Liquid Biofuels Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user and Region

The global market for liquid biofuels is experiencing significant growth as natural reserves of fossil fuels continue to deplete, leading to a need for alternative sources of energy. Biofuels, available in solid, liquid, and gaseous forms, are gaining momentum as governments worldwide focus on reducing carbon emissions and building a sustainable energy future. Liquid biofuels, in particular, are expected to witness increased demand as countries strive to achieve energy security. These fuels, derived from plants, are aligned with the goal of establishing a circular economy. According to Fairfield Market Research, the global demand for liquid biofuels is projected to receive a substantial boost throughout the forecast period of 2021 to 2025, driven by the target of achieving zero emissions by 2050.

Supportive Regulatory Framework Drives Adoption of Liquid Biofuels to Combat Climate Change

The global liquid biofuels market has received significant support from governments aiming to make a positive impact on a national level. For instance, despite setbacks caused by the COVID-19 pandemic, Germany's Climate Protection Quota remains committed to achieving its carbon intensity target for 2020, which is expected to drive the adoption of biodiesel in the transportation sector. Similarly, the Renewable Energy Directive (RED) applied to EU member states sets a target of using at least 10% renewable energy for transportation. Blending mandates implemented by developed economies will also contribute to market growth. Tax exemptions and investment support will further promote the use of liquid biofuels in the coming years.

Biodiesel and Bioethanol Lead the Global Market

The upcoming report suggests that biodiesel and bioethanol will dominate the global liquid biofuels market. Tax exemptions on bioethanol-blended fuels in the U.S. and mandatory blending of bioethanol in gasoline in countries like Malaysia are expected to drive the demand for these segments. Additionally, the availability of abundant feedstocks for biodiesel and bioethanol production in many countries will contribute to the positive outlook for these segments.

Transportation Sector Emerges as Key Consumer of Liquid Biofuels

The transportation sector is expected to be the leading consumer of liquid biofuels, particularly biodiesel, as reducing dependence on fossil fuels becomes crucial. By 2030, the use of liquid biofuels in transportation is projected to triple as trade, e-commerce, and globalization rely on these fuels for expansion. Natural gas, biogas, hydrogen, and biodiesel derived through biochemical or thermochemical processes are the primary biofuels demanded in the transportation sector. Investments in technology development for efficient production of liquid biofuels will support the growth of this segment in the coming years.

North America Sets the Standard for Other Regions

North America is expected to lead the global liquid biofuels market in terms of geography. The region benefits from an abundance of feedstock due to large-scale corn plantations, which will drive the growth of the liquid biofuels market. Despite the pandemic, the U.S. remains at the forefront in North America, supported by initiatives such as the Renewable Fuel Reimbursement Programme. Additionally, Canada's commitment to reducing greenhouse gas emissions by 30Mt by 2030 will contribute to the region's growth. Such a strong stance on emissions reduction is expected to create favorable market conditions in the coming years.

Key Players in the Global Liquid Biofuels Market

Major players operating in the global liquid biofuels market, as highlighted in the research report, include Cargill, Incorporated, Sapphire Energy, Praj Industries, Australian Renewable Fuels Limited, Cosan Limited, Alto Ingredients, Inc., Coskata, Inc., Archer Daniels Midland Company (ADM), Gevo, Inc., Renewable Energy Corp, RB Fuels, Green Plains, Valero Energy Corp., Wilmar International, Petrobras, Algenol, and Butamax.