The global advanced biofuel market was valued at US$ 8.880 billion in 2016 and is expected to reach US$ 194.633 billion by 2025 growing at a CAGR of 41.18% over the forecast period. According to an Advanced Biofuel Market Report, by Fuel Type (Cellulosic Ethanol, Biofuel, Biobutanol, BioDME, and others), by Raw Material (Jatropha, Camelina, Algae, Simple Lignocellulose, Complex Lignocellulose, and Others) by Process Type (Biochemical Process and Thermochemical Process).
Advanced biofuel yields more energy efficient output as compared to conventional fossil fuels and are environment-friendly in nature. Furthermore, favorable environmental policies and regulations, investment for R&D provided by European and North American governments, and commercialization of advanced biofuels are driving the growth of advanced biofuels market.
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Key Trends and Analysis of the Advanced Biofuel Market:
- Among fuel type, the biofuel segment held a dominant position in the market in 2016 and is expected to retain its dominance over the forecast period. This is due to increasing usage of biofuels as engine fuel, increasing demand for renewable energy, and favorable regulations regarding environment protection is expected to drive growth of advanced biofuels market over the forecast period.
- However, there are few factors that hinder growth of the market, which include threats from alternative products such as fall of crude oil prices and process limitations
- Among raw material, algae segment accounted for the largest market share in 2016, owing to the benefits of using algae for biofuel production. Some of the advantages of using algae include higher yield produced by algae and cultivation of it on non-arable land without using fresh water. Moreover, it provides environmental benefits, as it consumes CO2 and is capable of providing greenhouse gases mitigation benefits. In 2012, an assessment of algae biofuels was published by SGI and ExxonMobil in Environmental Science and Technology, which stated that around 50% lower life cycle greenhouse gas emissions were produced by algal biofuel when compared to fuels that are derived from petroleum.
Key Takeaways of the Market:
- According to study, North America accounted for the highest market share in terms of revenue in global advanced biofuel market in 2016, followed by Europe. The dominance of North America in advanced biofuels market is attributed to the favorable government regulations. The government is directing the use of bioethanol and biodiesel in public transport in economies such as India and Germany. The European Union (EU) established the Renewable Energy Directive (RED), which aims to have around 10% of the transportation system use renewable energy by 2020. According to the EPA (Environmental Protection Agency), advanced biofuel achieve around 50% lesser greenhouse gas emissions as compared to the conventional fuel
- Asia Pacific is projected to be the fastest growing region in the advanced biofuel market and is expected to witness a CAGR of 43.33% over the forecast period. Emerging economies such as India and China are expected to contribute to the significant growth of the advanced biofuel market in Asia Pacific over the forecast period.
- The key players in the advanced biofuels market include Abengoa bioenergy, A2BE Carbon Capture, LLC, Algenol Biofuels, Chemtex group, Bankchak Petroleum, Clariant Produkte (Deutschland) GmbH, Fiberight LLC, DuPont Industrial Biosciences, Fujian Zhongde Energy Co., Ltd, Inbicon, GranBio, INEOS Bio, POET-DSM Advanced Biofuels LLC, KiOR Inc., ZeaChem Inc., and Sundrop Fuels, Inc.