GVR Report cover Algae Biofuel Market Size, Share & Trend Report

Algae Biofuel Market Size, Share & Trend Analysis By Application (Transportation, Others), By Region (North America, Europe, Asia Pacific, ROW), By Country, And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-1-68038-775-9
  • Format: Electronic (PDF)
  • Historical Data: 2014-2016
  • Number of Pages: 75

Industry Insights

The global algae biofuel market size is expected to be USD 5.96 billion in 2018 and is anticipated to witness significant growth owing to increasing demand for bio-based resources to replace traditional fossil fuels products.

High potential associated with algae to produce bioethanol, biodiesel, drop-in biofuels, and hydrocarbons coupled with initiatives taken by the manufacturers to commercialize the product is expected to open new avenues for the industry.

Algae industry has been struggling to sustain in the biofuel market over the past decade, furthermore, decommissioning of major algae biofuel commercial projects has restrained the industry growth. However, the product has the potential to witness enormous scope once the manufacturers are capable of overcoming the key barriers associated with the raw material manufacturing, capital cost, and production volumes.

U.S. algae biofuel market revenue, by application, 2018 - 2025 (USD million)

U.S. algae biofuel market

Introduction of biofuel mandates across the world is expected to compel manufacturers to invest more in R&D to develop sustainable algae fuel production technology over the forecast period. The U.S. produced over 1.14 billion gallons of biofuel in the year 2016 from a various feedstock including animal fats and recycled seeds.

The high potential of algae to replace traditional biofuel raw material sources coupled with the mandates introduced by the U.S. government are expected to open new avenues for the product growth, which is expected to be adopted by other regions over the projected period.

The market has numerous start-up companies located across the world. The majority of these players are situated in the North America, owing to the high government support and low technology barriers in the region.

The companies in the sector are expected to be integrated across the value chain to limit their dependency on the raw material suppliers. In addition, the industry is expected to foresee collaborations and partnerships among the manufacturers in order to produce high volumes of the product along with the substitute competitive pricing.

Application Insights

The algae biofuel market is segmented on the basis of two major applications including transportation and others such as aerospace and industrial. Transportation is expected to be the dominating application segment in the industry owing to the potential of algae to replace traditional diesel and petrol products.

Petroleum fluids, including jet fuel, diesel, petrol and fuel oil accounted for one-third of the world energy consumption in 2015 and this demand is expected to grow at a CAGR of over 1.5% over the projected period. With the rapid growth of automotive sector owing to rising consumer income and technology innovations is expected to propel demand for new sustainable raw material sources such as algae.

Growing demand for biofuel in road transport applications including small trucks, minivans, light-duty vehicles, motorbikes, and passenger travelers is expected compel manufacturers to invest more in R&D to develop low-cost renewable fuel resources. The aforementioned factors are expected to open new market opportunities for the product growth in transportation application over the forecast period.

Global algae biofuel market, by application, 2018 (%)

Global algae biofuel market

Growing demand for alternative liquid fuel products in the commercial aviation sector and military applications is expected to be a key factor driving the market growth over the projected period. Initiatives taken by the manufacturers to achieve the required fuel standards and positive government outlook for the industry are likely to drive growth.

Regional Insights

In North America, the market is expected to witness significant growth in terms of bioethanol, wherein in Europe, the product is likely to foresee demand especially in biodiesel applications. In the U.S. the consumers use gasoline for various applications including cars, sports vehicles, small aircraft, electricity generators, and commercial trucks.

Growing demand for renewable energy resources to meet the rising energy demand and lower the environmental impact of carbon footprints is expected to have a positive impact on the market growth over the projected period.

The European government has planned to mandate to source 10% transport energy from renewable resources, primarily from biofuels by 2020. A significant share of the fuels goes into transportation application in the region owing to high demand for luxury vehicles, commercial trucks, and motorcycles.

Algae biomass has the ability to manufacture biodiesel which has potential to replace traditional fossil fuel resources in aforementioned applications, which is expected to have a positive impact on the industry growth over the forecast period.

Asia Pacific is expected to a key market for the product owing to the rapid growth of automotive industry in the region. The presence of large economies including China and India, which account for a major population share of the world is expected to drive demand for sustainable energy resources, which in turn is likely to open new avenues for the market growth.

China is one of the top five producers of algae biomass and has made high investments to produce algae-derived energy products such as diesel, petrol, and hydrogen. Rising focus of Chinese government to reduce rely on coal and other fossil fuel resources for transportation and industrial applications is expected to open new avenues for the industry growth.

Algae Biofuel Market Share Insights

In January 2015, in India, Reliance Industries and Algenol deployed the countries first Algenol algae production platform. In addition, in July 2013, Reliance Industries Ltd. launched a new facility to convert algae into oil, with the aim of producing 100-barrel oil/ day in the upcoming years.

The major players in the algae biofuel industry include Algenol, Blue Marble Production, Solazyme Inc., Sapphire Energy, Culture Biosystems, Origin Oils Inc., Proviron, Genifuels, Algae Systems, Solix Biofuels, and Reliance Life Sciences.

Report Scope



Forecast period

2018 - 2025

Market representation

Volume in Million Gallons, Revenue in USD Million & CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Rest of the world

Country scope

The U.S.

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope(equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2025. For the purpose of this study, Grand View Research has segmented the algae biofuel market on the basis of application, and region:

  • Application Outlook (Volume, Million gallons; Revenue, USD Million, 2018 - 2025)

    • Transportation

    • Others

  • Regional Outlook (Volume, Million gallons; Revenue, USD Million, 2018 - 2025)

    • North America

      • The U.S.

    • Europe

    • Asia Pacific

    • Rest of the World

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