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Biofuels Market Research Report Information By Feedstock type (Corn based, sugarcane based, cellulosic biomass and others), By Biofuel type (Ethanol, Biodiesel, Others), By Application (Transportation, Aviation fuel, Industrial processes, Residential Heating), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030

ID: MRFR/E&P/2157-HCR | 111 Pages | Author: Anshula Mandaokar| April 2024

Global Biofuels Market Overview

The Biofuels market industry is projected to grow from USD 115.5 Billion in 2022 to USD 205.45 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.14% during the forecast period (2024 - 2030). Rising worldwide population numbers and strict environmental standards that are reacting to the increasing worldwide need for sustainable green energy are the key market drivers enhancing market growth.

Biofuels Market Overview

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Biofuels Market Trends

  • Increasing demand for sustainable green energy sources to boost the market growth

The increasing demand for sustainable green energy sources due to the depletion of fossil fuel resources, rising population numbers, and stricter environmental regulations is driving the growth of the biofuel market. Biofuels are made from renewable plant materials and are considered a sustainable alternative to traditional fossil fuels. As the demand for biofuels increases, research and development in the field continues to advance, making biofuels more efficient and cost-effective. Due to the fast depletion of fossil fuels resources, rising worldwide population numbers, and strict environmental standards that are reacting to the increasing worldwide need for sustainable green energy, the business will rise. In addition to being widely and economically utilized to incorporate heating operations, biofuels have a slew of other uses in industries, including automotive, naval, and railway. The worldwide biofuels market value benefits significantly from increasing requirements from these industries, and this trend is expected to continue throughout the projected period, keeping revenues high.

In light of biodiesel being a sustainable fuel, the biofuel market is expected to increase rapidly throughout the projection period. It is estimated that biodiesel, in particular, is the most widely used biofuel, as the automotive industry and the globe are at a significant move for environmentally friendly developments in the transport industry. A bonus, sophisticated liquid biofuels derived from feedstock, including fats, lignocellulosic and waste oil, and municipal waste, have been identified as economically feasible possibilities for reducing the carbon footprint of transportation sectors like aviation transportation and shipping. Therefore, such factors related to Biofuels have enhanced the Biofuels market CAGR across the globe in recent years.

Biofuels Market Segment Insights

Biofuels Type Insights

The Biofuels market segmentation, based on type, includes Biodiesel and Ethanol. The ethanol segment held the majority share of the Biofuels market revenue. The ethanol segment is the largest segment of the biofuels market, and it has held the majority share of market revenue for several years. Ethanol is a biofuel made from fermented and distilled grains, such as corn and sugarcane, and it is commonly used as an additive to gasoline to increase octane levels and reduce emissions. The popularity of ethanol is driven by its availability, low cost, and performance advantages over traditional gasoline. Additionally, government policies and regulations in many countries support the use of ethanol as a biofuel.

Biofuels Feedstock Type Insights

Based on feedstock type, the Biofuels market segmentation includes First, Second, and Third Generation. First-generation biofuels are made from food crops such as corn, sugarcane, and wheat, and they are the most widely used biofuels today. Second-generation biofuels are made from non-food crops such as switchgrass, hemp, and algae, and agricultural and forestry waste, such as straw, wood chips, and sawdust. These biofuels are considered to be more sustainable than first-generation biofuels because they do not compete with food production for land, water, and other resources. Third-generation biofuels are made from algae and other microorganisms, and they are considered to be the most sustainable biofuels as they have the potential to produce high yields of fuel per acre of land, and they do not compete with food production. However, the technology for third-generation biofuels is still in the early stages of development and commercialization. These all factors for Biofuels positively impact the market growth.

Figure 2 Biofuels Market, by Type, 2024 & 2030 (USD Billion)

Biofuels Market, by Type, 2021 & 2030 (USD Billion)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Biofuels Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific region is the fastest growing region in the biofuels market. The introduction and increased adoption of biofuel-friendly laws and regulations in emerging countries of Asia-Pacific region, is expected to increase demand for biofuels, particularly in the transportation sector, where they will be blended with conventional fossil fuels. Although the biofuels business in Asia Pacific is still in its infancy, there is significant potential for growth, as seen by companies like NESTE spending $1.4 billion in a bio refinery in Singapore in 2019. Several governments in the region have shown their support for the industry by establishing a favorable regulatory environment. India and China are currently leading the pack in terms of manufacturing, research, and innovation investments. The need to minimize its reliance on oil and energy exports is one of the most important market factors. Currently, ethanol is the most extensively manufactured biofuel in the region, owing to the ease with which fuel companies can generate it from sugarcane waste, which is abundant in the country.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil

Figure 3 Biofuels Market Share By Region 2021 (%)

Biofuels Market Share By Region 2021 (%)

Source Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe’s Biofuels market accounts for the second-largest market share. The biofuel market is the second largest market in Europe and is expected to grow significantly in the coming years. The market is driven by several factors, including the increasing demand for renewable energy, the need to reduce dependence on fossil fuels, and the supportive policies of governments around the world. The European market for biofuels is dominated by biodiesel, which is expected to account for nearly two-thirds of the total market by 2025. The remainder of the market is split between bioethanol and other biofuels. These companies have significant experience in the production and marketing of biofuels and are well-positioned to capitalize on the growing market. Further, the Germany Biofuels market held the largest market share, and the UK Biofuels market was the fastest-growing market in the European region.

The biofuel market's most considerable section in North America in terms of geography. The rise of the biofuels market demand in the area will be facilitated by the availability of infrastructure upgrades and favorable government regulations. Biofuels like renewable natural gas and biofuel are gaining popularity because of their low-cost, availability in large quantities like soybeans, and advantageous government incentives. The United States and Canada have maintained their position as significant players in the North American marketplace. The biotech industry in the U.s. is among the most sophisticated globally, making it possible to produce commercially viable biobased goods. According to the USDA, biofuels are taking the place of conventional petroleum-based energies in this area. Because of several government measures to promote biofuels in various sectors, Canada is a prospective opportunity for biofuel production.

Biofuels Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Biofuels market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Biofuels industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Bio petrol. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Biofuels industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Biofuels industry to benefit customers and expand the market sector. The Biofuels market has recently given medicine some of the most important advantages. Major Biofuels market players, including Archer Daniels Midland Company, Aceites Manuelita S.A., INEOS Group AG, Neste Corporation, Renewable Energy Group Inc., BlueFire Renewables, Cosan, Biowanze S.A., GLENCORE Magdeburg GmbH, Cargill, and others, are attempting to increase market demand by funding R&D initiatives.

Archer Daniels Midland Company (ADM) is a food and beverage processing company based in Chicago, Illinois. The company was founded in 1902 and has grown to become one of the largest agricultural processors in the world. ADM processes oilseeds, corn, wheat, cocoa, and other agricultural commodities, and it produces a wide range of food and feed ingredients, as well as biofuels energy.

BlueFire Renewables is a company that specializes in the development and operation of renewable energy projects, primarily in the area of anaerobic digestion of organic waste to produce biogas. The company was founded in 2007 and is based in Southern California, USA. It has developed several biogas projects in California, including the first commercial-scale cellulosic ethanol plant in the United States. In addition to biogas production, the company also offers waste management and consulting services for the renewable energy industry.

Key Companies in the Biofuels market includes

  • Archer Daniels Midland Company

  • Aceites Manuelita S.A.

  • INEOS Group AG

  • Neste Corporation

  • Renewable Energy Group Inc.

  • BlueFire Renewables

  • Cosan

  • Biowanze S.A.

  • GLENCORE Magdeburg GmbH

  • Cargill among others

Biofuels Industry Developments

January 2022 Renewable energy group announced the acquisition of amber resources which is a distributor of diesel lubricants, gasoline, and others fuel components.

In 2022, SGP BioEnergy announced the development of the world's most extensive biofuel distribution and production hub in Panama, in association with the country's government, which is estimated to produce 180,000 barrels per day of biofuel. Similarly, in 2023, the US Department of Energy awarded USD 118 million for 17 projects to scale up ethanol and other biofuels to help America’s transportation and manufacturing needs. Such trends are likely to ramp up the biofuel market.

April 2023: Cepsa awarded a contract for the engineering, procurement, and construction management support of the second-generation (2G) biofuels plant in southern Europe to the Técnicas Reunidas. This new plant will use agricultural waste and used cooking oils as feedstock. it will have two pre-treatment units and a flexible production capacity of around 500,000 tons of renewable diesel and sustainable aviation fuel (SAF) for use in air, sea, and land transport.

January 2023: Zagros Petrochemical Company and China’s Dalian Petrochemical Company entered into the deal to establish a methanol-to-synthetic ethanol conversion plant in Iran, which would be the first plant of ethanol for Iran. The plant is estimated to have a production capacity of 300,000 tons and would be commissioned within three years.

Biofuels Market Segmentation

Biofuels Type Outlook

Biofuels Feedstock Type Outlook

  • First Generation

  • Second Generation

  • Third Generation

Biofuels Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Attribute/Metric Details
Market Size 2022 USD 115.5 Billion
Market Size 2030 USD 205.45 Billion
Compound Annual Growth Rate (CAGR) 10.14% (2024-2030)
Base Year 2023
Market Forecast Period 2024-2030
Historical Data 2018 & 2022
Market Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, feedstock type, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Archer Daniels Midland Company, Aceites Manuelita S.A., INEOS Group AG, Neste Corporation, Renewable Energy Group Inc., BlueFire Renewables, Cosan, Biowanze S.A., GLENCORE Magdeburg GmbH, Cargill
Key Market Opportunities Renewable nature of biodiesel Renewable energy is the world’s fastest-growing source of energy
Key Market Dynamics Rapidly draining sources of fossil fuels Growing population

Frequently Asked Questions (FAQ) :

The Biofuels market size was valued at USD 115.5 Billion in 2022

The market is projected to grow at a CAGR of 10.14% during the forecast period, 2024-2030.

North america had the largest share in the Biofuels market.

The key players in the market are Archer Daniels Midland Company, Aceites Manuelita S.A., INEOS Group AG, Neste Corporation, Renewable Energy Group Inc., BlueFire Renewables, Cosan, Biowanze S.A., GLENCORE Magdeburg GmbH, Cargill.

The ethanol category dominated the market in 2021.

The first generation had the largest share in the market for Biofuels.

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