The global liquid biofuel market size was valued at US$ 115 Bn in 2020 and is projected to reach US$ 300 billion by 2030, growing at a CAGR of 11% over the forecast period.
Biofuels can play an important role in reducing carbon dioxide emissions. Liquid biofuels can be used as alternative fuels for all types of internal combustion engines running on gasoline, diesel, or kerosene. They can be used in passenger vehicles, trucks, ships, and airplanes. Currently, ethanol and biodiesel are the two common types of liquid biofuels.
Biodiesel is made from vegetable oils, animal fats, or greases such as recycled restaurant grease, while ethanol is obtained from natural sources such as sugarcane, maize, and corn .
Some of the major factors that are projected to drive the liquid biofuel market during the assessment period include mounting environmental problems, fast-paced depletion of natural resources, regulatory policies pertaining to the use of biofuels in different countries, and low environmental footprint of liquid biofuel applications. Companies involved in the current market landscape should focus on research and explore the potential of different feedstock to develop liquid biofuels to enhance their market presence.
Key Drivers and Restraints
Increasing demand for alternative fuels from the transportation sector is a major factor driving the global liquid biofuel market. Liquid biofuels are largely used as substitutes for petroleum-based fuels and they are considered useful to improve fuel security; to mitigate climate change; and to support infrastructure development. In order to achieve compliance with emission targets set by various governments to slow down global warming and to improve security of energy supply, an increased contribution of both conventional and advanced biofuels would be required during the forecast period.
Supply security and risk abatement of conventional oil is another major factor positively influencing the global liquid biofuel market. Crude oil reserves are mostly concentrated in countries of Middle East & Africa and North America. However, with the rising demand in industrialized nations as well as in developing countries such as China and India, supply pressure on these reserves increases. This can become a basis for conflicts between oil-producing nations aiming to secure the remaining reserves for themselves in the near future. In this situation, diversification of energy sources is an option for risk abatement. Liquid biofuel production can reduce the dependency on conventional fuels for transportation, cooking, and other conventional uses.
High retrofit costs is a major factor hampering the global liquid biofuel market. Replacement of existing diesel engines and systems powered by conventional fossil fuels with biofuel systems can be a cost-intensive process, as the entire or partial upgrade is required to be carried out without affecting the operational hours.
Among types, the ethanol segment accounted for a major share of the global liquid biofuel market in 2020. Ethanol is a biofuel with high octane number, which is produced by fermentation of corn, potatoes, grain, sugar beet, sugarcane, and vegetable residues. The U.S. and Brazil are leading producers of ethanol across the globe. Both countries collectively accounted about 84% share of the world’s ethanol production in 2020.
Based on feedstock, the global liquid biofuel market can be segmented into sugar crops, starch crops, vegetable oils, animal fats, and others. The starch crops segment constituted major share of the global liquid biofuel market in 2020. Starch-based feedstock includes grains such as corn or wheat; and tubers such as potatoes and cassava. Starch crop is the primary feedstock for ethanol production. Most of the ethanol in North America is produced from corn, which is one of the lower-yield feedstock. Corn produces about 400 gallons of ethanol per acre. The U.S. Government subsidizes the production of corn. Therefore, many countries across the globe find it cheaper to import corn from the U.S.
In terms of process, the fermentation segment held a major share of the global liquid biofuel market in 2020. Fermentation is a process largely used for production of ethanol.
Based on application, the transportation segment accounted for a leading share of the global liquid biofuel market in 2020. Stringent government regulations regarding carbon emissions across the globe are boosting the demand for alternative fuels.
North America dominated the global liquid biofuel market in 2020. The liquid biofuel market in the region is likely to expand at a significant pace during the forecast period, due to supportive government regulations. Under the Energy Independence and Security Act of 2007, the Renewable Fuel Standard mandates that 36 billion gallons per year (bg/y) of biofuels needs to be produced by 2022. North America produced around 42% of the global ethanol production in 2020.
In terms of revenue, Europe held vital share of the global liquid biofuel market in 2020. Implementation of stringent government regulations regarding the renewable energy targets is driving the liquid biofuel market in the region. Europe is the largest biodiesel producer and consumer in the world. The region produces around 35% of the global biodiesel production. Germany dominated the liquid biofuel market in Europe. The country is the largest producer of biodiesel in the region. It produced 3,100 million liters of biodiesel in 2020.
In terms of production, Latin America was the second-largest region of the global liquid biofuel market in 2020. The region produced 43 billion liters of liquid biofuel in 2020. Brazil is the major country of the liquid biofuel market in Latin America.
Middle East & Africa held minimal share of the global liquid biofuel market in 2020.
Key players operating in the global liquid biofuel market are Fulcrum BioEnergy, Archer Daniels Midland Company, RB FUELS, POET, LLC, Cargill, Incorporated, Bangchak Corporation Public Company Limited, Renewable Energy Group, Inc., Bunge, Green Biologics Limited, CropEnergies AG, Algenol, Emami Agrotech Limited, Eniven Group, World Energy Alternatives LLC, and Bio-Oils Energy.
|Market Size||US$ 300 billion by 2030|
|Growth Rate||CAGR of 11% From 2021 to 2030|
|Historic Data||2017 to 2020|
|Forecast Period||2021 to 2030|
|Segments Covered||Type, Feedstock, Process, Application|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)|
|Companies Mentioned||Fulcrum BioEnergy, Archer Daniels Midland Company, RB FUELS, POET, LLC, Cargill, Incorporated, Bangchak Corporation Public Company Limited, Renewable Energy Group, Inc., Bunge|
Liquid Biofuel Market, by Type
Liquid Biofuel Market, by Feedstock
Liquid Biofuel Market, by Process
Liquid Biofuel Market, by Application
Liquid Biofuel Market, by Region
This report focuses on liquid biofuel market includes crucial information on market share, market size, and growth rate for the forecast period 2021 to 2030 at the global level, regional level and company level. From a global perspective, this report represents overall liquid biofuel market size by analyzing historical data and future prospect. The study highlights deep analysis on the major drivers of the market, restraints, and challenges to help the business owners, suppliers, and marketing personnel in planning effective strategies for the forecast period. This will help the business and manufacturers to lead the market and gain prominent position in future. The report also presents vital information through graphical representation on factors like table, charts, and statistics. The study includes drivers and restraints of the global liquid biofuel market.
The research not only conducts forecasts in terms of value, but also evaluates the market on the basis of essential parameters, such as Year-on-Year (Y-o-Y) growth. This helps providers to recognize the future opportunities as well predictability of the market.
In order to understand and assess opportunities in this market, the report is categorically divided into five key sections on the basis of segments. The report analyzes the global market in terms of value (US$ dollers) and volume (Million Units).
The research report includes specific segments by region (country), by company, by all segments. This study provides information about the growth and revenue during the historic and forecasted period of 2017 to 2030. Every segment is further sub-segmented into several sub-segmented that are deeply analyzed by experts to offer valuable information to the buyers and market players. Understanding the segments helps in identifying the importance of different factors that aid the market growth.
Major Key Points Covered in Report:
Executive Summary: It includes key trends of the liquid biofuel market related to products, applications, and other crucial factors. It also provides analysis of the competitive landscape and CAGR and market size of the liquid biofuel market based on production and revenue.
Production and Consumption by Region: It covers all regional markets to which the research study relates. Prices and key players in addition to production and consumption in each regional market are discussed.
Key Players: Here, the report throws light on financial ratios, pricing structure, production cost, gross profit, sales volume, revenue, and gross margin of leading and prominent companies competing in the Liquid biofuel market.
Market Segments: This part of the report discusses about product, application and other segments of the liquid biofuel market based on market share, CAGR, market size, and various other factors.
Research Methodology: This section discusses about the research methodology and approach used to prepare the report. It covers data triangulation, market breakdown, market size estimation, and research design and/or programs.
The research report includes a detailed study of regions of North America, Europe, China, Japan and Rest of the World. The report has been curated after observing and studying various factors that determine regional growth such as economic, environmental, social, technological, and political status of the particular region. Analysts have studied the data of revenue and manufacturers of each region. This section analyses region-wise revenue and volume for the forecast period of 2017 to 2030. These analyses will help the reader to understand the potential worth of investment in a particular region.
The report provides in-depth segment analysis of the global liquid biofuel market, thereby providing valuable insights at macro as well as micro levels. Analysis of major countries, which hold growth opportunities or account for significant share has also been included as part of geographic analysis of the liquid biofuel market.
The report includes country-wise and region-wise market size for the period 2017-2030. It also includes market size and forecast by segments in terms of production capacity, price and revenue for the period 2017-2030.
This section of the report identifies various key manufacturers of the market. It helps the reader understand the strategies and collaborations that players are focusing on combat competition in the market. The comprehensive report provides a significant microscopic look at the market. The reader can identify the footprints of the manufacturers by knowing about the global revenue of manufacturers, the global price of manufacturers, and sales by manufacturers during the forecast period of 2017 to 2019.
The analysts have provided a comprehensive analysis of the competitive landscape of the global liquid biofuel market with the company market structure and market share analysis of the top players. The innovative trends and developments, mergers and acquisitions, product portfolio, and new product innovation expected to provide a dashboard view of the market, ultimately providing the readers accurate measure of the current market developments, business strategies, and key financials.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users) and other segments.
The research methodology adopted by analysts for compiling the global liquid biofuel market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts for the global market.
During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global market.
For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global liquid biofuel market.
The study objectives of this report are:
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