Biofuels Market

According to Stratistics MRC, the Global Biofuels Market is accounted for $144.45 billion in 2023 and is expected to reach $231.95 billion by 2030 growing at a CAGR of 7% during the forecast period. The term "biofuels" refers to fuels made either directly or indirectly from organic material, or biomass, which can include plant or animal waste. These are referred to as renewable fuels because, in comparison to conventional fossil fuels, the feedstock material used in their production can be replenished more quickly. For reducing the energy and environmental security problems brought on by dependence on petroleum and petroleum products, biofuels are seen as a leading potential solution.

According to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive production increased from 77,621,582 units in 2020 to 80,145,988 units in 2021. In addition, the growing trend for reducing GHG emissions and emphasis on biofuel production is boosting the growth scope in the biofuel market.

Market Dynamics:

Driver:

Growing demand for eco-friendly, sustainable energy sources

The biofuels market is expanding as a result of the rising demand for environmentally friendly, renewable energy sources brought on by the depletion of fossil fuel reserves, population growth, and more stringent environmental regulations. Biofuels are considered a sustainable substitute for conventional fossil fuels because they are produced from renewable plant materials. Biofuels are becoming more efficient and economical as demand for them rises, owing to ongoing research and development in the industry. Additionally, the industry will grow as a result of the quick depletion of fossil fuel resources, the increasing global population, and strict environmental regulations in response to the growing demand for sustainable green energy.

Restraint:

High production costs and industrial pollution

Biofuel production entails a significant financial investment. And, the burden placed on agricultural feedstocks like sugarcane, corn, cassava, and other biomass raises the cost of the biofuels market. Furthermore, the prospects for the development of biofuels are being hampered by the industrial pollution associated with the production of biofuels and the minor water pollution caused by biofuel manufacturing facilities.

Opportunity:

Favorable government policies

Favorable government policies on the quick adoption of biofuels are supported by measures to reduce carbon emissions and the limited supply of fossil fuels. Several governments have laws that support the use of biofuels. The Energy Independence and Security Act (EISA) of 2007 mandates the blending of biofuels into transportation fuel in the United States. The biofuel industry is being driven by the growing demand for biofuels as a result of these favorable regulations and policies.

Threat:

Fluctuations in oil prices

One of the main obstacles preventing the growth of the biofuels market is fluctuating oil prices. Even though biofuels have many advantages over fossil fuels, such as lower greenhouse gas emissions and comparable vehicle performance, their cost is significantly higher than that of other conventional fuels. This could seriously slow down the use of biofuels and the expansion of the biofuel market globally.

Covid-19 Impact

Due to production disruption, supply chain disruption, declining demand from significant end-use industries, and other lockdown restrictions due to the COVID-19 outbreak, the growth of the biofuel market has had a negative impact. However, a significant recovery is boosting demand for biofuel due to its wide range of applications and uses in the automotive transportation industry. As a result, it is anticipated that the biofuel sector will expand quickly and contribute to the size of the global biofuel market.

The ethanol segment is expected to be the largest during the forecast period

Over the forecast period, it is anticipated that the ethanol segment will hold the largest market share. As a renewable fuel, ethanol can be produced from a variety of feedstocks. By blending ethanol in various ratios with gasoline, oil marketing companies (OMCs) like BP (British Petroleum) and ExxonMobil sell it to gas stations. The need to lower GHG emissions is the primary driver of the growing use of ethanol biofuel. As a result, it is anticipated that during the forecast period, ethanol demand will increase on the global market for biofuels.

The sugar crop segment is expected to have the highest CAGR during the forecast period

The sugar crop segment is estimated to register highest CAGR over the course of the forecast period. 800 gallons of gasoline are produced per acre by sugarcane, which is twice as much as maize. Sugarcane-based biofuels have low net greenhouse gas emissions, which helps to lessen the harmful effects of carbon on the environment. Sugarcane is a cost-effective option for biofuel producers, is grown in a number of nations, and has a number of advantages, such as crop resistance to pests and diseases, drought, and cold, which is encouraging its adoption as a raw material for biofuel production.

Region with largest share:

Throughout the forecast period, North America is anticipated to rule the market. The increasing prevalence of patients with chronic illnesses and mental health conditions, such as substance use disorders, is responsible for the dominance of this regional market. Moreover, the introduction of these devices in the region is also anticipated to increase as a result of an increase in collaborations and agreements among the major players to concentrate on the research and development of these products.

Region with highest CAGR:

Due to the increased adoption of technologically advanced products and advantageous government policies, the Asia-Pacific market is estimated to witness the highest compound annual growth rate. The need for healthcare IT systems has been growing as they make it possible to manage hospitals' clinical, financial, and administrative aspects effectively. Additionally, it is anticipated that the widespread use of inexpensive mobile devices and the internet will increase demand for these products, spurring regional market expansion.

Key players in the market

Some of the key players profiled in the Biofuels Market include Abengoa Bioenergy S.A., ADM, Air Liquide, Archer Daniels Midland Company, BioFuel Energy Corporation, Biopetrol Industries AG, British Petroleum, BTG International Ltd., Bunge Limited, Butamax Advanced Biofuels LLC, Cargill, China Clean Energy Inc., Cosan, Crop Energies AG, DuPont, Dynoil LLC, Fuel Bio Holdings LLC, Green Earth Fuels LLC, Green Plains Inc., Imperium Renewables, Infinita Renovables, Neste Oil Rotterdam, Pacific Ethanol Inc., Petrobras, POET LLC, Renewable Energy Group, Inc., Royal Dutch Shell Plc, Scandinavian Biogas Fuels International AB, Valero Energy Corporation and Wilmar International Ltd.

Key Developments:

In July 2023, Indian Oil Corporation and Praj Industries have signed a term sheet to advance plans to strengthen biofuels production capacities in India. As per the understanding, the partners will work towards promotion of various biofuels including Sustainable Aviation Fuel (SAF), Ethanol, Compressed Bio-Gas (CBG), Biodiesel and Bio-bitumen among others.

In July 2023, bp expands investment in bioenergy, collaborating with US biofuels developer WasteFuel. bp invests $10 million in WasteFuel, which is planning to develop a global network of plants to convert municipal and agricultural waste into bio-methanol, a biofuel which could play a significant role in decarbonizing hard-to-abate sectors like shipping.

Types Covered:
• Biodiesel
• Bioethanol
• Biogas
• Butanol
• Ethanol
• Methanol
• Propanol
• Other Types

Forms Covered:
• Solid
• Liquid
• Gaseous

Processes Covered:
• Thermochemical process
• Biochemical process

Feedstocks Covered:
• Corn
• Non-agri Feedstock
• Biomass
• Vegetable Oils
• Algae and Aquatic Biomass
• Jatropha
• Lignocellulosic Crops
• Sugar
• Other Feed Stocks

Applications Covered:
• Cleaning Oil
• Engine Fuel
• Lubricants
• Solvents
• Other Applications

End Users Covered:
• Transportation
• Heating
• Automotive
• Aerospace
• Power Generation
• Marine
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026 and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances