Liquid Biofuels Market Size, Share, By Product, Feedstock, Process, Application, and Region - Trends, Analysis, and Forecast till 2034

• The liquid biofuels market size was worth USD 92.3 Billion in 2024.
• The projected target market size is USD 164.3 Billion by 2034.
• The market is expected to grow at a CAGR of 6.5%.

Liquid biofuels are considered to be a substitute fuel for all kinds of internal combustion (IC) engines, which work with diesel, gasoline, or kerosene for use in transport vehicles on the land, air, and sea. Liquid biofuels refer to renewable kind of fuels derived from biological sources, mostly plant or algal materials, which are used as mean alternative to conventional fuel from petroleum. Liquid biofuels are liquid-based, Sugar Crops carriers produced from biomass and have shown good potential as alternative fuels for transport and services as a replacement for fossil-based fuels. Burgeoning demand for cleaner fuels is projected to boost the liquid biofuels market growth during the forecast period.

Key Takeaways:

• North America is expected to be dominating the market during the forecast period owing to the presence of advanced infrastructure to produce biofuels.
• Asia Pacific is considered to be the fastest growing region in the market due to the rising demand for energy across Asia Pacific.

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Key Drivers of Target Market:

Growing Demand for Cleaner Fuels to Drive Market Growth During 2024-2034

• Increased concern for environmental pollution and climate change is likely to drive an ever-increasing demand for fuels that will replace or reduce fossil fuel combustion, boosting the liquid biofuels market growth. Liquid biofuels can be produced from biomass, providing them with a better carbon footprint compared to conventional gasoline and diesel. They help in the reduction of greenhouse gases and combat climate change, such as rising global temperatures, extreme weather conditions, and ocean acidification.

Depleting Fossil Fuel Resources to Boost Market Expansion

• With increased dependency on fossil fuels globally, several questions have risen regarding the depletion of resources. Extraction of fossil fuels is becoming expensive and technically difficult. Most importantly, extraction has huge environmental impacts. Biofuels are renewable and sustainable. They will help decrease over-dependency on finite reserves of fossil fuels and reduce the environmental degradation cycle starting from extraction to energy production.

Restraints:

High Production Costs May Hinder Market Growth

• Presently, liquid biofuels are produced at a cost higher than the costs of extraction and refining of fossil-based fuels. This may limit their economic viability, hence making them less competitive at the market level. The costs for the feedstock are variable, given other factors such as market prices and the cost of transport and storage. Complexity in the production of biofuel compared to refining fossils, and through research and development in technologies for crop-based biofuel production, to increase the actual production and efficiency.

Opportunities:

Introduction of Waste-to-Fuel Technologies May Boost Market Growth in Future

• Waste-to-fuel technologies have some environmental and economic benefits. These can divert wastes from landfills, prolonging their useful life while mitigating methane emissions resulting from decomposing organic matter. Besides, they contribute to a circular economy in that they turn waste into an important and valuable product for the production of biofuels. Further, technologies to turn waste into fuel help reduce the impact of climate change by avoiding reliance on fossil fuel supplies and related GHG emissions. Additionally, engaging in such development and the deployment of such technologies may prove the creation of another set of new jobs and stimulate economic growth in the sugar crop industries.  

The liquid biofuels market is categorized into product, feedstock, process, application, and region.

By Product:

On the basis of product, the market is classified into biodiesel, bioethanol, and others. The bioethanol segment is projected to excel in the market owing to the growing use of biodiesel in several engines and other engines.

By Feedstock:

Under feedstock, the market is segmented into sugar crops, starch crops, vegetable oils, animal fats, and others. The market is being dominated by the sugar crops segment as sugar crops are mainly used as biomass material to produce bioethanol.

By Process:

The market is categorized into conventional biofuel production and advanced biofuel production under the process segment. The well-established fermentation and transesterification technologies used to fabricate bioethanol and biodiesel boosts the dominance of the conventional biofuel production.

By Application:

Based on application, the market is divided into transportation, power generation, and heat. The transportation is projected to dominate the market owing to the growing of gasoline, which is now being blended with biodiesel.

Regional Insights:

Based on geography, the market is analyzed into North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

• North America: North America is expected to dominate the market during the forecast period. The U.S. and Canada are leading producers and consumers of liquid biofuels, particularly bioethanol, due to the existing production of corn and the favoring governmental policies towards this. This again means that the region has developed an advanced infrastructure for biofuels and an investment in an advanced biofuel technology is currently underway.
• Asia Pacific: It is one of the fastest-growing regions in biofuel output, pointing to growing energy demand, government initiatives encouraging the use of biofuels, and ample resources of biomass. Major contributors to the regional output are China and India, both countries targeted by production specializing in bioethanol from sugarcane and corn.
• Europe: Europe has a mature market for the same, being stressed by high interest in advanced biofuels and stricter environmental laws. Advanced biofuel technologies have been developed and deployed in this region with vigor to meet ambitious renewable energy targets for reducing independence on imported fossil fuels.

Liquid Biofuels Market Report Scope:

Segments Covered in the Report:

By Product:

• Biodiesel
• Bioethanol
• Others

By Feedstock:

• Sugar Crops
• Starch Crops
• Vegetable Oils
• Animal Fats
• Others

By Process:

• Conventional Biofuel Production
• Advanced Biofuel Production

By Application:

• Transportation
• Power Generation
• Heat

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

Company Profile:

The key players operating in the market are ADM (Archer Daniels Midland Company), Valero Energy Corporation, and others. The key players in the market are forming new biofuel manufacturing facilities globally to maintain competitive edge in the market during the forecast period.

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• In June 2024, The FAOSTAT Bioenergy domain was released in June as part of the 11th Global Bioenergy Partnership (GBEP). The Food and Agriculture Organization of the United Nations (FAO) has established a new FAOSTAT domain for bioenergy. The new figures increase FAO's global data on agrifood systems.  The new statistics show the production and final consumption of bioenergy by biofuel type: solid biofuels (animal waste, bagasse, black liquor, charcoal, fuelwood, other vegetal material, and residues); liquid biofuels and gaseous biofuels.
• In September 2023, Prime Minister Modi announced the formation of the Global Biofuel Alliance. PM Modi proposed taking a worldwide campaign to increase ethanol blending in gasoline to 20%, during a G-20 Summit discussion on 'One Earth'. The establishment of the Global Biofuels Alliance is a watershed moment in our drive for sustainability and clean energy. The time has come for all countries to collaborate on fuel mixing. They suggest a global push to increase ethanol blending in petrol to 20%.

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• ADM (Archer Daniels Midland Company)*
• Valero Energy Corporation
• Green Plains Inc.
• Gevo
• Chevron Corporation
• Neste
• TotalEnergies
• Wilmar International Ltd.
• Enerkem Inc.
• POET
• Fulcrum BioEnergy, Inc.
• Alto Ingredients, Inc.
• Pacific Biodiesel
• Bunge North America Inc.
• Cargill
• Bangchak Corporation Public Company Limited
• CropEnergies AG
• Emami Agrotech Limited