by The liquid biofuels market comprises products such as biodiesel, ethanol, and bioethanol which are used as an alternative to conventional fossil fuels such as petrol and diesel. Liquid biofuels are produced from various biomass feedstock including vegetable oils, animal fats, and sugarcane. They provide environmental benefits like reduced emissions and are rapidly renewable.
The global liquid biofuels market is estimated to be valued at US$ 137.68 Bn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 to 2031.
Key takeaways
Key players operating in the liquid biofuels market are The Archer-Daniels-Midland Company, Valero Energy Corporation, Green Plains Inc., Gevo, Chevron, Neste, TotalEnergies, Wilmar International Ltd, Enerkem, POET, Fulcrum BioEnergy, Inc., Alto Ingredients, Inc., Pacific Biodiesel, Südzucker AG, Emami Agrotech Limited, Chemical Construction International Limited, Khanda BioFule, BIOD TECHNOLOGY FZCO, Lootah Bio Fuels, and Neutral Fuels.
Key players such as The Archer-Daniels-Midland Company, Valero Energy Corporation, and Green Plains Inc. are focusing on increasing their production capacity of liquid biofuels to cater to the growing demand. The Archer-Daniels-Midland Company is one of the largest producers of ethanol in the world.
The growing consumption of automotive fuels is a major factor driving for Liquid Biofuels Market Demand globally. Strict environmental regulations regarding vehicle emissions and the need to reduce carbon footprint are further propelling the adoption of green fuels in the transportation sector.
Several countries across North America, Europe, and Asia Pacific have implemented policies and regulations to promote the use of biofuels. For instance, the European Commission’s renewable energy directive mandated a minimum 10% target for renewable energy in transportation by 2020. This is positively impacting the expansion of the global liquid biofuels market.
Market key trends
One of the major trends in the Liquid Biofuels Market is the increasing production of advanced biofuels from non-food biomass. Companies are investing in research and development of technologies to produce advanced biofuels such as cellulosic ethanol, algae fuel, and bio-butanol from agricultural waste, forest residue, and energy crops. These advanced biofuel routes help overcome the issue of competition with food crops for arable land. Advancements in technologies are expected to lower production costs and drive the adoption of next-generation fuels.
Porter’s Analysis
Threat of new entrants: The Liquid Biofuels market poses moderate threat as its a mature market that requires huge investments in infrastructure and large scale production. However, government targets of mandating a certain percentage of biofuel blending reduce this threat.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many established producers in this market. However, buyers can negotiate on price and quality standards due to availability of alternatives.
Bargaining power of suppliers: Feedstock suppliers like corn or sugarcane farmers have moderate bargaining power due to availability of alternatives and substitutes. Producers can source feedstock from other geographies to negotiate prices.
Threat of new substitutes: Threat from new substitutes is moderate as alternatives like battery electric vehicles are emerging. however, biofuels still have advantages in heavy transport where electrification is challenging.
Competitive rivalry: The market is quite fragmented with many global and regional players. Competition is based on price, production efficiency, brand, and sourcing & distribution infrastructure.
Geographical regions:
North America is the largest market for Liquid Biofuels Market Regional Analysis accounting for over 40% of global value revenues led by USA. Europe is the second largest with stringent biofuel mandates driving demand.
Fastest growing region: Asia Pacific region is witnessing highest growth especially countries like China, India, Indonesia due to emerging economies, population scale, and investments in biofuel production facilities to reduce dependence on imports. Countries are also promoting biofuels through incentive schemes and mandates.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
