The global biofuels market is forecast to reach US$390.6bn in 2030, according to research by Coherent Market Insights reported by Biofuels Digest.
Last year the market was estimated at US$213.68M and was expected to experience a CAGR of 9% during the 2023-2030 period, the 27 July report said.
“Rapid growth of the transportation sector is one of the key trends expected to augment the growth of the global biofuels market, Biofuels Digest quoted from the Coherent Market Insights report.
“Worldwide, the transport sector is the largest emitter of greenhouse gases due to the combustion of fossil fuels in its internal combustion engines. Thereby, several countries across the globe are promoting the use of renewable energy resources to limit the greenhouse gas emission.”
According to the International Energy Agency (IEA), in 2022 biofuels represented more than 3.5% of global transport energy demand, mainly for road transport and this trend was expected to continue over the forecast period.
The USA, Europe, Indonesia, and Brazil were responsible for the majority of biodiesel, renewable diesel and bio-jet fuel consumption while total global biofuel demand is estimated to increase by more than 20% between 2020 and 2027, the report said.
North America was expected to hold a dominant position over the forecast period due to high demand for biofuels and advanced biofuels, government mandates and support, and robust infrastructure for biofuel production in the region, according to the Coherent Market Insights report.
One of the key factors expected to restrain the growth of the global biofuels market was feedstock availability, environmental, and competition and land use change concerns, the report said.
The availability of cost-effective and sustainable feedstock for the production of biofuel was a significant challenge, due to competition for land and resources between food production, biofuel feedstocks, and other agricultural commodities, the Coherent Market Insights report said.
