Second Generation Biofuel Market
Second Generation Biofuel Market Forecasts to 2032 - Global Analysis By Biofuel Type (Cellulosic Ethanol, Biodiesel, Bio Butanol and Other Biofuel Types), Process, Feedstock, Application, End User and By Geography
|
Years Covered |
2024-2032 |
|
Estimated Year Value (2025) |
US $17.52 BN |
|
Projected Year Value (2032) |
US $103.03 BN |
|
CAGR (2025-2032) |
28.8% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
Asia Pacific |
|
Highest Growing Market |
North America |
According to Stratistics MRC, the Global Second Generation Biofuel Market is accounted for $17.52 billion in 2025 and is expected to reach $103.03 billion by 2032 growing at a CAGR of 28.8% during the forecast period. Advanced biofuels known as second-generation biofuels are made from non-food biomass sources like waste materials, woody crops, and agricultural wastes. They provide greater sustainability and don't compete with the food supply like first-generation biofuels do. These biofuels are produced by thermochemical or biochemical processes that transform lignocellulosic biomass into fuels such as synthetic biofuels, biodiesel, and ethanol. They improve energy security and lower greenhouse gas emissions. Second-generation biofuels are essential to the shift to cleaner energy sources, notwithstanding commercialisation obstacles.
Market Dynamics:
Driver:
Energy security & independence
A steady and sustained energy supply is ensured by the biofuels' utilisation of non-food biomass. Governments support them by enacting laws that improve economic stability and national energy resilience. Local economies are strengthened and employment is created by domestic biofuel production, which also lessens reliance on changes in the price of oil globally. A cleaner substitute that promotes long-term energy sustainability is provided by advanced biofuels. Investments in second-generation biofuels are increasing as countries strive for self-sufficiency, which is driving market expansion.
Restraint:
Infrastructure & supply chain gaps
Large-scale commercialisation is slowed back by inadequate refining facilities and costly capital expenditures. The delivery of raw materials is delayed and transportation expenses are raised by an ineffective logistics network. Price and production stability are impacted by feedstock availability fluctuations. Inadequate infrastructure for blending and fuelling stations hinders market adoption, particularly in the transportation sector. Second-generation biofuels are less competitive than established energy options because of these issues.
Opportunity:
Rising demand for renewable energy
Globally, governments encourage the use of biofuels by enacting laws and offering incentives in order to meet sustainable energy goals. Non-food biomass is used to make second-generation biofuels, which guarantee sustainability without compromising the availability of food. Efficiency gains in biofuel production make them a competitive option for power generation and transportation. Growing investments in bio-refineries increase their commercialisation and production capacity. Market expansion is also fuelled by rising consumer awareness and corporate sustainability objectives.
Threat:
Competition from alternative green energy
Alternative green energy sources like solar, wind, and hydrogen are a threat. Because they frequently get larger government subsidies and incentives, these alternatives are more appealing to investors. Technological developments in electric vehicles and battery storage have decreased the need for biofuels in transportation. Furthermore, facilities for producing biofuel are not growing as quickly as those for renewable electricity. Their standing in the market is further weakened by the belief that biofuels are less sustainable because of land-use issues. Because of this, second-generation biofuels find it difficult to compete with the quickly changing green energy options.
Covid-19 Impact
The COVID-19 pandemic disrupted the second-generation biofuel market due to supply chain constraints, reduced transportation fuel demand, and delays in biofuel projects. Lockdowns led to lower ethanol and biodiesel consumption, impacting production and investments. However, the crisis also highlighted the need for sustainable energy, prompting government incentives and policies to boost biofuel adoption. As economies recover, the market is expected to rebound with increased focus on decarbonization, energy security, and reduced dependence on fossil fuels, driving long-term growth.
The biodiesel segment is expected to be the largest during the forecast period
The biodiesel segment is expected to account for the largest market share during the forecast period by offering a sustainable alternative to conventional diesel with lower carbon emissions. It utilizes non-food feedstocks like waste oils, algae, and agricultural residues, reducing dependency on edible crops. Government policies and incentives promoting cleaner fuels further boost biodiesel adoption in transportation and industrial sectors. Advances in production technologies enhance efficiency, making biodiesel more cost-competitive. Growing environmental concerns and the push for net-zero emissions accelerate its demand, strengthening the overall market.
The aviation & aerospace segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the aviation & aerospace segment is predicted to witness the highest growth rate, due to reduced carbon emissions. Airlines and aerospace companies adopt biofuels made from waste oils, algae, and agricultural residues to meet strict environmental regulations. Government mandates and incentives further accelerate SAF development and integration into commercial flights. Technological advancements improve fuel efficiency and scalability, making biofuels a viable alternative to conventional jet fuel. Increasing commitments to net-zero emissions and carbon neutrality push the industry toward greater biofuel adoption.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share due to increasing demand for sustainable energy solutions. Governments in countries like China, India, and Japan are promoting biofuels through policies and incentives, driving production and adoption. Advanced biofuels derived from non-food biomass, such as agricultural waste and algae, are gaining traction due to their lower carbon footprint. Key players are investing in research and development to enhance efficiency and scalability. Growing environmental awareness, coupled with technological advancements, positions the region as a major hub for second-generation biofuel innovation and commercialization.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to strong government support, technological advancements, and rising demand for cleaner energy. The U.S. and Canada are leading in biofuel production, with policies like the Renewable Fuel Standard (RFS) and Low Carbon Fuel Standards (LCFS) promoting adoption. Advanced biofuels from agricultural residues, algae, and waste materials are gaining prominence due to their sustainability benefits. Investments in research and development, along with collaborations between energy firms and biotech companies, are accelerating commercialization, making North America a key player in the global biofuel industry.
Key players in the market
Some of the key players profiled in the Second Generation Biofuel Market include Abengoa Bioenergy, Air Liquide, Alto Ingredients, Amyris Inc., Aurora Algae, BBI Biotech, Beta Renewables, BioGasol, BlueFire Renewables, Chemrec, Clariant, ClimeWorks, Danisco, Enerkem, Gevo, GranBio, Indian Oil Corporation (IOC) and Renewable Energy Group (REG).
Key Developments:
In November 2024, Air Liquide announced a renewable hydrogen production project at TotalEnergies' La Mède biorefinery in France. Under a long-term contract, Air Liquide will construct, own, and operate a hydrogen production unit with an annual capacity of 25,000 tonnes.
In February 2023, Amyris and Givaudan announced a strategic partnership wherein Givaudan acquired certain cosmetic ingredients from Amyris, including Neossance® Squalane, Neossance® Hemisqualane, and CleanScreen™. This collaboration aimed to leverage Amyris's biotechnology platform to develop sustainable beauty ingredients.
Biofuel Types Covered:
• Cellulosic Ethanol
• Biodiesel
• Bio Butanol
• Other Biofuel Types
Processes Covered:
• Biochemical Process
• Thermochemical Process
• Other Processes
Feedstocks Covered:
• Simple Lignocellulose
• Complex Lignocellulose
• Syngas
• Algae
• Other Feedstocks
Applications Covered:
• Transportation
• Power Generation
• Residential & Commercial Heating
• Other Applications
End Users Covered:
• Aviation & Aerospace
• Automotive
• Marine & Shipping
• Industrial Sector
• 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 2024, 2025, 2026, 2028, and 2032
- 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
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Second Generation Biofuel Market, By Biofuel Type
5.1 Introduction
5.2 Cellulosic Ethanol
5.3 Biodiesel
5.4 Bio Butanol
5.5 Other Biofuel Types
6 Global Second Generation Biofuel Market, By Process
6.1 Introduction
6.2 Biochemical Process
6.3 Thermochemical Process
6.4 Other Processes
7 Global Second Generation Biofuel Market, By Feedstock
7.1 Introduction
7.2 Simple Lignocellulose
7.3 Complex Lignocellulose
7.4 Syngas
7.5 Algae
7.6 Other Feedstocks
8 Global Second Generation Biofuel Market, By Application
8.1 Introduction
8.2 Transportation
8.3 Power Generation
8.4 Residential & Commercial Heating
8.5 Other Applications
9 Global Second Generation Biofuel Market, By End User
9.1 Introduction
9.2 Aviation & Aerospace
9.3 Automotive
9.4 Marine & Shipping
9.5 Industrial Sector
9.6 Other End Users
10 Global Second Generation Biofuel Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 Abengoa Bioenergy
12.2 Air Liquide
12.3 Alto Ingredients
12.4 Amyris Inc.
12.5 Aurora Algae
12.6 BBI Biotech
12.7 Beta Renewables
12.8 BioGasol
12.9 BlueFire Renewables
12.10 Chemrec
12.11 Clariant
12.12 ClimeWorks
12.13 Danisco
12.14 Enerkem
12.15 Gevo
12.16 GranBio
12.17 Indian Oil Corporation (IOC)
12.18 Renewable Energy Group (REG)
List of Tables
1 Global Second Generation Biofuel Market Outlook, By Region (2024-2032) ($MN)
2 Global Second Generation Biofuel Market Outlook, By Biofuel Type (2024-2032) ($MN)
3 Global Second Generation Biofuel Market Outlook, By Cellulosic Ethanol (2024-2032) ($MN)
4 Global Second Generation Biofuel Market Outlook, By Biodiesel (2024-2032) ($MN)
5 Global Second Generation Biofuel Market Outlook, By Bio Butanol (2024-2032) ($MN)
6 Global Second Generation Biofuel Market Outlook, By Other Biofuel Types (2024-2032) ($MN)
7 Global Second Generation Biofuel Market Outlook, By Process (2024-2032) ($MN)
8 Global Second Generation Biofuel Market Outlook, By Biochemical Process (2024-2032) ($MN)
9 Global Second Generation Biofuel Market Outlook, By Thermochemical Process (2024-2032) ($MN)
10 Global Second Generation Biofuel Market Outlook, By Other Processes (2024-2032) ($MN)
11 Global Second Generation Biofuel Market Outlook, By Feedstock (2024-2032) ($MN)
12 Global Second Generation Biofuel Market Outlook, By Simple Lignocellulose (2024-2032) ($MN)
13 Global Second Generation Biofuel Market Outlook, By Complex Lignocellulose (2024-2032) ($MN)
14 Global Second Generation Biofuel Market Outlook, By Syngas (2024-2032) ($MN)
15 Global Second Generation Biofuel Market Outlook, By Algae (2024-2032) ($MN)
16 Global Second Generation Biofuel Market Outlook, By Other Feedstocks (2024-2032) ($MN)
17 Global Second Generation Biofuel Market Outlook, By Application (2024-2032) ($MN)
18 Global Second Generation Biofuel Market Outlook, By Transportation (2024-2032) ($MN)
19 Global Second Generation Biofuel Market Outlook, By Power Generation (2024-2032) ($MN)
20 Global Second Generation Biofuel Market Outlook, By Residential & Commercial Heating (2024-2032) ($MN)
21 Global Second Generation Biofuel Market Outlook, By Other Applications (2024-2032) ($MN)
22 Global Second Generation Biofuel Market Outlook, By End User (2024-2032) ($MN)
23 Global Second Generation Biofuel Market Outlook, By Aviation & Aerospace (2024-2032) ($MN)
24 Global Second Generation Biofuel Market Outlook, By Automotive (2024-2032) ($MN)
25 Global Second Generation Biofuel Market Outlook, By Marine & Shipping (2024-2032) ($MN)
26 Global Second Generation Biofuel Market Outlook, By Industrial Sector (2024-2032) ($MN)
27 Global Second Generation Biofuel Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We offer complimentary customization of up to 15% with every purchase. To share your customization requirements, feel free to email us at info@strategymrc.com or call us on +1-301-202-5929. .
Please Note: Customization within the 15% threshold is entirely free of charge. If your request exceeds this limit, we will conduct a feasibility assessment. Following that, a detailed quote and timeline will be provided.
WHY CHOOSE US ?
Assured Quality
Best in class reports with high standard of research integrity
24X7 Research Support
Continuous support to ensure the best customer experience.
Free Customization
Adding more values to your product of interest.
Safe & Secure Access
Providing a secured environment for all online transactions.
Trusted by 600+ Brands
Serving the most reputed brands across the world.
