USD 2675 million
Biofuels Market Size, Share, Growth Analysis, By Product Type(Antioxidants, Corrosion Inhibitors, Cold Flow Improvers, Detergents), By Application(Diesel Fuel Additives, Heavy Fuel Oil Additives, Aviation Fuel Additives, Gasoline Fuel Additives), By Forms of Biofuel(Bioethanol, and Biodiesel), By Fuel Type(Liquid (Ethanol, Biodiesel, Renewable Diesel, Biojet)), By Generation(First Generation, Second Generation, and Third Generation), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG55E2010 |
Region:
Global |
Published Date: August, 2024
Pages:
246
|Tables:
126
|Figures:
77
Biofuels Market Insights
Biofuels Market size was valued at USD 57.6 billion in 2022 and is poised to grow from USD 97.24 billion in 2023 to USD 244.08 billion by 2031, growing at a CAGR of 11% in the forecast period (2024-2031).
One of the main drivers of the Biofuel Market is the rising demand for the product from the automotive and aerospace industries. The substance has been widely used as a fuel substitute in the automotive industry. For instance, it has been discovered that the use of biodiesel increases energy security, improves air quality and the environment, and provides benefits for safety including simple transportation and storage. To cut down on carbon emissions, one can use biofuels in aviation industry in the same fashion. The aviation industry emits about 2% of global greenhouse gases among the top producers. This calls for the need to ferment, sugars, celluloses, and among other for making biofuel. There are three distinct processes that can be used to make it. First-generation variations are made by enzymatically fermenting corn and wood, and second-generation variants are made by doing the same thing using animal fat. Utilizing leftover animal fat that has been refined into oil, the second-generation process. The third-generation preparation method likewise makes heavy use of algae. To create the biofuel, the oil obtained from the algae is combined with alcohol. Jet fuel can also be made from this algae oil. The cleaning of significant oil spills caused by cargo ships is another novel use for this product. This means that it also serves as a safety component for the preservation of aquatic wildlife.
Additionally, butanol's strong capacity for supplying energy makes it a highly sought-after substance for usage in engines. Alternative fuel sources are being used by many nations to lessen their harmful environmental effects. Due to limited fossil fuel reserves, alternative fuels are the only source of technology. Consequently, the biofuel business has a large window of opportunity to grow and innovate.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Bioethanol
Fastest Growth
Bioethanol
Growth Rate
7% CAGR
Global Biofuels Market ($ Bn)
Country Share for North America Region (%)
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Biofuels Market Segmental Analysis
The Global Biofuels Market is segmented based on Product Type, Application, Biofuel, Forms of Biofuel, Generation, Fuel Type and Region. Based on Fuel Type, the market is segmented into Liquid (Ethanol, Biodiesel, Renewable Diesel, Biojet), Gaseous (Biogas, Biomethane, Biohydrogen), Solid. Based on the Generation, the market is segmented into First Generation, Second Generation, and Third Generation. Based on Product Type, the market is bifurcated into Antioxidants, Corrosion Inhibitors, Cold Flow Improvers, Detergents, Octane and Cetane Improvers, Dyes and Markers, and Others. In terms of application, the market is segmented into Diesel Fuel Additives, Heavy Fuel Oil Additives, Aviation Fuel Additives, Gasoline Fuel Additives, and Others. Based on Biofuel, the market is segmented into Bioethanol and Biodiesel. On a regional level, the market is segmented into Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa.
Biofuel Market Analysis by Product Type
Antioxidants are the dominating segment in the biofuels market. Antioxidants are predicted to emerge as the most widely used biofuel additives around the world. Antioxidants are added to biofuels to improve their storage and transportation properties as oxidation of fuels can result in the creation of harmful by products. Antioxidants also prevent biofuels from losing their efficiency. The ability of antioxidants to stabilize biofuels is also a key factor that allows them to account for it's dominance in biofuels market share.
Meanwhile, the demand for detergents and cold flow improvers is projected to increase at a notable pace over the coming years. These additives improve fuel injection, facilitate better fuel flow, and improve engine performance. Growing focus on refinement of biofuels is projected to boost growth in this segment going forward.
Biofuel Market Analysis by Fuel Type
Bioethanol hold a prominent amount of biofuel market share of the at present. This segment's dominance can be ascribed to bioethanol being used in existing petrol engines with minor modifications. High investments in the R&D of clean fuels have led to the development of advanced bioethanol fuels that are capable of powering vehicles with minimal emissions. Moreover, bioethanol is being produced from natural waste, which is completely biodegradable. This also makes bioethanol a highly preferred fuel alternative with one of the lowest carbon footprints.
Biodiesel is the fastest growing segment in the Bio fuel market. However, a growing focus on reducing emissions from heavy-duty commercial vehicles is slated to boost demand for biodiesel and its additives in the future quickly. Increasing focus on the reduction of the carbon footprint of the aviation industry is opening new opportunities for biodiesel providers. A high focus on sustainability is slated to offer moneymaking opportunities for biodiesel additive suppliers in the long run.
Global Biofuels Market By Product Type (%)
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Biofuels Market Regional Insights
North America is the dominating region in the biofuels market. The implementation of stringent mandates to reduce emissions and high consumer awareness regarding the benefits of biofuels use are allowing this region to hold a dominant market share. High investments in the development of novel biofuel technologies by the public, as well as private sectors, are also slated to boost demand for biofuel in this region. Canada and the United States are estimated to be the top markets for biofuel additives suppliers in the North American region going forward.
Meanwhile, Asia Pacific is slated to emerge as the fastest-growing regional market for biofuel companies in the world. The imposition of new mandates to reduce greenhouse gas emissions and the launch of new initiatives promoting the use of biofuels are slated to uplift biofuel sales in this region over the coming years. China and India are estimated to emerge as the most rewarding markets for biofuel manufacturers and distributors over the coming years.
Global Biofuels Market By Geography
- Largest
- Fastest
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Biofuels Market Dynamics
Biofuel Market Drivers
Government Policies and Incentives
- Many governments have used policies, mandates and subsidies to encourage the production and use of biofuels. For example, blending mandates require a certain percentage of biofuel to be blended with conventional gasoline to increase demand. Tax incentives, grants, and research funding also support the development of biofuel technology, making it more competitive with conventional fuels.
Environmental Sustainability
- One of the major drivers of the biofuel market is the growing concern for environmental sustainability. Biofuels such as ethanol and biodiesel are considered more environmentally friendly than fossil fuels because of their lower greenhouse gas emissions. This is consistent with global efforts to combat climate change, leading to increased acceptance of biofuels as part of national energy policies and international agreements such as the Paris Agreement.
Biofuel Market Restraints
Popularity of Electric Vehicles
- People are opting for electric vehicles around the world and this trend is projected to impede the adoption of biofuel and its additives. Hence, providers in biofuel industry need to come up with innovative ways to improve the efficiency of their products to push people to opt for biofuel-powered vehicles.
High Costs
- Using biofuel additives can be a costly affair as they are still in their nascent stages. Creating affordable and effective biofuel additives is projected to be the prime focus of companies to maximize their revenue generation potential.
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Biofuels Market Competitive Landscape
Biofuel suppliers can take advantage of the imposition of stringent vehicle emission mandates being implemented across the world to boost sales. Biofuel additives companies are also continually investing in research and development to enhance the performance and costs of biofuels to boost their large-scale adoption. Market players can also leverage strategies such as collaborations, mergers, acquisitions, and partnerships to fast-track the development of novel biofuel additives and boost the overall market growth. Biofuel additive manufacturers are also focusing on expanding their biofuel additive production capacity to meet the surging demand across the world.
Top Player’s Company Profiles in Biofuels Market
- Archer Daniels Midland Company (USA)
- Cargill Inc. (USA)
- Royal Dutch Shell plc (Netherlands)
- Neste Corporation (Finland)
- Valero Energy Corporation (USA)
- Bunge Limited (Switzerland)
- Wilmar International Ltd. (Singapore)
- Louis Dreyfus Company BV (Netherlands)
- POET LLC (USA)
- Green Plains Inc. (USA)
- The Andersons Inc. (USA)
- Raízen Energia SA (Brazil)
- Flint Hills Resources LLC (USA)
- Delta Air Lines, Inc. (USA)
- Marathon Petroleum Corporation (USA)
- Total Energies SE (France)
- Exxon Mobil Corporation (USA)
- BP plc (UK)
- CROPENERGIES AG (Germany)
- ALGENOL (United States)
Recent Developments in Biofuel Market
-
In July 2023, Equilon Enterprises LLC, a joint venture of Shell Plc and Green Plains Inc. company, entered technical collaboration to use Shell Fiber Conversion Technology (SFCT) and Fluid Quip Technologies’ precision separation processing technology. This strategic partnership will add significant value to Green Plains Inc. biorefinery platform.
-
In July 2023, Petrobras announced that it will begin performance testing of the B24 bio bunker fuel blend. This fuel blend is being used to refuel a ship, located at the Rio Grande (RS) Terminal and leased by Transpetro with 573,000 liters of fuel filled.
-
In July 2023 by Gevo, Inc. and the creation of a McDermott International Limited subsidiary providing leading front-end technology and systems to Gevo for the development of a more sustainable aviation fuel system in North America -Service Agreement (MSA).
Biofuels Key Market Trends
- Global Transportation Sector's Impact on Greenhouse Gas Emissions and the Rise of Ethanol: In the world, transportation is the most significant emitter of GHG especially due to the use of fossil fuels in internal combustion engines. Four-wheelers and two-wheelers, owned by individuals as well as commercial vehicles constitute a large portion of the transportation sector. Most of the private automobiles are light cars and are operated using gasoline as the source of power. International standards have been imposed to limit emissions of greenhouse gases, and more countries introduce the mandatory use of a gasoline-ethanol mixture to reduce emissions from fossil fuels. This ethanol category is expected to grow significantly in the biofuel industry in the forecast period due to the identified components.
Biofuels Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.
According to our biofuels market analysis, the global market for biofuels, which is a subsegment of the global market for oil and gas exploration and production in the energy sector will show positive growth in the coming years. The levels of growth of the biofuels market during the projected period will be determined by external factors influencing the parent market's potential for growth in the upcoming years, which have been extensively addressed in our research report.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 57.6 billion |
| Market size value in 2031 | USD 244.08 billion |
| Growth Rate | 11% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Biofuels Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Biofuels Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Biofuels Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Biofuels Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Biofuels Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Biofuels Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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