The global Biofuels Market is estimated to be valued at US$ 91.17 Billion in 2022 and is expected to exhibit a CAGR of 10.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Biofuels are renewable sources of energy derived from biomass. They include biodiesel, ethanol, and others which are made from vegetable oils, animal fats and recycled cooking grease. These fuels provide lower emissions and less dependency on fossil fuels. They are considered more economical and sustainable than petroleum fuels. Biofuels serve as substitutes for diesel and petrol in vehicles and gas turbines in aircrafts. Their usage aids in reducing pollution levels and mitigating climate change.
Market key trends:
One of the key trends in the biofuels market is the growing demand for sustainability. With increasing awareness about depleting fossil fuel reserves and environmental impact of emissions, sustainable options have gained prominence. Many governments and companies are supporting biofuel production and usage through policies, incentives and targets to reduce carbon footprint. For instance, the European Union had set a target of 14% share of renewable energy in transport sector by 2030. Companies like TotalEnergies, Cepsa, Honeywell, Neste are investing in advanced biofuel technologies. The sustainability factor is driving uptake of biofuels across industries to meet net zero goals.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low due to the high capital requirements to enter the market and establish a production facility.
Bargaining power of buyers: The bargaining power of buyers is moderate as biofuels market has several buyers. However, buyers do not have significant influence over price.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as raw material suppliers are fragmented. Suppliers do not have significant influence over biofuels producers.
Threat of new substitutes: The threat of substitutes is moderate as there are limited substitutes available for conventional fuels. However, electrification of vehicles is a potential threat.
Competitive rivalry: The competitive rivalry in the biofuels market is high due to the presence of large number of global players operating in the market.
Key Takeaways
The Global Biofuels Market Size is expected to witness high growth, exhibiting CAGR of 10.8% over the forecast period, due to increasing concerns regarding vehicular emissions and fuel security. The market was valued at US$ 91.17 Billion in 2022.
On the regional front, North America dominated the global biofuels market in 2022. The growth in the region is driven by stringent vehicle emission regulations and government support through policies promoting the usage of biofuels such as the Renewable Fuel Standard (RFS). Europe is also anticipated to witness significant growth during the forecast period supported by the implementation of EU renewable energy directive.
Key players operating in the biofuels market include TotalEnergies, Cepsa, Honeywell, Neste, Unilever plc, Starbucks Corporation, Trinity Organics, Chevron, and BoxLNG Pvt. Ltd. Neste is one of the leading producers of renewable diesel globally with a production capacity of over 2.5 billion liters per annum. Whereas TotalEnergies is aiming to produce over 5 million tons of biofuels by 2030.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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