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The biofuel from sugar crops market size is forecast to increase by USD 509.1 million and is estimated to grow at a CAGR of 3.19% between 2023 and 2028. Renewable energy has gained significant traction in recent years due to increasing concerns over environmental sustainability and energy security. Governments worldwide have recognized the importance of transitioning to cleaner energy sources and have implemented policies to support the growth of the renewable energy sector. Solar, wind, and hydroelectric power are among the most popular renewable energy sources, offering cost-effective and sustainable alternatives to traditional fossil fuels. The adoption of renewable energy not only reduces greenhouse gas emissions but also enhances energy independence and stability. With the ongoing technological advancements and government incentives, the future of renewable energy looks promising, making it a wise investment for both individuals and organizations.
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The market is witnessing significant growth due to increasing environmental concerns and the need for clean energy. With the awareness of reducing greenhouse gas emissions and moving away from conventional fuels like coal and natural gas, biofuels derived from sugar crops have gained prominence. Sugarcane is a major source of biofuels, particularly ethanol, which is widely used as a blended fuel in the automotive sector. Governments around the world are implementing taxes and mandates to encourage the use of biofuels, providing tax benefits to producers and consumers. Corn is another significant biofuel-producing crop, with ethanol being the most common biofuel derived from it. Advanced biofuels, such as cellulosic ethanol and biodiesel, are also gaining popularity due to their potential to reduce carbon emissions. The infrastructure required for the production and distribution of biofuels is a key challenge, but the market is expected to continue its growth trajectory in the coming years. Prices of conventional biofuels and conventional fuels also play a role in the market dynamics. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased adoption of renewable sources of energy is notably driving market growth. The environmental concerns associated with the emission of greenhouse gases (GHG) from conventional fuels such as coal and natural gas have led to a growing awareness and demand for cleaner energy sources. Renewable biofuels derived from sugar crops, like sugarcane and corn, are gaining popularity as viable alternatives to conventional fuels in various sectors, including the automotive industry.
Moreover, ethanol, a common biofuel produced from sugarcane, is increasingly being used as a blended fuel with gasoline to reduce GHG emissions. Government mandates and taxes are key drivers for the biofuel market. For instance, the US Renewable Fuel Standard (RFS) mandates the use of a certain percentage of renewable fuels in transportation fuel. Similarly, tax benefits and carbon taxes incentivize companies to invest in biofuels. Thus, such factors are driving the growth of the market during the forecast period.
Rising need for cleaner fuels is the key trend in the market. The global shift towards cleaner and renewable energy sources has led to a growing emphasis on biofuels as an alternative to conventional fuels such as coal and natural gas. Environmental concerns, including the emission of greenhouse gases, have heightened awareness of the need for sustainable energy solutions.
Moreover, biofuel producing crops, like sugarcane and corn, have emerged as viable options for producing ethanol and other advanced biofuels. The automotive sector is a significant consumer of these biofuels, with blended fuels increasingly being used in vehicles with minimal engine modifications. This trend is particularly prevalent in regions with stringent emission norms, such as Europe, where the use of cleaner fuels is mandated. Thus, such trends will shape the growth of the market during the forecast period.
Fluctuations in oil prices is the major challenge that affects the growth of the market. The market for biofuel derived from sugar crops faces competition from conventional fuels, primarily coal and natural gas, in the energy sector. The increasing awareness of environmental concerns and the need for clean energy have driven the demand for biofuels.
However, the volatile nature of the global crude oil industry, with its unpredictable price fluctuations, poses a challenge to the growth of this market. The automotive sector, a major consumer of biofuels, relies on blended fuels like ethanol derived from sugarcane and corn. Government mandates and tax benefits have been instrumental in promoting the use of biofuels. Hence, the above factors will impede the growth of the market during the forecast period.
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
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.
Aurora Cooperative Elevator Co: The company offers ethanol whih is a biofuel, produced from sugar crops.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The aviation segment is estimated to witness significant growth during the forecast period. The biofuel market derived from sugar crops is gaining significant traction due to environmental concerns and the need for clean energy. Traditional fuels, such as coal and natural gas, contribute substantially to greenhouse gas emissions, leading to a shift towards biofuels.
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The aviation segment was the largest segment and valued at USD 930.60 million in 2018. The automotive sector is a major consumer of biofuels, with ethanol derived from sugarcane being a popular choice. Governments worldwide have implemented taxes, mandates, and incentives to promote the use of blended fuels and offer tax benefits to consumers. Biofuel-producing crops like sugarcane and corn are at the forefront of this transition. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 41% 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. The biofuel market from sugar crops is gaining significant attention due to environmental concerns and the need for clean energy alternatives to conventional fuels such as coal and natural gas. Biofuel producing crops, particularly sugarcane for ethanol and corn for corn ethanol, have emerged as viable solutions for reducing greenhouse gas emissions in the automotive sector. Government mandates and taxes, including carbon taxes, have been implemented to incentivize the use of blended fuels and provide tax benefits to automobile owners. Hence, such factors are driving the market in APAC during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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A Sustainable Solution for Clean Energy in the Automotive Sector Biofuel from sugar crops, particularly ethanol derived from sugarcane, has emerged as a promising alternative to conventional fuels such as coal and natural gas. Environmental concerns over the increasing levels of greenhouse gases (GHGs) have led to a growing awareness for clean energy. The automotive sector is at the forefront of this transition, with blended fuels and tax incentives driving the demand for biofuels. Sugarcane is one of the most widely used biofuel producing crops, with Brazil being a leading producer of ethanol. Ethanol production reduces GHG emissions by up to 60% compared to conventional fuels.
Moreover, mandates and taxes, such as the Renewable Fuel Standard in the US and the Ethanol Blending Program in Brazil, have played a significant role in promoting the use of biofuels. The infrastructure required for the production and distribution of biofuels is a critical factor in their adoption. Companies are investing in advanced biofuels, such as cellulosic ethanol and biodiesel, to increase efficiency and reduce the reliance on conventional biofuels like corn-based ethanol. Government support and energy security concerns have also fueled investments in biofuels. Companies are adopting cutting-edge product and business strategies to stay active in this competitive market. Some of the key players in the biofuels industry include Ace Biofuels, Green Plains Inc., and Archer Daniels Midland Company. The market is expected to grow significantly, driven by increasing GDP, government frameworks, and the need for cleaner fuels. The market is expected to witness significant growth in the coming years, with investments in research and development and the adoption of advanced technologies playing a crucial role.
The market is advancing with initiatives like Carbon tax influencing Automobiles and promoting sustainability frameworks. The market landscape depends on Framework, Company Profiles, Innovator, Product strategy, Business strategy, Study, Publisher, Profit. Companies are adopting innovative strategies such as Ace matrix and Cutting Edge technologies to enhance product and business strategies in response to the evolving Global market scenario. The efficiency of airlines is crucial in studies assessing biofuel impact, with publishers highlighting profitability through optimized Pricing and Promotions. Industry influencers play a pivotal role in shaping the market landscape, emphasizing the importance of sustainable biofuels derived from sugar crops to mitigate environmental impact and meet energy demands sustainably.
Market Scope |
|
Report Coverage |
Details |
Page number |
144 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.19% |
Market growth 2024-2028 |
USD 509.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.09 |
Regional analysis |
South America, APAC, North America, Europe, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
Brazil, India, US, China, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abengoa SA, ALTO INGREDIENTS Inc., Archer Daniels Midland Co., Aurora Cooperative Elevator Co., BP Plc, Bunge Ltd., Cargill Inc., Chevron Corp., Dow Inc., GranBio Investimentos SA, My Own Eco Energy Pvt. Ltd., POET LLC, Shell plc, SZVG eG, VERBIO Vereinigte BioEnergie AG, Wilmar International Ltd., and Woodland Biofuels Inc. |
Market dynamics |
Parent market analysis, market report, market forecast, 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 |
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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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