GVR Report cover Biofuels Market Size, Share & Trends Report

Biofuels Market Size, Share & Trends Analysis Report By Form (Solid, Liquid, Gaseous), By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa), And Segment Forecasts, 2020 - 2027

  • Report ID: GVR-4-68038-729-2
  • Number of Pages: 95
  • Format: Electronic (PDF)

Report Overview

The global biofuels market size was valued at USD 135.7 billion in 2019 is expected to grow at a compound annual growth rate (CAGR) of of 6.9% over the forecast period. Biofuels are the types of fuels that are derived from plants, animal waste, or algae material. They are considered as a renewable fuel as feedstock material utilized can be replenished at a faster rate as compared to conventional fossil fuels.

U.S. biofuels market size

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 market. Also, the presence of various supporting regulatory policies and tax incentives across the world on the utilization of biofuels is anticipated to enhance their demand majorly in the transportation sector.

The U.S. has been one of the leading countries in the development and utilization of biofuels on a global level. Bioethanol is one of the majorly produced and utilized biofuel in the country which is majorly made from corn grain and is abundantly available in U.S. Bioethanol is blended with gasoline and sold in variants of E10 and E85 in the U.S., which has majorly driven the adoption of biofuels in the country.

The U.S. government has also been playing a major role to promote production and utilization of biofuels across the country. For instance, The Energy Independence and Security Act (EISA) of 2007 states to implement biofuel blending mandates in the U.S. for transportation fuels. Under this, it has kept a target that transportation fuels should contain a minimum volume of 36.0 billion gallons as biofuels in the form of blending by 2022. Further, presence of favorable policies and tax incentives in the U.S. is expected to drive the market in the forecast period.

Biofuels are being considered as one of the emerging cleaner fuel options over conventional fossil fuels in the future. Further, the availability of funds for research and development for the development of biofuels at a lower cost will enhance their adoption. In addition, ongoing research for commercialization of second and third-generation biofuels will further boost the growth of the market during the forecast period.

However, biofuels are manufactured from sources such as corn, sugarcane, soybeans, and oil palms which are basically food crops. Further, large scale utilization of these crops to generate biofuels can create a scarcity of food products made from these crops. It can affect the prices of food and also pose questions regarding food security. This will hinder the growth of the market in the forecast period in some regions or countries around the world.

Form Insights

The liquid biofuel form segment held the largest revenue share of 73.4% in 2019 owing to rising focus towards energy security and application of liquid biofuels in flexible-fuel vehicles. In addition, bioethanol blending mandates set in various countries has driven the utilization of liquid biofuels.

Solid biofuels include products such as wood pellets, agriculture, and crop residues. Liquid form of these fuels includes products such as bioethanol and biodiesel whereas gaseous form includes products such as biogas and biohydrogen.

Global biofuels market revenue share

The solid biofuel form segment emerged as the fastest-growing segment with a revenue-based CAGR 8.5% in the biofuels market during the forecast period. The growth is attributed to rise in adoption and deployment of biomass power for electricity generation. In addition, solid biofuels are also emerging as a green alternative for space heating in residential and commercial buildings as compared to available conventional fossil fuels.

The gaseous biofuel form segment was the second-largest segment of the market in 2019 owing to rise in adoption of gaseous biofuels in applications such as transportation fuel and electricity generation. Further, the gaseous form is being utilized for cooking as it is a greener substitute over liquid petroleum gas.

Regional Insights

North America held the largest market share of 38.6%, in terms of revenue, in 2019 owing to the presence of large amount of feedstock for biofuel production. Presence of supporting infrastructure for the production and favorable government policies for the utilization of these fuels in the region will result in growth of the market in the region.

Major growth is likely to be driven by Brazil, the U.S., China, and the European Union. However, other countries have been projected to grow significantly in the industry i.e., India, Thailand, Netherlands, Canada, and Indonesia on account of a rise in awareness to curb carbon emissions and to enhance the utilization of the fuels.

Further, Canadian Clean Fuels Standard (CFS) is anticipated to apply various norms for gaseous, liquid, and solid biofuels that are combusted for energy production in the transportation sector. The government of Canada has been concentrating on annual decreases by 30 Mt in GHG emissions by 2030 that contributes in the country’s efforts to accomplish an overall 30.0% reduction in GHG emissions by 2030.

In Asia Pacific, the market is expected to witness the highest volume-based CAGR of 6.4% in the forecast period as compared to other regions. Introduction and rise in the adoption of biofuel supporting policies and regulations in countries such as China, Indonesia, Australia, and India are expected to boost the demand for biofuels majorly in the transportation sector in form blending with conventional fossil fuels.

Key Companies & Market Share Insights

Companies are concentrating further on long-term values under which some of the top market players across the region have implemented supportable sourcing strategies on the assessment of the long-term contracts. The major players in the market are also maintaining a robust and low-risk strategy to gain market share.

The companies have started escalating their business through various mergers and acquisitions in order to accommodate the rising demand. For instance, ADM; Valero Energy Corporation; Green Plains; Butamax; Pacific Ethanol Inc.; and Renewable Energy Group, Inc. (REG) have acquired various companies across the globe to maintain their dominance in the market. Some of the prominent players in the biofuels market include:

  • Bunge Limited

  • Archer Daniels Midland Company

  • Valero Energy Corp.

  • Petrobras

  • Butamax

  • Renewable Energy Corp.

  • Wilmar International

  • Algenol

  • Pacific Ethanol Inc.

Biofuels Market Report Scope

Report Attribute


Market size value in 2020

USD 139.5 billion

Revenue forecast in 2027

USD 231.2 billion

Growth rate

CAGR of 6.9% from 2020 to 2027

Base year for estimation


Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in Thousand TOE, Revenue in USD billion and CAGR from 2020 to 2027

Report coverage  

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

Segments covered

Form, region

Regional scope

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

Country scope

U.S.; Canada; Netherlands; Germany; France; China; India; Thailand; Indonesia; Brazil

Key companies profiled

Bunge Limited; Archer Daniels Midland Company; Valero Energy Corp.; Petrobras; Butamax; Renewable Energy Corp.; Wilmar International; Algenol; Pacific Ethanol Inc.

Customization scope

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

Pricing and purchase options

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

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this report, Grand View Research has segmented the global biofuels market report on the basis of form and region:

  • Form Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2016 - 2027)

    • Solid Biofuel

    • Liquid Biofuel

    • Gaseous Biofuel

  • Regional Outlook (Volume, Thousand TOE; Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Netherlands

      • Germany

      • France

    • Asia Pacific

      • China

      • Indonesia

      • India

      • Thailand

    • Central & South America

      • Brazil

    • Middle East & Africa

gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & 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 to get our best pricing.

esomar icon

ESOMAR certified & member

D&B icon

Leading SME award by D&B

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

great place to work icon