Artificial Photosynthesis Market Size & Opportunities Analysis - Growth Strategies, Competitiveness, and Forecasts (2025 - 2032)

Artificial Photosynthesis Market Emerging Trends

Increasing R&D Activities and Government Funding Are Major Trends

• One of the key trends in the market expansion is government funding and incentives for the study and development of artificial photosynthesis for the production of fuels from sunlight.
• In Europe, countries such as Germany, France, and Spain are emphasizing the research and development activities on this technology for several applications, including hydrocarbon and hydrogen generation.
• To accelerate such research activities, several research institutes are cooperating with OEMs.
• In December 2022, the European Union awarded EUR 5 million to the Japan-based INPEX Corporation for the development of the artificial photosynthesis technology.
• In March 2025, the journal Nature Chemistry published an article highlighting the breakthrough achieved by scientists from Julius-Maximilians-Universität (JMU) in Würzburg, Germany, and Yonsei University in South Korea in artificially creating a key initial step of natural photosynthesis.
• The achievement, obtained via the usage of an enhanced arrangement of a chemical dye, furthered scientists’ understanding of energy transfer and storage during photosynthesis. 

High Demand for Hydrogen for Producing Ammonia-Based Fertilizers Drive Market

• The growing population and the increasing spending power of consumers due to the surging per capita income are leading to the rising demand for crops.
• According to the World Population Prospects 2024 edition by the United Nations Department of Economic and Social Affairs (UN-DESA), the number of people on earth will rise from 8.2 billion in 2024 to 10.3 billion by the middle of the 2080s.
• However, declining levels of arable land due to a variety of climatic, environmental, and human factors, encourage farmers and governments to efficiently utilize the available land for crop production.
• Thus, the demand for fertilizers is increasing, as they improve the growth and productivity of crops.
• Studies suggest that the sales value of all kinds of fertilizers worldwide will rise to 281.92 billion by decade-end from USD 210.19 billion in 2024.
• Nitrogen fertilizer is the most common type of fertilizer that is widely used in agricultural activities.
• Ammonia is a basic building block for the production of nitrogen fertilizers.
• Ammonia is produced via Haber–Bosch process, in which hydrogen reacts with nitrogen to produce ammonia; therefore, a large portion of hydrogen is consumed in the chemical industry to produce ammonia.
• Since the need for fertilizers is increasing, the requirement for ammonia is also rising.
• As a result, the demand for hydrogen is surging, in order to balance the supply–demand of ammonia.
• Additionally, government initiatives, such as the European Union’s Green Hydrogen Strategy, India’s National Hydrogen Mission, Saudi Arabia’s NEOM Green Ammonia Project, and Australia’s Hydrogen Energy Supply Chain Initiative, promote the mass production of hydrogen.
• Global sales of hydrogen are expected to cross USD 195,930 million by 2030, led by its usage in the production pf ammonia and a whole lot of other chemicals.

Competition from Alternative Technologies Is Biggest Challenge in Market Growth

• Various alternative technologies are used to produce clean fuels, such as electrolysis-based hydrogen production, carbon capture and utilization (CCU), bio-based hydrogen, and other synthetic fuel technologies.
• They are more cost-effective, scalable, and mature, due to which most industries prefer them over artificial photosynthesis, thus hampering the market growth.
• Businesses actively working on the development of clean fuels, such as methanol and ammonia, in Germany, the U.S. and Australia use solar-driven thermochemical reactors.
• They can be easily integrated into the existing energy system, further restraining the market from growing on a global level.

Artificial Photosynthesis Market Segmentation Analysis

Application Analysis

The hydrocarbons category accounted for the largest revenue share in 2024, and it is expected to maintain its position during the predicted period with a CAGR of 16%. This is due to the large-scale adoption of artificial photosynthesis that can offer society storable and renewable energy in the form of valuable fuels.

Additionally, hydrocarbons produced include formic acid (HCOOH), methanol (CH3OH), carbon monoxide (CO), and methane (CH4), which have a wide application base. Such hydrocarbons produced can also act as alternatives for fossil fuels, and pure hydrogen can be used as a fuel or be imparted into a fuel cell to produce electricity. In October 2024, Mitsubishi Gas Chemical Company signed an LOI for methanol purchase with Transition Industries. Transition Industries is providing MGC with 1 million metric tonnes of ultra-low carbon methanol every year from its Pacifico Mexinol plant in Sinaloa, Mexico.

Moreover, hydrocarbons such as methane, methanol, and synthetic gasoline are extremely crucial for the aviation, shipping, and heavy engineering industries. Since they are difficult to electrify, their demand for these hydrocarbons remains high, thus driving the usage of artificial photosynthesis for sustainability.

Based on application, the market has the following categories:

• Hydrocarbons (Largest and Fastest-Growing Category)
• Hydrogen
• Chemicals

Technology Insights

The co-electrolysis category accounted for the largest revenue share in 2024, and it is further expected to maintain its position during the forecast period with a CAGR of 16.2%. This is because this technology is used for electricity production, manufacturing agricultural fertilizers, and hydrogen production.

Additionally, integrated artificial photosynthesis combines highly productive and selective CO2 electrolysis with high-efficiency solar energy to provide optimum systems for recycling carbon. The integrated system, unlike natural photosynthesis, aims for high energy conversion efficiency from sunlight to hydrocarbon products, taking advantage of both high efficiency in photovoltaic cells and individual component design freedom, while also learning from photosynthesis' benefit of producing high-value chemicals.

Furthermore, co-electrolysis can be directly integrated with solar, wind, and nuclear energy systems, which enables large-scale and continuous production of synthetic fuels and hydrogen. In addition, it offers several advantages over other artificial photosynthesis technologies, including higher energy efficiency, better scalability, and compatibility with existing industrial processes. Moreover, major private businesses and government countries are focusing on the advancement of this technology to expand applications and reduce costs.

In October 2023, Villanova University hosted a lecture titled, "COâ‚‚ Electrolysis Systems for Chemical Production’. It discussed the development of devices that convert COâ‚‚ into value-added chemicals and fuels through innovative electrocatalyst design and reactor engineering.

Based on technology, the market has the following categories:

• Photo-electro catalysis
• Co-electrolysis (Largest and Fastest-Growing Category)
• Others

Artificial Photosynthesis Market Regional Growth Dynamics

North America accounted for the largest revenue share, of 50%, in 2024, and it is further expected to maintain its dominance during the forecast period as well. This is ascribed to the surging initiatives by government organizations to provide funding for research activities in this field and the growing contribution to the net zero emission plan. The U.S. emitted 6,343 million tCO2e in 2022, which is why it wants to have a zero-emission grid by 2030. The Department of Energy expects clean hydrogen to decrease emissions in the country by 10% every year by 2050.

Additionally, in order to achieve the objectives, set by authorities for reducing greenhouse gas emissions, the U.S. and Canada are in the process of reducing carbon footprints and increasing power generation through the adoption of green technologies. Also, the region is increasing its investments in fuel-generating technology and cutting-edge energy sources, including fuel cells, carbon recycling, and others.

The U.S. contributes the majority of revenue share to the regional market, owing to the presence of a large number of industry giants and the growing energy and fuel demand in the country.

On the other hand, the APAC market will witness the fastest growth in 16.5%, during the forecast period. This can be due to the rising demand for green hydrogen and eco-friendly liquid fuels, the surging economy coupled with per capita income, the mounting number of companies, the growing rate of acceptance of technologies for renewable electricity production, the rising government concern toward carbon emissions, the surging requirement for fuel, and the increasing need for ammonia from the agriculture sector, in the region.

Additionally, the advancement of the solar and hydrogen technologies in the APAC region promotes the development of the artificial photosynthesis technology. Furthermore, China, and India are the largest consumers of ammonia-based fertilizers, and they are focusing on artificial photosynthesis to produce green hydrogen and ammonia. For instance, in November 2022, Indian Institute of Science Education and Research Thiruvananthapuram (IISER TVM) and Indian Institute of Technology Indore collaborated on the development of a new artificial photosynthetic system to capture solar energy.

Based on geography, the market has the following categories:

• North America (Largest Region)
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific (Fastest-Growing Region)
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of LATAM
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Rest of MEA

Artificial Photosynthesis Market Competitive Landscape

The market nature is consolidated due to a limited number of key players, such as Panasonic Corporation, Siemens Energy, Mitsubishi Chemical Corporation, and Toshiba Corporation. They are focusing on mergers & acquisitions, strategic initiatives, collaborations, and technological innovations. Their dominance results from the extensive R&D expertise and financial capabilities required for developing, advancing, and scaling artificial intelligence technologies. Moreover, the fact that the industry is still in its nascent stages makes it difficult for small and underfunded companies to hold any sway. Further, most R&D and commercialization projects are funded by governments, which only give grants to established energy and chemical companies.

Artificial Photosynthesis Market News & Updates

• In December 2024, TKIL Industries Pvt. Ltd. announced plans to buy an undisclosed stake in SoHHytec SA. Together, they will supply its proprietary artificial photosynthesis (photo-electrolysis) technology to produce green hydrogen from renewable energy sources, including solar and wind, for industrial applications.
• In September 2024, Twelve announced USD 645 million in funding, led by TPG, to transform CO₂ into jet fuel and e-chemicals at scale. The funding will accelerate the de-fossilizing manufacturing processes of the company and help complete AirPlant One, Twelve’s first SAF plant in Moses Lake, Washington by 2025.
• In June 2024, Twelve announced the launch of its Fuel for the Long Haul campaign, introducing a technology for producing sustainable aviation fuel from COâ‚‚.
• In February 2024, researchers at Oska Metropolitan University in Japan developed an artificial photosynthesis technique using carbon dioxide, to boost the production of fumaric acid.
• In October 2023, NTT Corporation developed an artificial photosynthetic device that integrates a semiconductor photocatalyst utilizing solar energy with a metal catalyst, for COâ‚‚ reduction. The device demonstrated continuous carbon fixation for 350 hours.
• In August 2023, a research team from the City University of Hong Kong (CityU), in collaboration with other institutions, developed an artificial photocatalytic system that enhances the efficiency of the conversion of the CO₂ in water into methane. The system replicates the function of a natural chloroplast, using light.