Advanced Biofuels Market Revenue to Attain USD 1443,45 Bn by 2033

20 Mar 2025

Share :

Table of Content

1. Advanced Biofuels Market Revenue and Trends 2024 to 2033 2. Market Overview 3. Report Highlights  4. Market Trends 5. Regional Insights 6. Advanced Biofuels Market Coverage 7. Market News 8. Major Trends Advanced Biofuels  9. Major Market Segments Covered

Advanced Biofuels Market Revenue and Trends 2024 to 2033

The global advanced biofuels market revenue reached USD 87.98 billion in 2024 and is predicted to attain around USD 1443,45 billion by 2033 with a CAGR of 34.85%.The advanced biofuel market is propelled by renewable energy requirements, government support, technological developments, and accessible, sustainable resources such as algae and lignocellulosic biomass.

Market Overview

Advanced biofuels represent second-generation biofuels that derive from biomass, including agricultural waste and organic residue materials. The main advantage of advanced biofuels is their ability to emit low carbon and reduce environmental footprints for the automotive and energy sectors. Utilizing advanced biofuels cuts down fossil fuel dependency, thereby strengthening their economic and environmental benefits. 

The advanced biofuels market is expanding due to the enhanced biofuel manufacturing processes to higher productivity and decreased operating expenses. New technological approaches for using raw materials and converting them into biofuels increase their suitability for commercial deployment. The adoption of advanced biofuels increases because existing infrastructure integrates them, particularly in the transportation and aviation sectors.

Report Highlights 

• By process, the biochemical process segment holds a significant advanced biofuels market share. Biological organisms, including bacteria, yeast, and enzymes, function as part of biochemical methods to produce biofuels by breaking down complex organic matter. The thermochemical process segment is projected to grow at a notable CAGR during the forecast period. The biomass heat process in gasification produces synthetic gas known as syngas through controlled oxygen heating that yields carbon monoxide and hydrogen compounds.
• By advanced biofuel types, the biodiesel segment dominated the global market in 2024. Its capability to decrease greenhouse gas emissions through its production of high-yielding algal raw materials. The cellulosic advanced biofuels segment is anticipated to grow at the fastest CAGR over the projected period. The production of cellulosic advanced biofuels takes place through processing cellulose-rich materials such as agricultural waste, forestry waste, and dedicated energy crops.
• By raw material, the algae segment dominated the market with the largest revenue share in 2024. Biofuel producers utilize algal biomass as an excellent feedstock due to its high oil content and fast multiplication rates. The lignocellulosic segment is expected to grow significantly over the coming years. Lignocellulosic feedstocks consisting of plant cell wall components, cellulose, hemicellulose, and lignin will act as major biofuel sources in the market. 

Market Trends

• Government Policies and Renewable Energy Mandates

The U.S. Renewable Fuel Standard (RFS) and, EU Renewable Energy Directive (RED II), and regulations from China and India stimulate biofuel adoption. Through these policies investors develop biofuel production technologies while making them accessible for large-scale energy systems to enhance market expansion.

• Movement toward Green Energy Alternatives

Development in biofuels is on the rise because other renewable fuels produce fewer carbon emissions compared to traditional fossil fuels. The use of biofuel as an energy alternative progresses because it provides a transition to sustainable clean energy, which creates emission reductions in various industrial sectors.

• Growing Demand for Sustainable Aviation Fuel

Adoption of advanced biofuels accelerates owing to the continuously growing market for sustainable aviation fuel (SAF). SAF has emerged as a leading option for the aviation sector dedicated to reducing its carbon footprint. Growth in SAF remains strong owing to technological enhancements and taxing regulations, which propel the advanced biofuels market.

Regional Insights

North America's advanced biofuels market accounted for the largest revenue share in 2024 due to supportive government regulations, solid transportation networks, and substantial financing. The largest aviation market globally and its prominent use of fossil fuel-based transportation in the region have made sustainability a main priority for this region. North America's market expansion continues to strengthen due to growing market interest in SAF and cellulosic biofuels.

The U.S. Renewable Fuel Standard (RFS) drives national ethanol and biodiesel acceptance and the Inflation Reduction Act provides biofuel production tax breaks to boost the market growth. Feedstock technology advancement, large-scale ethanol and biodiesel production, and substantial biofuel infrastructure investments support the recent innovations within the industry.

• In January 2025, the U.S. Department of Energy Bioenergy Technologies Office and the U.S. Environmental Protection Agency brought USD 6 million from the joint investment to support three advanced biofuel development projects.

Asia Pacific is anticipated to host the fastest-growing advanced biofuels market. Population growth creates increased demand for advanced biofuels because the transportation sector continues expanding immensely. Government laws designed for better fuel efficiency and emission reduction have forced industries to choose cleaner energy alternatives. The region shows improvement as China, India, and Indonesia support second-generation biofuels, waste-to-energy projects, and sustainable aviation fuel.

The development of biofuels in China gets government support through incentive programs and policy reforms that promote renewable fuels adoption. The regulatory support from China and sustainability goals enable the country to lead biofuel production advancement.

• In October 2024, Maersk signed a long-lasting supply agreement with LONGi Green Energy Technology (China) for bio-methanol delivery to its dual-fuel container ships from 2026 onwards.

Advanced Biofuels Market Coverage

Market News

• In March 2024, Terragia Biofuel accomplished its mission to transform biofuel markets through a USD 6 million seed funding agreement. The joint investment from Engine Ventures and Energy Impact Partners will promote the commercialization efforts for Terragia Biofuel's biological process, which transforms cellulosic biomass into ethanol and various chemical products.
• In July 2023, Indian Oil Corporation Limited (IOCL) and Praj Industries Limited contracted a term sheet to advanced biofuel manufacturing in India. The agreement establishes necessary terms for the production of sustainable aviation fuel (SAF), ethanol, and compressed biogas (CBG). Volkswagon Group added biodiesel and bio-bitumen to the list of biofuels.

Major Trends Advanced Biofuels 

• GranBio
• Inbicon A/S
• Clariant
• A2BE Carbon Capture, LLC.
• Fujian Zhongde Energy Co., Ltd
• Bangchak Petroleum Plc.
• Algenol Biotech
• Abengoa Bioenergy
• DowDuPont Inc.
• Chemtex company

Major Market Segments Covered

By Process

• Biochemical Process
• Thermochemical Process

By Advanced Biofuel Type

• Cellulosic Advanced Biofuels
• Biodiesels
• Biogas
• Biobutanol
• Others

By Raw Material

• Lignocellulose
• Jatropha
• Camelina
• Algae
• Others