Biorefinery Market Size was valued at USD 142.9 Billion in 2022. The Biorefinery market is projected to grow from USD 155.0 Billion in 2023 to USD 297.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.50% during the forecast period (2023 - 2032). Global population growth, which is driving up energy demand, and accelerating climate change brought on by rising GHG emissions, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The world has been facing a significant issue as a result of the rising energy consumption caused by the expanding global population. Furthermore, the rapid climatic changes brought on by rising GHG emissions represent a serious threat to the environment. The most practical solution for bridging the long-term gap between environmental sustainability and economic prosperity is biorefinery.
Numerous end-use industries, including agriculture, transportation, chemicals, and aviation, have expressed interest in biomass-based goods. However, the industry faces obstacles like building the required infrastructure. Major players in the market have been concentrating on applying the best technologies (for gasification, fermentation, and chemical conversion) to ensure that these bio-based products reach a break-even point in order to overcome this obstacle. Participants in the industry have been concentrating on the entire biomass product supply chain, from the raw materials to the end-use industries via distribution centres.
A biorefinery serves as a production hub for a variety of biomass-derived goods that can take the place of goods obtained from fossil fuels. Although replacement items share a similar chemical structure, they are made using different raw components. The following significant biomass-based products are currently manufactured or being researched: ethylene, xylitol, astaxanthin, polylactic acid, viscose, PLA mix, and transportation fuel. Various renewable raw materials, including sugar/starch, vegetable oil, lignocellulosic biomass, jatropha oil, and microalgae, are used to manufacture these chemicals and fuel.
The rising need for sustainable energy sources is one of the major reasons boosting the worldwide biorefinery market. The World Bank Group projects that between 2015 and 2050, the world's population would increase by 34%, reaching 9.2 billion people. The rate of urbanisation is quickly rising. People's income levels are increasing, which has increased the need for energy. The International Agency for Renewable Energy (IRENA) recently released data that indicated that by 2021, the world's population will have increased and that there would be a 48% increase in global energy demand. Currently, fossil fuels provide 80% of the world's energy needs. However, research into the manufacture of biofuels has been prompted by the fast dwindling fossil fuel sources as well as the detrimental environmental effects. As a result, it is anticipated that the rising need for sustainable energy sources would play a significant role in driving the growth of the worldwide biorefinery market. Thus, driving the Biorefinery market revenue.
The Biorefinery Market segmentation, based on type, includes first generation, second generation, and third generation. In 2022, the first generation category dominated the world market. It is frequently possible to eat the biomass that is directly related to first-generation biofuels like ethanol and biodiesel. Typically, C6 carbohydrates, particularly glucose, are fermented by GMO or conventional yeast strains such Saccharomyces cerevisiae to produce ethanol. First-generation bioethanol is produced from a small number of different feedstocks, mostly sugarcane or maize.
The Biorefinery Market segmentation, based on product, includes energy driven and material driven. Energy driven segment dominated the Biorefinery Market in 2022. The primary product category, according to the International Energy Agency, is energy, particularly biofuels. Pharmaceuticals and nutraceuticals are included in the crucial chemical area. Polymers and fibres are the two main categories of materials, which make up the smallest product category. Animal food and feed are included under the others section.
The Biorefinery Market segmentation, based on technology, includes industrial technology, physico-chemical, and thermochemical. In 2022, the industrial technology category dominated the world market. Industrial biotechnology encompasses both the manufacture of bio-based goods from renewable feedstocks, such as chemicals, fuels, and plastics, as well as the use of biotechnology-based instruments in conventional industrial processes, or bioprocessing. Industrial biotechnology's ability to enable integrated biorefineries to create a wide range of goods and value streams is seen to have the potential to alter the economics of industrial production. The effective market penetration of large-scale bio-based industrial products can be attributed to three main factors: economic advantage, high performance, and environmentally benign products.
Figure 1: Biorefinery Market, by Technology, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Biorefinery Market dominated this market in 2022 (45.80%). This is due to more government spending on projects to generate biofuels. The U.S. Department of Energy (DOE) stated in June 2022 that it will invest USD 59 million to increase biofuel and bioproduct production in rural America. The money will help the government achieve its Sustainable Aviation Fuel Grand Challenge objective of producing 35 billion gallons of aviation biofuel by 2050 and 3 billion gallons of aviation biofuel annually by 2030. Further, the U.S. Biorefinery market held the largest market share, and the Canada Biorefinery market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Biorefinery Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Biorefinery market accounted for the healthy market share in 2022. The New German Bioeconomy Strategy, which was released in January 2020, offers the framework for realising Germany's full potential as a bioeconomy leader. In relation to the use of biogenic raw materials by the industry, the plan emphasises how biological knowledge and cutting-edge technology are the cornerstones of a future-focused, sustainable, and climate-neutral economy. Further, the German Biorefinery market held the largest market share, and the U.K Biorefinery market was the fastest growing market in the European region
The Asia Pacific Biorefinery market is expected to register significant growth from 2023 to 2032, because of a surge in pollution brought on by the area's excessive use of fossil fuels, which has forced governments in the area to explore for new alternatives, like biofuels, that are not harmful to the environment. Japan and South Korea are helping the Asia Pacific market to grow. Market participants in these nations are concentrating on partnerships, licencing agreements, and mergers and acquisitions to incorporate cutting-edge technologies. Moreover, China’s Biorefinery market held the largest market share, and the Indian Biorefinery market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biorefinery market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Biorefinery industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Biorefinery industry to benefit clients and increase the market sector. In recent years, the Biorefinery industry has offered some of the most significant advantages to medicine. Major players in the Biorefinery market, including Honeywell International Inc., Chempolis, Sekab, Ørsted A/S, IES BIOGAS srl, AB HOLDING SPA, Zea2 Bioworks, UPM Global, Neste, and BTS Biogas Srl/GmbH, are attempting to increase market demand by investing in research and development operations.
Verified BioEnergie AG (VERBIO) produces and distributes biofuels. It generates biomethane, bioethanol, and biodiesel. The company produces biodiesel using domestic rapeseed oil and other vegetable oils and fatty acids, bioethanol using starch and sucrose, and biogas using agricultural waste. Biofertilizer, animal feed, disinfection solution, sterol, and medicinal glycerin are all produced by VERBIO for usage as raw materials in the food, cosmetics, and pharmaceutical industries. It has facilities throughout Germany for production, storage, and other purposes. Zorbig, Sachsen-Anhalt, Germany serves as the home office for VERBIO. In Nevada, United States, VERBIO opened the first cellulosic RNG factory in May 2022. The company claims that their new technique, which collects the wasted field straw that would otherwise rot, benefits farmers. At the end of the production process is straw humus, a premium biofertilizer.
Environmental management services are offered by Veolia Environnement SA (Veolia). The business provides solutions for the treatment and distribution of drinking water, wastewater treatment, waste collection, waste-to-energy processing, waste dismantling, and hazardous waste processing. It provides comprehensive energy solutions across the whole conversion cycle, from purchasing energies entering an industrial site to constructing new facilities or updating old ones to marketing the power generated. Veolia carries out its business operations under the construct, own, and operate (BOO) and public BOT contracts. It provides services to public agencies, local governments, businesses, and individuals in Europe, Asia, North America, Latin America, Africa, the Middle East, and Oceania. The head office of Veolia is located in Paris, Ile-de-France, France. Veolia began construction in April 2022 on the largest biorefinery project in the world, which would generate carbon dioxide-free bio-methanol from a Finnish pulp mill. The refinery will employ Veolia's cutting-edge technology of commercial bio product-derived bio methanol production, which integrates the crude sulphate methanol refining into the pulp production process. It was developed with Metsä Fibre, the largest cooperative forestry association in Europe.
September 2022: In Carling Saint-Avold, France, AFYREN announced the opening of AFYREN NEOXY, their first sizable factory. The news was released on the Chemesis business platform. Through purification, extraction, and fermentation, carboxylic acids are directly obtained from sugar beetroot co-products to offer a low-carbon substitute.
June 2022: Fintoil and Neste Engineering Solutions have chosen Emerson automation software and solutions to maximise the operational performance of their Hamina-Kotka biorefinery. Advanced biofuels and biochemical feedstocks are produced at the factory in Finland, which will aid in lowering emissions and dependence on fossil fuels.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 142.9 Billion |
| Market Size 2023 | USD 155.0 Billion |
| Market Size 2032 | USD 297.8 Billion |
| Compound Annual Growth Rate (CAGR) | 8.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Product, Technology, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Honeywell International Inc., Chempolis, Sekab, Ørsted A/S, IES BIOGAS srl, AB HOLDING SPA, Zea2 Bioworks, UPM Global, Neste, and BTS Biogas Srl/GmbH |
| Key Market Opportunities | Increasing renewable energy demand |
| Key Market Dynamics | The growing demand for energy owing to growing global population and rapid climate changes due to increasing GHG emissions |
Biorefinery Market Highlights:
Frequently Asked Questions (FAQ) :
The Biorefinery Market size was valued at USD 142.9 Billion in 2022.
The global market is projected to grow at a CAGR of 8.50% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are Honeywell International Inc., Chempolis, Sekab, Ørsted A/S, IES BIOGAS srl, AB HOLDING SPA, Zea2 Bioworks, UPM Global, Neste, and BTS Biogas Srl/GmbH
The First Generation Type dominated the market in 2022.
The Energy Driven Product had the largest share in the global market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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