Next Generation Biofuels Market

Next Generation Biofuels Market Outlook - 2030

The global next generation biofuels market size was valued at $6.0 billion in 2020, and is projected to reach $59.4 billion by 2030, growing at a CAGR of 26.4% from 2021 to 2030. Biofuels are produced through contemporary biological processes, such as anaerobic digestion rather than a fuel produced by geological processes. Second-generation biofuels are produced from non-food crops such as organic waste, wood, biomass crops, and food crop waste, whereas third-generation biofuels are based on improvements in the production of biomass and employs engineered energy crops, such as algae as its feedstock. Algae-based biofuels are expected to be manufactured into a wide range of fuels, such as petrol, diesel, and jet fuel.

The emergence of COVID 19 hampered the development of the next-generation biofuels sector in 2020, and it is expected to continue to do so until the end of 2021.

The next generation bio fuel market is majorly driven by rise in necessity to produce sustainable and clean energy, with negligible environmental impact. Second generation biofuel production technology allows manufacturing of commercially acceptable fuel that is developed with the help of inedible biomass. The key feedstocks that are used for next generation biofuels are non-food crop residues and agricultural residues, energy crops, wastes procured from forestry industry and algae. The key factors affecting the market growth of next generation biofuels are obtaining economical feedstock. However, feedstock cost contributes 80 to 90% of the final fuel cost which makes it difficult to increase the market growth. Moreover, production of next generation biofuels is experiencing growth in the countries with no or less petroleum reserves as it helps the countries to overcome spending toward import of biofuels. 

The next generation biofuels market is segmented into biofuel type, process, raw material, application, and region. By biofuel type, the market is divided into biodiesels, biogas, biobutanol, and others. By process, it is bifurcated into biochemical process and thermochemical process. By raw material, it is fragmented into lignocellulose, Jatropha, Camelina, Algae and others. By application, it is classified into transportation, power generation and others. Region wise, the market is studied throughout North America, Europe, Asia-Pacific, and LAMEA.

The key player profiled in this report include Algenol Biofuels, Chemtex Group, Abengoa S.A., Enerkem, Gevo, GranBio, Joule United, Inc., POET-DSM, Solazyme and Sundrop Fuels Inc. The global market report provides in-depth competitive analysis as well as profiles of these major players.

Next generation biofuels market, by biofuel type

By biofuel type, the biodiesel segment held the largest revenue in the global next generation biofuels market share in 2020. The market for next generation biodiesel, that is, biomass-based biodiesel is expected to grow during the forecast period, due to the blending mandates imposed by governments.

Next generation biofuels market, by process

By process, the thermochemical process segment expected to grow with healthy CAGR during the next generation biofuels market forecast period. Easy installation along with cost effectiveness over its available counterparts will drive the next generation biofuels industry growth. 

Next generation biofuels market, by raw material

By raw material, the lignocellulose segment held the largest revenue share in the global next generation biofuels market. Lignocellulose are biomass consisting several materials such as non-starch based fibrous part of plant material with distinctive physical and chemical characteristics.

Next generation biofuels market, by application

By application, the transportation segment was the highest revenue contributor in 2020. Moreover, government mandates and rise in adoption of biofuels to reduce GHG emissions from vehicles as second-generation biofuels can considerably reduce the vehicular emission, which propels the next generation biofuels market growth.

Next generation biofuels market, by region 

By region, North America is expected to gain significant traction in the global next generation biofuels market owing to rising demand mainly form countries such as Canada, U.S., and others. 

Key benefits for stakeholders

• Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• It outlines the current next generation biofuels market trends and future estimations from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
• The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
• The key drivers, restraints, & next generation biofuels market opportunities and their detailed impact analysis are explained in the study.
• The profiles of key players and their key strategic developments are enlisted in the report.

Impact of COVID-19 on the global next generation biofuels market

Lockdown imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries and power generation, which decreased the demand for next generation biofuels from these consumers.  In addition, halt in building & construction of new electric utility infrastructures, renewable power plants, grid network, and other power plants, owing to unavailability of workers and increase in demand–supply gap are projected to hamper the market growth during the pandemic period. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the market is expected to recover by the first quarter of 2021, as COVID-19 vaccination has begun in various economies across the globe, which is expected to improve the global economy.

 Next Generation Biofuels Market Report Highlights