Second Generation Biofuels Market Expected to Reach $87.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Second Generation Biofuels Market," The second generation biofuels market was valued at $8.2 billion in 2022, and is estimated to reach $87.5 billion by 2032, growing at a CAGR of 26.8% from 2023 to 2032.

Second generation biofuels are also known as advanced fuels that are manufactured from various types of non-food biomass. These feedstocks include lignocellulosic biomass, agricultural residue, as well as dedicated non-food energy crops grown on marginal land unsuitable for food production.

The goal of second-generation biofuel processes is to extend the amount of biofuel that be produced sustainably by using biomass consisting of the residual non-food parts of crops, such as stems, leaves, and husks that are left behind once the food crop has been extracted, as well as other crops that are not used for food purposes (non-food crops), such as switchgrass, grass, jatropha, and whole crop maize.

Population growth, rise in disposable income, and industrialization have boosted the global demand for oil, however, due to resource constraints, most countries rely on imports for oil supplies. Expanding the use of biofuels reduces oil consumption and expands the sources of liquid fuel imports, making biofuels a viable solution for resolving oil security concerns.

Furthermore, improved fuel advancements give farmers extra chances to boost their income. The aforementioned second generation biofuels market trends and drivers propel second generation biofuels market growth. The increase in adoption of ethanol as an alternative vehicle fuel and the benefits of applying advanced fuels in the transport sector create employment opportunities in rural areas and reduce pollution and trade deficits. Increase in innovation and development of commercially viable technology has led to the production of cellulosic ethanol from urban solid waste and some agricultural waste.

In 2018, various policies related to second generation biofuels industry in developing countries such as India were approved for the utilization of 20% ethanol mixed with gasoline and 5% biodiesel mixed with diesel fuel by 2030. The goal is to promote the adoption of biofuels rapidly in the transportation sector.

The second-generation biofuels market scope is segmented into feedstock, type, process, application, and region. On the basis of feedstock, the global second-generation biofuels market is categorized into simple lignocellulose, complex lignocellulose, syngas, algae, and others. By type, the global second-generation biofuels market is classified into cellulosic ethanol, biodiesel, bio butanol, and others.

By process, the global second-generation biofuels market is segregated into biochemical process and thermochemical process. On the basis of application, the global second-generation biofuels market is divided into transportation, power generation, and others.

Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the largest share of the market in 2022, with Asia-Pacific being the fastest growing region. The major companies profiled in this report include Algenol Biofuels, Clariant AG, International Flavors & Fragrances Inc, Fiberight LLC., GranBio, Ineos Group, Orsted A/S, POET-DSM Advanced Biofuels LLC, Reliance Industries, and Zea2, LLC.

In addition to the abovementioned companies, there are Algae. Tec, Chemrec Inc., Gevo, Inc., and Muradel are competing for the share of the market through product launch, joint venture, partnership, and expanding the production capabilities to meet the future demand for the Second generation biofuels in the forecast period. The report provide comprehensive second generation biofuels market analysis.

Ongoing advancements in lithium-ion batteries due to innovative efforts have further enhanced the efficiency of these products. The competitive advantages of second generation biofuels over conventional alternatives are described in the report. Drivers, restraints, and second generation biofuels market opportunities are explained in the report to understand the market. Further, the key strategies adopted by potential market leaders to facilitate effective planning have been discussed under the scope of the report.

Key Findings of the Study

• On the basis of type, the hydroelectric energy segment emerged as the global leader by acquiring more than one-fourth of the second generation biofuels market share in 2022 and is anticipated to continue this trend during the second generation biofuels market forecast period.
• Depending on feedstock, the complex lignocellulose segment emerged as the largest market share in 2022, which accounts for nearly one-third of the second generation biofuels market size.
• On the basis of process, the thermochemical process segment emerged as the global leader by acquiring for nearly three-fifths of the second generation biofuels market share in 2022 and is anticipated to continue this trend during the second generation biofuels market forecast period.
• Depending on application, the transportation segment emerged as the largest market share in 2022, which accounts for more than four-fifths of the second generation biofuels market size.
• On the basis of region, North America is the major consumer of energy among other regions. It accounted for more than two-fifths of the global second generation biofuels market share in 2022.