced and stored for later use is the major reason propelling the market growth

Two of the industry's most significant issues are the growth in energy consumption and the reduction of greenhouse gas emissions. A possible response to these problems is solar energy. An alternative to fossil fuels and batteries, a solar fuel may be created and stored for usage when sunshine is not available. When exposed to light, solar thermal fuel undergoes chemical modifications that allow it to store solar energy. It is based on photochromic materials, which store energy by altering their molecular structure in response to visible or ultraviolet light exposure. This technology has advantages over traditional solar photovoltaics because light energy is stored and converted to heat within the same material, eliminating the need for additional batteries. When necessary, later, the stored energy is released as heat. Renewable and environmentally beneficial, solar thermal fuel emits no greenhouse gases and may be reused. In the upcoming years, this is predicted to increase the demand for solar thermal fuel over the projected time.

Solar fuels are similar to fossil fuels, this is a prime reason which is positively influencing the market development

Chemically, solar fuels are similar to fossil fuels. They work seamlessly with the world's fuel infrastructure. Combustion engines, refineries, gasoline distribution, or filling stations don't need to be modified or upgraded. They may be used as diesel for trucks, jet fuel for aero planes, gasoline for automobiles, and marine fuel for ships. Solar fuels are a financially sound alternative to fossil fuels. Solar fuels are scalable to meet the world's fuel requirements and can replace fossil fuels in all application areas. Therefore, it is anticipated that the aforementioned factors will spur market growth.

MARKET RESTRAINTS:

Solar fuel technology is still in the developing stage is restraining market growth

The solar fuel market is still in a nascent stage and research and development activities are being undertaken by several agencies to further enhance its efficiency. The fact that solar thermal fuel is a novel technology and is still in its infancy as a market is anticipated to impede its expansion. Additionally, greater creativity is needed when it comes to design and execution.

SOLAR FUELS MARKET REPORT COVERAGE:

SOLAR FUELS MARKET– BY APPLICATION

• Industrial

• Household

• Commercial

• Automotive

Based on application, the solar fuel market is segmented into, Industrial, Household, Commercial and Automotive. During the projected period, the market is anticipated to be dominated by the home and industrial segments. Solar thermal fuel is widely used in the business sector. This aspect is anticipated to propel the expansion of the market in the industrial as well as commercial segment since it serves as an alternate option for a clean source of energy and increases solar power's dependability in meeting global energy demand. As the stated technology is projected to be an appropriate replacement for lead batteries and gensets that are used to deliver continuous and dependable electricity inside the house, demand for this technology is likely to be significant in the household segment in the coming years.

SOLAR FUELS MARKET- BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East

• Africa

By region, the Enhanced water market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East and Africa. Europe is predicted to hold a majority of the global solar fuel market due to the quicker adoption of clean heating systems in commercial and residential settings. The region's need for solar thermal fuel is also anticipated to increase due to the presence of major auto manufacturers. It is projected that the Asia Pacific market would soon be very profitable. The market in China, India, South Korea, Australia, and Japan is anticipated to grow considerably over the next few years as a result of the rise in power consumption in these nations. In the Asia-Pacific area, there has been a boost in investment in sustainable energy sources, which can support regional development.

Due to the rising use of solar thermal energy in steam turbine power production in the United States, the North American solar thermal sector is anticipated to experience rapid expansion through 2030. The U.S. government's major efforts to meet its carbon-neutral goal will also help explain why solar thermal technology is becoming more and more popular throughout the area. The Solar Thermal Fuel Market is largely centered in North America. The region's market is anticipated to see growth because of the widespread use of electric cars and the increased need for energy for commercial and residential heating and cooling.

SOLAR FUELS MARKET- BY COMPANIES

Some of the major players operating in the Solar Fuels Market include:

1. Chalmers University of Technology

2. Lancaster University

3. Massachusetts Institute of Technology (MIT)

4. Solar Energy Industries Association

5. Tata Center for Technology and Design

6. University of Florida

7. International Energy Agency

8. Australian Solar Thermal Energy Association

9. European Solar Thermal Electricity Association

10. International Solar Energy Society

NOTABLE HAPPENING IN THE SOLAR FUELS MARKET

• INVESTMENT- In 2020, a group of researchers at Chalmers University began work on creating prototypes of the solar thermal fuel technology for large-scale usage. The EU has allocated 4.3 million euros for the project over a period of 3.5 years. A large-scale heating solution for home and commercial uses may be developed as a result of the financing.

• INNOVATION- A specialized fluid that can assist to store solar energy for up to 18 years was created by scientists in Sweden in November 2018.