Biofuels such as bioethanol and biodiesel are renewable and Biofuels Market of energy that are derived from biomass like sugarcane, maize, palm oil, jatropha etc. They provide a viable and sustainable alternative to conventional fossil fuels like gasoline and diesel. Biofuels can be used directly in vehicles with slight engine modifications or blended with petrol and diesel. They offer reduced greenhouse gas emissions and less dependency on oil imports. With stricter emission norms and government policies promoting green fuels, biofuels have emerged as viable options to address climate change and energy security challenges.
The global Biofuels Market is estimated to be valued at US$ 101.02 Bn in 2024 and is expected to exhibit a CAGR of 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Advanced biofuels are derived from non-edible lignocellulosic biomass sources like agricultural residues, wood wastes, algae etc. Using waste biomass makes advanced biofuels more sustainable than conventional bioethanol and biodiesel. Technologies to produce advanced biofuels like cellulosic ethanol, renewable diesel, green diesel, bio-butanol are scaling up. Several companies are investing in commercialization of advanced biofuel plants to cater to the increasing demand for low carbon fuels. Government incentives and mandates are also promoting research and development of advanced biofuels to significantly lower greenhouse gas emissions from the transportation sector.
Threat of new entrants: The biofuels market has moderate threat of new entrants due to the requirement of high initial capital investment and presence of established players in the market.
Bargaining power of buyers: The bargaining power of buyers is low due to availability of various types of biofuels supplied by many producers in the global market.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of alternatives and dependence on agricultural produce.
Threat of new substitutes: The threat of new substitutes is moderate as alternative renewable fuels are continuously researched and developed but biofuels still have an advantage due to established infrastructure and technologies.
Competitive rivalry: The competitive rivalry is high due to presence of many international and domestic players offering similar product portfolio competing on pricing, product differentiation and quality.
The Global Biofuels Market Size is expected to witness high growth.
Biofuels production in North America is the largest and is expected to continue dominating the market during the forecast period. Countries like the US and Canada are focusing on increasing bioethanol production from feedstock including corn and sugarcane.
Europe is also a significant producer of biofuels mainly driven by countries like Germany, France and UK. Stringent emissions regulations regarding use of renewable energy in the transportation sector are driving the Europe biofuels market.
Key players operating in the biofuels market are Climate Finance Partners (United States), Carbon Credit Capital (United States), ClimateCare (United Kingdom), South Pole Group (Switzerland), Climate Trust Capital (United States), Carbon Clear (United Kingdom), EcoAct (France), First Climate (Germany), ClimatePartner (Germany), Ecosphere+ (United Kingdom), Verra (United States), Gold Standard (Switzerland), Natural Capital Partners (United Kingdom), Climate Friendly (Australia), Forest Carbon (United Kingdom).
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it