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Biofuel Market Analysis

  • Report ID: GMI7043
  • Published Date: Oct 2023
  • Report Format: PDF

Biofuel Market Analysis

 Biofuel Market Size, By Fuel Type, 2021 - 2032 (USD Billion)

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Based on fuel type, the ethanol fuel segment dominated highest market share in the year 2022 and is likely to register 6.2% growth rate through 2032. Shift towards higher ethanol blends coupled with increasing interest in cellulosic ethanol will complement the business scenario.
 

  • Ethanol is increasingly used as a feedstock for producing alcohol-to-jet (ATJ) fuels, supporting the aviation industry's efforts to reduce its carbon footprint and transition to more sustainable aviation fuels.
     
  • Government policies and regulations continued to play a pivotal role in promoting the use of ethanol as a biofuel. Renewable fuel standards and mandates encouraged the blending of ethanol into transportation fuels.
     
  • The potential applications of ethanol extended beyond transportation, with research exploring its use in industrial processes, chemicals production, and even as a hydrogen source in fuel cell.
     
  • A shift toward diverse feedstocks, including non-food sources including algae and waste materials, is becoming common, as a result, this diversification aimed to reduce the environmental impact and compete less with food crops.

 

 Biofuel Market Revenue Share, By Feedstock, 2022

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Based on feedstock, the vegetable oil feedstock segment is set observe gains ate nearly 6.5% up to 2032. The biofuel market an experiencing a shift toward the diversification of feedstocks where vegetable oil, such as soybean oil and palm oil, are traditional sources, there was growing interest in using non-food feedstocks, like algae, waste cooking oils, and agricultural residues. This diversification aimed to reduce competition with food crops and enhance sustainability, thereby fueling the market growth.
 

  • Research and development efforts are focused on producing advanced biofuels, including renewable diesel and renewable jet fuel, from vegetable oils. These advanced biofuels offered higher energy efficiency and reduced greenhouse gas emissions compared to first-generation biofuels.
     
  • Biofuels produced from vegetable oils continued to find opportunities in emerging markets where there was a focus on reducing greenhouse gas emissions and ensuring energy security.
     
  • Vegetable oil feedstocks are considered to produce sustainable aviation fuels (SAF), as the aviation industry aimed to reduce its carbon emissions.
     
  • The industry explored the use of waste vegetable oils from restaurants and food processing as a source for biofuel production, aligning with the principles of the circular economy.

 

North America Biofuel Market Size, 2021 - 2032 (USD Billion)

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The North America biofuel market is projected to witness more than 6.2% CAGR through 2032. The U.S. Environmental Protection Agency (EPA) continued to implement the Renewable Fuel Standard (RFS), which mandated the blending of biofuels into the nation's transportation fuel supply. The RFS set specific targets for advanced biofuels, driving demand for their production. Furthermore, government policies and incentives at the federal and state levels continued to promote the use of biofuels, such as tax credits and renewable energy standards. These policies aimed to boost biofuel adoption and production.
 

  • Biodiesel, particularly renewable diesel, saw growing production and consumption. Renewable diesel, derived from feedstocks like vegetable oils and animal fats, was gaining popularity due to its reduced carbon footprint.
     
  • The industry placed greater emphasis on sustainability, including the responsible sourcing of feedstocks and reducing the environmental impact of biofuel production.
     
  • North America's biofuel industry sought opportunities in emerging markets and industries like aviation and marine transportation, where biofuels are being explored as a sustainable fuel source.
     
  • Increased consumer awareness of environmental and sustainability issues influenced biofuel demand and purchasing decisions. Biofuel producers responded by promoting the environmental benefits of their products.
     
Authors: Ankit Gupta, Shashank Sisodia

Frequently Asked Questions (FAQ) :

The market valuation of biofuel was worth USD 167.7 billion in 2023 and is set to grow at a rate of over 7.2% through 2032, backed by the increased demand for eco-friendly fuels in road transportation.

Vegetable oil feedstock is slated to register at a 6.5% CAGR through 2032. Vegetable oil feedstocks are considered to produce sustainable aviation fuels (SAF), fulfilling the aviation industrys aim to reduce carbon emissions.

North America biofuel market is estimated to observe 6.2% growth rate up to 2032, as the U.S. Environmental Protection Agency (EPA) continues to implement the Renewable Fuel Standard (RFS), which mandates the blending of biofuels into the nations transportation fuel supply.

Chevron Corporation, Neste, Wilmar International Ltd., BTG International Ltd, Cargill, VERBIO AG, Borregaard AS, and POET, LLC among others.

Biofuel Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 610
  • Countries covered: 20
  • Pages: 450
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