Global Biofuel Market Size is valued at USD 171.2 Billion in 2024 and is predicted to reach USD 306.3 Billion by the year 2034 at a 6.1% CAGR during the forecast period for 2025-2034.
Biofuels are renewable fuels made from biomass such as plant matter, animal matter, or human waste. Several nations are making efforts to reduce their reliance on foreign oil. With oil refineries operating at full capacity and rising prices, businesses and consumers are looking for alternatives. There are hundreds of millions of cars and light trucks on the road across the world, and the only non-petroleum energy source available to use in them is biofuels, which are gasoline and diesel made from various crops.
Increased interest in ethanol and biodiesel, two types of liquid biofuels, has resulted from the recent increase in oil prices. However, biofuels will eventually be used to replace fossil fuels. Fans of advanced biofuel say it's the best renewable alternative to petroleum-based fuels like gasoline and diesel and is widely available. To date, this is the only renewable energy source that has proven to be a drop-in replacement for the liquid fuels used in the vast majority of internal combustion vehicles.
However, the market growth is hampered by the high cost and health of the biofuel market, and the global production of biofuels has become more expensive as a result of rising commodity costs. Manufacturers, project developers, and legislators face immediate ramifications due to this circumstance. The biofuels industry has experienced a cost reduction drift for over a decade, but recent increases in the price of key inputs have reversed this trend. This has the potential to delay the funding of several ongoing projects. The COVID-19 epidemic negatively impacted the biofuel market due to the reduced fuel demand caused by the suspension of mobility. Biofuels are often combined with fossil fuels. After a brief dip during the pandemic, the economy has fully recovered. Because of this, businesses all across the world were able to flourish.
The Biofuel Market is segmented based on fuel type, generation, and end-use and application. As per the fuel type, the market is segmented into ethanol, biodiesel, renewable diesel, and biojets. The market is segmented by generations into first-generation, second-generation, and third generation. By end-use and application, the market is segmented into transportation and aviation.
The Biofuel market is expected to hold a major global market share in 2024. The growing interest in developing eco-friendly aeroplane fuel is a key factor driving the biofuel market. Governments and international organizations have established limits and targets to reduce air travel's carbon footprint.
The transportation segment is projected to grow rapidly in the global biofuel market. The transportation industry makes a substantial contribution to the release of greenhouse gases. Biofuels can be useful since they contribute less carbon dioxide to the atmosphere during combustion than fossil fuels, especially in countries like the US, Germany, the UK, China, and India.
The North American biofuel market is expected to record the maximum market share in revenue in the near future. It can be attributed to the fact that there is a lot of material available to turn into biofuel. The region will dominate the global biofuels market due to its superior infrastructure for biofuel production and its government's supportive policies regarding the use of biofuels. In addition, Europe is estimated to grow rapidly in the global biofuel market because several variables point to expansion in the intended market. Among these is the government's renewed focus on implementing laws to reduce emissions of greenhouse gases.
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Report Attribute |
Specifications |
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Market Size Value In 2024 |
USD 171.2 Billion |
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Revenue Forecast In 2034 |
USD 306.3 Billion |
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Growth Rate CAGR |
CAGR of 6.1% from 2025 to 2034 |
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Quantitative Units |
Representation of revenue in US$ Billion and CAGR from 2025 to 2034 |
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Historic Year |
2021 to 2024 |
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Forecast Year |
2025-2034 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Fuel Type, Generation, End-Use |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico ;The UK; France; Italy; Spain; China; Japan; India; South Korea; South East Asia; South Korea; South East Asia |
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Competitive Landscape |
ADM (US), Chevron (US), Valero (US), Neste (Finland), Cargill, Incorporated (US), Wilmar International Ltd (Singapore), VERBIO AG (Germany), Borregaard AS (Norway), POET, LLC (US), The Andersons, Inc. (US), Green Plains Inc. (US), BP p.l.c. (UK), FutureFuel Corporation (US), Münzer Bioindustrie GmbH (Austria), Aemetis, Inc. (US), CropEnergies AG (Germany), Raízen (Brazil), Blue Biofuels, Inc. (US), Pannonia Bio Zrt. (Hungary), GreenJoules (India), Algenol (US), and Others |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
Biofuel Market By Fuel Type-
Biofuel Market By Generation-
Biofuel Market By End-use-
Biofuel Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
InsightAce Analytic follows a standard and comprehensive market research methodology focused on offering the most accurate and precise market insights. The methods followed for all our market research studies include three significant steps – primary research, secondary research, and data modeling and analysis - to derive the current market size and forecast it over the forecast period. In this study, these three steps were used iteratively to generate valid data points (minimum deviation), which were cross-validated through multiple approaches mentioned below in the data modeling section.
Through secondary research methods, information on the market under study, its peer, and the parent market was collected. This information was then entered into data models. The resulted data points and insights were then validated by primary participants.
Based on additional insights from these primary participants, more directional efforts were put into doing secondary research and optimize data models. This process was repeated till all data models used in the study produced similar results (with minimum deviation). This way, this iterative process was able to generate the most accurate market numbers and qualitative insights.
Secondary research
The secondary research sources that are typically mentioned to include, but are not limited to:
The paid sources for secondary research like Factiva, OneSource, Hoovers, and Statista
Primary Research:
Primary research involves telephonic interviews, e-mail interactions, as well as face-to-face interviews for each market, category, segment, and subsegment across geographies
The contributors who typically take part in such a course include, but are not limited to:
Data Modeling and Analysis:
In the iterative process (mentioned above), data models received inputs from primary as well as secondary sources. But analysts working on these models were the key. They used their extensive knowledge and experience about industry and topic to make changes and fine-tuning these models as per the product/service under study.
The standard data models used while studying this market were the top-down and bottom-up approaches and the company shares analysis model. However, other methods were also used along with these – which were specific to the industry and product/service under study.
To know more about the research methodology used for this study, kindly contact us/click here.
