USD 2675 million
Biofuels Market Size, Share, Growth Analysis, By Forms of Biofuel(Solid, Liquid, Gaseous (Biogas, Biomethane, Biohydrogen), Fuel Type(Ethanol, Biodiesel, Renewable Diesel, Biojet), Generation(First Generation, Second Generation, Third Generation), End Users, and Region - Industry Forecast 2024-2031
Report ID:
SQMIG55E2010 |
Region:
Global |
Published Date: June, 2024
Pages:
246
|Tables:
126
|Figures:
77
Biofuels Market Insights
Biofuels Market size was valued at USD 57.6 Billion in 2022 and is poised to grow from USD 97.24 Billion in 2023 to USD 244.08 Billion by 2031, growing at a CAGR of 11% in the forecast period (2024-2031).
One of the main market drivers is the rising demand for the product from the automotive and aerospace industries. The substance has been widely used as a fuel substitute in the automotive industry. For instance, it has been discovered that the use of biodiesel increases energy security, improves air quality and the environment, and provides benefits for safety including simple transportation and storage. To cut down on carbon emissions, one can use biofuels in aviation industry in the same fashion. The aviation industry emits about 2% of global greenhouse gases among the top producers. This calls for the need to ferment, sugars, celluloses, and among other for making biofuel. There are three distinct processes that can be used to make it. First-generation variations are made by enzymatically fermenting corn and wood, and second-generation variants are made by doing the same thing using animal fat. Utilizing leftover animal fat that has been refined into oil, the second-generation process. The third-generation preparation method likewise makes heavy use of algae. To create the biofuel, the oil obtained from the algae is combined with alcohol. Jet fuel can also be made from this algae oil. The cleaning of significant oil spills caused by cargo ships is another novel use for this product. This means that it also serves as a safety component for the preservation of aquatic wildlife.
Additionally, butanol's strong capacity for supplying energy makes it a highly sought-after substance for usage in engines. Alternative fuel sources are being used by many nations to lessen their harmful environmental effects. Due to limited fossil fuel reserves, alternative fuels are the only source of technology. Consequently, the biofuel business has a large window of opportunity to grow and innovate.
US Biofuels Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Bioethanol
Fastest Growth
Bioethanol
Growth Rate
7% CAGR
Global Biofuels Market ($ Bn)
Country Share for North America Region (%)
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Biofuels Market Segmental Analysis
Biofuels market is segmented into Forms of Biofuel, Fuel Type, Generation, End User, and region. Based on Forms of Biofuel, the market is segmented into Liquid (Ethanol, Biodiesel, Renewable Diesel, Biojet), Gaseous (Biogas, Biomethane, Biohydrogen), Solid. Based on the Fuel Type, the market is segmented into Ethanol, Biodiesel, Renewable Diesel, and Biojet. Based on the Generation, the market is segmented into First Generation, Second Generation, and Third Generation. Based on the End User, the market is segmented into Transportation, Aviation, and Other End Uses. Based on region, it is categorized into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.
Analysis by Fuel Type
Ethanol is the largest by segment, mainly led by the transportation sector which is shifting to sustainable products. This dominance is most likely due to government-imposed requirements and encouragement of blending with ethanol, especially in the US and Brazil – the largest producers and consumers. Currently, ethanol is recognised to have the desired qualities of requiring lesser costs in production as well as proving useful in the emission of greenhouse gases. Also, the development of cellulosic ethanol production should add a higher position in the market right now.
On the other hand, the biojet segment is the fastest-growing in the biofuel market, owing to the increasing amount of bio-based aircraft fuel usage. This rapid growth has been contributed to by the need for companies and their suppliers to meet the demands of the SAF market, as the aviation sector realizes the need to lower it emissions. Bio jet fuels are are more accepted because of the current government polices and actions such as the International Civil Aviation Organisation (ICAO) CORSIA; Carbon Offsetting and Reduction Scheme for International Aviation. Such endeavors are playing a massive role in attracting investment and enhancing the advancement of technologies that produce biojet fuel, which is set to remain an essential part of the biofuels complex.
Analysis by End Users
The biggest consumer of the biofuels is the transportation sector where there are always efforts to minimize dependence on fossil fuel and greenhouse emissions. Concerning biofuels, substances like ethanol and biodiesel are also used as blends with regular gasoline and diesel or as substitutes. Regulations and subsidies within the MNPC framework across governments in regions such as North America and Europe push the use of biofuels in transportation. For instance, in the U. S., the Renewable Fuel Standard (RFS) requires that renewable fuels should be included in the supply of transportation fuel. This sector is perceived to continue registering high growth as a result of continuous governmental support and improved technologies in bio fuels.
The aviation industry is set to become the niche market with the most significant growth rate in the use of biofuels, particularly concerning Sustainable Aviation Fuels (SAFs). It is observed that more and more airline organizations and companies are willing to abide by emission reductions as there are external pressures from laws and government as well as internal by organizational sustainability concerns. Realization of high-value conventional biofuels like renewable jet fuels produced from non-food feedstock shifting due to offering significant lower life cycle GHG emissions. The recent statistics for air traffic have been released by the International Air Transport Association (IATA) which has recorded increased air traffic and thus increased demand for biofuels in aviation. Feedstock production and fuel processing challenges, specifically in responding to the increasing demand from this sector, requires innovations.
Global Biofuels Market By fuel type (%)
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Biofuels Market Regional Insights
North America is the largest market for biofuel in terms of both revenue and market share, which is set to expand even further over the forecast period. This growth is underpinned by a significant government support in the form of tax exemptions and highly assertive policies targeting augmented regional demand for biofuels. An analogy is the Renewable Fuel Standard (RFS) in the United States and comparable programs implemented in Canada sustain market characteristics that require the incorporation of renewable fuel into the energy supply. Such measures are crucial in ensuring North America continues to enjoy a superior position in the global biofuels industry.
It was also observed that the Asia-Pacific region is expected to have the highest volume growth in the market for biofuels during the said period. This is due to the enactment and subsequent liberalisation of supportive biofuel laws and policies, particularly in China, Indonesia, Australia and India among others. They are gradually incorporating bio-fuels in the transportation sub-sector, mixing them with normal hydrocarbons elaborated from fossil resources in a bid to minimize emissions and overly dependence on imported crude. Such regulatory changes are expected to generate the high level of demand and production capacity in the region.
Global Biofuels Market By Geography
- Largest
- Fastest
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Biofuels Market Dynamics
Biofuels Market Drivers
Numerous Benefits of Biofuels to Bolster Market Growth
- Medical researchers are rushing to produce the most effective energy source because of the growing need for environmentally friendly energy sources. In terms of competitors right now, biofuels are in the lead. As a fuel substitute for vehicles, they are also widely employed in the automotive industry. Over the anticipated timeframe, these variables will likely fuel market expansion.
Growing Popularity and Future Commercialization of Renewable Biofuels
- Bio fuels are quickly becoming popular with the depletion of fossil fuel sources, and they can perform as well as gasoline or diesel. Biofuels are used to a limited extent at the moment, yet they are expected to be developed further and gain more popularity in the near future due to environmental advantages and compatibility with the existing fuel distribution network. It is assumed that further development of technologies and supportive policies will change the biofuel market from the area of specialization to the mass application of energy sources. This shift is imperative for the attainment of sustainable energy objectives and decreasing dependency on fossil energy sources
Restraints
Fluctuations in Raw Material Prices to Hinder Market Growth
- Significant volatilities affecting the price of raw materials have a negative impact on the growth of the market in general. This has affected demand for biofuels due to the current high pricing in some of these industries. Therefore, these fluctuations will limit the rate through which the market expands for biofuels.
High-Cost Production
- The production costs of converting biomass into a useful fuel is one major limitation of the biofuel market. These costs are generally higher than those of traditional fossil fuels hence to make biofuels competitive, they requiremassive subsidies or technologies that help reduce costs.
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Biofuels Market Competitive Landscape
The competitive landscape for the biofuels market contains information on each player. Included information includes a business overview, financials, revenue generated, market potential, investments in R&D, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launches, product breadth and depth, and application dominance. Only the companies' focus on the biofuels industry is mentioned in the data points above.
Biofuels Market Top Player's Company Profiles
- Archer Daniels Midland Company (USA)
- Cargill Inc. (USA)
- Royal Dutch Shell plc (Netherlands)
- Neste Corporation (Finland)
- Renewable Energy Group, Inc. (USA)
- Valero Energy Corporation (USA)
- Bunge Limited (Switzerland)
- Wilmar International Ltd. (Singapore)
- Louis Dreyfus Company BV (Netherlands)
- POET LLC (USA)
- Green Plains Inc. (USA)
- The Andersons Inc. (USA)
- Pacific Ethanol Inc. (USA)
- Raízen Energia SA (Brazil)
- Flint Hills Resources LLC (USA)
- Delta Air Lines, Inc. (USA)
- Marathon Petroleum Corporation (USA)
- TotalEnergies SE (France)
- Exxon Mobil Corporation (USA)
- BP plc (UK)
Biofuels Market Recent Developments
- In May 2023, In May 2023, The licensing agreement was signed between Neste and ITOCHU, with ITOCHU being designated as the official distributor of Neste MY Renewable Diesel within Japan. The end goal is increasing the competitiveness of renewable diesel in Japan.
- In February 2023, the Neste company stated that it has opened Innovation Centre to sharpen focus on innovation and research and development in Singapore. This is especially a strategic aspect because the new center would be important in the growth of Neste in the Asia-Pacific region.
- In January 2024, a program called ‘BuyoTrace,’ which is targeted at the Biofuels sustainability and biofuel authenticity, was initiated. This particularly beneficial option is intended to provide the buyer with the relevant information regarding the manufacturer, timeliness, and history of delivering biofuel acquired by the consumer to give credibility to the biofuel market.
Biofuels Key Market Trends
- Global Transportation Sector's Impact on Greenhouse Gas Emissions and the Rise of Ethanol: In the world, transportation is the most significant emitter of GHG especially due to the use of fossil fuels in internal combustion engines. Four-wheelers and two-wheelers, owned by individuals as well as commercial vehicles constitute a large portion of the transportation sector. Most of the private automobiles are light cars and are operated using gasoline as the source of power. International standards have been imposed to limit emissions of greenhouse gases, and more countries introduce the mandatory use of a gasoline-ethanol mixture to reduce emissions from fossil fuels. This ethanol category is expected to grow significantly in the biofuels market in the forecast period due to the identified components.
Biofuels Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global biofuels market analysis, the global market for biofuels, which is a subsegment of the global market for oil and gas exploration and production in the energy sector will show positive growth in the coming years. The levels of growth of the biofuels market during the projected period will be determined by external factors influencing the parent market's potential for growth in the upcoming years, which have been extensively addressed in our research report.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 57.6 Billion |
| Market size value in 2031 | USD 244.08 Billion |
| Growth Rate | 11% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Biofuels Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Biofuels Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Biofuels Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biofuels Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biofuels Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Biofuels Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Biofuels Market Report Snapshots
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