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.
The global biofuels market research report is a comprehensive study of the biofuels by its various applications and types of products. The report categorizes the market based on (form and regional) analysis.
Biofuels is a class of energy derived biologically from carbon fixation. In recent years, biofuels are gaining vital importance in the market due to factors such as, government support, low carbon emissions, volatility, energy sustainability, rising crude oil prices, and increase in automobile industry. The market has also witnessed a tremendous rise in demand for biofuels as they are naturally derived and can easily replace non-renewable resources.
The research study analyzes the global biofuels market on its major geographies, market segments, and current market trends. Geographies analyzed under this research report include North America, Asia Pacific, Europe and Rest of the World (RoW). Major restraining factors, growth factors, and market opportunities of biofuels market is analyzed in detail with supporting tables and graphs.
The study report also includes the market attractiveness analysis that was carried out for the global market based on geography. With the help of Porter’s Five Force Model, the report is designed in the effort to provide a comprehensive view of the impact made by the suppliers, new entrants, buyers, and substitutes involved in this market.
The report on the global biofuels market comprises an overview of the market – by fuel type, form analysis, and value chain analysis, as well as an executive summary within the biofuels industry.
This report analyzes, forecasts, and estimates the biofuels market in terms of volume (million gallons) and revenue (USD billion) from 2013 to 2019. It also discusses the value chain components for studying the value addition at every stage.
Overview of the Biofuels Market
The rapid development and expansion of biofuel production has created significant interest within the body of economic literature in order to understand the impact of biofuel growth on commodity market. One of the most important factors propelling the growth of this market is the fact that they are obtained from biological processes and can be manufactured using any form of oil-rich crop such as, soy, oil palm or sunflower. These crops are naturally grown in all the regions across the world, hence, making biofuels the most eco-friendly form of energy to use.
The market research report segments the global biofuels market by fuel type: bioethanol and biodiesel. The biofuels (bioethanol and biodiesel) production in top and emerging countries like the U.S., China, India, and Russia are expected to witness moderate growth in the forecast period. The U.S. is likely to witness an increasing demand for biofuels in the near future.
The biofuels market gains major revenue from the form analysis segment that comprises solid (pellet fuel, biochar and biocoal), liquid (bioethanol and biodiesel) and gaseous (Biogas, Biopropane, Syngas) forms of energy. Of all, the liquid form of biofuel that is produced from different oil-rich crops is grown in many regions across the globe. The liquid biofuels (biodiesel and bioethanol) market with respect to market trends, forecasts, production, consumption, and government policies and regulations are covered in-depth within this report.
In the year 2012, 24,326.7 million gallons of biofuel was produced globally, of which leading countries like the U.S., especially North America held the largest market share owing to the increased awareness amongst the population and stringent environmental regulatory policies in the country. The biofuels production in top and emerging countries is now expected to grow from 24,326.7 million gallons to reach 50,921.4 million gallons by 2019 at a CAGR of 9.6% from 2013 to 2019.
Other developing economies like Europe, China, Russia, and India are also experiencing steady development with an expectation of increase in stability for the next six years.
Biofuels was mainly driven by the rise in fossil fuel prices and energy security. Biofuels is the direct substitute for fossil fuels, and irrespective of the on-going turmoil in the biofuels sector regarding the sustenance, quality of raw materials, and significant slowdown in investment, the market continues to show signs of growth.
The objective of the report is to highlight key facts and figures about the market size, raw materials, market revenues, and cost structures associated with the biofuels market.
Companies Mentioned in the report
Some of the leading companies profiled in the global biofuels market include BlueFire Renewables, Raizen Energia Participacoes S.A, Aventine Renewable Energy Holdings, Inc (AVRW), Australian Renewable Fuels Limited, Renewable Energy Group, and Solazyme Inc.
Major geographies analyzed under this research report are:
- North America
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
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- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments