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| Global Biofuels Market Size |
The biofuels market is anticipated to witness high growth owing to growing
environmental concerns. Biofuels are renewable and cleaner sources of energy
derived from organic matter or wastes. They provide an alternative to petroleum
fuels and help reduce greenhouse gas emissions. Some key advantages of biofuels
include decreased dependence on fossil fuels, reduced carbon emissions, and
creation of rural jobs.
The growing demand for sustainable transport fuels and the need to curb
emissions from the transportation sector is driving the biofuels market.
Biofuels such as biodiesel and ethanol are increasingly being used in vehicles
as blend or substitutes for gasoline and diesel.
The global biofuels market is estimated to be valued
at US$ 116.38 Bn in 2024 and is expected to exhibit a CAGR of
29.% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the biofuels market are Climate Finance Partners
(United States), Carbon Credit Capital (United States), ClimateCare (United
Kingdom), South Pole Group (Switzerland), Climate Trust Capital (United
States), Carbon Clear (United Kingdom), EcoAct (France), First Climate
(Germany), ClimatePartner (Germany), Ecosphere+ (United Kingdom), Verra (United
States), Gold Standard (Switzerland), Natural Capital Partners (United
Kingdom), Climate Friendly (Australia), Forest Carbon (United Kingdom).
Key opportunities in the Global
Biofuels Market Size include the development of advanced biofuels from
non-food feedstock utilizing innovative technologies. Countries worldwide are
offering subsidies and tax incentives to boost the production and uptake of
biofuels. The global biofuels market is also witnessing expansion in new
geographies with supportive policies and infrastructure for biofuels.
The major players in the biofuels market are focusing on global expansion by
strengthening their distribution networks and entering into partnerships with
regional players. Investments in biofuels production facilities are increasing
across Latin American, Asian and European countries. International
collaborations for technology development and feedstock sourcing are also on
the rise in the biofuels market.
Market Drivers
The key driver for the biofuels market is the stringent emission norms
worldwide. Many countries have mandated the use of biodiesel and ethanol blend
to reduce carbon emissions from transport. Biofuels help meet renewable energy
targets and replace fossil fuels in the transportation sector.
Market Restrain
High production costs of biofuels compared to conventional fuels is a major
challenge. Fluctuations in agricultural commodity prices can impact the price
of biofuels. Dependence on agricultural land and food crops for biofuel
feedstock may also raise concerns. However, advances in technologies are making
biofuels more competitive and diversifying feedstock options.
Segment Analysis
The biofuels market is dominated by the transportation segment as biofuels are
increasingly being used to power vehicles. Bioethanol is the largest
sub-segment under transportation as it can be blended with gasoline. Many
vehicles now have engines compatible to run on blends of gasoline and
bioethanol like E10 and E15. This has boosted the production and consumption of
bioethanol. Governments across regions are also promoting the use of biofuels
in transportation to reduce dependence on fossil fuels and lower carbon
emissions.
Global Analysis
The Asia Pacific region is witnessing the fastest growth in the biofuels market
and will continue dominating globally during the forecast period. Countries
like Brazil, China, and India are significantly producing and consuming
biofuels. Large feedstock availability, growing vehicle fleet, and government
incentives for biofuels in transportation are driving the APAC market. North
America is another major market led by the US. Advanced biofuel production is
higher in the US and Canada. European countries are also supporting biofuel
usage to achieve renewable energy targets. However, regulatory uncertainty
remains a challenge in Europe.
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