GVR Report cover Biofuels Market Size, Share & Trends Report

Biofuels Market Size, Share & Trends Analysis Report By Feedstock (Corn, Sugarcane), By Application (Transportation, Aviation), By Form (Solid, Liquid), By Product, By Region, And Segment Forecasts, 2024 - 2030

  • Report ID: GVR-4-68038-729-2
  • Number of Report Pages: 120
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2022
  • Forecast Period: 2024 - 2030 
  • Industry: Energy & Power

Biofuels Market Size & Trends

The global biofuels market size was estimated at USD 99.53 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 11.3% from 2024 to 2030. The market is anticipated to be driven by the demand for cleaner fuel, coupled with increasing governmental regulations for desulphurization of petroleum products. Biofuels are types of fuels that are derived from plants, animal waste, or algae material. Biofuels are considered renewable fuels as feedstock material utilized can be replenished at a faster rate as compared to conventional fossil fuels. Limited availability of fossil fuel-based resources and growing awareness regarding curbing carbon emissions are some of the factors that are likely to drive the global market.

U.S. Biofuels Market size and growth rate, 2023 - 2030

The existence of various supporting regulatory policies and tax incentives across the world on utilization of biofuels is anticipated to enhance use of biofuels, majorly in the transportation sector. The U.S. is the primary revenue contributor to the North America biofuel industry. The U.S. government has initiated several regulations to reduce dependency on conventional fuels and carbon emissions. Significant factors influencing growth of biofuels in the U.S. include favorable regulatory & political support, innovation support (for second & third generation biofuels), and environmental, customer, geopolitical, agricultural, and economic support.

Increasing compliance for biofuels in the region is also supporting growth of the North America regional market. The U.S. government has initiated several regulations to reduce its dependency on conventional fuels and carbon emissions.However, biofuels are manufactured from sources, such as corn, sugarcane, soybeans, and oil palms, which are food crops. Large-scale utilization of these crops to generate biofuels can create a scarcity of food products made from these crops. It canaffect prices of food and also pose questions regarding food security. This may hinder market growth over the forecast period in some regions or countries across the globe. 

Market Characteristics & Concentration

Innovations in biofuels are largely directed towards finding new feedstock to produce transportation fuels. A large part of the biofuels production takes place by means of conventional feedstock, such as corn and sugarcane.

While many production processes have successfully attained a commercial status, such as ethanol production from corn & sugarcane, and HVO diesel & aviation biofuel (biojet) production from vegetable oils & waste oils, these have always been through food crop sources. There is a significant gap in innovation in terms of converting agricultural waste, forestry residues, and municipal solid waste to liquid biofuels. Finding alternative feedstock is highly important as it ensures low impact on land-use and food & feed security. According to IEA, advanced feedstock account for only 3.8% of the global bioethanol production in 2022.

Biofuels Market Concentration & Characteristics

Biofuels have gained global significance with support from different governments across world on account of their multiple perceived benefits including reduced greenhouse gas (GHG) emissions and improved domestic energy security. Government support for utilization of biofuels is a result of several factors such as economic development, fossil-fuel counterparts, and employment generation. For instance, in August 2022, Canada pledged to reduce carbon emissions by 40–45% below 2005 levels by 2030 and to achieve net-zero emissions by 2050.

However, biofuels market penetration also involves several hurdles concerning product commercialization in terms of cost as compared to fossil-based fuels, increasing food prices (raw materials for biofuels) and lack of consumer awareness regarding use of cleaner energy alternatives in certain parts of the world.

Product Insights

Based on product, the market has been categorized into biodiesel, ethanol, wood pellets, biojet, green diesel, biomethane, syngas, green hydrogen and others (biogasoline, biomethanol, biobutanol, Bioethers). Ethanol was the leading segment with nearly a quarter of the market share in 2023. Bioethanol’s active usage as transportation fuel is a key factor in driving its demand. With many countries gradually increasing the blend percentage of ethanol with gasoline, the product’s demand has risen significantly in the recent past.

Global Biofuels Market share and size, 2022

Biomethanol, green hydrogen, green diesel, biobutanol, syngas, biojet, and bioethers collectively accounted for a revenue share of more than 28.0% in 2023. Owing to the shift in focus of countries toward use of renewable sources, particularly for electricity generation, has significantly driven global demand for biogas. In addition, increasing requirements to reduce dependency on fossil fuels is creating lucrative opportunities for utilization of biogas as fuel in vehicles.

Regional Insights

North America emerged as the largest region with a revenue share of more than 33.0% in 2023 owing to the presence of a large amount of feedstock for biofuel production. Presence of supporting infrastructure for biofuel production and favorable government policies for utilization of biofuels in the region will result in the region’s dominant position in global industry. Major growth is likely to be driven by the United States, Brazil, China, and European Union. However, other countries have been projected to grow significantly in the biofuel industry including India, Thailand, Netherlands, Canada, and Indonesia on account of rise in awareness to curb carbon emissions and to enhance utilization of biofuels.

Biofuels Market Trends, by Region, 2023 - 2030

Globally, rising biofuel demand in addition to growing energy security concerns is expected to drive market growth over the forecast period. North America and European Union have created a market through energy policies, which specify required rate of incorporation of biofuels in petroleum products. Rising oil prices have shifted end-users to utilize biofuel as an alternative. Furthermore, initiatives taken by major economies including the U.S., China, and Brazil for supporting biofuel implementation through substantial tax rebates are expected to spur market growth over the forecast period.

Form Insights

Based on form, liquid biofuel emerged as the largest segment with a revenue share of over 43.0% in 2023 owing to a rising focus on energy security and application of liquid biofuels in flexible-fuel vehicles. In addition, bioethanol blending mandates set in various countries have driven utilization of liquid biofuels. Liquid form segment is estimated toregister the fastest CAGR of 11.5% over the forecast period owing to depleting fossil fuel resources as well as rising awareness regarding environmental protection is expected to be a key factor driving the segment.

The introduction of regulations and policies in the biofuels industry has prompted manufacturers to invest in research and development (R&D) activities to innovate technology for biofuel production. Gaseous biofuel form was the second-largest segment in 2023 owing to a rise in adoption of gaseous biofuels in applications, such as transportation fuel and electricity generation. Furthermore, gaseous biofuel is being utilized for cooking gas as it is a greener substitute for liquid petroleum gas.

Generation Insights

First generation (conventional) biofuels held close to 84% of the global biofuels market share in 2023. This phenomenon is due to significant advancements in technologies and their commercialization at converting conventional feedstock, such as food crops, hydrogenated vegetable oil (HVO), and hydrogenated esters and fatty acids (HEFA), to liquid biofuels.

Although second generation (advanced) biofuels account for a lesser share of global biofuels demand and production, there is a high degree of R&D happening to achieve commercial status of advanced biofuels. At the edge of commercialization are several production technologies such as alcohol-to-jet (ATJ) process, and biomass gasification supported by FT synthesis, hydrothermal liquefaction, and pyrolysis. These routes provide a blueprint for producing liquid biofuels such as renewable diesel, biojet kerosene, and ethanol from biomass waste and forestry residues.

Feedstock Insights

Based on feedstock, the market has been categorized into corn, sugarcane, vegetable oils, and others. The other segment dominated the global market with a maximum revenue share of more than 47.0% in 2023. This segment includes rice, wheat, and potatoes. Rice straw is used for producing biofuel through both biochemical and thermochemical technologies.

In the biochemical process, a pre-treatment step is required in which, biological platform reduces elasticity of rice straw by altering interactions of cellulose, hemicellulose, and lignin. Sugarcane was the second-largest segment in terms of revenue in 2023 owing to production of ethanol from sugarcane. Companies involved in biofuel production are setting up sugarcane as a feedstock in production facilities, which is likely to boost growth of the segment over the forecast period.

Application Insights

Based on applications, the market has been categorized into transportation, aviation, energy generation, heating, and others. The transportation segment dominated the market with a maximum revenue share of over 71.0% in 2023. The high share was owing to suitability of biofuel for transportation as they are relatively energy dense and easy to distribute using existing infrastructure with only minor modifications.

The aviation segment will emerge as the fastest-growing application during the forecasted period on account of favorable government regulations implemented in various countries. Initiatives such as International Aviation Carbon Offsetting and Reduction Scheme (CORSIA) introduced byInternational Civil Aviation Organization (ICAO) are expected to augment growth of aviation segment growth over the forecasted period.

Key Companies & Market Share Insights

Global industry is highly competitive with key participants involved in R&D. Constant innovations done by vendors have become one of the most important factors for companies to succeed in the market. Currently, the market is witnessing an influx of investments against the backdrop of favorable policies and economic support from the governments of major economies. Several companies are making inroads into sustainable aviation fuels (SAF). According to IEA’s World Energy Investment report, oil & gas companies expended USD 11 billion in 2022, to acquire transport biofuel and biogas companies. Additionally, refining companies accounted for nearly 80% of total renewable diesel production capacity.

Key Biofuels Companies:

  • Air Liquide
  • Archer Daniels Midland Company
  • Bunge North America, Inc.
  • Butamax Advanced Biofuels LLC
  • Green Plains Inc.
  • Petrobras
  • Renewable Energy Group, Inc.
  • Royal Dutch Shell Plc
  • Scandinavian Biogas Fuels International AB
  • Wilmar International Ltd.
  • LanzaJet, Inc

Recent Developments

  • In July 2023, Petrobras announced to begin testing the performance of a B24 bio bunker fuel blend. This fuel blend is being used to fuel a ship, located at the Rio Grande (RS) Terminal and chartered by Transpetro with 573,000 litres of fuel to be filled in the vessel.

  • In July 2023, Equilon Enterprises LLC, a subsidiary of Shell plc and Green Plains Inc. entered into a technological collaboration to use Shell Fiber Conversion Technology (SFCT) with Fluid Quip Technologies’ precision separation and processing technology. This strategic partnership is expected to add significant value to Green Plains Inc.'s biorefinery platform.

  • In April 2023, Lanzajet announced construction milestone completion of their production plant in Soperton, Georgia. The facility is the world’s first ethanol-based alcohol-to-jet sustainable aviation fuel production plant and is poised to being commercial operations in 2024.

  • In January 2023, Green Plains Inc., United Airlines, and Tallgrass entered into a joint venture to form Blue Blade Energy, to develop Sustainable Aviation Fuel (SAF) technology that uses ethanol as its feedstock. The technology is in trial stages and upon successful results the joint venture project is expected to proceed with the construction of a pilot facility in 2024, followed by a full-scale facility that could begin commercial operations by 2028.

Biofuels Market Report Scope

Report Attribute


Market size value in 2024

USD 109.08 billion

Revenue forecast in 2030

USD 207.87 billion

Growth rate

CAGR of 11.3% from 2024 to 2030

Base year for estimation


Historical data

2018 - 2023

Forecast period

2024 - 2030

Report updated

November 2023

Quantitative units

Revenue in USD Million/Billion, Volume in Thousand Tons Oil Equivalent (TOE), CAGR from 2024 to 2030

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Feedstock, form, generation, product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America ; MEA

Country scope

U.S., Canada, Mexico, Germany, UK, Netherlands, France, Italy, Spain, China, Indonesia, India, Japan, South Korea, Malaysia, Thailand, Brazil, Argentina, Saudi Arabia, UAE, South Africa

Key companies profiled

Archer Daniels Midland Company; Green Plains Inc.; Petrobras; Valero Energy Corp.; Alto Ingredients Inc.; Gevo; Butamax Advanced Biofuels LLC; Wilmar International Ltd.; Renewable Energy Group, Inc.; Bunge North America, Inc.; Royal Dutch Shell Plc; CropEnergies AG; Air Liquide; Scandinavian Biogas Fuels International AB; Abengoa

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Biofuels Market Report Segmentation

This report forecasts revenue & volume growth at global regional & country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. Forthis report, Grand View Research has segmented the global biofuels market report based on feedstock, form, generation, product, application, and region:

  • Feedstock Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2018 - 2030)

    • Corn

    • Sugarcane

    • Vegetables Oils

    • Others

  • Form Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2018 - 2030)

    • Solid Biofuels

    • Liquid Biofuels

    • Gaseous Biofuels

  • Generation Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2018 – 2030)

    • First Generation Biofuels (Conventional Biofuels)

    • Second Generation Biofuels (Advanced Biofuels)

    • Third Generation Biofuels (Algae Fuels)

  • Product Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2018 - 2030)

    • Biodiesel

    • Green Diesel

    • Ethanol

    • Wood Pellets

    • Aviation Biofuel (Bio-jet Fuel)

    • Biomethane

    • Syngas

    • Green Hydrogen

    • Others (Biogasoline, Biomethanol, Biobutanol, Bioethers)

  • Application Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2018 - 2030)

    • Transportation

    • Aviation

    • Energy Generation

    • Heating

    • Others

  • Regional Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Netherlands

      • UK

      • Germany

      • France

      • Italy

      • Spain

    • Asia Pacific

      • China

      • Indonesia

      • Thailand

      • India

      • Japan

      • South Korea

      • Malaysia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • UAE

      • South Africa

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes data points, ranging from trend analyses to estimates and forecasts. See for yourself.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now

Certified Icon

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.