The Next-Generation Biofuels Market Size is valued at USD 12.01 Bn in 2023 and is predicted to reach USD 60.14 Bn by the year 2031 at an 22.7% CAGR during the forecast period for 2024-2031.
The quest for sustainable energy sources has intensified due to environmental concerns and the limitations of first-generation biofuels. While first-generation biofuels, derived from food crops, have faced criticism for competing with food resources, causing land-use changes, and offering only modest reductions in greenhouse gas emissions, next-generation biofuels present a promising alternative. Produced from non-food feedstocks such as agricultural residues, algae, and waste materials, these advanced biofuels address the environmental and ethical issues associated with their predecessors. By utilizing sustainable carbon sources and incorporating innovations like green hydrogen, next-generation biofuels offer a more sustainable, efficient, and versatile solution to reducing reliance on fossil fuels.
Governments and private entities are investing significantly in research to enhance biofuel production efficiency, exemplified by the European Union's Horizon 2020 program, which allocates millions of euros to bioenergy innovation. Regulatory support plays a crucial role in the growth of the biofuel industry; policies like the Renewable Fuel Standard (RFS) in the United States mandate the blending of renewable fuels into the fuel supply, thus driving demand. Additionally, carbon pricing mechanisms encourage the reduction of greenhouse gas emissions, improving the competitiveness of biofuels compared to fossil fuels. Similarly, the European Union’s Renewable Energy Directive (RED) sets ambitious targets for renewable energy use, including biofuels, and promotes their adoption across member states.
The Next-Generation Biofuels Market is segmented based on by biofuel type, by process, by raw material, by application. Based on the by biofuel type, the market is segmented into biodiesel, biogas, biobutanol, and others. Based on the by Process, the market is segmented into Biochemical Process, and Thermochemical Process. Based on the by raw material, the market is segmented into lignocellulose, jatropha & camelina, algae, others. Based on the application, the market is segmented into transportation, power generation, and others.
Based on the by biofuel type, the market is segmented into biodiesel, biogas, biobutanol, and others. Among these, the biodiesel segment is expected to have the highest growth rate during the forecast period. Biodiesel production processes are well-developed and widely adopted, Various governments have supported biodiesel through subsidies, mandates, and incentives aimed at reducing greenhouse gas emissions and promoting renewable energy sources. This is one of the most established next-generation biofuels, often derived from vegetable oils or animal fats. Its market dominance is significant due to existing infrastructure and relatively mature technology.
Based on the by raw material, the market is segmented into lignocellulose, jatropha & camelina, algae, others. Among these, the algae segment dominates the market. Algae can produce a significant amount of oil per unit area compared to traditional crops. Some algae strains can yield up to 50% of their weight in oil, which is advantageous for biofuel production. Algae grow quickly and can be cultivated in several environments, including non-arable land and even wastewater. This rapid growth allows for more frequent harvests and higher overall productivity.
The rising costs associated with environmental protection and the region's increasing need for reliable, environmentally friendly power production technologies are the main reasons for the market's expansion in this area. With strong government backing through legislation like renewable fuel standards and a well-established biofuel infrastructure, the US is an early adopter of biofuels despite challenges with feedstock availability and rivalry with food production for land resources. Canada, with its vast agricultural resources and emphasis on bio innovation, is another significant player.
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Report Attribute |
Specifications |
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Market Size Value In 2023 |
USD 12.01 Bn |
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Revenue Forecast In 2031 |
USD 60.14 Bn |
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Growth Rate CAGR |
CAGR of 22.7% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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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 Biofuel Type, By Process, By Raw Material, By Application |
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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; Southeast Asia; South Korea; South East Asia |
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Competitive Landscape |
Solazyme, POET-DSM, Chemtex Group, Sundrop Fuels Inc., Enerkem, Algenol Biofuels, Abengoa S.A., Gevo, Joule Unlimited, Inc., GranBio, ExxonMobil Corporation, Shell PLC, Chevron Corporation, Valero Energy Corporation, ADM, Cargill, Clean Coal Technologies Inc., Schneider Electric , E3 Clean Technologies, LanzaTech, Accelergy, Hygen, Cortus , Gasliner, Ciris Energy, General, Electric, Alstom, Siemens, Jaworski Energy Services, ABB, Tracxn Technologies Limited |
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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. |
Chapter 1. Methodology and Scope
1.1. Research Methodology
1.2. Research Scope & Assumptions
Chapter 2. Executive Summary
Chapter 3. Global Next-Generation Biofuels Market Snapshot
Chapter 4. Global Next-Generation Biofuels Market Variables, Trends & Scope
4.1. Market Segmentation & Scope
4.2. Drivers
4.3. Challenges
4.4. Trends
4.5. Investment and Funding Analysis
4.6. Industry Analysis – Porter’s Five Forces Analysis
4.7. Competitive Landscape & Market Share Analysis
4.8. Impact of Covid-19 Analysis
Chapter 5. Market Segmentation 1: by Biofuel Type Estimates & Trend Analysis
5.1. by Biofuel Type & Market Share, 2019 & 2031
5.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Biofuel Type:
5.2.1. Biodiesel
5.2.2. Biogas
5.2.3. Biobutanol
5.2.4. Others
Chapter 6. Market Segmentation 2: by Application Estimates & Trend Analysis
6.1. by Application & Market Share, 2019 & 2031
6.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Application:
6.2.1. Transportation
6.2.2. Power Generation
6.2.3. Others
Chapter 7. Market Segmentation 3: by Process Estimates & Trend Analysis
7.1. by Process & Market Share, 2019 & 2031
7.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following by Process:
7.2.1. Biochemical Process
7.2.2. Thermochemical Process
Chapter 8. Market Segmentation 4: by Raw Material Size Estimates & Trend Analysis
8.1. By Raw Material Size & Market Share, 2019 & 2031
8.2. Market Size (Value (US$ Mn)) & Forecasts and Trend Analyses, 2019 to 2031 for the following By Raw Material Size:
8.2.1. Lignocellulose
8.2.2. Jatropha & Camelina
8.2.3. Algae
8.2.4. Others
Chapter 9. Next-Generation Biofuels Market Segmentation 5: Regional Estimates & Trend Analysis
9.1. North America
9.1.1. North America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Biofuel Type, 2024-2031
9.1.2. North America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.1.3. North America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Process, 2024-2031
9.1.4. North America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Raw Material Size, 2024-2031
9.1.5. North America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.2. Europe
9.2.1. Europe Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Biofuel Type, 2024-2031
9.2.2. Europe Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.2.3. Europe Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Process, 2024-2031
9.2.4. Europe Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Raw Material Size, 2024-2031
9.2.5. Europe Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.3. Asia Pacific
9.3.1. Asia Pacific Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Biofuel Type, 2024-2031
9.3.2. Asia Pacific Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.3.3. Asia-Pacific Thermal Cyclers Asia-Pacific Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Process, 2024-2031
9.3.4. Asia-Pacific Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Raw Material Size, 2024-2031
9.3.5. Asia Pacific Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.4. Latin America
9.4.1. Latin America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Biofuel Type, 2024-2031
9.4.2. Latin America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.4.3. Latin America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Process, 2024-2031
9.4.4. Latin America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Raw Material Size, 2024-2031
9.4.5. Latin America Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
9.5. Middle East & Africa
9.5.1. Middle East & Africa Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Biofuel Type, 2024-2031
9.5.2. Middle East & Africa Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Application, 2024-2031
9.5.3. Middle East & Africa Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Process, 2024-2031
9.5.4. Middle East & Africa Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by Raw Material Size, 2024-2031
9.5.5. Middle East & Africa Next-Generation Biofuels Market Revenue (US$ Million) Estimates and Forecasts by country, 2024-2031
Chapter 10. Competitive Landscape
10.1. Major Mergers and Acquisitions/Strategic Alliances
10.2. Company Profiles
10.2.1. Solazyme
10.2.2. POET-DSM
10.2.3. Chemtex Group
10.2.4. Sundrop Fuels Inc.
10.2.5. Enerkem
10.2.6. Algenol Biofuels
10.2.7. Abengoa S.A.
10.2.8. Gevo
10.2.9. Joule Unlimited, Inc.
10.2.10. GranBio
10.2.11. ExxonMobil Corporation
10.2.12. Shell PLC
10.2.13. Chevron Corporation
10.2.14. Valero Energy Corporation
10.2.15. ADM (Archer Daniels Midland Company)
10.2.16. Cargill
10.2.17. Clean Coal Technologies Inc.,
10.2.18. Schneider Electric
10.2.19. E3 Clean Technologies
10.2.20. LanzaTech
10.2.21. Accelergy
10.2.22. Hygen
10.2.23. Cortus
10.2.24. Gasliner
10.2.25. Ciris Energy
10.2.26. General Electric
10.2.27. Alstom
10.2.28. Siemens
10.2.29. Jaworski Energy Services
10.2.30. ABB
10.2.31. Tracxn Technologies Limited
10.2.32. Other Market Players
Global Next-Generation Biofuels Market - By Biofuel Type
Global Next-Generation Biofuels Market – By Process
Global Next-Generation Biofuels Market – By Raw Material
Global Next-Generation Biofuels Market – By Application
Global Next-Generation Biofuels 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.
