The Biofuels Market Is expected to grow at a CAGR of 8.26% for the forecast period of 2019-2024. The demand for secure, sustainable, and clean energy supply is expected to propel the demand for biofuels across the globe. On account of higher mandates for biofuel blending in automotive fuels and increasing government support for eco-friendly alternatives, the global consumption of biofuel is expected to further grow at a significant level during the forecast period.

• According to estimates, global energy consumption is expected to increase by 28 percent by 2040 as compared to 2015. The growing environmental need is to draw upon cleaner, renewable, sustainable energy sources to meet the ever-increasing demand for fuel. Renewable energy will be the world’s fastest-growing source of energy that is expected to double from 2015 to 2030.
• Biofuels (ethanol and biodiesel) represent the majority share of renewables in global energy demand for road transport. Demand for bioenergy in the transportation sector is driven by blending mandates in significant economies and by sustained fuel use around the world.
• Also, the advanced liquid biofuels produced from feedstock such as lignocellulosic, waste oil, fats, municipal waste count as a viable option to decarbonize energy sectors in a cost-effective way in industries such as aviation, shipping, and freight.
• For instance, according to the Tracking Transport report by IEA, the Transport biofuel production has expanded over 6% year-on-year in 2019, and 3% annual growth is projected over the course of next year five years. However, its falls short of the sustained 10% growth per year required until the year 2030 to align with Sustainable Development.
• As with increasing transport fuel demand and support from government bodies for sustainable energies in ASEAN countries which evidently raises energy security ensuring demand for agricultural commodities. for instance, Over the years Chinese vendors boosted the national production of ethanol by the capacity of 258 million liters to 5,258 million liters and aim to roll out the blend of 10% ethanol in gasoline from 11 to 15 provinces
• It is estimated that the share of biofuels in road transport in the OECD would increase to 20% by 2040. In the developed world similarly in aviation, the share of biofuels in jet fuel is expected to increase to 20% by 2040.
• However, according to BP’s Energy Outlook, the transport sector will continue to be dominated by oil, despite increasing penetration of alternative fuels. It further adds that the share of oil within the transport industry is expected to decline to about 85% by 2040, down from the current 94%.
• Natural gas, electricity, and biofuels together are expected to account for more than half of the increase in energy used in transport, with each contributing about 5% of transport demand by 2040.
• However, A recent study from IRENA (International Renewable Energy Agency) on advanced biofuels that surveyed experts on the major obstacles for scaling up liquid biofuels indicate that the lack of stable regulations for the use of liquid biofuels is the biggest roadblock for the growth of the biofuel market. Also, with of decline of patent fillings , Investments have experienced the declined from USD 27 billion in 2007 to USD 2 billlion in 2017