For decades, gasoline and diesel have been at the helm of the automotive fuel landscape. Today, however, sustainability concerns are intensifying, and energy security is taking center stage — positioning the industry at crucial crossroads. And with electric vehicles (EVs) having gained rapid traction, the next wave of innovation lies in alternative fuels — biofuels, hydrogen, eFuels, and advanced gas-based solutions.
Strategic Imperatives Shaping the Alternative Fuels Ecosystem
Governments are setting ambitious decarbonization goals, and businesses that embrace these changes early will establish themselves as leaders in the next era of mobility. Keeping these transformations impacting this era at the fore, Frost & Sullivan’s experts have identified three strategic insights essential to frame a successful growth plan.
Competitive Intensity: Hydrogen Disrupting Fuel Sales
Subscription-based fuel models are emerging, where businesses pay for hydrogen fuel-as-a-service rather than traditional refueling. This shift will reshape commercial transportation, especially as hydrogen refueling infrastructure expands globally.
Transformative Megatrends: Biofuels from Waste
The push toward a circular economy is fueling investments in biofuels made from agricultural waste and used cooking oils. By 2030, commercial fleets and heavy-duty vehicles will increasingly turn to biofuels due to their compatibility with existing internal combustion engines (ICEs).
Geopolitical Chaos: Combatting Supply Chain Risks
Countries are prioritizing locally sourced fuel production to reduce dependence on volatile global energy markets. Over the next five years, Brazil, India, and the United States will see accelerated biofuel and CNG adoption, driven by local production incentives.
Explore these strategic imperatives in-depth here.
Biofuels, Hydrogen & eFuels: Market Growth and Industry Leaders
We’ve prepared a detailed infographic highlighting key players and the opportunities that biofuels, hydrogen, and eFuels bring to the automotive sector:
Growth Analysis Sneak Peek: The Competitive Landscape
The race to dominate the alternative fuels market is heating up, with global energy leaders investing aggressively. Here’s how some of the biggest players are positioning themselves:
- Shell: The world’s largest biofuel blender, Shell produced 7 billion liters of biofuels in 2023 and recently secured a multi-year agreement with Montana Renewables for sustainable aviation fuel (SAF).
- Eni SpA: Doubling down on bio-refining, Eni aims to expand production to 2 million tonnes per annum (MTPA), reducing carbon intensity across its supply chain.
- ExxonMobil: Aiming for 200,000 barrels per day of lower-emission fuel by 2030, ExxonMobil is aggressively scaling its product solutions business to align with net-zero targets.
These companies aren’t just adapting—they are reshaping the fuel ecosystem. Are you keeping pace? Get started here.
Growth Analysis Sneak Peek: Global Production Hotspots
- Biofuel Leaders: Brazil, Indonesia, India, and Malaysia are spearheading ethanol and biodiesel expansion, leveraging strong policy support and abundant feedstocks.
- Hydrogen’s Big Ambitions: Canada aims to produce 25 GW of hydrogen by 2030, positioning itself as a global leader in H2 supply for heavy industry and transportation.
- Biogas Integration: In 2023, two-thirds of the world’s biogas was used for electricity and heating, but its role in transportation fuel is growing fast as blending mandates increase.
The question is: Where does your business fit into this new energy landscape? Find your answers here.
Unlock Growth in the Alternative Fuels Market!
Gain access to Frost & Sullivan’s full analysis, where we detail best practices, competitive benchmarks, and the strategies automakers are deploying to integrate alternative fuels. Our insights provide a clear roadmap for:
- Identifying automakers and vehicle models adopting alternative fuels
- Analyzing investment patterns and partnerships
- Ranking each fuel type’s growth potential based on scalability, infrastructure, economic viability, and environmental impact
Wondering how your company can capitalize on the transformation of automotive fuels? Schedule a Growth Dialog™ with our automotive experts to uncover tailored opportunities and strategic pathways for success in the alternative fuels ecosystem.
