Global Liquid Biofuels Market by Product (Bioethanol, Biodiesel), by Application (Transportation Fuel, Thermal Heating, Power Generation) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global liquid biofuels market was worth USD 65.4 billion in 2019. It is projected to grow at a compound annual rate (CAGR of 6.4%) between 2020 and 2027. It is expected to experience moderately rapid growth and 141.592.2 thousand tonnes of oil equivalent by 2027. Due to their ability to reduce or eliminate dependence on fossil fuels, biofuels will see a rise in demand. These cleaner alternatives to fossil fuels are more efficient and produce zero CO2 omissions from combustion. They also make use of plant-based raw materials.

The market will be driven by a decrease in fossil fuel-based resources as well as a growing awareness about environmental protection. Biofuel companies are expected to increase their R&D investments to commercialize the most advanced second- and third-generation technologies due to the existence of tax incentives and regulatory policies around the globe.

Liquid biofuel can be used as an energy-efficient alternative to fossil fuels. It helps reduce the energy security and pollution risks associated with burning fossil fuels. It can also be mixed with other fossil fuels to make it suitable for transportation applications. Biodiesel can be used to replace conventional fuels, but its production capacity is insufficient to meet current demand. The market is tightly regulated and offers various tax incentives to different countries.

Many strategies and policies have been adopted by governments around the globe to address the issues associated with climate change. These policy goals are based on three key parameters: energy security, rural development and mitigation of climate change.

Over the forecast period, there will be an increase in demand for fatty oils biojet fuel, hydro processed esters and renewable diesel. Also known as hydrotreated vegetable oil, (HVO), this is also expected to rise. Their potential to be used unblended, without modification to transportation engines, or fuel supply infrastructure, can explain this increase in demand.

Brazil, China and India are among the emerging economies that aim to replace the entire fossil-based fuels by biodiesel for transportation applications. There is a lot of potential for biodiesel production at smaller scales. This will allow facilities to have lower economies of scale and can benefit small-scale farmers during the raw material stage. It also has the potential to contribute to rural development.

Product Insights

The rise in energy security and increased use of flex-fuel vehicles has led to an increase in biofuel demand over the past few years. North American bioethanol demand was 32,562.7 million TOE in 2019. It is expected to grow at a 5.9% CAGR from 2020-2027.

North America's liquid biofuels market for bioethanol and biodiesel is growing rapidly. Favorable regulatory and political support, innovation assistance (for second and/or third generation biofuels), customer support, environmental support, geopolitical and agricultural support are all key factors that influence the growth.

The high demand for green fuels and stringent environmental regulations are major factors driving regional market growth. They also require high investments to develop biofuel refineries. Regional growth will be driven by technological advances and increased awareness about biofuel as a clean fuel. The U.S. has 49 states that have adopted ASTM D6751 state law. They are now required to enforce ASTM D6751 biodiesel standards.

Asia Pacific saw a demand of bioethanol at 6,258.1000 TOE in 2019. This number is expected to rise to 10,681.7 thousand TOE by 2027. Bioethanol demand in Asia Pacific is expected to grow at 6.9% during the forecast period.

The 2018 increase in Polish bioethanol consumption was due to mandates increasing slightly. A small portion of the mandates were fulfilled by biodiesels. The Netherlands saw a rise in biofuel consumption due to higher taxes and more mandates for diesel cars. Sweden has seen a drop in bioethanol consumption, primarily due to the decline in E85 sales. This is because the government energy taxes for flex fuel cars, which are imposed on the country, have made it difficult for biofuel applications.

Application Insights

The transportation biofuel consumption must triple by 2030. This is why the Sustainable Development Scenario should be followed closely. Comparing the 10% global demand for transportation fuel with the 3.5% currently, this is a comparison.

To balance out the adoption of biofuels as well as advanced biofuel consumption in various transportation sectors, stronger policy support is required. To ensure that sustainable biofuels are included in the sustainable development scenario, it is important to have more sustainability governance.

The Asia Pacific region had a 4,080.4 thousand toe transportation fuel demand in 2019. This number is expected to rise to 7,026.3 thousand by 2027. Over the forecast period, the Asia Pacific transportation market is expected to grow at a CAGR 7%.

Brazil and India are expected to see a rise in liquid fuel production, as they have the highest levels of production across their respective regions. This will likely accelerate the market, which is still to reach sustainable development scenario volume by 2030. Brazil was the country with the highest bioethanol production in Central and South America. Brazil also announced plans to increase and mandate biodiesel usage from 10% to 15%.

Regional Insights

The abundance of biofuel-producing feedstock and land area has made North America the dominant market in the world. The U.S., Brazil and the European Union are expected to be the main regions that drive the demand for liquid biofuels. Other economies, such as Australia, Canada, Thailand, Indonesia, Australia, and the Philippines, are expected to offer significant opportunities for biofuels industry. The availability of non-food agricultural land is the main determinant of global biofuel potential's long-term impact.

Canadian Clean Fuels Standard (CFS), has planned to apply different norms for solid, liquid, and gaseous fuels that are combusted for energy production, as well as the transportation sector. Canadian officials have been working to reduce greenhouse gas (GHG), emissions by 30% per year by 2030.

The growth of government initiatives and a greater focus on energy independence and security has helped propel the South American market and Central America. The region's high dependency on fossil fuels has prompted different governments to seek out alternatives. Bio-fuels are a great solution to the depletion of fossil fuels in countries like Brazil, Venezuela, and others.

Market Share Insights & Key Companies

In view of the current regulatory environment and long-term benefits, market leaders have adopted sustainable sourcing strategies. To grow and sustain their market share, companies are focused on providing long-term value for shareholders. It is expected that the key players will create a solid and low-risk strategy that will provide a solid foundation for shareholders. In August 2018, Archer Daniels Midland Company, (ADM), launched an oil-seeds facility in Egypt with Cargill Inc. in order to increase its presence on the Middle East and Europe market.

These companies have begun to expand their businesses through mergers and acquisitions to meet this demand. ADM; Green Plains, Valero Energy Corporation, Pacific Ethanol Inc., Butamax, and Renewable Energy Group, Inc. (REG), have all acquired regional companies around the world to maintain and gain market dominance. The following are some of the most prominent players in liquid biofuels:

• Archer Daniels Midland Company

• Gevo

• Green Plains

• Wilmar International

• Algenol

• Pacific Ethanol Inc.

• Valero Energy Corp.

• Petrobras; Butamax

• Renewable Energy Corp.

• Bunge North America Inc.

Up Market Research published a new report titled “Liquid Biofuels Market research report which is segmented by Product (Bioethanol, Biodiesel), by Application (Transportation Fuel, Thermal Heating, Power Generation), By Players/Companies Algenol, Archer Daniels Midland Company, Petrobras; Butamax, Gevo, Bunge North America Inc, Green Plains, Renewable Energy Corp, Wilmar International, Valero Energy Corp, Pacific Ethanol Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Liquid Biofuels Market Report Segments:

The market is segmented by Product (Bioethanol, Biodiesel), by Application (Transportation Fuel, Thermal Heating, Power Generation).

Liquid Biofuels Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Liquid Biofuels Market

Overview of the regional outlook of the Liquid Biofuels Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Liquid Biofuels Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Liquid Biofuels Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Bioethanol

                2. Biodiesel

                1. Transportation Fuel

                2. Thermal Heating

                3. Power Generation

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Liquid Biofuels Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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Reasons to Purchase the Liquid Biofuels Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.