Biofuels Market Revenue to Attain USD 243.38 Bn by 2033

03 Jan 2025

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Table of Content

1. Biofuels Market Revenue and Trends 2023 to 2033 2. Market Overview 3. Report Highlights of the Biofuels Market  4. Biofuels Market Trends 5. Regional Analysis 6. Biofuels Market Coverage 7. Market News 8. Biofuels Market Key Players

Biofuels Market Revenue and Trends 2023 to 2033

The biofuels market revenue surpassed USD 132.13 billion in 2024 and is predicted to attain around USD 243.38 billion by 2033 with a CAGR of 6.90% during the forecast period. The rising demand for cleaner fuels, government regulations for desulphurizing petroleum products, and rising focus on reducing carbon emissions drive the biofuels market during the forecast period.

Market Overview

Biofuels are considered a renewable energy source. They are produced from biomass derived from plants, algae, or animal or agricultural waste. Biofuels are a cost-effective and eco-friendly alternative to fossil fuels such as petrol, coal, and natural gas. Several types of biofuels, such as biodiesel, bioethanol, and biogas, are used across several applications, such as transportation, heating, and electricity generation. Technological advancements in the production of biofuels and government initiatives promoting the use of renewable energy sources propel the growth of the biofuels market. In addition, the easy availability of crop-based feedstock for producing biofuels and the rising shift toward biofuels to reduce greenhouse gas (GHG) emissions positively impact the market. The rising use of biofuels produced from non-food feedstocks like agriculture waste, algae, and cellulosic materials further boosts the market.

Report Highlights of the Biofuels Market 

• By fuel type, the bioethanol segment dominated the market with the largest share in 2024 due to its increased use in automotive applications. Its greater octane rating increases the compression ratio of an engine. Bioethanol is an environmentally friendly fuel that reduces greenhouse gas emissions. It is produced from corn, sugarcane, or other starch-rich crops. Moreover, increased government investments in bioethanol production bolstered the segmental growth.
• By feedstock, the vegetable oil segment held the largest share of the market in 2024 as it offers several benefits like low manufacturing costs and is easy to process due to its low saturated fat contents. Vegetable oil has a high energy density, making it an efficient source for biofuel production. On the other hand, the Jatropha segment is expected to grow at the fastest rate in the coming years due to its ability to yield a large amount of biofuel per hectare of cultivation. Moreover, jatropha can be grown in arid and semi-arid conditions, reducing cultivation costs.

Biofuels Market Trends

• Rising Government Initiatives: With the growing concerns about environmental conservation, several government bodies are providing incentives for the production and use of biofuels. Biofuels are environmentally friendly and reduce carbon emissions, making them suitable for use across several applications. Moreover, rising government initiatives to reduce carbon emissions contribute to market expansion. For instance, in October 2024, Minister of Road Transport and Highways of India, Shri Nitin Gadkari, reaffirmed the government’s commitment to advancing ethanol blending and biofuel initiatives at the 12th CII Bioenergy Summit 2024, themed “Fuelling the Future - Securing India’s Green Growth Goals." He also stated that ethanol blending in petrol has surged from 1.53% in 2014 to 15% in 2024, with a target to reach 20% by 2025.
• Advancements in Production Technology: Innovations in production technologies like enzyme-based processes and fermentation techniques propel the growth of the market. Using advanced technologies in biofuel production processes reduces waste generation and improves efficiency. Also, the rapid shift toward greener energy sources expands the market for biofuels and their application across several sectors like transportation, power generation, and heating. For instance, in May 2024, Fermbox Bio introduced EN3ZYME, transforming agriculture waste into renewable biofuels and sustainable Synbio products. It is a cutting-edge enzyme cocktail designed to enhance both the efficiency and cost-effectiveness of transforming pretreated agri-based residues into fermentable cellulosic sugars. These sugars pave the way to produce second-generation ethanol and serve as an alternative carbon source in precision fermentation to produce bio ingredients and biomaterials like colors, dyes, flavors, fragrances, lipids, and novel food proteins.
• Rising Usage in the Transportation Sector: The shift toward cleaner fuels due to stringent environmental regulations drives the market. With the rising concerns about air quality and climate change, automakers are shifting toward sustainable fuels like biodiesel or bioethanol that help meet the regulations.

Regional Analysis

North America dominated the biofuels market with the largest share in 2024. This is mainly due to supportive government policies that boost the production and consumption of biofuels. The U.S. and Brazil are the world’s largest producers of bioethanol. Moreover, there is a strong focus on reducing greenhouse gas emissions, contributing to regional market expansion.

Asia Pacific is expected to witness the fastest growth in the market in the coming years. This is mainly due to the increasing investments in biofuel production, rising awareness about the negative impact of fossil fuels on the environment, and the rising availability of renewable energy sources. In addition, various governments have implemented mandates and incentives to promote biofuel production and use, boosting regional market growth. For instance, India announced mandatory biogas blending for domestic use from 2025-26.

Biofuels Market Coverage

Market News

• In August 2024, Indonesia announced a plan to launch palm-based B40 biofuel in 2025. The biofuel will contain 40% palm oil and replace the existing B35 biodiesel, which consists of 35% palm oil. It aims to improve the biodiesel blend to decrease its dependence on imported energy and to increase domestic consumption of palm oil.
• In October 2024, Argent Energy, a leading manufacturer of biofuels in Europe, launched its largest facility dedicated to producing bio-based, technical-grade glycerin at its Port of Amsterdam site. The facility will upgrade crude glycerin, a byproduct of the Argent waste-based biodiesel process, into 99.7% pure technical grade glycerin.

Biofuels Market Key Players

• BTG International Ltd
• Renewable Energy Group, Inc.
• Abengoa Bioenergy S.A.
• Cargill
• DowDuPont, Inc.
• Wilmar International Ltd
• POET, LLC
• Archer Daniels Midland Company
• VERBIO Vereinigte BioEnergie AG
• My Eco Energy
• China Clean Energy Inc.

Market Segmentation

By Fuel Type

• Biodiesel
• Bioethanol

By Feedstock

• Coarse Grain
• Non-Agri Feedstock
• Biomass
• Vegetable Oil
• Sugar Crop
• Jatropha
• Others

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