USD 171.03 billion
Railway Based Biofuels Market Size, Share, Growth Analysis, By Type(Biodiesel and Bioethanol), By Application(Locomotives and Rolling Stock), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15E2182 |
Region:
Global |
Published Date: March, 2024
Pages:
184
|Tables:
59
|Figures:
75
Railway Based Biofuels Market Insights
Railway Based Biofuels Market size was valued at USD 180.61 Billion in 2023 and is poised to grow from USD 190.72 Billion in 2024 to USD 294.92 Billion by 2032, growing at a CAGR of 5.60% during the forecast period (2025-2032).
Railway-based biofuels are a renewable energy source that can be used to power locomotives and reduce carbon emissions. Biofuels are derived from plant and animal materials, such as corn, sugarcane, soybeans, and algae. These materials are converted into fuel through processes like fermentation and distillation. The use of biofuels in railways can help reduce greenhouse gas emissions, as they emit less carbon dioxide compared to traditional fossil fuels. Additionally, biofuels can also provide economic benefits by reducing dependence on foreign oil and supporting local agriculture. However, there are some concerns about the sustainability of biofuels, as their production can compete with food production and cause deforestation. In North America, the United States and Canada were the primary markets for railway-based biofuels, driven by increasing demand for renewable energy sources and government incentives to reduce carbon emissions. The use of biofuels in the railway industry was expected to continue to grow in the coming years, particularly in the US, where the Renewable Fuel Standard program required a minimum volume of renewable fuels to be used in transportation. In the APAC region, the market share of railway-based biofuels was relatively smaller, but growing. Countries like India and China were investing in the development of biofuels as a means to reduce dependence on fossil fuels and meet climate change goals. Additionally, the expansion of railway infrastructure in the region was expected to create new opportunities for biofuel producers. Biofuels in general are subject to safety regulations and standards set by the International Maritime Organization (IMO) and International Civil Aviation Organization (ICAO). These regulations cover aspects such as transportation, storage, handling, and labeling of biofuels to ensure their safe use. In addition, some countries have developed their own safety standards for biofuels used in transportation, including railways. For example, the European Union has set standards for biofuels used in road, rail, and marine transportation, which include requirements for their sustainability, quality, and safety.
US Railway Based Biofuels Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Biodiesel
Fastest Growth
Biodiesel
Growth Rate
5.60% CAGR
Global Railway-Based Biofuels Market 2021-2030 ($ Bn)
Country Share for North America Region- 2021 (%)
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Railway Based Biofuels Market Segmental Analysis
Global Railway Based Biofuels market is segmented by type, application, and region. Based on type, the market can be segmented into biodiesel and bioethanol. Based on application, the market is segmented into locomotives and rolling stock. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Railway Based Biofuels Market Analysis by Type
By type the market can be segmented into biodiesel and bioethanol. Biodiesel dominated the global market due to its high energy content, compatibility with existing diesel engines, and lower emissions compared to traditional diesel fuels. Biodiesel is widely used in locomotives and rolling stock, and it is expected to continue dominating the market due to its efficient combustion properties and its ability to reduce greenhouse gas emissions.
Bioethanol segment is expected to grow at the fastest CAGR due to its ability to reduce emissions of carbon monoxide, nitrogen oxide, and other pollutants. Bioethanol is expected to continue growing in popularity as more research is conducted to develop advanced bioethanol technologies and as governments around the world impose stricter regulations on emissions from transportation.
Railway Based Biofuels Market Analysis by Application
By application, the market can be segmented into locomotives and rolling stock. Locomotives dominated the global market. This is due to the higher energy requirements of locomotives and their greater contribution to overall emissions. Biofuels, such as biodiesel, are often used as a substitute for traditional diesel fuels in locomotives as they have similar combustion properties and are compatible with existing diesel engines.
Rolling stock is expected to grow at the fastest CAGR. Biofuels, such as bioethanol, are being increasingly used in passenger-carrying vehicles, such as trains and trams, due to their ability to reduce emissions and improve air quality. Additionally, as more governments and organizations focus on reducing their carbon footprint, the demand for biofuels in rolling stock is expected to increase.
Global Railway-Based Biofuels Market Size By Type, 2021 (%)
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Railway Based Biofuels Market Regional Insights
North America dominated the global market. The US government's Renewable Fuel Standard program, which mandated a minimum volume of renewable fuels to be used in transportation, had driven the adoption of biofuels in the railway industry. Within the US, the Midwest region, which had a large agricultural sector and abundant feedstock resources, was the fastest-growing market for biofuels.
The APAC region is a rapidly growing region in the global market. China was expected to be the dominant player in the market due to its large railway network and government support for biofuel development. India was also investing in biofuels to reduce dependence on fossil fuels and meet climate change goals, making it one of the growing markets for biofuels in the region.
Global Railway-Based Biofuels Market By Geography, 2021-2030
- Largest
- Fastest
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Railway Based Biofuels Market Dynamics
Railway Based Biofuels Market Drivers
Increasing demand for renewable energy sources
- One driver for the growth of railway-based biofuels is the increasing demand for renewable energy sources to reduce carbon emissions and meet climate change goals. Governments and industries around the world are setting targets to reduce their carbon footprint, and biofuels offer a viable alternative to fossil fuels in the transportation sector. The use of biofuels in the railway industry can help reduce greenhouse gas emissions, which is a key factor in driving their adoption. Additionally, biofuels can provide economic benefits by supporting local agriculture and reducing dependence on foreign oil.
Railway Based Biofuels Market Restraints
Sustainability of their production
- One restraint for the growth of railway-based biofuels is the sustainability of their production. The use of feedstocks for biofuels can compete with food production, which may lead to food shortages and price increases. Additionally, the production of biofuels can also contribute to deforestation, which has negative impacts on biodiversity and the environment. Therefore, there is a need for sustainable and responsible production practices to ensure that biofuels can contribute to reducing greenhouse gas emissions without causing harm to the environment and society.
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Railway Based Biofuels Market Competitive Landscape
Global railway-based biofuels market is characterized by the presence of both established and emerging players. Several companies are investing in the development of biofuels for the railway industry, driven by increasing demand for renewable energy sources and government incentives to reduce carbon emissions. Market players are focusing on developing sustainable and cost-effective production processes, expanding their distribution networks, and collaborating with government agencies and other stakeholders to promote the adoption of biofuels. The competitive landscape is expected to become more crowded as new players enter the market and existing players expand their operations.
Railway Based Biofuels Market Top Player’s Company Profiles
- Cargill, Incorporated (US)
- Eastman Chemical Company (US)
- Enerkem (Canada)
- Groupe Renault (France)
- Honeywell International Inc. (US)
- Indian Oil Corporation Ltd (India)
- Neste Oyj (Finland)
- PetroChina Company Limited (China)
- Renewable Energy Group, Inc. (US)
- Royal Dutch Shell plc (Netherlands)
- Sasol Limited (South Africa)
- SG Preston Company (US)
- Solazyme, Inc. (US)
- Suncor Energy Inc. (Canada)
- Syngenta AG (Switzerland)
- TotalEnergies (France)
- Valero Energy Corporation (US)
Railway Based Biofuels Market Recent Developments
- In March 2023, Russian Railways announced a partnership with Rosneft to develop a biofuels project for its locomotives.
- In January 2023, Swedish railway operator SJ announced a partnership with Preem to test the use of renewable diesel in its trains.
- In September 2022, Spanish railway operator Renfe announced a partnership with CLH to test the use of HVO fuel in its trains.
- In August 2022, US rail operator Amtrak announced a partnership with Dominion Energy to run its trains on renewable diesel made from animal fats and vegetable oils.
- In June 2022, Brazilian railway operator Rumo announced a partnership with Raízen to develop a biofuels project for its locomotives.
Railway Based Biofuels Key Market Trends
- One key market trend in the railway-based biofuels industry is the increasing focus on sustainability and carbon reduction. Governments, industries, and consumers are placing greater emphasis on reducing greenhouse gas emissions and promoting sustainable practices, and this trend is expected to continue in the coming years. Additionally, the expansion of railway infrastructure in developing countries is creating new opportunities for biofuel producers, while the adoption of advanced technologies such as second-generation biofuels is improving the efficiency and sustainability of biofuel production. Finally, collaborations and partnerships between stakeholders, including government agencies, research institutions, and industry players, are helping to drive innovation and promote the adoption of biofuels in the railway industry.
Railway Based 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 by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global railway-based biofuels market analysis, the market is driven by increasing demand for renewable energy sources and government policies promoting sustainability and carbon reduction. While the North American region dominated the market, the APAC region showed promising growth potential due to increasing government support and expanding railway infrastructure. However, sustainable production practices and competition with food production were among the key restraints for the industry. Key market trends included a focus on sustainability and carbon reduction, the expansion of railway infrastructure in developing countries, and collaborations between stakeholders to drive innovation and adoption.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 171.03 billion |
| Market size value in 2031 | USD 279.28 billion |
| Growth Rate | 5.60% |
| 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 Railway Based 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 Railway Based 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 Railway Based 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 Railway Based 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 Railway Based Biofuels Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Railway Based 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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