Global Biofuels Market 2016-2020

September 06, 2016
This industry research report identifies ADM, INEOS Enterprises, Neste, and Renewable Energy Group as the key vendors in the global biofuels market. This report also presents a competitive analysis of the market by fuel type (bio-diesel and ethanol), by feedstock (biodiesel feedstock and ethanol feedstock), and by geography (the Americas, APAC, and EMEA).

Overview of the global biofuels market

Market research analysts at Technavio have predicted that the global bio-fuels market will grow steadily at a CAGR of almost 6% by 2020. The uncertainty in global fuel prices, energy security, and the constantly rising emission levels have resulted in the growing interest towards alternate fuels. Constant efforts in R&D will lead to the large-scale commercialization of biofuels since their performance is similar to that of gasoline and diesel. Moreover, the depletion of fossil fuels also leads to the requirement of renewable biofuels. Biofuels can be used in regular vehicles with minimal or no engine modification, which will encourage the use of blended fuels in vehicles. Also, biodiesel emits lesser greenhouse gas, emits less than 15 parts per million sulphur into the atmosphere, and reduces hydrocarbon emissions. Such benefits over conventional fuel will drive the demand for biofuel production during the forecast period.

In terms of geography, EMEA will dominate the market by the end of the forecast period and will account for about 42% of the total market shares by 2020. Germany, Netherlands, and France are major contributors for the growth of the market in this region. Regulatory policies, such as the renewable energy directive (RED) has laid out sustainability requirements from biofuels and helps countries in the EU in setting up and reaching individual targets. Additionally, exponential consumption of energy in the Middle East and Africa due to urbanization and constant infrastructure development activities have led to the heavy dependence on fossil fuels. This will induce governments to diversify their energy mix; thus, driving the growth of the biofuels market in the next four years.

Competitive landscape and key vendors

The market is characterized by the presence of several established vendors and regional vendors. The local or regional biofuel manufacturers dominate the market in several geographical regions. Since the large established players have high capital resources, they invest heavily in their R&D sectors and focus on developing new technologies and feedstocks. This makes it difficult for the medium and small-scale vendors who have much fewer resources to compete with established players. The growing support from governments will likely provide the necessary momentum and will intensify the competition among biofuel companies in the already competitive market.

The leading vendors in the market are -

  • ADM
  • INEOS Enterprises
  • Neste
  • Renewable Energy Group

The other prominent vendors in the market are Archer Daniel Midland, Cosan, Fujian Zhongde Energy, Guangzhou Devotion Thermal Technology, Gushan Environmental Energy, Henan Tianguan Enterprise, Jiangsu Hengshunda Bio-Energy, Jiangsu Yueda Kate New Energy, Jilin Fuel Ethanol, Longyan Zhuoyue New Energy, Louis Dreyfus Commodities, Ningbo Tech-Bank, Petrobras, Shandong Jinjiang Bioenergy Technology, Shell, Tangshan Jin Lihai Biodiesel, and Zhenghe Bioenergy.

Segmentation by fuel type and analysis of the biofuels market

  • Bio-diesel
  • Ethanol

The ethanol market segment accounted for almost 70% of the total share of the market and dominated the industry during 2015. Bioethanol is a renewable fuel and can be produced using various feedstock. Fuel suppliers blend it with gasoline in different proportions before sending it to the fueling stations. The presence of a high number of ethanol mandates compared to biodiesel mandates results in the increased production of ethanol. Currently, the US and Brazil are the leading countries in ethanol production and collectively contribute to about 80% of the global produce.

Segmentation by feedstock and analysis of the biofuels market

  • Bio-diesel feedstock
  • Ethanol feedstock

The biodiesel feedstock includes palm oil, soya beans, rapeseed, and others, and are largely dependent on the geographical, climatic, and agricultural conditions of a region. Rapeseed is the most used feedstock in the production of biodiesel. Biodiesel produced using rapeseed has one of the lowest freezing points, which makes it more suitable for use in colder regions of the world. The feedstocks used for the production of ethanol require high amounts of cultivable land and directly compete with food for livestock and humans. This has led to the development of second-generation feedstock that is abundant and does not compete with food.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2020?
  • What are the key factors driving the global biofuels market?
  • What are the key market trends impacting the growth of the global biofuels market?
  • What are the challenges to market growth?
  • Who are the key vendors in the global bio-fuels market?
  • What are the market opportunities and threats faced by the vendors in the global biofuels market?
  • Trending factors influencing the market shares of the Americas, APAC, and EMEA.
  • What are the key outcomes of the five forces analysis of the global biofuels market?

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