The global bio-fuel market grows at the CAGR of 2.7% and will contribute $190 billion till 2022. Bio fuels are the energy source which is made up of living micro organism, starch, and other livestock. There are many factors which boosts the global bio fuels market such as rigid environmental related rules and regulations encouraging the use of biofuels, rising economic development and increasing energy import bills which results in a negative balance of trade, these are some of the few factors expected to fuel the growth of the global bio-fuels market. Increasing demand of bio-diesel helps in the growth of global bio-fuel market. The major reason behind this is it’s mainly used in the transportation industries that are also being used in off-grid electricity supply which majorly helps in propelling the growth of the global bio-fuels market. There is also a reason behind the rising demand of bio-diesel which are the characteristics of biodegradable and non-toxic elements which make it easy to transport. Also, growing environmental concerns and the shrinking fossil fuel resource is propelling the market.
Some of the European countries like Norway and Netherland are banning the petrol and petro chemical products so as to stop the adverse environmental effects by the petrol products in this area. The bio fuels application is at an increase in this area which is acting as an opportunistic market in forecast year. Bio fuels are one of the major substitute of petrol products, the bio fuels can overcome the applications of petrol and crude oil products.
Apart from that, development of sustainable biofuels is one of the rising opportunities for the market players. Hurdles related to manufacturing, retailing and distribution of biofuels and the competition between fuel and food resulting in very high costs of food are the hindering factors anticipated to act as a barrier in the growth of the global biofuels market in the forecast years.
Global bio-fuel market is segmented on the basis of feedstock, type and regional outlook. In feedstock market is divided into simple lignocellulose, complex lignocellulose, syngas/ biomass/ MSW, algae, sugar and starch, oil and fats and other feedstock. Algae feedstock is having maximum global bio fuels market share. Simple and complex lignocellulose is growing at a faster rate. In type bio fuels the market is segmented into cellulose ethanol, vegetable oil, biogas, bio alcohols, biodiesel, bio butanol, bio DME and others. In types of bio fuels cellulose ethanol is dominating the type segment in terms of production, this bio fuel is made up of lignocellulose which is composed of lignin, cellulose and hemicellulose. Bio butanol is growing at a faster rate majorly in Brazil and United States. Bio butanol is made up of fermenting biomass. Brazil contains a lot of biomass in this region.
In regional outlook, market is divided into North America, Europe, Asia pacific and rest of the world. North America is the dominating region in global bio-fuel market in terms of growth. The reason that pushes the North America region upward is government initiatives and policies to promote bio-ethanol consumption and tremendous access to feedstock, rising demand for petrol substitutes and increasing green fuel to minimize adverse environmental effects. United States is the major country in North American region. Asia pacific is the fastest growing market of global bio fuels market. Asia pacific is the opportunistic and revenue generated market for bio fuels manufacturing players due to cheap labor force, availability of raw material, abundant amount of feedstock, and large number of end users. China and India are the two major countries in Asia pacific region. Rising energy demand due to rising population is the major factor, apart from that increasing cost of petrol and petrol products, environmental concerns related to adverse effects of petrol and abundant amount of feedstock are some of the basic reasons for the growth of Asia pacific region in global bio fuels market. European region is also growing its popularity in terms of bio fuels usage as Government of Europe supports the products which are less hazardous for the environment. The major reasons that pushes the European region is governments favorable policies towards bio fuels, rising number of automobiles in this sector, stringent rules by the government towards petrol’s adverse effect. Rest of the world region is showing growth in terms of livestock, the rest of the world region is having a large number of feed stock, Brazil is the major country in this region.
Some Of the major market players are Dupont industrial bioscience, abengoa bioenergy, Australian renewable fuels limited, Aventine renewable energy holding, Inc., Zeachem Inc., Solazyme Inc., Renewable energy Group, POET-DSM advanced biofuels LLC, INEOS bio, Inbicon, Granbio, Etc. Acquisition, mergers and expansions are the key strategies adopted by the market players to sustain in the market.