Biofuel Market Set to Surge: Valued at $257.19 Billion by 2031 As Revealed In New Report
The Global Biofuel Market is set to expand from $155.52 billion in 2022 to $257.19 billion by 2031, growing at a 5.85% CAGR during 2023-2031. This growth is driven by increased demand for biofuels in transportation and aviation, with ethanol and biodiesel leading the market. North America and Europe will dominate due to supportive infrastructure and regulations.
The Global Biofuel Market is on the verge of significant expansion, with a projected growth from $155.52 billion in 2022 to an impressive $257.19 billion by 2031, reflecting a compound annual growth rate (CAGR) of 5.85% during the forecast period of 2023-2031.
InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the “Global Biofuel Market- (By Fuel Type (Ethanol, Biodiesel, Renewable Diesel, and Biojets), Generation (First Generation, Second Generation, Third Generation), End-use (Transportation, Aviation)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031.”
According to the latest research by InsightAce Analytic, the Global Biofuel Market is valued at US$ 155.52 Bn in 2022, and it is expected to reach US$ 257.19 Bn by 2031, with a CAGR of 5.85% during a forecast period of 2023-2031.
Biofuels include ethanol derived from sugar cane or corn, charcoal and woodchips, and biogas from the anaerobic decomposition of wastes, to name a few examples. They are extremely versatile in cars, trucks, ships, and planes. At present, the most popular liquid biofuels are ethanol and biodiesel. Production and consumption of biofuels are about to explode on a global scale like never before. Many countries enact strong incentives for generating and using these fuels in response to be rising oil costs, national security concerns, the need to raise agricultural incomes, and a plethora of new and improved technology. Fuel options for transportation have been widened thanks to biofuels and sophisticated powertrains, which will have a favourable effect on energy security and the environment while also establishing safe, clean, sustainable alternatives to petroleum. However, Biofuels have the potential to significantly reduce these emissions, especially with the advent of innovative biomass technologies that make use of agricultural waste and cellulosic crops. Under optimal conditions, these plants can help in climate change by absorbing CO2 (Carbon Dioxide) from the air and storing it underground. Biofuels give hope to countries that rely on the liquid fuel industry since they allow these countries to diversify their supply and lessen their vulnerability to disruptions.
List of Prominent Players in the Biofuel Market:
➡ ADM (US),
➡ Chevron (US),
➡ Valero (US),
➡ Neste (Finland),
➡ Cargill, Incorporated (US),
➡ Wilmar International Ltd (Singapore),
➡ VERBIO AG (Germany),
➡ Borregaard AS (Norway),
➡ POET, LLC (US),
➡ The Andersons, Inc. (US),
➡ Green Plains Inc. (US),
➡ BP p.l.c. (UK),
➡ FutureFuel Corporation (US),
➡ Münzer Bioindustrie GmbH (Austria),
➡ Aemetis, Inc. (US),
➡ CropEnergies AG (Germany),
➡ Raízen (Brazil),
➡ Blue Biofuels, Inc. (US),
➡ Pannonia Bio Zrt. (Hungary),
➡ GreenJoules (India),
➡ Algenol (US)
Market Dynamics:
Drivers–
The growing demand for biofuel is fueled by using biofuels in vehicles, which will considerably aid in lowering CO2 emissions. By switching to an alternative energy source, fossil fuel emissions are prevented, and the resulting CO2 can be kept underground. As a result of the plants and trees that help serve as feedstocks for biofuels requiring CO2 for growth, more reductions occur. Therefore, the requirement to utilize eco-friendly gasoline will boost the liquid biofuels business in the future.
Challenges:
The prime challenge is high cost, a shortage of competent individuals and a lack of norms and protocol because consistent feedstock quality is essential for maximizing productivity and minimizing downtime. One difficulty facing the biofuels industry is the high and unpredictable price of feedstock. Different types of feedstock, facility locations, and market conditions can all affect the price of feed. This can make it tough for biofuels to compete with the more reliable pricing of fossil fuels. There has been widespread market disruption due to the COVID-19 epidemic. As a result of a scarcity of materials and labour, businesses in the biofuel industry confront several difficulties. Supply chain interruptions, lower demand for transportation fuels, and falling oil prices are some of the reasons that have impacted the market. Because of the transportation industry’s dependence on bioethanol, that market has been struck very hard. Bioethanol’s popularity as a gasoline additive has plummeted as a result of the global clampdown on freedom of movement and increased security measures. A number of ethanol factories have been forced to close or cut output, resulting in cheaper ethanol.
Regional Trends:
The North American biofuel market is anticipated to register a major market share in revenue. It is projected to grow at a high CAGR in the near future because there is a lot of material available to turn into biofuel. The region will dominate the global biofuels market because it has the necessary infrastructure for biofuel production and advantageous government regulations for the use of biofuels. Besides, Europe had a substantial market share because of the growing importance of energy infrastructure and increased factory investment. Investment in transmission infrastructure, government programs to cut carbon emissions, and expanding demand for renewable energy sources all contribute to this trend.
Recent Developments:
In July 2023, Cargill built the world’s most advanced biodiesel factory in Ghent, Belgium. In this plant, used oil and other leftovers are converted into biofuel. As a result of using the facility’s advanced biodiesel in the shipping and trucking industries, customers will be able to minimize the impact on the environment of their respective businesses.
In March 2022, Chevron Renewable Energy Group introduced EnDura Fuels, a brand of branded fuel solutions that created a variety of renewable fuels like as InfinD, PuriD (a next-generation biodiesel), UltraClean BlenDVelociD, and more. Fuels that burn more cleanly and produce fewer emissions are becoming increasingly important as industries strive to improve their environmental footprint.
Segmentation of the biofuel market-
By Fuel Type-
➡ Ethanol
➡ Biodiesel
➡ Renewable Diesel
➡ Biojets
By Generation-
➡ First Generation
➡ Second Generation
➡ Third Generation
By End-use-
➡ Transportation
➡ Aviation
By Region-
North America-
➡ The US
➡ Canada
➡ Mexico
Europe
➡Germany
➡The UK
➡France
➡Italy
➡Spain
➡Rest of Europe
Asia-Pacific-
➡ China
➡ Japan
➡ India
➡ South Korea
➡ South East Asia
➡ Rest of Asia Pacific
Latin America-
➡ Brazil
➡ Argentina
➡ Rest of Latin America
Middle East & Africa-
➡ Countries
➡ South Africa
➡ Rest of the Middle East and Africa
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