Biofuels Market size was valued at USD 190.5 Billion in 2024 and is projected to reach USD 631.2 Billion by 2035, growing at a CAGR of 11.88% from 2023 to 2035
Global Biofuels Market Definition
Biofuels are being thought of as one of the impending cleaner fuel alternatives to traditional fossil fuels in the near future. In addition, the access to funds for research & development for the production of Biofuels at a cheaper rate will stimulate their adoption. Moreover, research in progress for the commercialization of second & third-generation Biofuels will also augment the market growth during the forecast period.
Yet, Biofuels are produced from crops like corn, soybeans, sugarcane, and oil palms which are essentially food crops. Additionally, massive production of these crops to produce Biofuels can cause a shortage of food items produced using these crops. It can influence the cost of food as well as raise questions about food security.
Global Biofuels Market Overview
The key drivers of the Global Biofuels Market growth include the possibility to curtail emissions. Report states that global greenhouse gas (GHG) emissions are not peaking which would help curb global warming. The Global Biofuels Market is estimated to grow at a high rate over the forecast period due to the renewability of biodiesel. Liquid Biofuels particularly biodiesel is the dominant renewable option for the transport sector, as per WBA Global Bioenergy Statistics released by World Bioenergy Association, since they would result in eco-friendly consumption of Biofuels in the transportation sector.
The increased utilization of crude glycerin produced from biodiesel would serve as a boon to the Biofuels Market since crude glycerin is available for various uses such as for freeze protection for coal, & as a dust suppressant. But the lack of availability of all feedstocks like algae, starch, and sugar would restrain the market growth since all the feedstocks are not equally concerned with the performance of the market. The use of Biofuels in the transport and aviation industry is increasing their usage & it can be observed that nowadays various automobile industries like Ford and Volkswagen are launching biodiesel-compatible engines and flex-fuel vehicles.
But the development of Biofuels is opposed by the capital intensiveness of the project, feedstock price volatility, and poor process efficiencies. These are probable to be conquered by cellulosic and algae fuel technology development and investments in new ventures. The situation in the above explanation offers a hopeful prospect and development in Biofuels Market, particularly in emerging nations. Production of biofuels in the leading and emerging nations is expected to increase from 102,896 million liters.
Biofuels Market, By Form
Solid Biofuels
Liquid Biofuels
Gaseous Biofuels
On the basis of Form, The market is segmented into Solid Biofuels, Liquid Biofuels, and Gaseous Biofuels. Biofuels are being evaluated as one of the cleaner fuel alternatives to traditional fossil fuels in the future. Additionally, the availability of capital for research and development for the production of Biofuels at a reduced cost will drive their adoption.
Biofuels Market, By Geography
North America
Europe
Asia Pacific
Rest of the world
According to Regional Analysis, The Global Biofuels Market is segmented into North America, Europe, Asia Pacific, and the Rest of the world. The highest percentage of the Global Biofuels Market is held by North America, owing to the favorable policies offered by the governments, including the tax incentives offered by the governments. The US is the world leader in biodiesel, due to its strong policies and incentives for production, consumption, and research towards new technologies for alternative fuels. South America is the second-largest producer of Biofuels after North America. The high oil prices and higher consumption of oil are some of the key drivers for the growth of Biofuels in Brazil.
Key Players
The “Global Biofuels Market” research report will offer important information with focus on the international market with some of the prominent players like Abengoa, S.A, Archer Daniels Midland Company, Copersucar S.A., Flint Hills Resources, Poet, Llc, Raizen S.A., The Andersons, Inc., Cargill Incorporated, BTG International Ltd, Renewable Energy Group, Inc.
Our market study also includes a section dedicated only to such key players where our analysts give an overview of the financial statements of all the key players, along with its product benchmarking and SWOT analysis. The competitive landscape section also comprises key development strategies, market share, and market ranking analysis of the above-mentioned players across the globe.
Key Developments
Partnerships, Collaborations, and Agreements
In August 2020, Clariant AG that is a global specialty chemicals company has made an announcement of strategic partnership with Chemtex that is a premier Technology and Engineering company. The objective of this collaboration is to deliver second-generation biofuels projects in China.
