The e-diesel market, which was valued at $750 million in 2023, is projected to grow at a CAGR of 33.2% from 2024-2032, a report said.

 

This surge is primarily fueled by global environmental regulations and an increasing demand for fuel efficiency. As both the transportation and industrial sectors push for better fuel efficiency and lower emissions, e-diesel emerges as a prime candidate, said the Global Market Insights report.

 

E-diesel, also known as e-fuel, is a synthetic diesel fuel produced using carbon dioxide, water, and electricity, with the process often powered by renewable energy. It is a carbon-neutral fuel because it doesn't extract new carbon from the earth and uses carbon-neutral energy sources for production.

There are two main types: e-diesel as a blend of ethanol and diesel, and e-diesel as a synthetic fuel. 

 

With energy density and performance akin to conventional diesel, e-diesel becomes especially appealing for applications prioritising efficiency and environmental considerations. Global environmental regulations and climate policies are propelling the e-diesel market forward, it said.

 

Governments around the world are enacting laws and offering incentives aimed at curbing carbon emissions and championing cleaner fuels. The overall e-diesel industry is classified based on renewable sources, technology, application, and region. The market, segmented by renewable sources, highlights on-site solar and wind. Notably, the on-site solar e-diesel sector is projected to surpass $5 billion by 2032. Breakthroughs in hydrogen production, solar energy capture, and carbon capture technologies are significantly boosting the efficiency and viability of on-site solar e-diesel production, it said.

 

Furthermore, advancements in photovoltaic (PV) technology are not only enhancing panel efficiency but also driving down costs, solidifying solar energy's position as a leading contender. Such technological strides are pivotal for the economic feasibility of e-diesel production, directly fueling its market expansion by streamlining processes and cutting costs. 

 

Application-wise, the market spans automotive, marine, aviation, industrial, and other sectors. The automotive segment is set to witness a growth rate exceeding 33% by 2032. As automakers pivot towards e-diesel and increasingly integrate hybrid and flex-fuel vehicles, e-diesel consumption is poised for a significant uptick, the report said.  – TradeArabia News Service