The global bio-fuel market grows at the CAGR of 2.7% and will contribute $190 billion till 2022. Global bio-fuel market is segmented on the basis of feedstock, type and regional outlook. In feedstock market is divided into simple lignocellulose, complex lignocellulose, syngas/ biomass/ MSW, algae, sugar and starch, oil and fats and other feedstock. In type bio fuels market is segmented into cellulose ethanol, vegetable oil, biogas, bio alcohols, biodiesel, bio butanol, bio DME and others.
Banning of petrol products act as a boosting agent for bio fuels in some of the regions like Norway and Netherland.
The bio fuels market in last several years has brought a significant growth due to rising food, agricultural and energy market all over the world. And it has been observed that the demand for bio-diesel is increasing because it is non-toxic and biodegradable which helps in boosting the global bio-fuel market. In developing and developed regions, the growing application base in emerging market of bio-fuel is helpful in boosting the market in an effective manner. The rising governmental concern regarding bio-fuel is a major driver for the global bio-fuel market. And the rising support from the government is acting as a boom for the industry and helping the companies to reach the masses. Stringent government rules and regulations is considered as major challenge for the global bio-fuel market. The global bio-fuel market is expected to grow in near future due to rising focus of key players on affordable, reliable and sustainable energy all over the world.
In regional outlook market is divided into North America, Europe, Asia pacific and rest of the world. Asia pacific is the fastest growing market of global bio fuels market. Asia pacific is the opportunistic and revenue generated market for bio fuels manufacturing players due to cheap labor force, availability of raw material, abundant amount of feedstock, and large number of end users. China and India are the two major countries in Asia pacific region. North America is the dominating region in global bio-fuel market in demand and production.
Factors that thrusts the global bio fuels market upward are rigid environmental related rules and regulations encouraging the use of biofuels, rising economic development, , and increasing energy import bills which is resulting in negative balance of trade are some of the factors which is expected to fuel the growth of the global bio fuels market. Increasing demand of bio-diesel helps in up warding the growth of global bio-fuel market. The major reason behind this is it’s mainly used in the transportation industries that are also being used in off-grid electricity supply which majorly helps in propelling the growth of the global bio-fuels market. There are other reasons which are behind the rising demand of bio-diesel that is the biodegradable and non-toxic characteristics that makes it easy to transport. Also, growing environmental concerns and the shrinking fossil fuel resource is propelling the market.
Some Of The major market players are Dupont industrial bioscience, abengoa bioenergy, Australian renewable fuels limited, Aventine renewable energy holding, Inc., Zeachem Inc., Solazyme Inc., Renewable energy Group, POET-DSM advanced biofuels LLC, INEOS bio, Inbicon, Granbio, Etc. acquisition, mergers and expansions are the key strategies adopted by the market players to sustain in the market.