Biofuel Market Overview:
As per the U.S Energy Information Agency (EIA), the global energy consumption will witness a significant hike of 28% by 2040. Depleting natural resources augmenting the scarcity of fossil fuels is signaling a failure to efficiently provide to the energy demand articulated by strong economic growth worldwide. Owing to such inevitable circumstances coupled with increasing carbon footprints, biofuel market is all set to capitalize on the unfilled energy demand gap by traditional energy resources. Biofuels are derived from plants (i.e. energy crops), or secondarily from anaerobic digestion, agronomic, commercial, domestic, and wastes from industries. It has found tremendous scope of application in transportation and energy sector. The analyst in this research report has stated the global biofuel market size was around $130 billion as of 2018.
Biofuel Market Outlook:
All the major sectors employing conventional fuel automatically stands out as potential markets to capitalize upon by the biofuel industry. As a consequence, biofuel market is progressing at a global CAGR of around 4% during the forecast period 2019-2025. Transportation sector is the major consumer of fuels, EIA has stated that in 2017, of the approximately 7.3 billion barrels of total U.S. petroleum intake, 47% was motor gasoline, 20% was distillate fuel and 8% was jet fuel. Thus the transportation sector to comply with implementations such as Advanced Energy Initiative (AEI) and Renewable Energy Directive (RED) to overcome volatile petroleum dependence and curb carbon footprints is the major application segment of biofuel market augmenting with a CAGR of 7% going through 2025.
Biofuel Market Growth Drivers and Trends:
Ethanol Production Disrupting North America Market-
The demand for renewable energy for ecological sustainability and energy security is the major trend driving the biofuel market. Renewable energy accounts for nearly 15% of the domestically produced electricity in the United States. And due to influx of investments harnessing renewable energy research and developments, North America generates more than 30% of the global biofuel market demand as of 2018. As per the National Academics, the United States gets 81% of its total energy from oil, coal, and natural gas, all of which are fossil fuels. Now due to volatile prices of petroleum, governmental regulations and measures to keep check on carbon footprints and minerals mining ecological hazards, the biofuel market being a healthy fossil fuels alternative is poised for exponential growth.
The U.S. is the global leader in terms of ethanol production, producing around 13.9 billion gallons or nearly 53 billion liters of ethanol per year. Since majority of U.S. ethanol is produced from corn, the government has subsidizes the manufacture of corn, which has made economically efficient for many countries to import.
Biofuel is the foremost way out in moderating energy security, environmental safety, and economic issues accompanying with petroleum products dependency. Biofuels has garnered public and scientific attention in the last decade, determined by various aspects such as oil price volatility, the necessity for concern over greenhouse gas discharges from fossil fuels, and funding from government subsidies.
Biofuel Market Challenges:
Biofuels have a lesser energy production compared to customary resources. Biofuel refining for more efficient energy outputs is an expensive process. To shape up the obligatory manufacturing models to upsurge biofuel quantities, high investments is frequently required.
However, the point remains that biofuels are a consistent alternative energy resource. With more investments and considerations going into R&D, overcoming the disadvantages of biofuels and shaping them as suitable for extensive consumer use meets possibility. With the availability of technology, disadvantages will be decreased and the market very evidently has potential.
Biofuel Market Players Perspective:
Some of the key players operating in the biofuel market profiled in this IndustryARC business intelligence report are Abengoa Bioenergy S.A., Cargill, Incorporated, BTG International Ltd, and DuPont.
In 2018, Cargill got an approval for more than $38 million in industrial revenue bonds that has been approved for its expansion of biodiesel plant in Wichita, Kansas. The site is already producing vegetable oil that will now make a transition to biodiesel production. The biodiesel plant is worth $87 million project at Cargill’s facility. The expansion will help the region to grow in the biofuel market.
Biofuel Market Research Scope:
The base year of the study is 2017, with forecast done up to 2023. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the Biofuel Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of resources in the Biofuel Market, and their specific applications in different types of industries.
Biofuel Market Report: Industry Coverage
The Biofuel Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Biofuel Market Report
1. Is the market for biofuels growing? How long will it continue to grow and at what rate?
2. Which type of plastic presents the major growth opportunities?
3. Is there a possibility for change in the market structure over time?
4. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
5. Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
6. What are the short-term, long-term, and medium-term growth drivers for the market?
7. What are the short-term, medium-term, and long-term challenges for the market?
8. What are the short-term, medium-term, and long-term opportunities for the market
9. Who are the top players/companies of the market?
10. What are the recent innovations in the market?
11. How many patents have been filed by the leading players?
12. What are the types of patents filed by the leading players?
13. What is our Vision 2030 for plastics in Biofuel Market?
A few focus points of this Research are given below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future biofuels during the forecast 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures