Dublin, Jan. 17, 2024 (GLOBE NEWSWIRE) -- The "Global Biofuel Market: Analysis by Consumption, Production, Type, Form, Feedstock, Region Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
In 2022, the global biofuel market was valued at US$126.37 billion, and is probable to reach US$216.05 billion by 2028. The market is projected to grow at a CAGR of 9.35%, during the forecast period of 2023-2028.
The market growth is attributed to the increasingly supportive policies extended by the government, such as tax incentives provided by the government, along with the increasingly robust policies for encouraging production and consumption within the region. Further, technological advancements in the biofuel industry have reduced the cost of the biofuels which is among major factors used to replace the use of fossil fuels. In addition to this, the introduction of newer feedstock for the production of the biofuels is another factor expected to support growth of the target industry in the near future.
Market Segmentation Analysis
By Type: According to the report, the global biofuel market is segmented into three types: Ethanol, Biodiesel and Others. Ethanol segment acquired majority of share in the market in 2022, as the rise in global temperature and a number of industries have begun to look for alternative energy sources that reduce greenhouse gas emissions from their combustion engines. Whereas, Biodiesel segment is expected to grow at the highest CAGR, as environmental concerns grow, the demand for cleaner energy options like biodiesel increases. Biodiesel can be produced from domestic renewable resources, such as crops like soybeans, rapeseed, and palm oil, as well as waste oils and fats. The availability of diverse feedstocks for biodiesel production contributes to its growth.
By Form: According to the report, the global biofuel market is segmented into three form: Liquid, Gaseous and Solid. Liquid segment acquired majority of share in the market in 2022 and would grow at the highest CAGR, as Liquid biofuels includes all liquid fuels of natural origin (e.g. produced from biomass and/or the biodegradable fraction of waste), suitable to be blended with or replace liquid fuels from fossil origin. Liquid biofuels are derived from renewable sources such as agricultural waste, domestic waste, plant waste, and commercial waste and are widely available across all countries, hence, concerns regarding running out of resources is less in case of liquid biofuel production.
By Consumption: According to the report, the global biofuel market by consumption is expected to augment to 279.88 billion liters in 2028. The demand for biofuels is expected to increase due to developments in transportation fleets in some countries. The market by consumption is further segmented on the basis of three types: (Ethanol, Biodiesel and Others) and eight regions: (The US, Brazil, Indonesia, Canada, China, India, Europe and Rest of the world). The US and Brazil account for 61% of biofuel consumption growth in the historical years. The projected growth is premised on China, Europe, India and the US implementing more stringent policies to drive demand, and also assumes that efforts to increase ethanol blending in the US and India are successful. The US, Europe, Brazil and Indonesia are responsible for the majority of biodiesel, renewable diesel and biojet fuel consumption growth.
By Production: According to the report, the global biofuel market by production would reach 119.68 billion liters in 2023. The market by production is further segmented on the basis of three types: (Ethanol, Biodiesel and Others); six feedstocks (Maize, Sugars, Palm Oil, Soy Oil, Rapeseed Oil and Others) and eight regions: (The US, Brazil, Indonesia, Canada, China, India, Europe and Rest of the world). Maize segment acquired majority of share in the market in 2022 and would grow at the highest CAGR, as its widespread cultivation makes it easily accessible as a feedstock for biofuel production. Moreover, Maize is rich in starch, which can be converted into bioethanol through fermentation processes. Based on region, The US accounted to the major share in the overall production. The increase in the production of biofuels can be attributed to several factors, driven by both environmental and economic considerations. The production of biofuel is expected to remain largely reliant on first generation feedstocks such as maize and sugarcane to produce ethanol and vegetable oil for biodiesel.
By Region: The report provides insight into the biofuel market based on the geographical operations, namely Asia Pacific, North America, Europe, and Rest of the World. North America biofuel market enjoyed the highest market share in 2022, due to the advances in biofuel production technologies which have helped to increase efficiency and reduce costs, making biofuels more competitive with traditional fossil fuels. North America regional biofuel market is experiencing growth due to the presence of leading solution providers like ADM (the US), Chevron (the US), Valero (the US), and Cargill, Incorporated (the US). Whereas, Asia Pacific biofuel market is expected to grow at the highest CAGR, as several governments in the region have shown their support for the industry by establishing a favorable regulatory environment. India and China are currently leading the pack in terms of manufacturing, research, and innovation investments.
Global Biofuel Market Dynamics
Growth Drivers: The emergence of bio-jet fuel has emerged as a significant growth driver for the biofuel market, marking a pivotal shift towards sustainable aviation solutions. To propel higher demand, countries globally are amending their existing policies and implementing new ones. The increased focus on sustainable air travel and the global push towards decarbonization have stimulated investments and research in bio-jet fuel technologies. As airlines and regulatory bodies increasingly prioritize eco-friendly aviation solutions, the demand for bio-jet fuel is expected to soar, providing a substantial impetus to the overall biofuel market. Further, the market is expected to increase due to rapid urbanization, growing demand as environment-friendly fuel in road transportation, growing demand for cleaner fuels and favorable government policies, rising focus on lowering greenhouse gas emission and curbing carbon emissions, limited availability of fossil fuel-based resources, etc.
Challenges: The market's expansion is projected to be hampered by high initial capital investment. The cost of building and operating a biofuels plant or biorefinery is significant, making it difficult for biofuels to compete with fossil fuels. The investment includes costs related to the installation of biorefineries, procurement, testing, maintenance, and cost of feedstock. These are only a few factors that make investing in biofuels expensive and undesirable. The other challenges that biofuel market faces include variable and high cost of feedstock, etc.
Trends: One of the most distinct and pervasive trends observed in the global biofuel market is sustainability. Biofuels are considered a more environmentally friendly alternative to traditional fossil fuels, and their production and use align with broader sustainability goals. One of the primary reasons for the adoption of biofuels is their potential to reduce greenhouse gas emissions compared to conventional fossil fuels. Biofuels, such as biodiesel and ethanol, can be produced from renewable resources like crops, algae, or waste, leading to lower carbon dioxide emissions during combustion. More trends in the market are believed to augment the growth of biofuel market during the forecasted period include, technology advancements in biofuels, strategic development and international collaboration, etc.
Impact Analysis of COVID-19 and Way Forward
The COVID-19 epidemic negatively impacted the biofuel market due to the reduced fuel demand caused by the suspension of mobility. With reduced mobility and a decrease in overall fuel consumption, the biofuel industry faced challenges in maintaining production levels and meeting pre-pandemic growth projections. The market faced problems such as supply chain problems, a declining labor force, price volatility, and availability of raw materials, which hindered the overall market. Furthermore, the decline was further aggravated by plummeting oil prices, making traditional fossil fuels more economically attractive in the short term.
Competitive Landscape and Recent Developments
The global biofuel market is fragmented, with intense competition among the top players to increase their share in the market. Key players of global biofuel market are:
- Ineos Group
- Cosan SA
- Vereinigte BioEnergie AG (VERBIO)
- Repsol, SA
- Green Plains
- Archer-Daniels-Midland Company
- Louis Dreyfus Company BV
- Neste Oyj
- Chevron Corporation (Renewable Energy Group, Inc.)
- Wilmar International Limited
- CropEnergies AG, POET LLC
- Cargill, Incorporated
The key players are constantly investing in strategic initiatives, such as new product launches, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in February 2023, Neste opened an Innovation Centre in Singapore to improve its worldwide innovation and R&D capabilities. Asia has been an important market for Neste, and the new center will help the company's growth in the Asia-Pacific region.
Key Topics Covered
1. Executive Summary
2. Introduction
3. Global Market Analysis
4. Regional Market Analysis
5. Regional Consumption and Production Analysis
6. Impact of COVID-19
7. Market Dynamics
8. Competitive Landscape
9. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/6nyxej
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