The advanced biofuel market share is expected to increase by USD 110.50 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 45.35%.
This advanced biofuel market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers advanced biofuel market segmentations by type (cellulosic ethanol, biodiesel, biobutanol, bioDME, and others) and geography (North America, South America, Europe, APAC, and MEA). The advanced biofuel market report also offers information on several market vendors, including Abengoa SA, Bangchak Corp. Public Co. Ltd., DuPont de Nemours Inc., ENERKEM Inc., Goteborg Energi AB, GranBio Investimentos SA, POET-DSM Advanced Biofuels LLC, Renewable Energy Group Inc., Royal Dutch Shell Plc, and UPM-Kymmene Corp. among others.
What will the Advanced Biofuel Market Size be During the Forecast Period?
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Advanced Biofuel Market: Key Drivers, Trends, and Challenges
Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The favorable government policies is notably driving the advanced biofuel market growth, although factors such as higher cost of production compared to conventional fuels may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the advanced biofuel industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Advanced Biofuel Market Driver
The favorable government policies are one of the key factors driving the growth of the global advanced biofuel market. Growing environmental and energy security concerns have led governments to intervene and impose legislative and regulatory actions. This has led to an increase in the demand for renewable fuels such as cellulosic ethanol and biodiesel. The global transportation fuel demand is expected to rise due to decreasing fossil fuel reserves and an increasing number of automobiles. This is likely to drive the demand for advanced biofuels. Moreover, the government offers incentives, grants, special loans, and a tax credit to meet the set targets. For example, the US government provides loan guarantees under the biorefinery assistance program for the construction and renovation of commercial-scale biorefineries that produce advanced biofuels. The maximum loan guarantee is $250 million, and the maximum grant funding is 50% of the cost of the project. The US government also provides biodiesel tax incentives of $1 tax credit per gallon of biodiesel. Such initiatives and benefits are driving the production and consumption of advanced biofuels worldwide.
Key Advanced Biofuel Market Trend
The need to comply with environmental regulations will fuel the global advanced biofuel market growth. The benefits of advanced biofuels, such as reducing greenhouse gases and energy insecurity, have captured the interest of governments across the world. With advanced biofuels, such as biodiesel, gaining momentum and finding applications in different sectors, the need to comply with environmental regulations has increased. Currently, biodiesel is the only renewable fuel that has passed the strict regulations of EPA for renewable fuel and the Clean Air Act (CAA) for health study. The feedstocks used for the production of advanced biofuels vary from region to region. Since these feedstocks are used for various other purposes, it is getting into competition with the food sector, thus driving up the prices. Economic Co-operation and Development (OECD) organization has also warned regarding high food prices with respect to increased biofuel consumption. Therefore, to balance the use of specific feedstock, regional governments are overseeing the situation by setting environmental regulations on the consumption and quality of the advanced biofuels produced.
Key Advanced Biofuel Market Challenge
The higher cost of production compared to conventional fuels is a major challenge for the global advanced biofuel market growth. The global advanced biofuel market is still in its nascent stage. Not only is the current technology used in the production of advanced biofuels inefficient compared with that of conventional fuels, but also the cost of procuring feedstock is high. The processing of advanced biofuel feedstock is difficult. Though advanced biofuels are produced commercially, it still requires an efficient, sustainable, and economical processing technique. Moreover, the processing and operational cost for advanced biofuels are high in comparison to conventional fuels. Advanced biofuels have always been an expensive substitute for conventional fuels. Electric vehicles are considered a more economical and sustainable alternative to conventional fuels as well as advanced biofuels. It is probably a cheaper way to reduce carbon emissions. Thus, the demand for electric and hybrid vehicles is increasing. This is likely to hinder the growth of the global advanced biofuel market.
This advanced biofuel market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Parent Market Analysis
Technavio categorizes the global advanced biofuel market as a part of the global coal and consumable fuels market within the global coal market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the advanced biofuel market during the forecast period.
Who are the Major Advanced Biofuel Market Vendors?
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
- Abengoa SA
- Bangchak Corp. Public Co. Ltd.
- DuPont de Nemours Inc.
- ENERKEM Inc.
- Goteborg Energi AB
- GranBio Investimentos SA
- POET-DSM Advanced Biofuels LLC
- Renewable Energy Group Inc.
- Royal Dutch Shell Plc
- UPM-Kymmene Corp.
This statistical study of the advanced biofuel market encompasses successful business strategies deployed by the key vendors. The advanced biofuel market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market.
Product Insights and News
- Abengoa SA - The company offers advanced biofuel, which is derived from different types of wastes or biomass, such as municipal waste, wood, agri-food waste, industrial wastes, and others.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The advanced biofuel market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Advanced Biofuel Market Value Chain Analysis
Our report provides extensive information on the value chain analysis for the advanced biofuel market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global coal and consumable fuels market includes the following core components:
- Inputs
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
- Support activities
- Innovation
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Which are the Key Regions for Advanced Biofuel Market?
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48% of the market’s growth will originate from North America during the forecast period. The US is the key market for advanced biofuel market in North America. Market growth in this region will be slower than the growth of the market in regions.
The favorable government policies will facilitate the advanced biofuel market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
The outbreak of COVID-19 affected all countries in North America, especially the US. This negatively impacted the advanced biofuel market in North America in 2020 and 2021. However, in 2021, the initiation of large-scale vaccination drives has lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Such factors are expected to drive the market during the forecast period.
What are the Revenue-generating Type Segments in the Advanced Biofuel Market?
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The advanced biofuel market share growth by the Cellulosic ethanol segment will be significant during the forecast period. Various raw materials rich in cellulose content can be used for the production of cellulosic ethanol, such as agricultural waste and residues, grasses, algae, wood chips, and plants.
This report provides an accurate prediction of the contribution of all the segments to the growth of the advanced biofuel market size and actionable market insights on post COVID-19 impact on each segment.
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Advanced Biofuel Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 45.35% |
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Market growth 2021-2025 |
$ 110.50 billion |
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Market structure |
Concentrated |
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YoY growth (%) |
31.77 |
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Regional analysis |
North America, South America, Europe, APAC, and MEA |
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Performing market contribution |
North America at 48% |
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Key consumer countries |
US, Brazil, China, Germany, and UK |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
Abengoa SA, Bangchak Corp. Public Co. Ltd., DuPont de Nemours Inc., ENERKEM Inc., Goteborg Energi AB, GranBio Investimentos SA, POET-DSM Advanced Biofuels LLC, Renewable Energy Group Inc., Royal Dutch Shell Plc, and UPM-Kymmene Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Advanced Biofuel Market Report?
- CAGR of the market during the forecast period 2021-2025
- Detailed information on factors that will drive advanced biofuel market growth during the next five years
- Precise estimation of the advanced biofuel market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the advanced biofuel industry across North America, South America, Europe, APAC, and MEA
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of advanced biofuel market vendors
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