Liquid Biofuels Market Size, Share & Trends Analysis Report By Product (Biodiesel, Bioethanol), By Application (Transportation Fuel, Power Generation, Thermal Heating)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global liquid biofuels market size was exhibited at USD 67.40 billion in 2023 and is projected to hit around USD 131.35 billion by 2033, growing at a CAGR of 6.9% during the forecast period of 2024 to 2033.

Liquid Biofuels Market Size 2024 To 2033

Key Takeaways:

  • This compares the 10% of global transportation fuel demand with the current level which is around 3.5%
  • North America has dominated the global market over the past few years, owing to the abundance of feedstock and arable area for biofuel production. 
  • Transportation biofuel consumption is needed to triple by 2033.

Liquid Biofuels Market: Overview 

In the global quest for sustainable energy solutions, the liquid biofuels market emerges as a pivotal player, offering a promising avenue towards decarbonization and energy independence. This comprehensive overview delves into the multifaceted realm of liquid biofuels, elucidating its current landscape, driving forces, challenges, and future prospects.

Liquid Biofuels Market Growth

The growth of the liquid biofuels market is underpinned by several key factors. Firstly, stringent environmental regulations aimed at reducing greenhouse gas emissions have spurred demand for renewable energy sources, driving the adoption of biofuels. Additionally, volatile oil prices and geopolitical uncertainties have intensified the focus on alternative fuel sources, positioning liquid biofuels as attractive substitutes to traditional fossil fuels. Moreover, government mandates and incentives, such as Renewable Fuel Standards (RFS) and Low Carbon Fuel Standards (LCFS), provide a regulatory framework that encourages the production and consumption of biofuels. Technological advancements in feedstock diversification, production processes, and distribution infrastructure further contribute to market growth, enhancing the efficiency and scalability of biofuel production. Finally, increasing consumer awareness and demand for sustainable energy solutions reinforce the market's upward trajectory, fostering innovation and investment in the liquid biofuels sector.

Liquid Biofuels Market Report Scope

 Report Coverage  Details
Market Size in 2024 USD 67.40 Billion
Market Size by 2033 USD 131.35 Billion
Growth Rate From 2024 to 2033 CAGR of 6.9%
Base Year 2023
Forecast Period 2024-2033
Segments Covered Product, Application, And Region
Market Analysis (Terms Used) Value (US$ Million/Billion) or (Volume/Units)
Regional Scope North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa
Key Companies Profiled Archer Daniels Midland Company; Gevo; Green Plains; Wilmar International; Algenol; Pacific Ethanol Inc.; Valero Energy Corp.; Petrobras; Butamax; Renewable Energy Corp.; and Bunge North America Inc.

 

Liquid Biofuels Market Dynamics

  • Regulatory Environment:

The dynamics of the liquid biofuels market are significantly influenced by regulatory frameworks established by governments and international organizations. Mandates such as Renewable Fuel Standards (RFS) and Low Carbon Fuel Standards (LCFS) compel fuel producers to blend a certain percentage of biofuels into their products, driving demand. These regulations create a stable market for liquid biofuels by providing a guaranteed market for producers and incentivizing investment in research and development. Moreover, policy initiatives aimed at reducing carbon emissions and promoting sustainability further bolster the growth of the biofuels industry, fostering innovation and market expansion.

  • Economic Factors:

Economic conditions play a pivotal role in shaping the dynamics of the liquid biofuels market. Fluctuations in crude oil prices directly impact the competitiveness of biofuels, as they are often priced relative to fossil fuels. In times of high oil prices, biofuels become more attractive as cost-effective alternatives, driving demand. Conversely, during periods of low oil prices, biofuel producers may face challenges in remaining competitive. Additionally, economic incentives such as tax credits and subsidies influence investment decisions and market growth. As economies strive for energy security and independence, the economic viability of liquid biofuels becomes increasingly important, driving innovation and market penetration.

Liquid Biofuels Market Restraint

  • Feedstock Availability and Competition:

One of the primary restraints facing the liquid biofuels market is the availability and competition for feedstock resources. The production of biofuels requires significant quantities of biomass, including crops like corn, sugarcane, and soybeans, as well as waste materials such as used cooking oil and agricultural residues. However, competition for these feedstocks exists not only within the biofuels industry but also with other sectors such as food and animal feed production. This competition can lead to price volatility and supply chain disruptions, impacting the profitability and scalability of biofuel production. Additionally, concerns about land use change and deforestation further complicate the sourcing of sustainable feedstocks, posing challenges to the long-term viability of the liquid biofuels market.

  • Technological Limitations and Costs:

Despite advancements in biofuel production technologies, significant challenges remain in terms of scalability, efficiency, and cost-effectiveness. Many production processes, such as cellulosic ethanol and algae-based biofuels, are still in the early stages of development and face technical hurdles that limit their commercial viability. Moreover, the capital investment required to establish biofuel production facilities can be substantial, particularly for emerging technologies. High production costs may render biofuels less competitive compared to conventional fossil fuels, especially in the absence of sufficient government incentives or regulatory support. Additionally, ongoing research and development efforts are needed to improve the efficiency of biofuel production processes and reduce overall costs, ensuring the continued growth and sustainability of the liquid biofuels market.

Liquid Biofuels Market Opportunity

  • Global Energy Transition:

The transition towards a low-carbon economy presents a significant opportunity for the liquid biofuels market. As countries worldwide commit to reducing their carbon footprint and mitigating the impacts of climate change, there is growing recognition of the role that biofuels can play in decarbonizing the transportation sector. Liquid biofuels offer a renewable and sustainable alternative to conventional fossil fuels, providing an avenue for reducing greenhouse gas emissions and improving air quality. With increasing focus on renewable energy sources and sustainable practices, the demand for biofuels is poised to escalate, presenting a lucrative opportunity for market growth and investment in the liquid biofuels sector.

  • Technological Innovation and Advancements:

The rapid pace of technological innovation in the biofuels industry presents significant opportunities for market expansion. Advances in biotechnology, process engineering, and feedstock diversification have led to the development of novel biofuel production pathways and improved efficiency in conversion processes. Technologies such as cellulosic ethanol, algae-based biofuels, and advanced biorefining techniques hold promise for enhancing the sustainability, scalability, and cost-effectiveness of biofuel production. Additionally, innovations in feedstock cultivation and processing enable the utilization of non-food biomass sources, reducing competition with food production and enhancing the overall sustainability of biofuel production. As research and development efforts continue to drive technological advancements, the liquid biofuels market stands poised to capitalize on these opportunities and emerge as a key player in the global energy landscape.

Liquid Biofuels Market Challenges

  • Feedstock Availability and Sustainability:

One of the foremost challenges confronting the liquid biofuels market is the availability and sustainability of feedstock resources. The production of biofuels relies heavily on biomass derived from crops, agricultural residues, and waste materials. However, increasing demand for these feedstocks, coupled with competition with food and animal feed production, can lead to concerns regarding land use change, deforestation, and ecosystem degradation. Additionally, the sustainability of biofuel feedstock production practices, such as land management, water usage, and chemical inputs, requires careful consideration to mitigate environmental impacts and ensure long-term viability.

  • Policy and Regulatory Uncertainty:

Policy and regulatory uncertainty pose significant challenges to the growth and development of the liquid biofuels market. Government policies, such as biofuel blending mandates, tax incentives, and trade tariffs, play a critical role in shaping market dynamics and driving investment decisions. However, frequent changes in regulations, inconsistent policy frameworks across regions, and geopolitical factors can create uncertainty and volatility in the market. For instance, shifts in political priorities, trade disputes, and fluctuations in energy prices can impact the competitiveness of biofuels relative to fossil fuels and influence market dynamics. Moreover, conflicting policy objectives, such as balancing energy security, environmental sustainability, and economic development, further complicate the regulatory landscape and hinder market growth. 

Segments Insights:

Product Insights

Biofuel demand has increased over the last few years owing to rising focus towards energy security and the application of flex-fuel vehicles. Bioethanol demand in North America was 32,562.7 thousand TOE in 2023 and is estimated to expand at a CAGR of 5.9% from 2023 to 2033.

The North America liquid biofuels market is rapidly growing for bioethanol & biodiesel. Significant factors influencing the growth include favorable regulatory and political support, innovation support (for second and third generation biofuels), environmental support, customer support, geopolitical support, and agricultural and economic support.

Major factors fueling the regional market growth include high demand for green fuels, stringent environmental regulations, and high investment for the development of biofuel refineries. Factors, such as technological advancement and rising awareness regarding biofuel being a clean fuel are anticipated to further drive regional growth. In the U.S., 49 states have implemented ASTM D6751 as state law and now been mandated to enforce the ASTM D6751 biodiesel standard.

In Asia Pacific, the demand for bioethanol was 6,258.1 thousand TOE in 2023 and is expected to reach 10,681.7 thousand TOE by 2033. The Asia Pacific market for bioethanol is estimated to expand at a CAGR of 6.9% over the forecast period.

Polish bioethanol consumption witnessed a rise in 2018 as mandates gradually escalated slightly, and a limited share had been fulfilled through the use of biodiesels. During the same year in the Netherlands, biofuel consumption grew because of increased taxes and higher mandates on diesel cars. In Sweden, bioethanol consumption has been dropping, prominently owing to the dip in E85 sales as government energy taxes for flex-fuel cars paved hurdle for the biofuel application.

Application Insights

Transportation biofuel consumption is needed to triple by 2030 and has to be on the trail with the Sustainable Development Scenario (SDS). This compares the 10% of global transportation fuel demand, to be compared with the current level which is around 3.5%.

Stronger policy support and invention that will reduce costs are required to balance up with both the adoption of biofuels and advanced biofuel consumption in the various transportation sectors, as foreseen in the sustainable development scenario. As sustainable biofuels have a place in the sustainable development scenario, more prevalent sustainability governance must be paired to provide higher biofuel output.

Transportation fuel demand in the Asia Pacific was 4,080.4 thousand TOE in 2023 and is expected to reach 7,026.3 thousand TOE by 2033. The Asia Pacific market for transportation is estimated to expand at a CAGR of 7% over the forecast period.

Liquid Biofuels Market Share, By End-use, 2023 (%)

India and Brazil are estimated to witness a rise in liquid biofuel production as both countries have recorded the highest production levels across their region. This factor is anticipated to accelerate the market further which is yet to achieve sustainable development scenario volume for 2030. In terms of bioethanol production, Brazil recorded the highest production levels across Central and South America. Brazil has also announced its plans to scale up and mandate the usage of biodiesel from 10% to 15%.

Regional Insights

North America has dominated the global market over the past few years, owing to the abundance of feedstock and arable area for biofuel production. U.S., Brazil, the European Union, and China are anticipated to be some of the major regions driving the demand for liquid biofuels. However, other economies such as Thailand, Indonesia, Canada, Australia, and Philippines are anticipated to create significant opportunities for the biofuel industry. Concerning the long-term global impact of biofuel potential, growth of the bioethanol and biodiesel markets is primarily based on the availability of agricultural land for non-food production.

The Canadian Clean Fuels Standard (CFS) has anticipated to apply various norms for gaseous, liquid, and solid fuels combusted for energy production coupled with the transportation sector. The Canadian government has been focusing on the achievement of annual reductions by 30 Mt in Greenhouse Gas (GHG) emissions by 2030, contributing to the country’s effort to achieve an overall GHG emission reduction of 30% by 2030.

Central and South America market have been propelled owing to rising government initiatives and increasing focus on energy security and independence. Furthermore, the high dependence on fossil fuels is compelling the distinct governments in the region to look for alternatives. Moreover, bio-fuels provide an excellent solution to the crisis of depleting fossil fuels in countries such as Brazil, Venezuela and others.

Some of the prominent players in the Liquid biofuels market include:

  • Archer Daniels Midland Company
  • Gevo
  • Green Plains
  • Wilmar International
  • Algenol
  • Pacific Ethanol Inc.
  • Valero Energy Corp.
  • Petrobras; Butamax
  • Renewable Energy Corp.
  • Bunge North America Inc.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global liquid biofuels market.

Product

  • Biodiesel
  • Bioethanol
  • Others

Application

  • Transportation Fuel
  • Power Generation
  • Thermal Heating

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa (MEA)

Frequently Asked Questions

The global liquid biofuels market size was exhibited at USD 67.40 billion in 2023 and is projected to hit around USD 131.35 billion by 2033

The liquid biofuels market is expected to witness a compound annual growth rate of 6.9% from 2024 to 2033 to reach USD 131.35 billion by 2033.

Some key players operating in the liquid biofuels market Green Plains, ADM, Petrobras, Pacific Ethanol Inc., Gevo, Wilmar International Ltd.

Chapter 1 Methodology and Scope

1.1 Market Segmentation & Scope

1.2 Information Procurement

1.2.1 Purchased Database

1.2.2 Internal Database

1.2.3 Secondary Source & Third-Party Perspectives

1.2.4 Primary Research

1.3 Information Analysis

1.3.1 Data analysis models

1.4 Market Formulation & Data Visualization

1.5 Data Validation & Publishing

1.6 Research Scope & Assumptions

1.7 List of Data Sources

Chapter 2 Executive Summary

2.1 Market Summary

2.2 Segmental Outlook

2.3 Competitive Insights

Chapter 3 Liquid Biofuels Market Variables, Trends, and Scope

3.1 Market Lineage Outlook

3.2 Liquid Biofuels Market Penetration & Growth Prospects

3.3 Value Chain Analysis

3.4 Regulatory Framework

3.5 Technology Outlook

3.6 Regulatory Framework

3.6.1 Standard & Compliances

3.6.2 Safety

3.7 Market Dynamics

3.7.1 Market Driver Analysis

3.7.2 Market restraint analysis

3.8 Business Environment Analysis

3.8.1 Porter’s Five Forces

3.8.2 PESTEL Analysis

Chapter 4 Liquid Biofuels Market: By Product Estimates & Trend Analysis

4.1 Definition & Scope

4.2 Liquid Biofuels Market Share Analysis by Product, 2024 & 2033

4.3 Global Liquid Biofuels Market Size & Forecasts and Trend Analysis By Product, 2024 to 2033 (Thousand TOE) (USD Million)

4.3.1 Biodiesel

4.3.1.1 Market estimates and forecasts, 2021 - 2033 (Thousand TOE) (USD Million)

4.3.2 Bioethanol

4.3.2.1 Market estimates and forecasts, 2021 - 2033 (Thousand TOE) (USD Million)

4.3.3 Others

4.3.3.1 Market estimates and forecasts, 2021 - 2033 (Thousand TOE) (USD Million)

Chapter 5 Liquid Biofuels Market: By Application Estimates & Trend Analysis

5.1 Definition & Scope

5.2 Liquid Biofuels Market Share Analysis by Application, 2019 & 2027

5.3 Global Liquid Biofuels Market Size & Forecasts and Trend Analysis By Application, 2024 to 2033 (Thousand TOE) (USD Million)

5.3.1 Transportation Fuel

5.3.1.1 Market Estimates and Forecasts, 2021 - 2033 (Thousand TOE) (USD Million)

5.3.2 Thermal Heating

5.3.2.1 Market Estimates and Forecasts, 2021 - 2033 (Thousand TOE) (USD Million)

5.3.3 Power Generation

5.3.3.1 Market Estimates and Forecasts, 2021 - 2033 (Thousand TOE) (USD Million)

Chapter 6 Liquid Biofuels: Regional Estimates & Trend Analysis

6.1 Regional Market Snapshot

6.2 Market Share Analysis by Country, 2024

6.3 North America

6.3.1 North America Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million )

6.3.2 North America Liquid Biofuels Market Estimates and Forecasts, by End User, 2021 - 2033 (Thousand TOE) (USD Million)

6.3.3 U.S.

6.3.3.1 U.S. Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.3.3.2 U.S. Liquid Biofuels Market Estimates and Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.3.4 Canada

6.3.4.1 Canada Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.3.4.2 Canada Liquid Biofuels Market Estimates and Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.3.5 Mexico

6.3.5.1 Mexico Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.3.5.2 Mexico Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.4 Europe

6.4.1 Europe Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.4.2 Europe Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.4.3 UK

6.4.3.1 U.K. Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.4.3.2 U.K. Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.4.4 Germany

6.4.4.1 Germany LIQUID BIOFUELS Estimates and Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.4.4.2 Germany Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million

6.4.5 France

6.4.5.3 France Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.4.5.4 France Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.5 Asia Pacific

6.5.1 Asia Pacific Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.2 Asia Pacific Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.3 China

6.5.3.1 China Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.3.2 China Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.4 India

6.5.4.1 India Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.4.2 India Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.5 Indonesia

6.5.5.1 Indonesia Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.5.2 Indonesia Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.6 Thailand

6.5.6.1 Thailand Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.5.6.2 Thailand Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.6 Central & South America

6.6.1 Central & South America Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.6.2 Central & South America Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 Thousand TOE) (USD Million)

6.6.3 Brazil

6.6.3.1 Brazil Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.6.3.2 Brazil Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.7 Middle East & Africa

6.7.1 Middle East & Africa Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.7.2 Middle East & Africa Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

6.7.3 Saudi Arabia

6.7.3.1 Saudi Arabia Liquid Biofuels Market Estimates And Forecasts, by Product, 2021 - 2033 (Thousand TOE) (USD Million)

6.7.3.2 Saudi Arabia Liquid Biofuels Market Estimates And Forecasts, by Application, 2021 - 2033 (Thousand TOE) (USD Million)

Chapter 7 Competitive & Vendor Landscape

7.1 Key Players & Recent Developments & Their Impact on the Industry

7.2 Vendor Landscape

7.2.1 List of Key Distributors and Channel Partners

7.2.2 Key Company Market Position Analysis, 2024

7.2.3 Competitive Heat Map Analysis

Chapter 8 Company Profiles

8.1 Green Plains

8.1.1 Company Overview

8.1.2 Financial Performance

8.1.3 Product Benchmarking

8.1.4 Strategic Initiatives

8.2 ADM

8.2.1 Company Overview

8.2.2 Financial Performance

8.2.3 Product Benchmarking

8.2.4 Strategic Initiatives

8.3 Petrobras

8.3.1 Company Overview

8.3.2 Financial Performance

8.3.3 Product Benchmarking

8.3.4 Strategic Initiatives

8.4 Valero Marketing and Supply Company

8.4.1 Company Overview

8.4.2 Financial Performance

8.4.3 Product Benchmarking

8.4.4 Strategic Initiatives

8.5 Pacific Ethanol, Inc.

8.5.1 Company Overview

8.5.2 Financial Performance

8.5.3 Product Benchmarking

8.5.4 Strategic Initiatives

8.6 Butamax Advanced Biofuels LLC

8.6.1 Company Overview

8.6.2 Financial Performance

8.6.3 Product Benchmarking

8.6.4 Strategic Initiatives

8.7 Gevo

8.7.1 Company Overview

8.7.2 Financial Performance

8.7.3 Product Benchmarking

8.7.4 Strategic Initiatives

8.8 Wilmar International Ltd.

8.8.1 Company Overview

8.8.2 Financial Performance

8.8.3 Product Benchmarking

8.8.4 Strategic Initiatives

8.9 Renewable Energy Group, Inc.

8.9.1 Company Overview

8.9.2 Financial Performance

8.9.3 Product Benchmarking

8.9.4 Strategic Initiatives

8.10 Bunge North America, Inc.

8.10.1 Company Overview

8.10.2 Financial Performance

8.10.3 Product Benchmarking

8.10.4 Strategic Initiatives

8.11 Royal Dutch Shell PLC

8.11.1 Company Overview

8.11.2 Financial Performance

8.11.3 Product Benchmarking

8.11.4 Strategic Initiatives

8.12 CropEnergies AG

8.12.1 Company Overview

8.12.2 Financial Performance

8.12.3 Product Benchmarking

8.12.4 Strategic Initiatives

8.13 White Energy

8.13.1 Company Overview

8.13.2 Financial Performance

8.13.3 Product Benchmarking

8.13.4 Strategic Initiatives

8.14 EERL corp.

8.14.1 Company Overview

8.14.2 Financial Performance

8.14.3 Product Benchmarking

8.14.4 Strategic Initiatives

8.15 Abengoa

8.15.1 Company Overview

8.15.2 Financial Performance

8.15.3 Product Benchmarking

 

8.15.4 Strategic Initiatives

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