Liquid Biofuels Market Industrial Forecast On Global Industry Analysis and Trends


Nimble players operating in the global biofuels are seen pulling out all stops to better their products. To that end, they are seen investing heavily in research and development. Many of the deep-pocketed players are also integrating backwards to overcome volatility in raw material prices and supply, to outgun rivals producing liquid biofuels. Leveraging such strategies, companies that have come to hold a prominent position in the global biofuels market are Australian Renewable Fuels Limited, Raizen Energia Participacoes S.A, Renewable Energy Group, Aventine Renewable Energy Holdings Inc., Solazyme Inc., and BlueFire Renewables.

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A report by Transparency Market Research on the global biofuels market finds that it would likely produce 50921.4 million gallons by 2019-end by rising at 9.6% CAGR from 2013 to 2019.

The report finds that the two type of products in the global biofuels market are bioethanol and biodiesel. Between the two, the bioethanol holds a significant share in the market. This is because it is a renewable fuel that can be manufactured from various feedstock. Fuel suppliers typically mix it with gasoline in different proportions for selling it in the market. Currently, the U.S. and Brazil are the main producers of bioethanol because of the high amount of ethanol production. From a geographical standpoint, North America at present holds a leading share in the global biofuels market. The growing awareness about the benefits of liquid biofuels over conventional fuels, particularly with respect to pollution, has made North America a dominant revenue generator.

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Pressing Need for Energy Drives Demand for Liquid Biofuels

At the forefront of driving the global biofuels market is the rising demand for energy for fuelling the ever-increasing number of vehicles plying on the roads, lighting up homes, and running our factories and offices. All these have shifted focus on alternative sources of energy such as liquid biofuels. Another reason why the global biofuels market is rising is because of the thrust on pollution control. With increasing number of government rules and regulations pertaining to it, biofuels and other alternative sources of energy are expected to see their demand surge in the next couple of years.

Yet another factor fuelling the global biofuels market is its rising applications in various areas. For instance, Spice Jet, a leading air carrier in India, recently operated its first biofuel flight. Going forward, it aims to operate around 25% of its flights with biofuel. This coupled with the rising thrust on development of better products is expected to bode well for the global biofuels market.

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Drawbacks in Production Process Poses Challenge to Market

Despite looking so promising, the global biofuels market is facing some headwinds on account of the limitations of the production process. Besides, threats from substitutes is also negatively impacting the market. Despite such setbacks the market will continue rising because the pressing need for lesser polluting alternative sources of energy.

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