ID: MRFR/E&P/2157-HCR | February 2021 | Region: Global | 111 pages
Biofuels Market is projected to be worth USD 190.6 Billion by 2027, registering a CAGR of 6.78% during the forecast period (2021 - 2027), The market was valued at USD 141.56 billion in 2020.
The rapidly increasing demand for reliable and sustainable energy along with a growing focus on environmental friendly clean energy sources will be expected to propel the demand for biofuels across the globe. Government mandates regarding blending of biofuel in automotive fuels and expanding government support for environment friendly power alternatives will work in tandem and expand the global consumption of biofuel and ensure that the biofuels market size grows at a sustained level during the forecast period.
The government mandates for blending automotive fuels with biofuels in many developed economies have been driving the biofuels industry growth upwards. Biofuels, such as ethanol and biodiesel, comprise of a majority share in the renewable energy demand in the road transport sector. Bioenergy demand has found a solid footing in the developed economies while the developing countries are yet to respond full-throttle and contribute towards the global biofuels market trends. According to a study, transport biofuel production increased by 6% in 2019; additional annual growth of 3% annually is projected to continue during the forecast period for this particular variety of biofuel.
Biofuels come from plants (i.e. energy crops), or from anaerobic digestion, agronomic, commercial, domestic, and wastes from industries. It has an incredible scope of use in transportation and energy sectors. The biofuels market research report analyses the market holistically with detailed attention given to the factors affecting the global biofuels market value during the forecast period.
The rising awareness with respect to the advantages of biofuels over conventional ones and an ever-increasing string of strict regulations and government policies relating to environment conservation coupled with the increasingly spreading environmental concerns across the global populace are contributing to the growth of biofuels market share in the North American region. This largest and fastest growing region will be closely trailed by Europe, whose contribution to the global biofuel market outlook will be governed by similar factors.
Asia Pacific is also set to exhibit healthy growth during the forecast period owing to rapidly growing population and improving economic conditions in developing countries such as China and India. An abundance of availability of raw materials in the region makes it highly lucrative for biofuel manufacturers, thereby attracting worldwide investments into the development of this market in the APAC region.
The global biofuels market is quite a nascent market as compared to the other furl markets. It lacks the basic well-defined policy and regulatory framework to make it easy for new entrants to make a splash in the industry. Therefore, this market is a highly competitive market and the key players operating in the global bio fuels market are:
Covid-19 impacted the global fuel market drastically by demand destruction. Airlines were grounded, transport was halted and even intra-city commute suffered owing to work from home initiatives and other such measures taken to combat the pandemic situation. Global lockdowns led to a massive reduction in global demand for transport fuels, which directly affected the biofuels that they blend with. Oil prices also dropped owing to a change in the demand-supply dynamics – a factor that significantly reduces the competitiveness of biofuels and affects the global biofuels market adversely.
Supply chain disruptions also impacted bottom-line margins of biofuels producers coupled with several delays to planned policy rollouts in various countries. For example, Malaysia and Indonesia, because of the pandemic situation, delayed plans to increase their respective biodiesel blending mandate.
Global Biofuels Market Dynamics
Global Biofuels Market Drivers
The biofuels market growth will be driven by factors such as rapidly draining sources of fossil fuels, growing global population, and rigorous environmental policies responding to the increasing global demand for clean and green energy.
Biofuels also find myriad applications in sectors such as automotive, marine, and railways along with being extensively and profitably used in commercial heating processes. A spiraling demand from these sectors contributes significantly to the global biofuels industry and will keep the biofuels market revenues in an upwards trend during the forecast period.
Global Biofuels Market Opportunities
The global bio fuels market is estimated to grow at a high rate during the forecast period due to the renewable nature of biodiesel. According to a bioenergy study statistics published by World Bioenergy Association, liquid biofuels, especially biodiesel, are the leading renewable solutions for the transport sector as the sector and the world at large moves towards and pushes for environment friendly advancements in the transportation sector. Also, the advanced liquid biofuels produced from feedstock such as lignocellulosic, waste oil, fats, municipal waste are considered as viable options for decarbonising the energy demand in industries such as aviation, shipping, and freight in a commercially viable way.
The ethanol biofuel segment is expected to dominate in the global biofuel market due to increasing demand for bioethanol as automobile fuel. This fuel with its heightened environment friendliness substantially cuts down greenhouse gas (GHG) emissions from the transportation sector.
According to estimates, the growing energy demand and a global push to draw upon cleaner, renewable, sustainable energy sources to meet the ever-increasing demand for fuel, will make renewable energy the world’s fastest-growing source of energy during the forecast period and way beyond till the 2030s.
Global Biofuels Market Restraints
Regardless of an array of the above mentioned drivers, the market for biofuels has some well-defined restraining factors that are bound to affect the biofuels market outlook in the long run. Firstly, the demand for biofuels far outweighs the pace of feedstock regeneration, which will be affecting a sharp negative impact on the demand-supply gap and hamper further growth in the global biofuel market.
Additionally, several other obstacles in the existing retail, distribution, and development channels will also be observed adversely affecting the growth of the overall market. The awareness levels in developing and less-developed countries with respect to the availability and benefits of biofuels are still significantly low, and the demand for fuels generally very high. This disparity will also be seen hindering biofuels market growth in the long run.
Global Biofuels Market Challenges
The transport sector that will ideally be leading the demand for the biofuels market globally will continue to be dominated by oil, even in the face of increasing permeation of alternative fuels in the global fuel markets. Although the market share of fuel in the industry will be seen taking a dip in the coming years, the global domination of oil as a primary automotive fuel is still far from threatened.
Additionally, a lack of stable regulations governing the use of liquid biofuels is another major barrier affecting the growth of the biofuel market.
Value Chain Analysis / Technology Analysis / Regulatory Implications
The fact pace of depletion of natural resources and the increasing scarcity of fossil fuels is creating a paradigm shift in the fuel industry and paving way for favourable conditions for biofuels industry globally. Adding to such circumstances is the increasing awareness among people for reducing mankind’s carbon footprint which are major reasons that biofuel market is growing and is all set to capitalise on the energy demand gap created by depletion of carbon based fuel reserves.
Global Biofuels Segment Overview
The report delves deep into the market analysis by segmenting biofuels into various types based on factors such as fuel type, feedstock type and geographical region etc. The major segments studied in detail in the report are as:
Global Biofuels Segment By Fuel Type
Global Biofuels Segment By Feedstock Type
Global Biofuels Segment By Geographical Region
The global biofuels market research reports provides a detailed analysis of the biofuels industry for the forecast period ranging 2020-2025. Some of the key points covered in the report are as follows:
|Market Size||2027: USD 190.6 Billion|
|CAGR||6.78% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Fuel Type, Feedstock Type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Archer Daniels Midland Company (US), Aceites Manuelita S.A. (Colombia), INEOS Group AG (UK), Neste Corporation (Finland), Renewable Energy Group Inc. (US), BlueFire Renewables (US), Cosan (Brazil), Biowanze S.A. (Belgium), GLENCORE Magdeburg GmbH (Germany), Cargil (US)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Over the assessment period, the biofuels market can surge at 7.81% CAGR.
MRFR finding reveals that the biofuels market can value at USD 245.48 Billion by 2027.
Cosan (Brazil), GLENCORE Magdeburg GmbH (Germany), Biowanze S.A. (Belgium), and Cargil (US) are some renowned players of the biofuels market.
The rapid replacement of biofuel over fossil fuel can spur the global biofuel market growth.
The US curbing tax on the use of biofuel can bolster the market growth in North Amercia.
The two most common types of biofuels in use today are ethanol and biodiesel, both of which represent the first generation of biofuel technology.