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The biofuels market size is estimated to grow at a CAGR of 3.92% between 2022 and 2027, and the size of the market is forecast to increase by USD 31.77 billion. The growth of the market depends on several factors, such as the growing adoption of renewable sources of energy, the increasing need for cleaner fuels, and steady government support.
This report extensively covers market segmentation by application (transportation, aviation, heating, energy generation, and others), product (ethanol and biodiesel), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Biofuels Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Key Driver
A key factor shaping the biofuels market growth is the rising need for cleaner fuels. Due to uncertainty in global fuel prices, energy security, and continuously rising emissions, there is an increasing interest in alternate fuels globally. As biofuel blends are being used in vehicles with little or no modification required in vehicle engines, there will be an increasing demand for biofuels in the coming years.
Further, developing nations such as India and China are implementing strategies to utilize more renewable fuels in their transportation sector in order to reduce GHG emissions, as these countries are more prone to pollution. Other factors such as the increasing depletion of conventional fossil fuels, increasing GHG emission levels, and volatile oil prices have a significant impact on the growth of global bio fuel market during forecast period.
One of the key trends shaping the biofuels market growth is the expansion of advanced biofuels. Advanced biofuels, also referred to as second-generation or advanced-generation biofuels, are generated from non-food feedstocks such as agricultural waste, algae, cellulosic biomass, and other non-edible plant materials. Some of the significant advantages of advanced biofuels include improved environmental performance, higher energy efficiency, and reduced competition with food production.
Further, there is a growing adoption of advanced biofuels due to increasing concerns about climate change and the need to reduce greenhouse gas emissions. Thus, this trend is expected to continue and significantly contribute to the market growth of biofuels during the forecast period.
Fluctuations in oil prices are one of the key challenges hindering the biofuels market growth. Even though biofuels offer many advantages over fossil fuels, including lower GHG emissions and similar vehicular powers, it is much more expensive when compared to other conventional fuel prices. This can significantly impede the adoption of biofuels and hinder the growth of the biofuel market globally.
Further, the global oil and gas industry is highly dependent on crude oil prices, frequently fluctuating with high uncertainty. Therefore, the volatility of crude oil prices remains a threat to the global biofuels market in the forecast period.
Vendors 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.
Alten SA: The company offers biofuels such as Biodiesels, Biogas for the development of renewable energies. Also, the company offers consulting, engineering, research and development, IT, and other services through this segment.
Alto Ingredients Inc: The company offers biofuels such as renewable fuels which produce high quality, bio-based alcohols that catalyze innovation, empower transportation, and improve everyday products.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The transportation segment will account for a major share of the market's growth during the forecast period. Due to increasing concerns about climate change, the need to reduce greenhouse gas emissions, and the desire for energy security, the biofuels market has experienced significant growth over the past decade. Government regulations and policies promoting the use of biofuels have also played a crucial role in the growth of the biofuel market during the forecast period.
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The transportation segment was valued at USD 98.18 billion in 2017 and continued to grow until 2021. Some of the key factors which drive the biofuel markets include environmental concerns, government policies, and the need for energy diversification. Due to the growing importance, biofuels are expected to play a crucial role in the transition toward a more sustainable transportation system which in turn drives the market globally.
Based on product, the market has been segmented into ethanol and biodiesel. Ethanol is a renewable fuel that can be generated using various feedstock options. Ethanol is being sold to fuelling stations by oil marketing companies (OMC) such as BP (British Petroleum) and ExxonMobil by blending it with gasoline in different proportions.The main reason for the increasing adoption of ethanol biofuel is the need to reduce GHG emissions. Thus, it is expected to drive the demand for ethanol in the global market of biofuels during the forecast period.
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APAC is estimated to contribute 25% to the growth of the global market. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
Another region offering significant growth opportunities to vendors is North America. Automotive, mining, agriculture, power generation, marine, and railway are major end-user industries contributing to the main market share in North America. Due to the trade impact of the US, such as tariff change and import-export regulations, on its biofuel import from countries such as Argentina, Indonesia, and Malaysia, the market in the region is expected to grow at a moderate rate during the forecast period.
In 2020, the COVID-19 pandemic negatively impacted investments in the energy sector. As a result, there was further slowdown in investments in new renewable power projects. 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 regional biofuels market during the forecast period.
The biofuels market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Biofuels Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.92% |
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Market growth 2023-2027 |
USD 31.77 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.11 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 25% |
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Key countries |
US, China, India, UK, and Brazil |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advance Biofuel, Alten SA, ALTO INGREDIENTS INC., Archer Daniels Midland Co., Argent Energy UK Ltd., BlueFire Renewables Inc., Bunge Ltd., Cargill Inc., Chevron Corp., ENERKEM Inc., KFS Biodiesel GmbH and Co. KG, Louis Dreyfus Co. BV, Munzer Bioindustrie GmbH, Neste Corp., POET LLC, RB FUELS, Shell plc, Valero Energy Corp., Vance Group Ltd., and Wilmar International Ltd. |
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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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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