Biofuels Market Research Report - Global Forecast till 2030

Biofuels Market Research Report: Information, by Fuel Type (Biodiesel and Ethanol), by Feedstock Type (First, Second, and Third Generation), and by Region (North America, Europe, Asia-Pacific, the Middle East & amp; Africa, and South America)- Forecast till 2030

ID: MRFR/E&P/2157-HCR | February 2021 | Region: Global | 111 pages

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Biofuels Market Overview

According to the latest research report, The biofuels market size is expected to grow at a CAGR of 6.78 per cent from 2020 to 2027, with an industry worth of USD 190.6 billion, according to a report published by the International Energy Agency. Anaerobic digestion, agricultural, commercial, home, and industrial wastes all contribute to the production of biofuels. Its applications in the infrastructure and energy industries are almost limitless. As a result, the report provides a comprehensive analysis of the industry, with particular consideration on the aspects that will impact the worldwide valuation throughout the projection period.

It is possible to produce biofuels from plants or anaerobic digestion using various methods, including agronomic, industrial, household, and industrial waste. Its applications in the energy and transportation industries are almost limitless. To have a complete picture of the worldwide market price over the projection timeframe, a market study analyses the market in its entirety. Government regulations have fueled the increasing demand for biofuels in many affluent countries to incorporate biofuels into motor gasoline. Renewable energy consumption in the road transportation industry is dominated by biofuels like ethanol and biodiesel, which account for the vast majority of the total.

This report contains all the information on the global biofuels market analysis and the market strengths. The report also includes the culmination of dynamics, segmentation, key players, regional analysis, and other essential factors. And a detailed analysis of the global biofuels market forecast for 2030 is also included in the report.

Covid 19 Analysis

The erosion of demand caused by Covid-19 has significantly influenced the worldwide gasoline industry. Pandemic-related restrictions such as work-from-home policies and other restrictions on public transportation resulted in significant travel disruptions. As a result of worldwide lockdowns, the need for transportation fuels decreased significantly throughout the world, which severely influences the biofuels they mix with. The demand-supply characteristics of the oil sector also caused a decrease in oil prices, which harms the overall biofuels industry and diminishes the profitability of biofuels.

Market Dynamic

  • Drivers

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 utilised 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.

  • Opportunities

In light of biodiesel being a sustainable fuel, the biofuels 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.

  • Restraints

There are several well-defined restricting variables in the biofuels industry that will impact the long-term market picture. Biofuel demand is outpacing the speed of feedstock rejuvenation, which will negatively influence the requirement gap and slow down the worldwide biofuel market growth.

  • Challenges

Even though alternative fuels have become more prevalent in the worldwide fuel markets, the transportation industry will be controlled mainly by oil while the desire for biofuels grows. The worldwide dominance of oil as a significant vehicle fuel is not in jeopardy, despite a decline in market dominance in the future years.

  • Cumulative Growth Analysis

In 2020, the worldwide biofuels market was expected to dominate the bioethanol category, with a market dominance of 71.3 per cent. Burning bioethanol causes less pollution since it is derived from biological sources. Photosynthesis is the primary means plants convert CO2 into sugars and other organic compounds that aid in their growth. As a result of its production and energy combustion process, bioethanol can be a carbon-neutral energy source. Carbon monoxide pollution from aged automotive engines is also reduced as a result.

Additionally, bioethanol can be mixed with conventional energy sources without engine changes, making it vital for the biofuels industry. Engines powered by gasoline may utilise bioethanol as an alternative fuel source. Any combination of gasoline and ethanol is possible. Up to 15 per cent of current gasoline engines can operate on bioethanol-petroleum mixes.

  • Value Chain Analysis

According to the reports, the global biofuels market are broken down into numerous kinds depending on characteristics, including fuel type, feedstock type, and geographic location, among other things. The solid biofuel form was the fastest-growing sector in the biofuels market outlook throughout the projection timeframe, with a profit of a CAGR of 8.5%. The increasing use of biogas for electrical production is to blame for the increase. As an alternative to currently accessible conventional energy sources, solid biofuels are also developing as a green option for home heating in both buildings.

There has been an increase in gaseous biofuel use in fuel source and power production, resulting in the 2nd most significant market sector for 2019. As an environmentally friendly alternative to gasoline, the gaseous form may also be used for cooking.

Segmentation Overview

The market is segmented based on fuel, feedstock, and geographic location. The global biofuels market trends are expected to witness decent growth during the forecast period.

By Application

Based on the application, the market is segmented into Biodiesel and Ethanol.

By end-users

The market is segmented into First Generation, Second Generation, and Third Generation based on the propulsion types.

Regional Analysis

According to the reports, based on region, the global biofuel market is divided into the Asia Pacific, North America, Europe, the middle east and Africa, and South America. The biofuels market's most considerable section is 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 favourable 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 inside 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.

Competitive landscape

Comparatively speaking, the global biofuels market is still in its infancy when linked to another furl markets. Regarding policies and legislative framework, it lacks the fundamentals to allow new competitors to impact the business significantly. This makes the market a very competitive one consequently

Major Key Players

  • 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)

Report Overview

The following report comprises of –

  • Market overview

  • Covid 19 Analysis

  • Market Dynamic

  • Drivers

  • Opportunities

  • Restraints

  • Challenges

  • Cumulative Growth Analysis

  • Value Chain Analysis

Segmentation Overview

  • By Application

  • By End-Users

  • Regional Analysis

  • Competitive landscape

Recent Developments

An amazing recent renewables standard, part of the amended Energy Bill, has placed the biofuels sector on a path toward greater success. There is a goal for the country's biofuel output to reach 36 billion billion gallons per year by the end of the year 2022, with 21 billion gallons originating from advanced biofuels, which may be made utilising a variety of feedstocks and technology.

Segment By Fuel Type

  • Biodiesel

  • Ethanol

Segment By Feedstock Type

  • First Generation

  • Second Generation

  • Third Generation

Segment By Geographical Region

  • North America

    • The U.S.

    • Canada

  • Europe

    • Netherlands

    • Germany

    • France

  • Asia Pacific

    • China

    • Indonesia

    • India

    • Thailand

  • Central & South America

    • Brazil

    • Middle East & Africa

Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2027: USD 190.6 Billion
  • 2030 : Significant value
  •   CAGR   6.78% CAGR (2022-2030)
      Base Year   2021
      Forecast Period   2022-2030
      Historical Data   2019 & 2020
      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

  • Renewable nature of biodiesel
  • Renewable energy the worldโ€™s fastest-growing source of energy
  •   Key Market Drivers

  • Rapidly draining sources of fossil fuels
  • Growing global population
  • Increasing global demand for clean and green energy

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    Frequently Asked Questions (FAQ) :

    Over the assessment period, the biofuels market can surge at 6.78% 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.