In today, the biofuels market has been evolving as a part of the broader renewable energy sector. Biofuels are fuels derived from renewable biological sources, such as plants or microorganisms, that can be used as an alternative to traditional fossil fuels. These sources include crops like corn and sugarcane, as well as non-edible biomass like wood and algae. Biofuels are considered more environmentally friendly than fossil fuels because they can be produced from organic materials and have the potential to reduce greenhouse gas emissions. Biofuels offer a more sustainable and environmentally friendly alternative. They can be used in various sectors, including transportation, heating, and electricity generation. Common types of biofuels include ethanol biodiesel, and biogas. BCC Research’s latest projection on report biofuels: global markets, will increase from $125.9B in 2023 to $143.8B in 2028, representing a 2.7% CAGR from 2023 to 2028.
According to the IEA, the U.S., Canada, Brazil, India, and Indonesia are the countries have strong biofuel policies that strongly support the development of biofuels. North America accounted for 45.8% of the global biofuel market, followed by South America 29.7% and Europe 14.4%. According to the International Energy Agency (IEA), biofuel demand is expected to increase by 6% in advanced economies from 2022 to 2024. Biofuel consumption is expected to increase by about 2% in 2023.
Environmental concerns, government policies, incentives, energy security, increasing demand for transportation fuels, and growing demand for sustainable aviation fuels (SAF) are the several key factors who driving the biofuels market. There are different types of biofuels or renewable fuels: ethanol, biodiesel, and advanced biofuel. Today, biofuel is seen as one of the primary options to move towards a more sustainable world by reducing greenhouse gas emissions, especially from the transport sector. Globally, the share of biofuels used in the transport sector in 2022 is 4.3% and is likely to increase to 5.4% in 2027.
Here are some notable companies that are involved in the biofuels sector: