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 (Biodiesel, Ethanol), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68038-729-2
  • Number of Pages: 120
  • Format: Electronic (PDF)

Report Overview

The global biofuels market size was valued at USD 91.18 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.1% from 2023 to 2030. The market is anticipated to be driven owing to the demand for cleaner fuel, coupled with increasing governmental regulations for desulphurization of petroleum products. Biofuels are the types of fuels that are derived from plants, animal waste, or algae material. Biofuels are considered renewable fuels as the 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

Also, the existence of various supporting regulatory policies and tax incentives across the world on the utilization of biofuels is anticipated to enhance the use of biofuels, majorly in the transportation sector. The U.S. is the primary revenue contributor to the North America biofuel market. The U.S. government has initiated several regulations to reduce dependency on conventional fuels and carbon emissions. Significant factors influencing the 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 the 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 the prices of food and also pose questions regarding food security. This may hinder the market growth in the forecast period in some regions or countries around the world.

Form Insights

Liquid biofuel form emerged as the largest segment in 2022 with a revenue share of 43.91% owing to the 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 the utilization of liquid biofuels. The liquid form segment is estimated toregister the fastest CAGR of 11.0% 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.

Furthermore, the introduction of regulations and policies in the biofuels industry has prompted manufacturers to invest in R&D activities to innovate technology for biofuel production. Gaseous biofuel form was the second-largest segment in 2022 owing to a rise in the 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.

Product Insights

The others segment, which includespropanol, butanol, methanol, and biogas, led the market and accounted for the largest revenue share of 28.66% in 2022. Owing to the shift in focus of countries toward the use of renewable sources, particularly for electricity generation, has significantly driven the global demand for biogas. In addition, the increasing requirement to reduce dependency on fossil fuels is creating lucrative opportunities for the utilization of biogas as fuel in vehicles.

Global Biofuels Market share and size, 2022

The ethanol segment accounted for the second-largest revenue share in 2022 owing to a rise in global temperature and a number of industries have begun to look for alternative energy sources that reduce greenhouse gas emissions from their combustion engines. Bioethanol is a potential alternative energy source that can lead the way in reducing greenhouse gas.

Feedstock Insights

On the basis of feedstock, the global industry has been further categorized into corn, sugarcane, vegetables oils, others. The other feedstocks segment dominated the global industry market in 2022 and accounted forthe maximum share of 47.09% of the overall revenue. 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, the biological platform reduces the elasticity of rice straw by altering the interactions of cellulose, hemicellulose, and lignin.Sugarcane was the second-largest segment in terms of revenue in 2022 owing to the 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 the growth of the segment over the forecast period.

Application Insights

On the basis of applications, the global industry has been further categorized into transportation, aviation, energy generation, heating, and others. The transportation segment dominated the global industry in 2022 and accounted for the maximum share of 71.24% of the overall revenue. The high share was owing to the suitability of biofuel for transportation as they are relatively energy dense and easy to distribute using existing infrastructure with only minor modifications.

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

Regional Insights

The North America region emerged as the largest region in 2022 with a revenue share of 33.25% owing to the presence of a large amount of feedstock for biofuel production. The presence of supporting infrastructure for biofuel production and favorable government policies for the utilization of biofuels in the region will result in the region’s dominant position in the global industry. Major growth is likely to be driven by the United States, Brazil, China, and the European Union. However, other countries have been projected to grow significantly in the biofuel industry i.e., India, Thailand, the Netherlands, Canada, and Indonesia on account of the 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 the market growth over the forecast period. North America and European Union have created a market through energy policies, which specify the required rate of incorporation of biofuels in petroleum products. Rising oil prices have shifted the 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.

Key Companies & Market Share Insights

The global industry is highly competitive with key participants involved in R&D.Constant innovation done by the vendors has become one of the most important factors for companies to perform in this industry. Some of the prominent players operating in the global biofuels market are:

  • 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.

Biofuels Market Report Scope

Report Attribute


Market size value in 2023

USD 99.53 billion

Revenue forecast in 2030

USD 207.87 billion

Growth rate

CAGR of 11.1% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Report updated

May 2023

Quantitative units

Revenue in USD Million/Billion, Volume in Thousand TOE, CAGR from 2023 to 2030

Report coverage

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

Segments covered

Form, product, application,feedstock, region

Country scope

North America; Europe; Asia Pacific; Middle East & Africa; Central & South America

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 growth 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 based on form, product, application, feedstock, and region:

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

    • Solid Biofuel

    • Liquid Biofuel

    • Gaseous Biofuel

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

    • Biodiesel

    • Ethanol

    • Wood Pellets

    • Others

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

    • Transportation

    • Aviation

    • Energy Generation

    • Heating

    • Others

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

    • Corn

    • Sugarcane

    • Vegetables Oils

    • Other

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

    • North America

      • U.S.

      • Canada

    • Europe

      • The Netherlands

      • UK

      • Germany

      • France

    • Asia Pacific

      • China

      • Indonesia

      • Thailand

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

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