Carbon-neutral Fuel Market Size & Share, by Type (Hydrogen Cell, Biodiesel, Bioethanol); Application - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

North America Market Forecast

North America carbon-neutral fuel market is anticipated to capture revenue share of over 41.5% by 2037. The supportive government policies, technological advancements, corporative sustainability commitments, and growing investments in green energy projects are driving the sales of carbon-neutral fuel in North America. The rising awareness about GHG emissions and increasing adoption of carbon neutral vehicle adoption are further propelling the overall carbon-neutral fuel market growth in the U.S. and Canada.

In the U.S. the increasing government focus on reducing greenhouse gas emissions and growing investments in clean energy adoption are anticipated to contribute to the carbon-neutral fuel market growth. Innovations in biofuel, hydrogen, and synthetic fuel production are also aiding the country to gain dominance in the global landscape. For instance, the Growth Energy report states that the U.S. is the leading producer of bioethanol globally. The country purchases around 500 million bushels of corn each year for 15.0 billion gallons of bioethanol production. The 10% of total production is exported worldwide, annually. Apart from this, the country exports 11 million metric tons of dried distillers’ grains (DDGS) as an animal feed worth USD 4.0 billion. DDGS is a nutrient-rich residue developed during bioethanol production. Overall, it can be understood that carbon neutral fuel production is a win-win industry for the country’s GDP growth.

Canada is a lucrative marketplace for carbon neutral fuel producers owing high adoption of electric and hybrid vehicle production and adoption. The government’s supportive investments in EV companies are directly fueling the consumption of carbon-neutral fuel. The country’s increasing efforts to position it as the global producer and consumer of clean energy are set to propel the sales of carbon-neutral fuel. Considering these efforts many companies are focusing on the production and commercialization of biofuels, hydrogen fuel cells, and other carbon-neutral fuel. For instance, the Canadian Centre for Energy Information study reveals that the country is the 3^rd largest hydroelectricity producer globally. The study also estimates that nearly 82.0% of the energy comes from non-GHG emitting systems such as hydro, solar, wind, and nuclear.

Asia Pacific Market Statistics

The Asia Pacific carbon-neutral fuel market is set to expand at the fastest pace during the assessed period. The increasing investments in biofuel production, growing implementation of strict carbon emission regulations, expanding energy needs, and strong existence of chemical and petrochemical companies are foreseen to uplift the position of Asia Pacific in the global landscape. High infrastructure development and manufacturing activities are also expected to promote the sales of carbon-neutral fuel in Asia Pacific countries such as China, India, Australia, Japan, and South Korea.

China’s carbon neutrality goal and strong emphasis on clean energy solutions are anticipated to propel the consumption of carbon-neutral fuel in the years ahead. The government's supportive polices in terms of schemes, tax benefits, and incentives to those who invest in renewable energy sources and technologies are also driving the carbon-neutral fuel market growth. High investments in green infrastructure and swift production and commercialization of electric and hybrid vehicles are pushing the sales of carbon-neutral fuel. For instance, the Research Nester’s study estimates that China’s EV market is estimated to attain a valuation of USD 377.9 billion in 2025 and the EV sales are projected to reach 9.57 million units by 2029.

In India, the strong presence of chemical and petrochemical manufacturing facilities, local and international, is set to significantly drive the sales of carbon-neutral fuel in the foreseeable period. Technological advancements in biofuel production and growing energy demand owing to rapid industrialization and urbanization are set to propel the demand for carbon-neutral fuel in the coming years. The strict carbon emission regulations and energy transition trend are expected to push the use of bioethanol and sustainable aviation fuel in transportation and aviation activities. For instance, in December 2024, the India Brand Equity Foundation (IBEF) revealed that the amended Pradhan Mantri Jaiv Indhan - Vatavaran Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana offers financial support for enhanced bioethanol projects. More than USD 106.7 million are allotted to 2G bioethanol projects in Haryana.