Global Consumption for Biofuels is Projected to Reach US$57.8 Billion Gallons by 2020

Focus On Energy-Efficient Alternatives to Fossil Fuels Drives the Global Market for Biofuels, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Biofuels (Fuel Ethanol & Biodiesel) market. Global consumption for Biofuels is projected to reach US$57.8 billion gallons by 2020, driven by superior energy efficiency benefits over conventional fossil fuels, government support of eco-friendly alternatives, higher biofuel blending mandates for transportation fuel, and focus on alternatives to fossil fuels as a means to achieve energy sustainability and security.

The market for biofuels is witnessing steady growth, encouraged by the mounting environmental concerns associated with the use of fossil fuels. Governments across the world are encouraging the development of biofuel, guided by its several beneficial features, over and above fossil fuels. Biofuels are therefore attracting generous governmental support for R&D and production. Regulatory frameworks and policies, in the form of higher biofuel and gasoline/diesel blending targets, are also in place in several countries for promoting the use of biofuels in regional transportation sectors. The growing demand for flex-fuel vehicles, powered by bespoke fossil fuel-biofuel blends, is poised to benefit market growth in the coming years. Driven by regulations mandating the use of fuel blends containing higher biofuel percentage, the demand for fuel blends with ethanol blend in excess to the existing E10 ethanol blend is expected to grow. The opportunity thus offered is expected to boost growth in the market.

Despite the opportunity for growth, the market will face challenges such as controversies surrounding land use for biofuel production, and its negative impact on the prices of food-grade corn. To remain competitive, biofuel manufacturers are aggressively promoting consumer awareness over the benefits of advanced blended fuels, and are establishing synergistic, technology partnerships to develop technologically superior products. Focus is also being shed on the development of effective distribution and retail systems. Second generation biofuels are gaining popularity in the market. At present, majority of companies combine first generation bioethanol with standard petroleum for generating biofuels. First-generation biofuels are extracted from vegetable oils, sugar, and starch using biomass technique.  Nevertheless, this process requires players to use various food crops, including maize cobs, for fulfilling their production requirements. On the other hand, second-generation biofuels are produced from agricultural by-products, such as wheat straw, maize stalks, and an array of waste biomass and non-food crops.

As stated by the new market research report on Biofuels (Fuel Ethanol and Biodiesel), the United States represents the largest market worldwide, with a 45.2% share of global consumption in 2015. In the United States and European Union, growing popularity of second generation biofuels and use of cellulosic feedstocks will reduce the subsidies offered on conventional biofuels. Asia-Pacific ranks as the fastest growing market with a CAGR of 14.8% over the analysis period. Latin America represents the second fastest growing market. Tropical climate with abundant sunshine and arable land availability make developing Asian countries attractive markets for biomass and biofuel production.

Major players covered in the report include Abengoa Bioenergy, S.A., Archer Daniels Midland (ADM) Company & ADM Hamburg AG, Biodico, CNOOC Biolux (Nantong) Bioenergy Protein Feed Co., Ltd., Cargill, Inc., Copersucar (Cooperativa de Produtores de Cana-de-Açúcar, Açúcar e Álcool do Estado de São Paulo), Cosan S/A Ind. e Comércio (Cosan S/A), Diester Industries, Greenfield Specialty Alcohols, Inc., Neste, POET Ethanol Products, Renewable Energy Group, Inc., Solazyme, Inc., Valero Energy Corporation/ Valero Renewable Fuels Company LLC, VERBIO Vereinigte Bioenergie KG, Virent, Inc., Wilmar International Limited,  and World Energy, among others.

The research report titled “Biofuels (Fuel Ethanol and Biodiesel): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the market trends, market issues, growth drivers, and strategic industry activity of global companies.  The report provides market estimates and projections for major geographic markets, including the US, Canada, Europe (France, Germany, Italy, UK, Poland, Spain, Rest of Europe), Asia-Pacific (Australia, China, India, Indonesia, South Korea, and Rest of Asia-Pacific), Latin America (Argentina, Brazil, Colombia, and Rest of Latin America), and Rest of World.

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