Biofuel Market Size, Share & Analysis Report, 2023-2032
The global Biofuel market size was exhibited at USD 167.78 billion in 2022 and is projected to hit around USD 375.87 billion by 2032, growing at a CAGR of 8.4% during the forecast period 2023 to 2032.
Key Pointers:
Biofuel is derived from organic matter such as plants, algae, and animal waste. It plays an important role in reducing carbon dioxide emissions. Biofuels are renewable alternatives to conventional fuels such as gasoline, diesel, and kerosene. They can be used in passenger vehicles, trucks, ships, and airplanes. Currently, ethanol and biodiesel are the two common types of liquid biofuels. Ethanol is produced from corn and cellulosic feedstock such as crop residues and wood. Algae biofuels are an alternative to commonly known biofuel sources, such as corn and sugarcane. Vegetable oils, yellow grease, used cooking oils, or animal fats are used in the production of renewable diesel.
Biofuel Market Report Scope
|
Report Coverage |
Details |
|
Market Size in 2023 |
USD 181.88 Billion |
|
Market Size by 2032 |
USD 375.87 Billion |
|
Growth Rate from 2023 to 2032 |
CAGR of 8.4% |
|
Base year |
2022 |
|
Forecast period |
2023 to 2032 |
|
Segments covered |
Type, Feedstock, End-use |
|
Regional scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
|
Key companies profiled |
Dow, Cargill, Inc., Archer-Daniels-Midland Company, BTG International Ltd., Renewable Energy Group, Inc., Enerkem, Drax Group, EnviTec Biogas AG, Green Plains, AR Energy Group, Abengoa Bioenergy SA, and VERBIO Vereinigte BioEnergie AG |
Rise in Adoption of Renewable Energy Augmenting Market Demand for Biofuel
Biofuels can be used to limit greenhouse gas (GHG) and CO2 emissions. Fossil fuels are the main source of global warming. Adoption of biofuels can lead to lower GHG emissions, depending on the source and its circumstances. Thus, liquid biofuels help improve local air quality, reduce bio-waste, and protect ecosystems. Regulatory policies such as the Renewable Fuel Standard, a federal program that requires transportation fuel sold in the U.S. to contain a minimum volume of renewable fuels, encourage the adoption of biofuels. The EU Renewable Energy Directive (RED) stipulates that biofuels should have at least 50% lower emissions than their fossil fuel alternatives for installations in operation before October 2015, and 60% for installations starting after this date, rising to 65% lower for biofuel plants commencing operation after 1 January 2022.
Increase in the R&D of biofuels is expected to augment the global market during the forecast period. In October 2022, a study ‘Efficient process for xylitol production from nitric acid pretreated rice straw derived pentosans by Candida tropicalis GS18’, published in the Biomass and Bioenergy Journal identified a potential Candida tropicalis strain for efficient xylitol production. Xylitol is a natural sugar alcohol. Rye straw can be converted into fuel and xylitol.
Supply Security and Risk Abatement of Conventional Oil
Crude oil reserves are mostly concentrated in Middle East & Africa, the Americas, and Asia Pacific. However, reserves in these regions are witnessing high pressure due to rise in demand for fuel worldwide. This could be a basis for future conflicts between oil-producing nations aiming to secure remaining reserves for themselves. Thus, diversification of energy sources is a robust solution for risk abatement in this situation. South America, Russia, and Sub-Saharan Africa are some of the largest producers of biomass. Of these regions, only Russia has major fossil fuel deposits. Crude oil prices are volatile as natural and manmade events can potentially disrupt the supply of oil & gas. These include geopolitical risks, sanctions, crude inventory draws, and speculative positioning by oil producers. Therefore, other regions and countries are significantly investing in renewable energy to reduce their dependency on oil reserves.
Increase in Adoption of Bioethanol in Vehicles
In terms of type, the global biofuel market has been segregated into biodiesel, bioethanol, bio-heavy oil, and others. According to recent trends in the biofuel market, the bioethanol segment held major share of 68.9% in 2022. It is estimated to dominate the market during the forecast period. Bioethanol is a renewable fuel produced from various plant materials. It is used as a blending agent with gasoline to increase octane and cut down carbon monoxide and other smog-causing emissions. E10 is the most common blend of ethanol and is approved for use in most conventional gasoline-powered vehicles. Bioethanol is made from plant starches and sugars, particularly corn starch.
Rise in Production of Biofuel from Vegetable Oils
Based on feedstock, the global biofuel market has been classified into corn, sugarcane, vegetable oil, palm oil, and others. The vegetable oil segment dominated the global biofuel market and accounted for 29.19% share in 2022. Biodiesel can be produced from vegetable oils such as sunflower, soybean, rapeseed, and castor oil. Biodiesel production from vegetable oils is eco-friendly, as it recycles waste cooking oil and provides renewable energy with lower pollution.
Global Biofuel Market Regional Outlook
North America accounted for prominent share of 39.1% of the global market in 2022. Implementation of stringent regulations is expected to boost adoption of biofuels in the region in the next few years. Under the Energy Independence and Security Act of 2007 of the U.S., the Renewable Fuel Standard mandates that 36 billion gallons per year (bg/y) of biofuels need to be produced by 2023.
Future of the biofuel market in Asia Pacific and Europe is promising with the rise in production of liquid biofuels in Southeast Asia and increase in launch of ethanol-powered vehicles. These regions held 27.3% and 9.5 % share of the global market, respectively, in 2022. Middle East & Africa and Latin America are relatively minor markets for biofuel compared to other regions.
Key Developments in Global Biofuel Market
Key players have been profiled in the biofuel market report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments.
Some of the prominent players in the Biofuel Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Biofuel market.
By Type
By Feedstock
By End-use
By Region
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Biofuel Market
5.1. COVID-19 Landscape: Biofuel Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Biofuel Market, By Type
8.1. Biofuel Market, by Type, 2023-2032
8.1.1 Biodiesel
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Bioethanol
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Bio-heavy Oil
8.1.3.1. Market Revenue and Forecast (2020-2032)
8.1.4. Others
8.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Biofuel Market, By Feedstock
9.1. Biofuel Market, by Feedstock, 2023-2032
9.1.1. Corn
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Sugarcane
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Vegetable Oil
9.1.3.1. Market Revenue and Forecast (2020-2032)
9.1.4. Vegetable Oil
9.1.4.1. Market Revenue and Forecast (2020-2032)
9.1.5. Others
9.1.5.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Biofuel Market, By End-use
10.1. Biofuel Market, by End-use, 2023-2032
10.1.1. Transport
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Heat
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Electricity
Chapter 11. Global Biofuel Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Type (2020-2032)
11.1.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.1.3. Market Revenue and Forecast, by End-use (2020-2032)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.1.4.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.1.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.1.5.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.1.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.2.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.4.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.2.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.5.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.2.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.6.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.2.6.3. Market Revenue and Forecast, by End-use (2020-2032)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Type (2020-2032)
11.2.7.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.2.7.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.3.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.4.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.3.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.5.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.3.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.6.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.3.6.3. Market Revenue and Forecast, by End-use (2020-2032)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Type (2020-2032)
11.3.7.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.3.7.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.4.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.4.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.5.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.4.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.6.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.4.6.3. Market Revenue and Forecast, by End-use (2020-2032)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Type (2020-2032)
11.4.7.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.4.7.3. Market Revenue and Forecast, by End-use (2020-2032)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.5.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.5.3. Market Revenue and Forecast, by End-use (2020-2032)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Type (2020-2032)
11.5.4.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.5.4.3. Market Revenue and Forecast, by End-use (2020-2032)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Type (2020-2032)
11.5.5.2. Market Revenue and Forecast, by Feedstock (2020-2032)
11.5.5.3. Market Revenue and Forecast, by End-use (2020-2032)
Chapter 12. Company Profiles
12.1. Dow
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Cargill, Inc.
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Archer-Daniels-Midland Company
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. BTG International Ltd.,
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Renewable Energy Group, Inc.
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Enerkem
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Drax Group PLC
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. EnviTec Biogas AG
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Green Plains
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. AR Energy Group
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
(Upto 5 With No Cost)
Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers