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.
Competitive Landscape
Some of the Major Key Players in the Next-Generation Biofuels Market are
- 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 (Archer Daniels Midland Company)
- 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
Market Segmentation:
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.
The Biodiesel Segment is Expected to have the highest growth rate during the forecast period
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.
The Algae Segment Dominates the Market
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.
North America Have the Largest Market Share During Forecast Period
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.
Recent Developments:
- In Aug 2024, Enerkem Inc. and Technip Energies have agreed to work collaboratively to fast-track the implementation of Enerkem's technological platform for producing circular chemicals and biofuels from non-recyclable waste materials by adopting a memorandum of understanding.
- In Sep 2021, Gevo and DoE collaborate to create next-generation biofuels. Gevo has teamed up with the US Department of Energy's (DoE) Argonne National Laboratory to conduct a thorough lifecycle analysis of its cutting-edge technology.
Next-Generation Biofuels Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 12.01 Bn |
|
Revenue Forecast In 2031 |
USD 60.14 Bn |
|
Growth Rate CAGR |
CAGR of 22.7% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Bn and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Biofuel Type, By Process, By Raw Material, By Application |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
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 |
|
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 |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing and Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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