Biofuel Global Market Outlook Forecasts 2022-2027: Compound Annual Growth of 4% to Reach US$134.589 Billion by 2027 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Global Biofuel Market – Forecasts from 2022 to 2027” report has been added to ResearchAndMarkets.com’s offering.
The global biofuel market is evaluated at US$102.162 billion for the year 2020, growing at a CAGR of 4.02% to reach US$134.589 billion by the year 2027.
The key drivers for market growth are the rising concerns regarding greenhouse gas emissions, which are contributing to global warming and climate change. Additionally, the increasing interest in the consumption of biofuels is due to the diminishing levels of fossil fuels, and the world has the pressure of moving to other alternative sources of energy. Particulate matter gets reduced by 10% and carbon monoxide by 11%, in contrast to diesel when biofuel is used. One of the most important factors in the development of biofuel is its ability to reduce air pollution (Environmental Protection Agency report).
To control the emissions of air polluting substances into the atmosphere, strict rules and guidelines have been set by governments across the globe. The utilisation of biofuel as a replacement for traditional fossil fuel is also going to support the sustainable development goals set up by the United Nations, which makes its role even more significant. This, in turn, is further propelling the business growth opportunities for the market players over the coming five years.
Concerns about pollution and climate change
The developing concerns concerning environmental pollution and greenhouse gas emissions around the world are one of the key components enhancing the worldwide biofuel market’s development. Numerous nations across the globe have been progressively cognizant of the dangers concerning climate change and greenhouse gas emissions, and subsequently, there have been plans and approaches by various nations to embrace the utilisation of biofuels for controlling environmental pollution and climate change issues. The positive effect of utilising biofuels, like reducing environmental degradation, has made biofuels a viable option for development towards achieving sustainable development goals, for instance, those of the 2015 Paris Agreement. Additionally, with severe limitations on vehicular emissions and government backing and motivators for the advancement of biofuel, the worldwide biofuel market is anticipated to grow during the forecast period.
Global initiatives are being launched to promote biofuel as an environmentally friendly fuel.
Governments in various countries are implementing plans for sustainable development, and as a result, they are providing assistance for the production of biofuels, which can serve as a source of income for producers. There have been subsidies and initiatives such as commodity credit corporations, federal crop insurance subsidies, biomass crop assistance programs, and various others in the U.S. The European Union established funding programs such as the Investment Plan for Europe and the European Structural and Investment (ESI) Funds, the EU Horizon 2020 research and innovation framework program, Mission Innovation (MI), the Innovfin Energy Demo Projects (EDP) facility, and the Innovation Fund.
Exhausting non-renewable energy sources
Different options for non-renewable energy sources are being investigated for a long time as there is a danger of exhaustion of non-renewable energy sources later on. Alongside, there is a consistent quest for alternative options that additionally come from following the world’s present needs, like sustainable development and climate safeguarding. Biofuel is a fuel that satisfies all these standards alongside its far and wide accessibility, which makes it a huge competitor in the list of choices for customary non-renewable energy sources.
The high cost and probable food shortages are the downsides.
Significantly high expenses are involved in producing biofuels as it is a complex and expensive procedure. The creation of biofuels requires land. This affects the cost of biofuels just like that of food crops. Additionally, though growing engineered biofuel crops can profit farmers financially, the overabundance of such crops can likewise prompt a loss of biodiversity. There are also worries that utilising important cropland to develop fuel yields could affect the cost of food and might prompt food shortages.
The growing popularity of electric vehicles can have a negative impact
Electric vehicles are acquiring a huge measure of prominence as an option in contrast to conventional petroleum derivative vehicles. The costs of electric vehicles have been decreased by the automaker organizations, making electric vehicles more mainstream and consequently adding to their market development. The legislatures of different nations are giving sponsorships to electric vehicles, and declarations have been made by significant automaker organisations to deliver more electric vehicles. Many nations, like China, have been contributing intensely to their electric vehicle infrastructure. Thus, the promotion of the electric vehicle market could hinder the development of the biofuel market in the coming five years.
Segmentation
By Production Technology
- First Generation
- Second Generation
- Third Generation
- Fourth Generation
By Biomass Source
- Wood fuels
- Agrofuels
- Municipal by-products
By State
- Solid
- Liquid
- Gas
By Geography
- USA
- Canada
- Mexico
- Brazil
- Argentina
- Germany
- France
- UK
- Saudi Arabia
- UAE
- China
- India
- Japan
- South Korea
Companies Mentioned
- Renewable Biofuels
- Neste Corporation
- Wilmar International
- Renewable Energy Group
- Solazyme Inc.
- Archer Daniels Midland Company
- Australian Renewable Fuels
- Cosan
- BTG International
- Cargill
For more information about this report visit https://www.researchandmarkets.com/r/3wbzff
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