Biofuels Market to be dominated by Ethanol segment through 2028
Clean energy coupled with government mandates for
increasing blending in automotive fuels to drive Global Biofuels Market in the
forecast period, 2023-2028.
According to TechSci Research report, “Global Biofuels Market - By Region, Competition, Forecast & Opportunities, 2028”, Global Biofuels Market is anticipated to
grow at a 5.83% CAGR in the forecast period, 2024-2028, The market is
anticipated to be driven owing to the demand for cleaner fuel, coupled with
increasing governmental regulations for desulphurization of petroleum products.
Biofuels are the types of fuels that are derived from plants, animal waste, or
algae material. Biofuels are considered renewable fuels as the feedstock
material utilized can be replenished at a faster rate as compared to
conventional fossil fuels. Limited availability of fossil fuel-based resources
and growing awareness regarding curbing carbon emissions are some of the factors
that are likely to drive the global market.
Browse over XX market data Figures spread through XX
Pages and an in-depth TOC on "Global Biofuels Market.”
Based on Fuel Type, Global Biofuels Market is
segmented into— Ethanol, Biodiesel, Other Fuel Types, the market's largest
contribution will be the Ethanol segment. Globally, the transportation sector
is the biggest emitter of greenhouse gases due to the combustion of fossil
fuels in its internal combustion engines. To limit the emission of greenhouse
gases, countries worldwide have adopted norms to promote the use of renewable
energy resources. Biofuels such as ethanol affirm themselves as a cleaner
energy source for the transportation sector, which could lead to a developed
biofuel market in the future. According to the Renewable Fuels Association
(RFA), in 2022, the United States produced 15,4 billion gallons of fuel
ethanol, making it the leading producer of biofuel in the world.
Primary blending mandates that drive the global demand
for biofuels are set in North America, India, Brazil, Europe, Indonesia,
Malaysia, etc. For instance, in India, there is a mandate to begin 20% ethanol
blending by 2025. In Indonesia, a commission of 35% biodiesel blending is
expected to start in 2023, whereas in Brazil, the existing order for ethanol
blending is 27%. Such measures highlight the increase in the use of biofuels
across countries. Furthermore, in March 2022, Brazil's Ministry of Economy announced
the withdrawal of import tariffs on ethanol, including other products, to
alleviate inflationary pressures. This is expected to boost the ethanol blend
in gasoline and drive the market.
In 2022, SGP BioEnergy announced the development of
the world's most extensive biofuel distribution and production hub in Panama,
in association with the country's government, which is estimated to produce
180,000 barrels per day of biofuel. Similarly, in 2023, the US Department of
Energy awarded USD 118 million for 17 projects to scale up ethanol and other
biofuels to help America’s transportation and manufacturing needs. Such trends
are likely to ramp up the biofuel market. Therefore, owing to the above points,
the ethanol segment is expected to experience significant growth in the
biofuels market during the forecast period.
Based on Region, North America region is expected to
dominate the market for Biofuels during the forecast period. The North American
region houses one of the biggest aviation markets, primarily fossil fuels, and
a well-established transportation infrastructure. The North American region has
been at the forefront of lowering emissions to limit the greenhouse effect.
According to the U.S. Energy Information
Administration, the total production volume of biodiesel production in the
United States was 1.6 billion gallons by 2022. In January 2022, the US
Environmental Protection Agency announced a new initiative for streamlining the
review of biofuels and chemicals that can significantly replace higher
GHG-emitting fossil fuels, providing a significant push to the biofuels market.
Similarly, the US Department of Energy announced an Alternative Fuel
Infrastructure Tax Credit of 30% for the fueling equipment for natural gas,
propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing
a minimum of 20% biodiesel installed on or after December 2022. Such incentive
measures would likely promote the biofuel market.
Similarly, in Canada, the government aimed to increase
carbon taxes by CAD 10 to CAD 50 per ton of emissions from April 2022, thereby
pushing for wider adoption of biofuels that emit less GHG. Hence, owing to the
above points, the North American region is likely to dominate the biofuels
market due to government policies and production capacity.
Major companies operating in the Global Biofuels market
are:
- Abengoa
Bioenergy SA
- Cargill
Incorporated
- Shell
PLC
- Wilmar
International Ltd.
- Renewable
Energy Group Inc.
- Archer
Daniels Midland Company
- BP
PLC
- POET
LLC
- Neste
Oyj
- Verbio
Vereinigte BioEnergie AG
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“The Global Biofuels
Market is expected to expand during the projected period.
Key drivers of the global biofuels market include growing environmental
concerns, government policies promoting renewable energy, increasing energy
security needs, advancing biotechnology, fluctuating crude oil prices, consumer
demand for cleaner fuels, corporate sustainability goals, scalable technology,
feedstock availability, rising global energy demand, international emissions
reduction commitments, and ongoing research and development efforts. These
factors collectively propel the biofuels market by promoting cleaner energy
sources, reducing greenhouse gas emissions, and diversifying the global energy
mix.” said Mr. Karan
Chechi, Research Director with TechSci Research, a research-based global
management consulting firm.
Biofuels Market –
Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By type (biodiesel, ethanol,
and other types), feedstock (palm oil, jatropha, sugar crop, coarse grain, and
other feedstock), By Region, Competition, 2018-2028”, has evaluated the future growth potential of global Biofuels
market and provides statistics & information on market size, structure, and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision-makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the global Biofuels market.
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