The U.S. biofuels market includes bioethanol and biodiesel, which are commonly used as alternative fuels for gasoline and diesel-powered vehicles, respectively. Bioethanol is produced through the fermentation of corn and helps reduce carbon emissions, while biodiesel is produced from vegetable oils and animal fats to provide lubrication and power to vehicles. The increasing production of corn-based ethanol is helping reduce reliance on imported petroleum and generating new income opportunities for farmers.
The global U.S. Biofuels Market is estimated to be valued at US$ 32.91 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing corn-based ethanol production is one of the key drivers of growth in the U.S. biofuels market. Corn-based ethanol currently accounts for over 90% of the total fuel ethanol production in the country. Various policy support such as Renewable Fuel Standard (RFS) and tax credits for blending ethanol with gasoline are encouraging higher blending rates. This is positively impacting ethanol consumption and new plants capacities are being added to meet the growing demand. Advanced technologies are also helping ethanol producers improve yields and lower production costs further.
SWOT Analysis
Strength: The U.S. Biofuels Market size has strong government support through incentives and mandates promoting usage of renewable fuel. It helps in reducing dependency on fossil fuels and imports.
Weakness: High production costs of biofuels compared to conventional fossil fuels. Uncertainty in crude oil prices affects competitiveness of biofuels.
Opportunity: Growing adoption of electric vehicles provides opportunities for biofuels producers to explore new technologies to produce advanced biofuels that can power electric vehicles. Strong demand for sustainable aviation fuels from commercial airlines.
Threats: Fluctuations in agricultural commodity prices impact raw material supply and costs. Slow expansion of fueling infrastructure restricts greater market penetration.
Key Takeaways
The global U.S. Biofuels Market is expected to witness high growth.
Regional analysis: The North America region currently dominates the global biofuels market due to strong government support and presence of major producers in the US. The region accounted for over 45% of the global biofuels production in 2023.
Key players related content comprises Key players operating in the U.S. Biofuels Market are Simply Warranty, PTC, Inc., Snap-On Business Solutions, Inc., Oracle Corporation, Zafire Ltd., SAP SE, Pegasystems, Inc., Tavant Technologies, Inc., and Astea International, Inc.
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- Source: Coherent Market Insights, Public sources, Desk research
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