Artificial Photosynthesis Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Artificial Photosynthesis Market Size

Artificial Photosynthesis Market Trends & Drivers

High Demand for Hydrogen for the Production of Ammonia-Based Fertilizers

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. 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. 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 for the production of 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.

Increased R&D Activities and Government Fundings Drive the Industry

One of the key drivers for the market expansion is government funding and incentives for the study and development of artificial photosynthesis for the production of fuels from sunlight. For instance, in 2020, the U.S. Department of Energy (DOE) stated that it would fund such research, with up to USD 100 million over five years. The DOE's investment in the Fuels from Sunlight Hub Program is a long-term commitment of U.S. technological and scientific resources to this intensely competitive and promising area of research.

Furthermore, 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.

For instance, Energy AG and Evonik Industries AG started a pilot plant in Marl, Germany that would develop specialty chemicals using carbon dioxide and water. The research project is named Rheticus, which was launched in 2018 and has been backed with more than USD 7 million of funding from the German government. The project aims to develop a platform technology that can use renewable power and carbon dioxide as feedstocks for specialty chemicals, food supplements, and plastics; close the carbon cycle; and reduce CO2 emissions.

Rising Demand for Eco-Friendly Fuel and Green Hydrogen

The need for green hydrogen and clean fuel has steadily increased in recent years, pushed forward by rising grants and funding. For instance, the U.S. has promised to use renewable energy to produce green hydrogen, which is less expensive than natural gas. In addition, the European Union would spend over USD 400 billion on green hydrogen by 2030 to assist in achieving the goals of the Green Deal. Also, some of the major economies such as Germany, Japan, Saudi Arabia, Australia, and Chile are heavily investing in green hydrogen.

Artificial Photosynthesis Market Analysis

Co-Electrolysis Held Highest Revenue

The co-electrolysis category accounted for the largest revenue share in 2022, and it is further expected to maintain its position during the forecast period with a CAGR of 15.6%. 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.

Hydrocarbons Contribute the Most

The hydrocarbons category accounted for the largest revenue share in 2022, and it is expected to maintain its position during the predicted period with a CAGR of 14.9%. 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.

Moreover, 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.

Regional Analysis

North America Is Prime Revenue Contributor

North America accounted for the largest revenue share, of 44%, in 2022, 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.

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 the coming years. 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.

Market Breakdown

This report offers deep insights into the artificial photosynthesis industry, with size estimation for 2019 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Application

• Hydrocarbons
• Hydrogen
• Chemicals

Based on Technology

• Photo-electro catalysis
• Co-electrolysis
• Others

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  •  China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa

Top Artificial Photosynthesis Companies