Second generation biofuels market expected to reach $23.9 billion by 2020

A new report by Allied Market Research, a market research and business-consulting wing of Allied Analytics, called 'Global Second Generation Biofuels - Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2013 – 2020', states that the global second generation biofuels market will reach $23.9 billion (€20 billion) by 2020, registering a Compound Annual Growth Rate (CAGR) of 49.4% during 2014 - 2020.

In conjunction with benefits delivered by second generation biofuels, financial incentives and supportive regulations in the US and Europe are fundamental in driving the commercial production and adoption of advanced biofuels.

Currently, biodiesel is the highest produced second-generation biofuel; however, cellulosic ethanol is expected to overtake it in the next couple of years. Furthermore, the cellulosic ethanol market is forecast to grow at a CAGR 52.2% during 2014-2020, due to the rapid growth in technologies for mass production. Currently, North America accounts for about 82% of the global market share, as various market players prefer the US for operating their pilot plants.

Key findings of the study:

• Global market for second generation biofuel is gaining traction with production and supply of cellulosic ethanol and biodiesel as prime growth drivers during the forecast period (2014 - 2020).

• Top factors impacting the global second generation biofuels market are favourable regulatory policies and its environment-friendly nature.

• Cellulosic ethanol segment will grow at a CAGR of 52.2% during the forecast period, fastest among all types of second generation biofuels.

• Currently, North America holds largest market share, followed by Europe in the overall second generation biofuels market in terms of production.

• Amoung all feedstock used (corn stover, corn cob, algae, bagasse, straw, wood waste, cellulose, mixed biomass, hardwood, forest residue, animal waste), high volume of second generation biofuels will be produced from algae, due to its oil content, resulting in high yield production.

• Some of the leading companies operating in the global second generation biofuels market are Abengoa, POET-DSM, DuPont, GranBio, INEOS Bio and Inbicon.

• Most of the market players are focusing on mainly two strategies, namely partnership & collaborations and seeking approvals as key developmental strategies.