New Revenue Pockets:
The global biofuel market is projected to reach USD 225.9 billion by 2028 from an estimated USD 167.4 billion in 2023, at a CAGR of 6.2% during the forecast period. The demand for biofuels is expected to grow in developing countries due to certain key factors such as increased investments in to encourage the use of biofuels and implementation of national policies that support higher biofuel blends.
Key Market Players
- ADM (US)
- Chevron (US)
- Valero (US)
- Neste (Finland)
- Cargill, Incorporated (US)
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This report segments the biofuel market based on fuel type into four categories: ethanol, biodiesel, renewable diesel, and biojets. Ethanol is expected to hold the largest market share in the biofuel market during the forecast period. Ethanol is often higher in demand owing to its long history of manufacturing and use and its versatility as a gasoline additive. Ethanol is produced from a variety of agricultural feedstocks, including corn and sugarcane. The widespread availability of these feedstocks, as well as established supply chains, contribute to the adoption of ethanol.
Based on the generation, the biofuel market is segmented into first-generation, second-generation, and third-generation. The second-generation segment is expected to be the fastest-growing market during the forecast period. Second-generation biofuels are produced from non-food biomass feedstocks, such as agricultural waste, forestry residues, and energy crops. They offer a number of advantages over first-generation biofuels, which are produced from food crops. Second-generation biofuels are more sustainable, as they do not compete with food production for land and water resources. Increasing global awareness of climate change and the need to reduce greenhouse gas emissions has driven interest in advanced biofuels.
Based on end use, the biofuel market is segmented into transportation, aviation, and others. The aviation segment is expected to be the fastest-growing market during the forecast period owing to the large-scale decarbonization activities in the aviation sector in North America and Europe. The US, Norway, the Netherlands, and the UK are contributing significantly to the long-term sustainability plans by funding the biojet fuel infrastructure. In addition, the production of bio jet fuel is expected to scale up rapidly in the coming decade due to growing research and developments in technological pathways to commercialize the use of alternative jet fuels.
𝐊𝐞𝐲 𝐅𝐢𝐧𝐝𝐢𝐧𝐠𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐒𝐭𝐮𝐝𝐲:
The ethanol, by fuel type, is expected to be the largest segment during the forecast period.
The aviation segment, by end-use, is expected to grow at the highest CAGR during the forecast period.
Europe is expected to be the fastest-growing region in the biofuel market.
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Recent Developments
- In May 2023, Neste and ITOCHU entered into a licencing agreement that will allow ITOCHU to become the official distributor of Neste MY Renewable Diesel in Japan.
- In February 2023, Neste opened an Innovation Centre in Singapore to improve its worldwide innovation and R&D capabilities. Asia has been an important market for Neste, and the new center will help the company’s growth in the Asia-Pacific region.
- In June 2022, Cargill established its first state-of-the-art advanced biodiesel plant in Ghent, Belgium. This facility turns waste oils and residues into renewable fuel. The advanced biodiesel generated at the facility will be used in the maritime and trucking industries, allowing clients to reduce their carbon footprint connected with maritime and road transport activities.
- In March 2022, Chevron Renewable Energy Group launched its line of branded fuel solutions, EnDura Fuels, the line which produced many types of renewable fuel including InfinD, PuriD which is next-generation biodiesel, UltraClean BlenDVelociD, and beyond. These products help aviation, marine, trucking, rail, and other industries reach sustainability targets by using cleaner-burning and lower-emission fuels.
