REPORT DESCRIPTION

Market Size and Overview:

The Global Biofuel Vehicle Market was valued at USD 125.19 billion and is projected to reach a market size of USD 201.03 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 7%. 

Biofuels have served various purposes over an extended period, functioning as fuels derived from organic materials, predominantly sourced from plants and other biomass origins. The escalating demand for sustainable and renewable energy has recently amplified interest in utilizing biofuels for transportation. Significant growth in the global biofuel vehicle market has ensued due to collaborative efforts by governments, non-governmental organizations, and private enterprises aimed at reducing the carbon footprint of the transportation sector. To combat climate change, the use of biofuels is being advocated as a pivotal strategy.

The automotive market powered by biofuels is poised for expansion as the world transitions toward a more environmentally friendly and sustainable energy mix. Projections indicate that governments and organizations will persist in promoting the utilization of biofuels in transportation, fostering the biofuel vehicle market in the foreseeable future. Nevertheless, to ensure widespread adoption in the transportation sector, challenges confronting the biofuel industry, such as the high manufacturing costs and limited biofuel feedstock availability, must be addressed proactively.

Global Biofuel Vehicle Market Drivers:

Government initiatives and policies endorsing biofuels as an energy source are steering the biofuel vehicle market's growth.

The global growth of the biofuel vehicle market is heavily influenced by regulations and encouragement provided by governments worldwide. Various laws and programs have been implemented to promote biofuel use in the transportation industry, encompassing aspects like blending biofuels with conventional fossil fuels such as gasoline and diesel. For example, the European Union has committed to achieving 10% of renewable sources in transport fuel by 2020. The United States, through the Renewable Fuel Standard (RFS), mandates a minimum percentage of renewable fuels in transportation fuels.

The increasing demand for sustainable energy sources propels the biofuels market, subsequently augmenting the biofuel vehicle market size.

The surge in demand for clean, renewable energy sources, driven by concerns over greenhouse gas emissions from the transportation sector, underscores the critical role of biofuels in mitigating climate change effects. Growing apprehensions about the environmental impact of traditional fossil fuels and the quest for energy security contribute to the escalating demand for biofuels. This heightened demand is expected to substantially propel the biofuel vehicle market in the coming years.

Global Biofuel Vehicle Market Challenges:

The significant obstacle facing the global biofuel vehicle market is the high manufacturing costs compared to conventional fossil fuels. The intricate manufacturing process and rising feedstock costs contribute to the overall higher expense of producing biofuels in contrast to conventional fossil fuels. The scarcity of crops and waste materials further amplifies the manufacturing costs, reducing the cost-competitiveness of biofuels in the transportation sector.

Global Biofuel Vehicle Market Opportunities:

The global market for biofuel vehicles presents ample opportunities for expansion amid the growing demand for electric vehicles. Biofuels can play a crucial role in supporting the growth of electric vehicles by providing a clean and renewable energy source for their recharging. Additionally, biofuels can be utilized in the production of hydrogen fuel cells, which are essential for many electric vehicles. As the prevalence of electric vehicles increases and the emphasis on sustainability and renewable energy grows, the market for biofuel vehicles is anticipated to experience substantial growth.

COVID-19 Impact on Global Biofuel Vehicle Market:

The pandemic has disrupted supply chains, impacting the production and distribution of biofuels. Lockdowns and economic slowdowns have resulted in reduced fuel demand, negatively affecting the biofuel vehicle market. Moreover, the decline in oil prices has made conventional fossil fuels more economical than biofuels, leading to a decline in biofuel demand. Nevertheless, the biofuel vehicle market has benefited in certain aspects from the pandemic, as there is heightened emphasis on sustainability and reduced dependency on oil imports. This has led to increased investments in the biofuels sector.

Global Biofuel Vehicle Market Recent Developments:

In September 2022, the Civil Aviation Administration of China (CAAC) granted a certificate of airworthiness for bio-jet fuel to Sinopec Zhenhai Refinery of China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec"). In June 2022, DuPont announced the completion of the sale of its Biomaterials business unit to the Huafon Group for an acquisition price of approximately $240 million, effective May 31, 2022. In November 2022, Bangchak Group expanded its natural resource business through OKEA ASA in Norway, acquiring three petroleum fields: the Brage field, the Ivar Aasen field, and the Nova field.

Global Biofuel Vehicle Market Segmentation: By Biofuel Type

• Biodiesel
• Bioethanol
• Others

The global segmentation of biofuel vehicles, concerning biofuel types, encompasses biodiesel, bioethanol, and various other alternatives. Biodiesel is poised to dominate the sector, owing to its compatibility with diesel engines. Simultaneously, the market for bioethanol is expected to witness growth due to its capacity for blending with gasoline. Advanced biofuels, such as bio-methane and bio-hydrogen, are still in the early stages of commercialization. The escalating focus on sustainability and renewable energy within the transportation sector is anticipated to drive the demand for biofuels, fostering market expansion. Prospects for growth and investment are also foreseen in advancements in biofuel production technology and the emergence of novel biofuels, including algae-based alternatives.

Global Biofuel Vehicle Market Segmentation: By Feedstock

• Palm Oil
• Jatropha
• Sugar Crop
• Coarse Grain
• Other Feedstock

The categorization of the global biofuel vehicle market by feedstock includes palm oil, jatropha, sugarcane, coarse grain, and other raw materials. The substantial growth of jatropha, particularly in arid and marginal areas, is anticipated. Palm oil, renowned for its high yield and widespread availability, is frequently employed as a fuel for biodiesel production. Sugar crops and coarse grains are conventionally utilized in bioethanol production, in contrast to alternatives like algae, wood, and waste materials. The market is expected to expand, driven by the surging demand for biofuels in the transportation sector, aligning with efforts to mitigate greenhouse gas emissions. Advancements in feedstock production technology and the expansion of production capacities are poised to attract new investments.

Global Biofuel Vehicle Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

Geographically, the global biofuel vehicle market is divided into North America, Europe, Asia Pacific, the Middle East, and Latin America. North America and Europe are anticipated to be pivotal markets, driven by the growing emphasis on sustainability and renewable energy. The Asia Pacific region, especially China and India, is projected to experience significant growth due to the escalating demand for biofuels in the transportation sector. The Middle East's growth is expected to be propelled by a heightened focus on sustainability and increased biofuel utilization. Brazil, as the largest market in the region, is poised for development in Latin America, driven by heightened interest in sustainability and a growing demand for biofuels in the transportation sector.

Global Biofuel Vehicle Market Key Players:

1. Bangchak Petroleum
2. Green Biologics Ltd.
3. Algenol
4. Chemtex
5. Dupont
6. Sino-can Energy
7. Sinopec
8. TMO Renewables
9. Wilmar International
10. Ineos Enterprises
11. AJ Oleo Industries
12. North Queensland Bio Energy
13. Pacific Ethanor