Global Biofuels Market: Snapshot
The snowballing demand for energy across the globe is helping the energy and mining industry in taking a transformational leap forward towards novel fuel types. This coupled with the rising environmental concerns is leading to the greater investments in the development of a clean source of energy. These factors collectively are forming a fertile foundation for the development of the global biofuels market. Over the past few years, biofuels have gained significant popularity since they are derived through biological processes and are environment-friendly and can replace exhaustible sources of energy.
A report by Transparency Market Research (TMR) indicates that the global market for biofuels is expected to rise at a noteworthy CAGR of 9.6% from 2013 to 2019, reaching a volume of 24.33 billion gallons by the end of 2019. Biofuels are used in multiple applications such as automotive, marine, and railway. Besides that, they are also used in commercial heating processes. Hence, the spiraling demand from these applications is boosting the production of biofuels, particularly in the U.S. Moreover, factors such as exhausting fossil fuels, growing global population, and stringent environmental policies are stoking the growth of the market.
Slow Regeneration of Feedstock to Inhibit Market Growth
Despite an array of drivers, the demand for biofuels is much higher than the pace of feedstock regeneration, which is reflecting negatively on the demand-supply gap, thereby hampering the growth of the market. Furthermore, there are several hurdles related to existing retailing, distribution, and development channels, which are adversely affecting the growth of the market. The levels of awareness regarding the availability and benefits of biofuels are low in developing and less-developed countries, which will also limit their widespread adoption. Nevertheless, the growing investments in the research and development of new feedstocks are supporting the future of the global biofuels market.
On the basis of type, the global biofuels market is bifurcated into biodiesel and bioethanol. Bioethanol will account for a substantial share in the global arena throughout the review period. Bioethanol is a renewable fuel, which can be produced using different feedstock. Fuel suppliers combine it with gasoline in various proportions before making it available for commercial usage. The presence of a larger number of bioethanol mandates as compared to biodiesel mandates is translating into the greater production of bioethanol. Currently, the US and Brazil are at the forefront of the market in terms of ethanol production. Based on form, the market is categorized into liquid, solid, and gaseous.
Developed Regions to Remain at Forefront of Growth Owing to Strict Government Regulations and Policies
From the geographical standpoint, the report divides the global biofuels market into Asia Pacific, Europe, North America, and Rest of the World. North America will account for the leading share of the revenue pie throughout the forecast horizon. The rising awareness regarding the advantages of biofuels over conventional fuels and stringent regulations and policies pertaining to environment conservation along with the increasing environmental concerns among the populace are contributing to the growth of the region. North America will be closely trailed by Europe, whose development will be governed by similar factors.
Asia Pacific will exhibit healthy growth during the same period. The rapidly growing population and improving economic conditions in developing countries such as China and India are supplementing the growth of the region. The abundant availability of raw materials renders the region highly lucrative, thereby attracting investors worldwide to promote the development of the market in APAC. Some of the prominent participants in the global biofuels market are Australian Renewable Fuels Limited, Renewable Energy Group, Raizen Energia Participacoes S.A, Aventine Renewable Energy Holdings Inc., BlueFire Renewables, and Solazyme Inc.
- North America
- Rest of the World
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
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