The global Biofuels Market is estimated to be valued at US$ 91.17 Billion in 2022 and is expected to exhibit a CAGR of 10.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Biofuels are renewable fuels that are derived from biological sources such as plants and animals rather than fossil fuels. They can help reduce dependence on petroleum and provide environmental benefits such as reduced greenhouse gas emissions. Common biofuels include biodiesel, ethanol, and biogas.
Market key trends:
The growing concerns regarding increasing pollution levels and greenhouse gas emissions from transport sector is projected to boost the adoption of biofuels. Globally, transportation accounts for around 24% of total energy-related carbon dioxide emissions from fuel combustion. Using biofuels can help reduce up to 60-90% of greenhouse gas emissions over the fuel’s lifecycle as compared to petroleum-based fuels. This will drive the biofuels market growth over the forecast period.
The biofuels market is segmented into biodiesel and ethanol. Among these, the biodiesel segment dominates currently as it is more efficient and cost-effective to produce. Biodiesel can directly replace conventional diesel and requires less or no infrastructure modifications. It is widely used in the transportation sector for vehicles.
The Global Biofuels Market Size is expected to witness high growth, exhibiting a CAGR of 10.8% over the forecast period from 2023 to 2030, due to increasing concerns regarding environmental pollution and rising demand for sustainable fuels. The market size is expected to reach US$ 91.17 Billion in 2022.
North America dominates currently due to supportive government policies and presence of major producers in the US. However, Asia Pacific is expected to grow at the fastest pace owing to the large renewable energy markets in China and India. Countries like India are promoting biofuels extensively to reduce their oil import dependence.
Key players operating in the biofuels market are TotalEnergies, Cepsa, Honeywell, Neste, Unilever plc and Starbucks Corporation, Trinity Organics, Chevron, and BoxLNG Pvt. Ltd. TotalEnergies is one of the leading producers of biodiesel and is investing heavily in developing advanced biofuels. Neste is another major player known for its renewable diesel and sustainable aviation fuel.