Market study: Global biofuels market to grow to $246bn by 2024
The global biofuels market was valued at $168.18 billion (€149.05bn) in 2016 and is projected to reach $246.52 billion by 2024 at a CAGR of 4.92%, a new market study finds.
According to Transparency Market Research’s new study biofuels and bioenergy are a critical part of the renewable energy mix, being the only renewable energy that can be used across all three energy sectors (electricity, heat, and transportation).
Biofuels are projected to be another growing segment within the renewable energy market after wind energy segment, and it offers numerous opportunities for both new start-up companies and traditional companies, from the point of view to transfer their capabilities into this new growth market.
It is also a broad and varied sector, covering a range of technologies at different stages of development.
Climate change mitigation and adaptation, energy security, and waste treatment are some of the primary growth drivers for the global biofuel market.
Another factor adding to the changing perspective toward the market is its potential to bring about rural development and provide new opportunities for employment in the agriculture sector.
Apart from growth prospects, the biofuels industry faces challenges related to high initial investments and installation costs for the biofuels and biogas production.
The researched market consists of several product segments, namely bioethanol, biodiesel, biogas, and others.
The global bioethanol market is experiencing tremendous growth due to its increased use in various end user industries, specifically in the transportation sector, and its usage is being encouraged due to the ban on petrol in many countries, the study states.
It is replacing other conventional fuels and also being used as an additive along with petroleum products.
The incredible hike in crude oil prices and increased greenhouse gas (GHG) emissions are encouraging government institutions to promote consumption of bioethanol.
Europe and Brazil are the major consumers of biofuels for electricity and transportation, while Asia Pacific is another growing region after Europe and North America.
Countries such as China and India are prime consumers of bioenergy products such as biogas and bioethanol.
Major applications of bioenergy are cooking, off-grid electricity supply, transportation, and others, while biofuels are among the significant fuels used in the transportation sector.
Biofuels such as biodiesel and bioethanol, which are mainly used in the transportation segment are also being used for off-grid electricity supply.
For instance, as a concept for flexible provision combining a domestic biodiesel CHP system of 2.5kWel with hybrid electrical energy storage has been practically tested in the UK to improve the efficiency of stand-alone renewable power supply systems with the help of biofuels.