Biofuels: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2019-2029

Market Definition

In contrast to fossil fuels, which are made from long-dead biological material, biofuel is a solid, liquid, or gaseous fuel that is made from recently dead biological material. Although any biological carbon source might theoretically be used to make biofuels, photosynthetic plants are by far the most frequent. Currently, liquid fuels utilized largely in transportation applications are the most popular kind of biofuels. The term “biofuels” will be used in this paper to describe them.

Market Insights

The global biofuels market was estimated to be worth $130.15 billion in 2019 in 2019. The market is anticipated to increase at a CAGR of 3.5% during the forecast period, with biodiesel and advanced biofuels like cellulosic ethanol driving the majority of the growth. The majority of EU member states, the Asia-Pacific region, and South America will experience the fastest market growth. Due to a lack of investment, the continents of Africa and the Middle East will continue to be relatively underdeveloped.

The expected relatively moderate increase in biofuels use in the majority of the major markets is due to a number of factors. Consumption of biofuels is, in great part, policy-driven, that is, it results from various requirements and incentives from the government. These regulations and incentives are driven by a number of government policy goals, including enhancing energy security and decreasing greenhouse gas (GHG) emissions. New restrictions are unlikely to result in significant increases in biofuel consumption in the short to medium term because the majority of major biofuel consuming nations already have biofuel policy frameworks in place.

The price of feedstock has a major impact on the biofuels industry. The cost of producing biofuels, the profitability of ethanol and biodiesel, and farmers’ planting schedules can all be adversely affected by the huge swings in feedstock prices from high to low. For instance, recent years have seen record-high levels of corn production in the United States, which has enhanced the profitability of the country’s ethanol production while generally maintaining corn prices in the $3.40 to $4.00 per bushel range. Although U.S. maize prices rose a little in 2019, it is challenging to make any generalisations about a long-term trend that would hinder ethanol production.

Market Dynamics: Drivers

Regulations boosting demands for eco-friendly energy resources

In the projected period of 2022 to 2029, the government’s beneficial actions relating to environmental rules to boost demand for bio-source-based energy resources will further extend profitable chances to the market players. New legislation and regulations are made by the European Commission and other federal government organisations, such the Eco-product Certification Scheme (E.C.S.). Low or no hazardous emissions as well as a green and sustainable environment are guaranteed by these standards. These regulations encourage coatings businesses to make investments in fuels based on bio-based sources in order to generate more ecologically friendly fuels. Modern, low-pollution coating technology will continue to be supported by government laws in the United States and Western Europe, particularly those that deal with air pollution.

Market Dynamics: Challenges

Fluctuations in raw material prices

The fluctuating cost of raw materials has a direct detrimental effect on the expansion of the market as a whole. Demand for biofuels has fallen across key industries as a result of increased pricing. As a result, the rate of market expansion for biofuels will be severely hampered by these oscillations.

Market Segmentation

• Based on Type, the Global Biofuels market is segmented into
  • Biodiesel
  • Bioethanol
  • Others
• Based on Feedstock, the Global Biofuels market is segmented into
  • Corn
  • Sugarcane
  • Vegetable
• Based on End User, the Global Biofuels market is segmented into
  • Transportation
  • Aviation
  • Shipping
  • Others
• Based on Form, the Global Biofuels market is segmented into
  • Solid
  • Liquid
• Based on Geography, the Global Biofuels market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2019-2020

Base Year: 2021

Estimated: 2022

Forecast- 2023-2029

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Biofuels Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Biofuels Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Biofuels Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Biofuels Market study?