Biofuels are the energy source which is made up of living microorganism, starch, and other livestock. Biofuels are also made from oil or tree seeds such as rapeseed, sunflower, soya, palm, coconut or jatropha. Biofuels account for two major types: bioethanol and biodiesel.
Global biofuels & biodiesel market is estimated to grow with approx. 5.48% CAGR during the years 2018-2026. The base year considered for the study is 2017 and the forecast period is between 2018 and 2026. The rising demand for biofuels is primarily driven by the following factors:
- Fluctuating petroleum prices driving the demand for biofuels
Growinginterest in clean & alternative fuel Increasing availabilityof feedstocks
- Government regulations supporting the adoption of bio-based fuel alternatives
- Widening applications of biofuels
- Sustainability questions raised by U.N and others
However, the primary factor which is driving the global biofuels market is the growing interest in alternative fuels on account of uncertainty in global fuel prices, energy security, and the continuously rising in emission levels. Moreover, favourable government initiatives by various developed countries such as Brazil, United States and more, are fueling the growth of the global biofuels market.
Biodiesel is largely used as an alternate fuel across the world. Biodiesel dominated the global biofuel market in terms of biofuel type segment. Biodiesel held the largest market share of XX% in 2017. The global biodiesel market is majorly driven by increasing environmental concerns and the need for energy independence. Biodiesel can be produced using various feedstocks and can be used in diesel vehicles without any modification to the engine. Biodiesel is blended with diesel in various compositions of B5, B20, and B100. Leading countries for biodiesel production are the US, then Brazil, followed by Germany and the Netherlands. Moreover, Cellulosic Ethanol is anticipated to be the fastest growing segment with a CAGR of XX % during the forecast period.
Though the global biofuel & biodiesel market has numerous growth drivers, market growth is curtailed by certain challenges. Volatility in oil prices, barriers in retailing & distribution, development of biofuels, stringent rules and regulations & rise in competition among key players, are several factors that are delaying the market growth. Another major challenge in the market is the higher cost of production of biofuels as compared to conventional fuels.
The global biofuels market is segmented on the basis of feedstocks and by type of biofuels.
- Sugar & starches
- Oil & fats
- Other feedstocks
By Type of biofuels:
- Cellulosic ethanol
- Vegetable oil
- Bio alcohols
- Bio DME
- Other types