by Biofuels are liquid fuels derived from renewable biomass feedstocks such as agricultural and municipal residues, food crops, and plant wastes. They can replace gasoline, diesel, and jet fuels. The primary advantages of biofuels include reducing greenhouse gas emissions, improving energy security, and supporting rural development. The growing need for cleaner and renewable sources of energy is driving the demand for biofuels.
The global Biofuels Market is estimated to be valued at US$ 101.02 Bn in 2023 and is expected to exhibit a CAGR of 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Depleting reserves of fossil fuels and the need to reduce greenhouse gas emissions are compelling governments worldwide to adopt sustainable energy sources. Moreover, fluctuating crude oil prices and energy security concerns are also prompting end-users to shift from petroleum-based fuels to renewable biofuels. According to the International Energy Agency, global biofuel production capacity is expected to increase from around 160 billion liters in 2020 to over 220 billion liters by 2030. This rising production of biofuels will support the market growth over the forecast period.
SWOT Analysis
Strength: Biofuels burn cleaner than fossil fuels and provide environmental benefits such as reduced emissions and decreased dependency on fossil fuels. They are also renewable sources of energy.
Weakness: Production of biofuels requires arable land which diverts it from food production. Some biofuels like corn ethanol have low energy balance and may not provide significant greenhouse gas reductions compared to conventional fuels.
Opportunity: Strong government policies and initiatives in many countries promote biofuel usage and production. Continuous research and technology advances can improve the sustainability and efficiency of biofuel production.
Threats: Fluctuating crude oil prices affect the demand and competitiveness of biofuels. Supply chain uncertainties and limited feedstock availability can hamper steady biofuel production. Climate change impacts may reduce crop yields used for biofuels.
Key Takeaways
The Global Biofuels Market Size is expected to witness high growth. The market size for 2024 is estimated to be US$ 101.02 Bn registering a CAGR of 29% during the forecast period of 2023 to 2030. Regional analysis
The Asia Pacific region dominated the global biofuels market in 2021 owing to factors such as supportive government policies, initiatives to reduce dependency on oil imports, and expansion of production facilities in countries such as Indonesia and Thailand. Key players
Key players operating in the biofuels market are Climate Finance Partners (United States), Carbon Credit Capital (United States), ClimateCare (United Kingdom), South Pole Group (Switzerland), Climate Trust Capital (United States), Carbon Clear (United Kingdom), EcoAct (France), First Climate (Germany), ClimatePartner (Germany), Ecosphere+ (United Kingdom), Verra (United States), Gold Standard (Switzerland), Natural Capital Partners (United Kingdom), Climate Friendly (Australia), Forest Carbon (United Kingdom).
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
