According to a newly compiled market research report from IndustryARC titled “Biofuel Market: By Product Type, By Blend, By Feedstock, By Production Technology and By End-Use Industry & By Geography – Forecast (2019 – 2025),” the global biofuel market size was around $130 billion in 2018, and the demand is estimated to grow with a CAGR of around 4% during the forecast period 2019 to 2025. Biofuels are produced through contemporary anaerobic digestion rather than geological process involved in fossil fuel. There are other biofuels that are made of biomass. Biofuel is widely used in the transportation industry, and the segment will grow with an estimated CAGR of around 7% during the forecast period. Owing to the recent developments in the field of preserving nature in North America, the region is also growing in terms of biofuel market with its regional share of more than 30%.
According to Biodiesel America’s Advanced Biofuel, North America’s domestic biodiesel production has increased by 17% which got translated to more than 300 million gallons in 2018 as compared with 2017. The market share for biofuels is expected to reach to- diesel 61.07%, and gasoline 35.42% by 2025. In North America, gasoline and diesel power trains are anticipated to continue its dominance in the commercial segment, i.e. in the transportation industry. Biofuels can be used in new and existing technology without its further modifications as diesel engines. Owing to the recent developments, the biofuel market also serves renewable hydrocarbon fuels and diesel.
Biofuel Market: Recent Developments and Market Trends
Biofuel market is essential in the current global scenario because the scientists have completely changed its version by utilizing the resources.
- Government Verve for Growing Algae for Sustainable Environment
Department of Energy’s Office of Energy Efficiency & Renewable Energy has taken a new initiative to improve the competitiveness in cost and environmental sustainability of microalgae-based fuels and products. They have invested $2.1 million for a project that aims for improving carbon dioxide utilization to increase algae yield. The energy office has set up a 3 year as the project is also a partnership with two other companies. For fermentation process New Belgium Brewing will provide CO2, Qualitas Health will test the improved CO2 delivery technology. This is a part of innovation in the biofuels market.
- Cargill’s Expansion Agreement Gets Sanctioned
In 2018, Cargill got approval for $38 million or more, for industrial revenue bonds that has been approved for its expansion of biodiesel plant in Wichita. That plant is already producing vegetable oil which will also have biodiesel production. The biodiesel plant is worth $87 million projects. The expansion will help the region to grow in the biofuel market.
Biofuel market is leading majorly in North America due to its application in the transportation industry. The government has started taking initiatives for biofuel market development to help the industry grow. There has been a rapid increase in the past few year which is bringing opportunities in the biofuel market.
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Biofuel Additives Market