Biofuels Market Size
| Study Period | 2020 - 2029 |
| Market Volume (2024) | 1.89 Million barrels of oil equivalent per day |
| Market Volume (2029) | 2.44 Million barrels of oil equivalent per day |
| CAGR (2024 - 2029) | 5.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Biofuels Market Analysis
The Biofuels Market size is estimated at 1.89 Million barrels of oil equivalent per day in 2024, and is expected to reach 2.44 Million barrels of oil equivalent per day by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
- Over the medium term, the increasing demand for secure, sustainable, and clean energy coupled with government mandates for increasing blending in automotive fuels is expected to propel the demand for biofuels across the globe.
- On the other hand, the high cost of production of biofuels, even with all the benefits associated with them, is likely to restrain the growth of the market.
- Nevertheless, with the recent technological advancements, the production of biofuels has increased, which is going to act as an opportunity for the market's expansion.
- North America dominates the market, and it is likely to witness the highest CAGR during the forecast period. The growth is attributed to the rapid increase in production facilities coupled with the increase in demand for biofuels in the region.
Biofuels Market Trends
Ethanol Likely to Experience a Significant Growth
- Globally, the transportation sector is the biggest emitter of greenhouse gases due to the combustion of fossil fuels in its internal combustion engines. To limit the emission of greenhouse gases, countries worldwide have adopted norms to promote the use of renewable energy resources. Biofuels such as ethanol affirm themselves as a cleaner energy source for the transportation sector, which could lead to a developed biofuel market in the future.
- According to the Renewable Fuels Association (RFA), in 2022, the United States produced 15,4 billion gallons of fuel ethanol, making it the leading producer of biofuel in the world.
- Primary blending mandates that drive the global demand for biofuels are set in North America, India, Brazil, Europe, Indonesia, Malaysia, etc. For instance, in India, there is a mandate to begin 20% ethanol blending by 2025. In Indonesia, a commission of 35% biodiesel blending is expected to start in 2023, whereas in Brazil, the existing order for ethanol blending is 27%. Such measures highlight the increase in the use of biofuels across countries.
- Furthermore, in March 2022, Brazil's Ministry of Economy announced the withdrawal of import tariffs on ethanol, including other products, to alleviate inflationary pressures. This is expected to boost the ethanol blend in gasoline and drive the market.
- In 2022, SGP BioEnergy announced the development of the world's most extensive biofuel distribution and production hub in Panama, in association with the country's government, which is estimated to produce 180,000 barrels per day of biofuel. Similarly, in 2023, the US Department of Energy awarded USD 118 million for 17 projects to scale up ethanol and other biofuels to help America's transportation and manufacturing needs. Such trends are likely to ramp up the biofuel market.
- Therefore, owing to the above points, the ethanol segment is expected to experience significant growth in the biofuels market during the forecast period.
Understand The Key Trends Shaping This Market
North America is Expected to Dominate the Market
- The North American region houses one of the biggest aviation markets, primarily fossil fuels, and a well-established transportation infrastructure. The North American region has been at the forefront of lowering emissions to limit the greenhouse effect.
- According to the U.S. Energy Information Administration, the total production volume of biodiesel production in the United States was 1.6 billion gallons by 2022
- In January 2022, the US Environmental Protection Agency announced a new initiative for streamlining the review of biofuels and chemicals that can significantly replace higher GHG-emitting fossil fuels, providing a significant push to the biofuels market. Similarly, the US Department of Energy announced an Alternative Fuel Infrastructure Tax Credit of 30% for the fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed on or after December 2022. Such incentive measures would likely promote the biofuel market.
- Similarly, in Canada, the government aimed to increase carbon taxes by CAD 10 to CAD 50 per ton of emissions from April 2022, thereby pushing for wider adoption of biofuels that emit less GHG.
- Hence, owing to the above points, the North American region is likely to dominate the biofuels market due to government policies and production capacity.
Get Analysis on Important Geographic Markets
Biofuels Industry Overview
The biofuels market is fragmented. Some of the major players include (in no particular order) Archer Daniels Midland Company, Abengoa Bioenergy SA, Renewable Energy Group Inc., Cargill Incorporated, and POET LLC., among others.
Biofuels Market Leaders
Abengoa Bioenergy S.A.
POET, LLC
Archer Daniels Midland Company
Cargill Incorporated
Renewable Energy Group, Inc.
*Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Biofuels Market News
- April 2023: Cepsa awarded a contract for the engineering, procurement, and construction management support of the second-generation (2G) biofuels plant in southern Europe to the Técnicas Reunidas. This new plant will use agricultural waste and used cooking oils as feedstock. it will have two pre-treatment units and a flexible production capacity of around 500,000 tons of renewable diesel and sustainable aviation fuel (SAF) for use in air, sea, and land transport.
- January 2023: Zagros Petrochemical Company and China's Dalian Petrochemical Company entered into the deal to establish a methanol-to-synthetic ethanol conversion plant in Iran, which would be the first plant of ethanol for Iran. The plant is estimated to have a production capacity of 300,000 tons and would be commissioned within three years.
Biofuels Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Biofuel Production Historic and Forecast, till 2028
4.3 Biofuel Consumption Historic and Forecast, till 2028
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Increasing Demand for Secure, Sustainable, and Clean Energy
4.6.2 Restraints
4.6.2.1 High Cost of Production of Biofuels
4.7 Supply Chain Analysis
4.8 Industry Attractiveness - Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitute Products and Services
4.8.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Fuel Type
5.1.1 Ethanol
5.1.2 Biodiesel
5.1.3 Other Fuel Types
5.2 Feedstock
5.2.1 Palm Oil
5.2.2 Jatropha
5.2.3 Sugar Crop
5.2.4 Coarse Grain
5.2.5 Other Feedstock
5.3 Geography
5.3.1 North America
5.3.1.1 United States of America
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 Denmark
5.3.2.4 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Indonesia
5.3.3.4 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Chile
5.3.4.4 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 Saudi Arabia
5.3.5.3 South Africa
5.3.5.4 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Abengoa Bioenergy SA
6.3.2 Cargill Incorporated
6.3.3 Shell PLC
6.3.4 Wilmar International Ltd.
6.3.5 Renewable Energy Group Inc.
6.3.6 Archer Daniels Midland Company
6.3.7 BP PLC
6.3.8 POET LLC
6.3.9 Neste Oyj
6.3.10 Verbio Vereinigte BioEnergie AG
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Technological Advancements in Production of Biofuels
Biofuels Industry Segmentation
Biofuels usually refer to liquid fuels and blending elements produced from biomass materials called feedstocks. Most biofuels are used as transportation fuels, but they may also be used for heating and electricity generation. Due to its replenishable attributes, biofuel is considered a renewable energy source. It is affordable and an alternative to petroleum or other fossil fuels. It can be used as an energy source for vehicles and industrial applications.
The biofuel market is segmented by type, feedstock, and geography. By type, the market is segmented into biodiesel, ethanol, and other types. By feedstock, the market is segmented into palm oil, jatropha, sugar crop, coarse grain, and other feedstock. The report also covers the market size and forecasts across major regions. The market size and forecasts for each segment have been made based on volume.
| Fuel Type | |
| Ethanol | |
| Biodiesel | |
| Other Fuel Types |
| Feedstock | |
| Palm Oil | |
| Jatropha | |
| Sugar Crop | |
| Coarse Grain | |
| Other Feedstock |
| Geography | ||||||
| ||||||
| ||||||
| ||||||
| ||||||
|
Need A Different Region Or Segment?
Biofuels Market Research FAQs
How big is the Biofuels Market?
The Biofuels Market size is expected to reach 1.89 million barrels of oil equivalent per day in 2024 and grow at a CAGR of 5.20% to reach 2.44 million barrels of oil equivalent per day by 2029.
What is the current Biofuels Market size?
In 2024, the Biofuels Market size is expected to reach 1.89 million barrels of oil equivalent per day.
Who are the key players in Biofuels Market?
Abengoa Bioenergy S.A., POET, LLC, Archer Daniels Midland Company, Cargill Incorporated and Renewable Energy Group, Inc. are the major companies operating in the Biofuels Market.
Which is the fastest growing region in Biofuels Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Biofuels Market?
In 2024, the North America accounts for the largest market share in Biofuels Market.
Which is the largest segment of the Biofuels Market by fuel type?
The Ethanol segment is estimated to be the largest segment of the Biofuels Market by fuel type.
What are the main drivers of the Biofuels Market growth?
The main drivers of the biofuels Market growth are a) Increasing demand for secure, sustainable, and clean energy b) Increasing blending in automotive fuels
Biofuels Industry Report
The global biofuels market is witnessing significant growth, fueled by the rising demand for cleaner fuels, supportive government policies, and the urgency for energy security. Derived from renewable sources such as crops, forestry residues, and municipal wastes, biofuels offer a viable alternative to fossil fuels, aiding in the reduction of greenhouse gas emissions and decreasing reliance on oil imports. The market, segmented by fuel types like ethanol, biodiesel, renewable diesel, and biojets, sees ethanol poised for substantial growth due to its effectiveness in cutting transportation sector emissions. North America is expected to lead the market, due to its sophisticated production facilities and encouraging government initiatives. Despite facing challenges like high initial capital investment and fluctuating feedstock costs, new oilfield discoveries, and technological advancements are creating expansive opportunities for the biofuel industry, positioning it as a crucial component in the shift towards more sustainable energy sources. Leading biofuels companies are capitalizing on these opportunities, utilizing detailed market analysis and insights to navigate the changing landscape. For comprehensive statistics on biofuels market share, size, revenue growth rate, and a forecast outlook, Mordor Intelligence™ Industry Reports offer an in-depth biofuels analysis, including a historical overview and a free report PDF download for a sample of this industry analysis.
Biofuels Market Report Snapshots
