Biofuels Market size expected to grow by $26.6 billion between 2024 and 2028. Greater use of renewable energy sources to boost market growth, Technavio

NEW YORK, June 14, 2024 /PRNewswire/ — The size of the global biofuel market is estimated to increase $26.6 billion According to Technavio in the years 2024–2028. The market is estimated to grow at a CAGR of 3.23% during the forecast period. The increased use of renewable energy sources is driving the market development, with a trend towards research into a third-generation biofuel called algae fuel. However, oil price fluctuations pose a challenge. Key market players include Advance Biofuel, Alten SA, ALTO INGREDIENTS INC., Archer Daniels Midland Co., Argent Energy UK Ltd., BlueFire Renewables Inc., Bunge Ltd., Cargill Inc., Chevron Corp., ENERKEM Inc., KFS Biodiesel GmbH and Co. KG, Louis Dreyfus Co. BV, Munzer Bioindustrie GmbH, Neste Corp., POET LLC, RB FUELS, Shell plc, Valero Energy Corp., Vance Group Ltd. and Wilmar International Ltd..

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Key market trends driving growth

The biofuel market is experiencing significant growth thanks to the development of third-generation biofuels derived from algae. These fuels offer many benefits, including greater efficiency and the ability to produce a variety of biofuels such as biodiesel, butanol, methane, ethanol and jet fuel. Algae’s high lipid content and ease of cultivation make microalgae popular candidates for production. The shift to non-food raw materials such as algae is driving market growth by improving fuel efficiency and reducing dependence on traditional food-related raw materials.

The biofuel market is witnessing significant growth, with strong demand for various types of biofuels such as biodiesel and fuel ethanol. Transport vehicles such as trucks and planes are increasingly using biofuels to reduce their carbon footprint. Renewable biofuels such as biomass and algae are gaining popularity due to their sustainable nature. The raw materials for the production of biofuels are vegetable oils, animal fats and sugars.

USA and Europe are the main markets for biofuels, with China AND Brazil also making a significant contribution. The future of biofuels looks promising, and technological progress will make production more efficient and profitable. Policymakers are also implementing regulations to promote the use of biofuels, further driving market growth.

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Market challenges

• The biofuel market is facing competition from volatile oil prices, which have fluctuated significantly in recent years. This instability in the global oil market is negatively impacting the growth of the biofuel industry as consumers shift towards conventional fuels due to their lower prices. Despite the advantages of biofuels, such as lower greenhouse gas emissions and similar vehicle power, their higher price makes them less attractive to consumers during periods of low oil prices. Consequently, the unpredictability of oil prices poses a significant challenge to the expansion of the biofuel market.
• The biofuel market is facing several challenges in its development. Renewable fuel sources such as biomass, vegetable oils and alcoholic fuels are essential to reducing greenhouse gas emissions. However, the availability and cost of raw materials remain a major challenge. The production process also requires large amounts of water and energy, which can increase production costs.
• Moreover, inconsistency in government policies and regulations regarding biofuels may impact market development. The use of biofuels in the aviation and transport sectors is growing, but the high cost of biojet fuel and lack of infrastructure for its distribution pose challenges. The market also faces competition from traditional fossil fuels, so it is important to find cost-effective and sustainable solutions for biofuel production.

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Segment overview

1. App

• 1.1 Transport
• 1.2 Aviation
• 1.3 Heating
• 1.4 Energy generation
• 1.5 Other

Product

• 2.1 Ethanol
• 2.2 Biodiesel

Geography

• 3.1 North America
• 3.2 Europe
• 3.3 Asia and the Pacific
• 3.4 South America
• 3.5 Near East AND Africa

1.1 Transport- The transportation biofuel market has experienced significant growth over the past decade due to environmental concerns, government regulations and energy security needs. The basic biofuels used are ethanol and biodiesel, obtained from crops, vegetable oils and animal fats. Advanced biofuels such as cellulosic ethanol and algae-based fuels are emerging. Market dynamics include government policies, availability of raw materials, technological advancements, and consumer demand. Fluctuations in oil prices affect competitiveness. The role of biofuels in a sustainable transport system is crucial as renewable energy sources become increasingly important.

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Research analysis

The biofuel market encompasses the production and use of various forms of renewable fuels, including bioethanol from sugar and coarse grain crops, hydrogenated oil from plant sources such as jatropha and molasses, and renewable diesel from biomass and algae-based sources. Policymaking plays a key role in the market, with fuel blending requirements and environmental regulations driving the shift towards cleaner fuels.

The production of biofuels from renewable sources is essential for energy security and reducing greenhouse gas emissions from fossil fuels. Feedstocks for biofuel production include a range of biomass sources, from sugar plants and ethanol to biomass and cyanobacterial growth. The market for liquid biofuels is expanding with advances in genetically modified crops and the potential for large-scale production of algae-based biofuels.

Market research review

The Biofuel Market refers to the production and use of biofuels as an alternative to traditional fossil fuels. Biofuels are obtained from various raw materials such as sugar cane, corn, soybeans, sugar beets, palm oil and other vegetable oils. These fuels are created through various processes, including fermentation and pyrolysis. The global biofuel market continues to grow due to growing concerns about climate change and energy security.

Biofuels offer a number of benefits, including reduced greenhouse gas emissions, improved energy security and diversification of energy sources. The market is driven by factors such as government policies, growing demand for renewable energy, and technological progress in the production and distribution of biofuels. The future of the Biofuels Market looks promising thanks to continued research and development in the field of advanced biofuels and bioenergy.

Contents:

1 Summary
2 Market landscape
3 Market size
4 Historical market size
5 Five Forces Analysis
6 Market segmentation

• App
• Transport
• Aircraft
• Heating
• Energy generation
• Others
• Product
• Geography
• North America
• Europe
• APAC
• South America
• Middle East and Africa

7 Customer landscape
8 Geographic landscape
9 Factors, challenges and trends
10 Company landscape
11 Company analysis
12 Annex

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SOURCE Technavio