Bioenergy Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, China, France, UK - Size and Forecast 2024-2028

Bioenergy Market Size and Trends

The bioenergy market size is forecasted to increase by USD 88.4 billion, at a CAGR of 7.81% between 2023 and 2028. The market's growth hinges on various factors, notably escalating concerns regarding the environment and energy security, alongside an augmented demand for renewable, clean fuel sources. Supportive government policies further propel this trajectory, fostering a conducive environment for market expansion. As sustainability takes center stage globally, industries are increasingly turning towards renewable energy solutions to mitigate environmental impact and enhance energy resilience. This paradigm shift towards clean fuel underscores the market's pivotal role in addressing contemporary energy challenges. With governments incentivizing renewable energy adoption and fostering innovation in this domain, especially in clean energy technologies, the market is poised for substantial growth, driving advancements towards a more sustainable and secure energy future.

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The market encompasses various renewable sources, including biomass, agricultural waste, and solid waste. Biofuels, such as biogas and liquid biofuels derived from these sources, play a significant role in this sector. Bioorganic waste, including timber, compost, sugarcane, straw, and other agricultural residues, serves as essential feedstocks for bioenergy production. The installed base of bioenergy technologies includes biogas plants, dle (direct liquid extraction) systems, and green hydrogen production facilities. Landfills can also be utilized as sources of biogas and energy. Renewable energy investment in bioenergy has been increasing due to the potential for electricity generation, energy security, and mitigating the energy crisis. Biomass supply is a critical factor in the success of this industry, with ongoing research and development in bioenergy investment and bioenergy technologies. Bioenergy from biomass and organic waste can be converted into various forms, including biogas, liquid biofuels, and green hydrogen. These alternative energy sources offer a sustainable solution to the reliance on traditional fossil fuels like oil.

Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Application Outlook
  • Off-grid electricity
  • Cooking 
  • Transportation 
  • Others

• Product Type Outlook 
  • Liquid biofuel 
  • Solid biomass 
  • Biogas 

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

By Application Insights

The market share growth by the transportation segment will be significant during the forecast period. This growth is attributed to factors such as a rise in the demand for biodiesel products. Biodiesel is an alternative to regular diesel for diesel engines, as it is environmentally friendly. 

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The transportation segment showed a gradual increase in the market share of USD 62.90 billion in 2018. Conventional fuels are increasingly being replaced by alternatives such as bioethanol and biodiesel. Biodiesel, gasoline-blended methyl tert-butyl ether (MTBE)/tert-amyl methyl ether (TAME), and dimethyl ether (DME) are widely used in the automotive industry. The demand for fuels such as MTBE/TAME, biodiesel, and DME is expected to rise during the forecast period due to the increasing adoption of emission-controlled fuels.

Regional Analysis

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North America is estimated to contribute 28% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.  Another region offering significant growth opportunities to companies is Europe. European market witnesses significant investment due to its role in ensuring energy security and reducing reliance on oil. With oil price fluctuations, the need for alternative and renewable energy sources has become increasingly important. Biofuel technologies, such as cellulosic ethanol and algae-based biofuels, are strategic announcements towards a sustainable energy future. Solid biomass resources, including agricultural byproducts and waste materials, serve as the primary feedstocks for bioenergy production. Biogas demand continues to rise, contributing to a reduction in greenhouse gas emissions through the utilization of organic waste and methane emissions. Fermentation technology and gasification technology are key processes in the production of bioethanol and syngas, respectively. The EU's Renewable Energy Directive sets ambitious targets for the use of renewable energy, with a focus on bioenergy from biomass, reaching almost 60% of total energy consumption in Europe.

Key Market Driver

Increasing concerns about the environment and energy security are notably driving the market growth. Bioenergy, derived from renewable sources such as biomass, biogas, and biofuels, is gaining significant attention as an alternative to fossil fuels. Biomass encompasses agricultural waste, solid waste, and organic waste. Liquid biofuels, like biodiesel and ethanol, are produced from various feedstocks, including sugarcane, straw, and waste. Solid biomass is used for heat and power generation, while biogas is produced from organic waste in landfills and biogas plants. Bioenergy offers numerous benefits, including energy reliability, security, cost savings, biodegradability, and improved air quality.

Further, the demand for energy continues to rise, and technologies, such as green hydrogen production and biomass supply, are attracting substantial investments. Companies are investing in biogas plants and timber composting to capitalize on this trend. The installed base of bioenergy is growing rapidly, with a gigawatt-scale capacity in electricity generation and a significant presence in transportation. The shift towards renewable energy sources is crucial in mitigating the energy crisis and reducing dependency on fossil fuel power. Thus, the market is expected to grow during the forecast period.

Significant Market Trend

Increasing investments in the bioenergy sector are a key trend influencing the market growth. The market is experiencing significant growth due to increasing investments from governments and private organizations. Renewable sources, such as Biofuels derived from Biomass and organic waste, are at the forefront of this expansion. Biofuels encompass various forms, including Biogas generated from agricultural and solid waste, and Liquid biofuels derived from landfills and sugarcane. The shift towards Bioenergy offers numerous benefits, including energy reliability and security, cost savings, and improved air quality. Solid biomass and liquid biofuels are utilized for Power and Heat generation, while Biogas is employed in transportation.

Moreover, the installed base of technologies, including Biomass supply, Biogas plants, and Green hydrogen production, is expanding rapidly. The demand for energy continues to rise, and Bioenergy technologies provide a sustainable and eco-friendly solution to the ongoing energy crisis. Investments are projected to reach gigawatt levels, with a focus on Electricity generation and DLE (Decarbonization of Liquid Energy) to reduce carbon emissions. These factors will support market growth during the forecast period.

Major Market Challenge

The fall in crude oil prices may impede the market growth. The market encompasses renewable sources, such as Biomass and Biogas, derived from organic waste, agricultural waste, and solid waste. Biofuels, including Biogas and Liquid biofuels, play a crucial role in this sector. Bioenergy is essential for energy reliability and security, offering cost savings, biodegradability, and improved air quality.

With the demand for energy continuing to rise, technologies, such as DLE and Biomass supply, are increasingly being utilized for power generation and heat generation. Moreover, installed bases for bioenergy have reached gigawatt levels, with significant investments in Electricity generation from Biomass and Green hydrogen production through Biogas plants. These factors will restrict the market growth during the forecast period.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

A2A SpA - The company offers bioenergy such as biomethane.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Archer Daniels Midland Co.
• Babcock and Wilcox Enterprises Inc.
• BP Plc
• Cargill Inc.
• Darling Ingredients Inc.
• ENERKEM Inc.
• Fortum Oyj
• Fulcrum BioEnergy Inc.
• Hitachi Zosen Corp.
• Louis Dreyfus Co. BV
• Manta Biofuel
• MVV Energie AG
• Orsted AS
• POET LLC
• Schaumann BioEnergy Consult GmbH
• SGP BioEnergy Holdings LLC
• Shell plc
• SynTech Bioenergy LLC
• Thumb BioEnergy LLC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

Bioenergy emerges as a significant player. Biofuels, derived from biomass, represent a substantial portion of this market. Solid biomass, such as wood and agricultural waste, is converted into Bioenergy through processes like combustion, pyrolysis, and gasification. Biogas, produced from organic waste through anaerobic digestion, is another essential Bioenergy source. The market is driven by several factors. These include increasing global awareness of environmental sustainability, government policies promoting renewable energy, and the depletion of fossil fuel resources. The demand for Bioenergy is particularly high in the transportation sector, with Biofuels like biodiesel and ethanol gaining popularity as alternatives to traditional fossil fuels. Moreover, the use of Bioenergy in the power sector is on the rise, with countries like Germany and Brazil leading the way. The European Union's Renewable Energy Directive and the US Renewable Fuel Standard are some of the key policies driving the market. In conclusion, the market is witnessing significant growth due to various factors, including environmental concerns, government policies, and the depletion of fossil fuel resources. The demand for bioenergy is particularly high in the transportation and power sectors. Key players in this market include Solid Biofuels, Biogas, and various Biofuels like biodiesel and ethanol.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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