The perpetually increasing population has affected the natural ecosystem drastically and has led to an increased level of pollution across the world. Increased consumption of fossil fuels such as coal and petroleum, has caused irreparable damage to the atmosphere, and the fuel resources are expected to deplete by 2060. In the light of this problem, the biofuel came as a lifesaver and this has become a billion dollar industry at the present. Besides depletion of fossil fuels, factors such as increasing energy demand, policy mandates and climate change mitigation are some of the key factors driving the growth in the global biofuels market.
Biofuels are feedstock based fuels which are renewable and produce lesser greenhouse gases as compared to fossil fuels. The global energy demand has risen manifold with the growing population and increasing gross domestic product (GDP). According to the U.S. Energy Information Administration (EIA), the energy demand will continue to grow in the future, with the fastest growth in the countries which are not a part of the Organization for Economic Cooperation and Development (OECD). Hence, the need for biofuels for applications, such as transportation, electricity generation, and heating, becomes ever more important and has gained pace currently.
There has been an increasing pressure on the developed and developing economies to reduce greenhouse gas emissions. The policy mandates and increasing energy demand have accelerated the growth rate of the biofuels market. These factors have also propelled the production of advanced biofuels, which is expected to abruptly revolutionize the biofuels industry and its value chain. This will help various public and private stakeholders to enhance their abilities for the production of biofuels and market it to the end user.
The global biofuels market is anticipated to grow to $132.67 billion by 2023, growing at a robust CAGR. In comparison to other biofuel forms, liquid biofuels accounted for a major share of the market in terms of value, with a share of 73% in the global biofuels market in 2016. In the future, liquid biofuels, along with solid biofuels, will witness a strong growth in the developing nations, owing to the increase in GDP and population of the nations, which will consequently promote industrialization, which will lead to a surge in energy demand.
However, the high investment cost and lack of proper infrastructure in the lower and middle-income countries are restraining the growth of the biofuels market on a global scale. Therefore, dependency on imports for biofuels has mainly been witnessed in developing economies such as India, Thailand, Myanmar, and Sri Lanka, among others. Moreover, the reduction in the prices of coal, natural gas, and petroleum, etc. makes it ever more difficult for the biofuels producers and distributors to market the product profitably.
BIS Research has conducted an extensive market research on ‘Global Biofuels Market – Analysis and Forecast: 2017-2023’. The market intelligence report aims to provide an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints and opportunities prevailing in the industry.
For further queries, please write to us at [email protected] or call us at: +1 650 228 0182.