Biofuels Global Market Report 2024

Biofuel refers to a cleaner-burning alternative to petroleum-based diesel fuel made from renewable sources such as new and old vegetable oils and animal fats. It is a harmless and biodegradable substance created by mixing alcohol with vegetable oil, animal fat, or recycled cooking grease. The primary purpose of biofuels is to help reduce the carbon footprint of transportation and other industries.

The main form of biofuels are solid biofuel, liquid biofuel, and gaseous biofuel. The solid biofuel of biofuel is a solid form of biofuel used as fuel for the generation of heat or electricity. The biofuel product is biodiesel, ethanol, biogas, and other products that are derived from feedstocks such as coarse grain, non-agri feedstock, biomass, vegetable oil, sugar crop, jatropha and other feedstocks.

The biofuels market research report is one of a series of new reports that provides biofuels market statistics, including biofuels industry global market size, regional shares, competitors with a biofuels market share, detailed biofuels market segments, market trends and opportunities, and any further data you may need to thrive in the biofuels industry. This biofuels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The biofuels market size has grown strongly in recent years. It will grow from $163.86 billion in 2023 to $176.59 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth in the historic period can be attributed to energy security concerns, volatility in oil prices, government incentives.

The biofuels market size is expected to see strong growth in the next few years. It will grow to $240.55 billion in 2028 at a compound annual growth rate (CAGR) of 8.0%. The growth in the forecast period can be attributed to renewable energy targets, advancements in feedstock production, rising public awareness, emerging economies' adoption. Major trends in the forecast period include advanced biofuels development, technological innovations, integration with conventional fuels, market consolidation.

Increased petroleum prices are expected to propel the growth of the biofuel market. Rising crude oil costs and increased taxation have consistently contributed to increased petrol and diesel prices across the world. Furthermore, the Russia-Ukraine war is one of the primary reasons for the rapid spike in global petroleum prices. Several other reasons have also led to rising crude oil prices, including market tightness and uncertainty about demand and supply, geopolitical developments, fears of future supply disruptions, and speculation that impacted the petroleum market. Due to such a rise in petroleum prices, there is a greater demand for biofuel as an alternative which is derived from renewable resources and are less combustible than fossil diesel. It helps to reduce the carbon footprint of transportation and other businesses. For Instance, according to a 2021 report published by Our world in data on crude oil prices, the global crude oil prices per barrel US dollars have increased from $41.84 in 2020 to $70.91 in 2021. Therefore, the increasing petroleum prices will drive the biofuel market.

The rising demand for energy in the transportation sector is expected to propel the growth of the process oil market going forward. The transportation sector refers to the industry involved in the movement of people and goods from one place to another. Biofuels can be used as an alternative or blend with traditional fuels in the transportation industry, reducing the carbon footprint and meeting regulatory requirements for cleaner energy sources. For instance, in September 2023, the International Air Transport Association (IATA), a Canada-based trade association representing the airline industry, reported a significant increase in total traffic for July 2023, with a 26.2% rise compared to July 2022, resulting in the highest-ever recorded July revenue passenger kilometers (RPKs). Therefore, the rising passenger traffic in the transportation sector is expected to propel the growth of the biofuels market.

Technological advancements are a key trend gaining popularity in the biofuel market. Advanced biofuels are gaining popularity due to their compatibility with existing fuel infrastructure and high energy densities. Advanced biofuel technologies are recognized as green energy sources. Recently, the market has witnessed the use of advanced bio-hydrocarbons generated from lignocellulosic biomass such as trees, grasses, trash, and agricultural residues. Major companies operating in the biofuel market are focused on developing new technological solutions to strengthen their market position. For instance, In February, Clariant, a Europe-based chemical company, introduced a line of Vita surfactants and polyethylene glycols (PEGs) made entirely of bio-based, renewable carbon derived from plants. The new Vita products are designed for natural formulations with a high Renewable Carbon Index (RCI) and assist manufacturers in maximizing the use of bio-based carbon content in consumer products, that include detergents, hair and shower gel, paints, industrial lubricants, and crop treatments.

Major companies operating in the biofuels market are introducing innovative solution, such as comprehensive fermentation solution, to gain a competitive edge in the market. Comprehensive fermentation solution is designed to improve ethanol yield and reduce energy consumption in the production process. For instance, in November 2021, Novozymes, a Denmark-based biotechnology company, launched Innova Quantum, a comprehensive fermentation solution comprising advanced yeast and tailored enzymes. Innova Quantum is a drop-in solution that provides the most efficient sugar conversion and is specifically designed for longer fermentations (>60 hours). It offers superior robustness, ethanol tolerance, fermentation speed, and ethanol yields. Innova Quantum is designed for longer fermentations, enhancing efficiency and sustainability in the biofuel market.

In January 2022, ExxonMobil, a US-based natural gas company, acquired a 49.9% stake in Biojet AS. This acquisition allows ExxonMobil to purchase up to 3 million barrels of the products yearly, based on capacity. Furthermore, this collaboration with Biojet AS strengthens ExxonMobil's efforts to provide low-emissions transportation products. Biojet AS is a Norwegian-based biofuels company that intends to turn forestry and wood-based construction waste into low-emission biofuels.

Major companies operating in the in the biofuels market report are The Archer-Daniels-Midland Company, Abengoa S. A., Renewable Energy Corporation, Wilmar International Limited, Poet LLC, Praj Industries Limited, Raven SR Inc., Shell PLC, Sustainable Oils, UPM-Kymmene Oyj, Velocys Inc., Virent Energy Systems Inc., Aemetis Inc., Amyris Inc., Anellotech Inc., Avantium Technologies B. V., Axens Technologies (IFP), Cargill Inc., Chevron Corporation, Clariant International AG, Corbion N. V., DG Fuels, Diamond Green Diesel LLC, Dimeta, DMC Biotechnologies Inc., Enerkem Inc., Fidelis New Energy LLC, Fluid Quip Technologies LLC, Genofuel, Gevo Inc., Ginkgo BioWorks, GranBio, Green Plains Inc., Haldor Topsoe A/S, Honeywell International Inc.

North America was the largest region in the biofuel market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biofuels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the biofuels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The biofuel market consists of sales of methanol, butanol and biogas. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.