Transportation Biofuels - Global Strategic Business Report

The global market for Transportation Biofuels was valued at US$281.0 Billion in 2024 and is projected to reach US$452.0 Billion by 2030, growing at a CAGR of 8.2% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Transportation Biofuels market.

Global Transportation Biofuels Market - Key Trends & Drivers Summarized

Why Are Biofuels Crucial to Decarbonizing Transport?

Transportation biofuels - such as biodiesel, renewable diesel, ethanol, sustainable aviation fuel (SAF), and biomethane - provide lower-carbon alternatives to petroleum-based fuels. Derived from feedstocks like vegetable oils, waste fats, algae, and agricultural residues, they can be blended with fossil fuels or used as ‘drop-in’ substitutes depending on engine compatibility. These fuels reduce greenhouse gas emissions, support circular economies, and ensure compatibility with existing infrastructure.

What R&D Advances Are Accelerating Biofuel Competitiveness?

Second- and third-generation biofuels employ lignocellulosic biomass and algae feedstocks to avoid food-fuel competition. Catalytic pyrolysis and hydrotreating refine waste oils into high-quality renewable diesel and SAF. Synthetic biology enables engineered yeasts and bacteria to produce biofuels directly from CO2 or waste gases. Hub-based co-location with biorefineries enables carbon capture use and water recycling. Blockchain systems trace feedstock origin and verify sustainability standards for market access.

Which Transport Sectors Prioritize Renewable Fuels?

Heavy-duty trucking fleets use B20 to B100 biodiesel blends to meet GHG reduction targets. Airlines pilot SAF blends ranging from 10-50%, essential for international aviation decarbonization. Marine shipping trials renewable bio-methanol and bio-LNG as low-sulfur alternatives under IMO 2020 regulation. Public buses and refuse fleets adopt biomethane and biodiesel for cleaner city air compliance. Rail networks are running pilot tests for geothermal renewable diesel in hybrid locomotives.

What’s Driving the Expansion of the Biofuels Market?

The growth in the transportation biofuels market is driven by national carbon emissions regulations, mandates for blended renewable fuels, and rapid innovation in feedstock technology avoiding food competition. Aviation and shipping face decarbonization mandates with limited electrification options. Corporate sustainability commitments require low-carbon fuel procurement and Life-Cycle Analysis (LCA) tracking. Investment in carbon intensity labeling and trading incentives rewards low-CI fuels, fueling industry partnerships. Improving biofuel cost-competitiveness further accelerates adoption.

Scope of the Report

The report analyzes the Transportation Biofuels market, presented in terms of market value (USD). The analysis covers the key segments and geographic regions outlined below:

• Segments: Biofuel Type (Biodiesel, Bioethanol, Renewable Diesel, Sustainable Aviation Fuel, Other Biofuel Types); Feedstock (Oilseeds, Sugar Crops, Starch Crops, Cellulosic Biomass, Waste & Residues); Application (Transportation Application, Power Generation Application, Heating & Cooking Application, Industrial Application); End-Use (Road Transportation End-Use, Aviation End-Use, Marine Transportation End-Use, Other End-Uses).
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Biodiesel segment, which is expected to reach US$185.5 Billion by 2030 with a CAGR of a 8.5%. The Bioethanol segment is also set to grow at 9.9% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $76.6 Billion in 2024, and China, forecasted to grow at an impressive 12.9% CAGR to reach $97.5 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Transportation Biofuels Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Transportation Biofuels Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Transportation Biofuels Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Abengoa (Advanced Biofuels), ADM (Archer Daniels Midland), Beta Renewables, Cargill, Clariant (Sunliquid®) and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 32 companies featured in this Transportation Biofuels market report include:

• Abengoa (Advanced Biofuels)
• ADM (Archer Daniels Midland)
• Beta Renewables
• Cargill
• Clariant (Sunliquid®)
• Diamond Green Diesel (Valero/Darling JV)
• Enerkem
• Fulcrum BioEnergy
• FutureFuel Corporation
• Gevo
• LanzaJet
• Masim Mas
• Neste
• POET
• PT Pertamina (Persero)
• Renewable Energy Group (REG)
• Shell (through Shell Renewable Energy)
• Valero Energy
• Varo Energy
• Verbio SE
• Wilmar International

This edition integrates the latest global trade and economic shifts into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes historical analysis from 2015 to 2023.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025 (E), competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.