Biofuels Market Size to grow by USD 26.6 billion between 2024-2028
According to a research report “ Biofuels Market” by Application (Transportation, Aviation, Heating, Energy generation, Others) Product (Ethanol, Biodiesel) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 26.6 billion, at a CAGR of 3.23% during the forecast period. The escalating issue of greenhouse gas (GHG) emissions poses a significant threat to our planet, leading to detrimental consequences such as ozone layer depletion, global warming, and melting ice caps. Consequently, there is an urgent need to decrease GHG emissions and preserve the environment. Renewable energy sources, which are now cost-competitive with fossil fuels, have emerged as viable alternatives, gaining widespread acceptance as primary energy sources in numerous countries. According to the US Energy Information Administration, the global net electricity generation share from renewables is projected to increase from 21% to a substantial proportion in the coming years. This trend underscores the growing business opportunity in the renewable energy sector, particularly in biofuels, as companies seek to reduce their carbon footprint and contribute to a sustainable future.
Browse market data tables, figures, and in-depth TOC on “Biofuels Market” by Application (Transportation, Aviation, Heating, Energy generation, Others) Product (Ethanol, Biodiesel) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Application, the Transportation segment is projected to dominate the market size in 2024
Ethanol, a renewable and high-octane biofuel, is produced using diverse feedstock options and is a preferred choice for oil marketing companies (OMCs) such as BP and ExxonMobil. These companies blend ethanol with gasoline in varying proportions, which is subsequently sold at fueling stations. The increasing emphasis on reducing greenhouse gas (GHG) emissions is driving the global adoption of ethanol as a biofuel. Primarily used in the domestic transport sector, ethanol is compatible with privately owned gasoline-powered vehicles, making it an essential component in the transition towards sustainable energy solutions.
By Product, Ethanol segment is expected to hold the largest market size for the year 2024
The global biofuels market in the transportation sector represents the manufacturing, sales, and utilization of biofuels as a substitute for conventional fossil fuels, predominantly in the transport industry. Biofuels are sourced from renewable resources such as plants, algae, and organic waste, serving as an essential energy source for various modes of transportation, including automobiles, trucks, watercraft, and aviation. The market has witnessed substantial expansion over the past decade, fueled by mounting environmental concerns, the imperative to decrease greenhouse gas emissions, and the pursuit of energy independence.
North America is forecasted to hold the largest market size by region in 2024
The biofuels market represents a significant business opportunity for companies operating in the renewable energy sector. With increasing global concerns over carbon emissions and the depletion of fossil fuel resources, demand for biofuels as sustainable alternatives is surging. Major players are investing heavily in research and development to improve production efficiency and reduce costs. Government incentives and regulations also support the growth of this market, making it an attractive business proposition for both established and new entrants.
The Biofuels Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
Biofuels have emerged as a promising alternative to fossil fuels, offering cleaner transport fuels, energy security, and reduced greenhouse gas emissions. Biofuels market encompasses various feedstocks, including genetically modified yields of sugar crops, coarse grains, molasses, Jatropha, algae-based biofuels, and vegetable oils. Cyanobacterial development and algae-based biofuels are gaining attention due to their high oil content and potential for large-scale production. Biofuels production includes liquid biofuels like ethanol from sugar crops and corn, and biodiesel from vegetable oils and animal fats. Renewable sources such as biomass, hydrogenated oil, and renewable diesel are also part of the biofuels market. Policy design plays a crucial role in the biofuels market, with blending mandates and subsidies driving demand. Environmental regulations ensure sustainable production, while oil imports reduction is a significant motivation for the adoption of biofuels. Biofuels offer a reduction in greenhouse gas emissions compared to fossil fuels, contributing to environmental sustainability. Ethanol and biodiesel are common biofuels used as transport fuels, with ethanol often blended with gasoline and biodiesel with diesel. The biofuels market continues to evolve, with ongoing research and development in feedstock sources and production technologies.
Market Research Overview
Biofuels have emerged as a promising alternative to fossil fuels in response to growing concerns over greenhouse gas emissions, energy security, and environmental regulations. Biofuel researchers are exploring various sources such as sugar crops, coarse grains, molasses, Jatropha, vegetable oil, and even algae-based biofuels through cyanobacterial development. The transportation sector, particularly aviation, is showing significant interest in renewable sources like biojets and sustainable aviation fuel. Prominent companies like Valero have invested heavily in biofuel production, focusing on ethanol from corn and sugarcane, as well as renewable diesel from biomass. The Renewable Fuel Standard and RenovaBio scheme are key policies driving the biofuels market, mandating the use of bioethanol and biodiesel blends. Biofuels offer GHG reductions compared to petroleum oil, making them a cleaner fuel option. However, policy design, feedstock availability, and cost competitiveness remain challenges. The inflation rate and oil imports also impact the market dynamics. The European Union's FuelEU Maritime and ReFuelEU Aviation initiatives aim to increase the use of renewable fuels, including biojets and sustainable aviation fuel. The electric vehicle and energy efficiency trends may also influence the biofuels market. Hydrogenated oil and renewable diesel are other liquid biofuels gaining traction. Overall, the biofuels market is evolving, driven by a combination of policy, technology, and market forces.
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