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The lignocellulosic feedstock-based biofuel market size is forecast to increase by USD 33.65 billion and estimated to grow/decline at a CAGR of 50.35% between 2023 and 2028. The market for lignocellulosic feedstock is influenced by several key factors. The use of non-cropland for feedstock production, the growing adoption of bioethanol as a transport fuel, and stringent regulations aimed at reducing greenhouse gas emissions are driving market growth. However, the market also faces significant challenges. The conversion process of lignocellulosic feedstock is complex and costly, hindering widespread adoption. Additionally, there is competition from alternative fuels, which presents a challenge to bioethanol's market share. The rising adoption of electric vehicles (EVs) further impacts the demand for bioethanol as a transport fuel. Overcoming these challenges is crucial for leveraging the full potential of lignocellulosic feedstock in the renewable energy sector. The report includes historic market data from 2018-2022.
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The biochemical segment is leading market growth during the forecast period. BP Biofuels and other industry players focus on the biochemical segment of the lignocellulosic feedstock-based biofuel market due to ongoing research and development in the conversion process. This process consists of three main steps: pretreatment, enzymatic hydrolysis, and fermentation. During pretreatment, lignocellulosic feedstocks, such as Giant reedgrass (Arundo donax), Arundo donax, and switchgrass (Panicum virgatum), undergo physical or chemical treatments to separate hemicelluloses from lignin and cellulose.
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The biochemical segment was valued by USD 1.01 billion in 2018. Feedstocks are sourced from riparian and wetland areas, as well as saline soils and water. Other feedstocks include reed canary grass (Phalaris arundinacea), Napier Grass, Elephant Grass, Pennisetum purpureum, Poaceae family, and various halophytes. The conversion process also includes plant biotechnology and the adoption of bioethanol as a transport fuel to reduce greenhouse gas emissions. The market for second-generation biofuels continues to grow through integrated waste management and ethanol blending.
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North America is estimated to contribute 29% 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 market in North America is projected to expand moderately, with significant contributions from the US and Canada. Factors fueling market growth include the rise in renewable energy adoption, particularly wind and solar, and decreasing natural gas prices. In the US, supportive government policies are boosting biofuel adoption and development. Key feedstocks include Giant reedgrass (Arundo donax), switchgrass (Panicum virgatum), and various halophytes like Desmostachya bipinnata and Phragmites karka. Other feedstocks include reed canary grass (Phaaris arundinacea), Napier Grass, Elephant Grass, and Pennisetum purpureum, all belonging to the Poaceae family. Feedstocks are sourced from riparian and wetland areas, preventing soil erosion and reducing greenhouse gas emissions. The conversion process employs both biochemical and thermochemical methods to produce ethanol, which is used as a transport fuel and blended with gasoline to reduce GHG emissions.
The market is experiencing significant growth due to the increasing demand for sustainable and renewable transport fuels. Lignocellulosic feedstocks, derived from biomass such as wood, short rotation coppice, energy grasses, reeds, and cellulose, are gaining popularity as they offer a cost-effective and abundant alternative to traditional fossil fuels. The nature of lignocellulosic feedstocks, which include lignin and cellulose, makes them an ideal choice for the production of biofuels such as ethanol and drop-in biofuels. The adoption of bioethanol as a transport fuel has led to a reduction in greenhouse gas (GHG) emissions, making biofuels an attractive option in the biofuel market. The conversion process of lignocellulosic feedstocks into biofuels can be achieved through both biochemical and thermochemical methods. The biochemical process involves the fermentation of sugars derived from the feedstock, while the thermochemical process uses heat and pressure to break down the feedstock into simpler compounds. The lignocellulosic feedstock-based biofuel market is expected to continue its growth trajectory due to the increasing demand for sustainable and renewable energy sources and the availability of abundant feedstock resources. The market is also driven by the potential to reduce GHG emissions and improve energy security. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The non-cropland affecting nature of lignocellulosic feedstock fuels market growth. The synthesis of biofuels from lignocellulosic feedstocks has gained significant attention in the industry due to the availability of multiple sources. However, the analysis of market parameters reveals that profitability can be a challenge due to pricing disparities. The use of land for biofuel production may limit the availability of food supplies, leading to price increases. Key industry influencers are promoting the adoption of lignocellulosic feedstock-based biofuels, but the profitability of this market depends on various factors, including pricing and promotional strategies. A thorough examination of these elements is essential for market success. Thus, such factors drive market growth during the forecast period.
The rising ethanol blending rate targets is an emerging market trend. The market derived from lignocellulosic feedstocks is experiencing significant growth due to the global push towards reducing greenhouse gas emissions in the transportation sector. Multiple sources of lignocellulosic feedstocks, such as agricultural waste, forestry residues, and energy crops, are being analyzed for their potential in biofuel synthesis. Profitability, pricing, and promotional strategies are key parameters influencing the industry's growth. Government initiatives, including blending mandates and subsidies, are major promoters of this market. The Indian government, for instance, has set a target of 10% ethanol blending by 2022 and 20% by 2030, making it a significant influencer in the market's trajectory. Therefore, such market trends fuel market growth.
The complex and costly conversion process hampers market growth. Lignocellulosic feedstocks, derived from various sources, serve as the foundation for the synthesis of biofuels, primarily bioethanol. The complex structure of these feedstocks, consisting of lignin, hemicellulose, cellulose, proteins, salts, pectin, ash, and minerals, necessitates a thorough analysis of parameters to optimize profitability in the production process. Challenges include the inefficient breakdown of polysaccharides and the recalcitrant nature of lignin. Pricing and promotions play a significant role in the industry, with key influencers driving advancements in technology to improve efficiency and reduce costs. The biofuel market from lignocellulosic feedstocks encompasses the steps of pretreatment, enzymatic hydrolysis, fermentation, and separation. Hence, such challenges impede growth during the forecast period.
The market research 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 growth 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The global Lignocellulosic Feedstock-based Biofuel market is witnessing significant growth due to the increasing demand for renewable energy sources and the depletion of fossil fuels. Lignocellulosic feedstocks, derived from plant-based materials, are gaining popularity as they offer several advantages over traditional biofuels. Key players in the market include Procter & Gamble, Celullose, Lignonellc, Polytical, Biomass, Biofuels, and others. These companies are investing in research and development to improve the efficiency of the production process and reduce costs. The use of lignocellulosic feedstocks for biofuel production is driven by their availability, sustainability, and low carbon footprint. The major sources of lignocellulosic feedstocks are agricultural residues, forestry residues, and energy crops. The market is expected to grow at a steady pace due to the increasing government support for renewable energy and the implementation of stringent regulations on carbon emissions. Additionally, the advancements in technology and the development of new production processes are expected to further boost the market growth. The major challenges in the market include the high production costs and the complex nature of the production process. However, the increasing demand for biofuels and the availability of government subsidies are expected to offset these challenges. In conclusion, the Lignocellulosic Feedstock-based Biofuel market is expected to witness significant growth in the coming years due to the increasing demand for renewable energy sources and the availability of government support. The market is driven by the use of lignocellulosic feedstocks, which offer several advantages over traditional biofuels.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 50.35% |
Market growth 2024-2028 |
USD 33.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
38.86 |
Regional analysis |
North America, South America, Europe, APAC, and Middle East and Africa |
Performing market contribution |
North America at 29% |
Key countries |
US, China, Brazil, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aemetis Inc., ALTRET GREENFUELS Ltd, BDI BioEnergy International GmbH, Blue Biofuels Inc., Borregaard ASA, China Petrochemical Corp., Clariant International Ltd., COSAN S.A., DuPont de Nemours Inc., ENERKEM Inc., Genera Inc., Gevo Inc., GranBio Investimentos SA, New Energy Blue LLC, Novozymes AS, and VERBIO Vereinigte BioEnergie AG |
Market dynamics |
Parent market analysis, market forecasting, 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 market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Conversion Process
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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