NEW YORK, July 26, 2021 /PRNewswire/ — Fact. MR in its latest report forecasts that the global biofuel market will register a CAGR of 4.8% between 2021 and 2031. With rising demand for green fuels, the overall market is set to grow 1.6X from 2021 to 2031, reaching a valuation of around US$ 226 Bn by 2031 end.
Depleting natural resources, increasing carbon footprints and growing demand for renewable energy for ecological sustainability are some of the factors driving the growth of biofuel market. Biofuels are considered as one of the cleaner fuel options than the conventional ones.
Access to cheap energy has become an essential factor to the proper functioning of modern economies. Countries across the world are continuously looking for fuel alternatives to cope with the rising energy insecurity. As a result, sales of biofuels are gaining momentum.
Similarly, in order to achieve energy security, governments across the world are bringing forth various reforms to promote the use of biofuel blend with conventional fuels. This has resulted in the expansion of biofuel market.
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Rising environmental concerns along with governments’ emphasis on the use of ecofriendly alternatives have led to the adoption of various biofuels. Biofuels are being increasingly adopted to meet the ever-increasing demand for fuel across various sectors such as transportation sector.
Technological advancements have paved way for the development of cutting-edge liquid biofuels as viable option to decarbonize energy sectors in a cost-effective way in industries such as road transportation, aviation, shipping etc.
Automotive manufacturers are continuously introducing energy efficient vehicles with biofuel-based engines. This has largely impacted the sales of biofuels. Moreover, the growing interest of shipping companies towards usage of biofuels is expected to impact the demand for biofuels during the forecast period.
Various feedstock such as corn, sugarcane and vegetable oil are used to produce biofuels. Among these, corn and sugarcane account for around 50% of the required feedstock for biofuel production.
Bioethanol dominates the biofuels market with a revenue share of around 65% in 2020, owing to its clean and harmless nature.
North America leads the biofuels market with an incremental opportunity of US$ 22.7 Bn. This can be attributed to the increasing utilization of biofuels in transportation sector.
“Biofuels will be the world’s fast-growing source of energy during the forecast period. Consequently the focus on capacity expansion is at all-time high in the market. Companies will therefore focus on strategic collaborations as they aim for competitive advantage,” says a Fact MR Analyst.
Key Takeaways from Biofuels Market Survey
- The U.S is leading the market for biofuels as a result of increasing adoption of biofuels along with higher production of biodiesel-based engine vehicles. The U.S and Brazil together account for over 3/4 of global biofuel production
- With increasing demand for green fuels along with growing interest of fuel policymakers in alternative fuels, the biofuel market in China is set to register a CAGR of around 6% between 2021 and 2031.
- Indonesia is forecast to register a CAGR of 7% during the forecast period. This can be attributed to the increasing investments in biofuel infrastructure to meet country’s alternative fuel goal.
- Based on feedstock, corn-based biofuel leads the market with over 1/4 of over biofuel revenue.
- Owing to its suitability in automotive applications, bioethanol dominates the global biofuel market with over 65% revenue share.
Key Drivers
- Growing interest to replace fossil fuels with biofuels for a sustainable ecosystem is positively impacting the biofuels market.
- Rapid production of biofuel-based vehicles is fueling the demand for biofuels.
- Consistent supply of feedstock along with favorable government policies support the adoption of biofuels across various industries.
- Rising interest of shipping companies towards utilizing biofuels is likely to drive the growth of biofuel market further during the forecast period.
Key Restraints
- Rising concerns for deforestation as a result of expansion of sugarcane and corn cultivation area is hampering the growth of biofuels market to some extent.
- Lack of awareness across developing and under-developed countries regarding benefits of biofuels is negatively affecting the growth of overall market.
- Rise of electric automotive industry is hampering the growth of biofuels market.
- Similarly, COVID-19 has also negatively impacted the growth of biofuels market. Sales of biofuel witnessed a year-on-year decline of -3.6% in 2020 as a result of COVID-19 impact.
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Competitive Landscape
Key players operating in the biofuels market are shifting their focus towards developing less expensive and cutting-edge biofuels. They are adopting various organic and inorganic growth strategies such as mergers and acquisitions, advanced product development and collaborations to gain a competitive edge in the market. For instance,
- In May 2021, Archer Daniels Midland Company (ADM) announced its plan to build North Dakota’s first-ever soyabean crushing plant and refinery in order to meet the fast-growing demand from food, feed, industrial and biofuel customers, including producers of renewable diesel.
- In July 2021, TotalEnergiespartnered with Veolia to accelerate the development of microalgae cultivation using CO2. The microalgae cultivated will be converted into next-generation biofuels with low carbon intensity.
- Similarly in July 2021, Kemin Biofuels launched ZyloZyme™ AA for the production of bioethanol.
Some of the prominent players operating in the biofuels market profiled by Fact.MR are:
- Bunge Limited
- Archer Daniels Midland Company
- Valero Energy Corp.
- Petrobras
- Butamax
- Renewable Energy Corp.
- Wilmar International
- Algenol
- Pacific Ethanol Inc.
- Poet, Llc
- Flint Hills Resources
- The Andersons, Inc.
- Raizen S.A.
- Copersucar S.A.
- Abengoa, S. A.
- Alpha Biofuels
More Valuable Insights on Biofuels Market
Fact.MR, in its new report, offers an unbiased analysis of the global biofuels market, analyzing forecast statistics through 2021 and beyond. The survey reveals growth projections in Biofuels market with detailed segmentation:
By Biofuel Type
- Biodiesel
- Bioethanol
- Others
By Feedstock
- Corn-based Biofuel
- Sugarcane-based Biofuel
- Vegetable Oil-based Biofuel
- Other Feedstock-based Biofuel
By Application
- Biofuel for Land Transport
- Biofuel for Shipping
- Biofuel for Other Applications
Key Questions Covered in the Biofuels Market Report
- The market survey also highlights projected sales growth for biofuels market between 2021 and 2031
- The report offers insight into biofuels demand outlook for 2021-2031
- Biofuels market share analysis of the key companies within the industry and coverage of strategies such as mergers & acquisitions, collaborations or partnerships, and others
- Biofuels market analysis identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
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