Europe Top and Emerging Biofuel Market

Europe Top and Emerging Biofuel Market Size (2023-2028):

Europe Top and Emerging Biofuel Market was valued at USD 32.09 billion in 2022. The market is expected to grow at a CAGR of 10% during the forecast period 2023-2028 to reach USD 73.05 billion by the end of 2028.

Market Overview:

Biofuels are fuels that are derived directly or indirectly from biomass. They can be produced from vegetable oils, yellow grease, used cooking oils, or even animal fats. Biofuels are comprised of solids such as bio-coal, biochar, and pellet fuel, liquids such as biodiesel and bioethanol, and gaseous such as biogas, propane, etc forms of energy. Among these forms, the liquid form is largely used in the automobile and transportation industry. The top and emerging biofuels market is expected to witness a significant amount of growth over the forecast period owing to the benefits of biofuels and their different forms of energy. 

Market Drivers:

The major factor that is driving the market growth of the top and emerging biofuels market is the favorable government support through various programs and policies for the development of this industry and low-cost production processes using any of the oil-rich crops and plants. These plants can easily and naturally be found anywhere across the globe making biofuels the most eco-friendly energy use.

The increasing demand for diesel engines is further expected to fuel the market growth of the top and emerging biofuels market owing to the benefits associated with them such as renewable energy sources and less amount of pollution. Other advantages of biofuels include- easy blending with other energy resources, increasing the efficiency of engines, and less amount of sulfur content production.

Factors such as concerns about the environment, peak oil, energy security, fuel diversity, and sustainability are likely to further drive the top and emerging biofuel market in the European region.   

Market Restraints:

The initial cost of providing energy through biofuel is much higher than fossil fuels. This acts as a restraint for the top and emerging biofuels market. Besides the sales of biofuels such as ethanol is much less than the production of ethanol. Therefore, it stands as a hindrance to the growth of the market as ethanol producers usually don’t meet their profit margins. 

Market Opportunities:

Government policies and agreements play a very vital role in driving the biofuel market. Owing to the rising concerns among people about the emission of greenhouse gases and the protection of the ozone layer and the atmosphere, most companies these days are entering into agreements and collaborations to cater to the potential market need in developing economies. Furthermore, the use of a robust product pipeline in this field is also expected to spur the demand for top and emerging biofuels over the forecast period. 

EUROPE TOP AND EMERGING BIOFUEL MARKET REPORT COVERAGE:

Market Segmentation:

Europe Top and Emerging Biofuel Market - By Type:

• Biodiesel
• Ethanol 

Biodiesel is likely to dominate Europe top and emerging biofuel market due to the massive production of biodiesel in the region. Biodiesel is made from vegetable oils, animal fats, or recycled gasses and due to limited fuel switching, it is the primary fuel used in heavy-duty vehicles, agriculture, construction, and mining. 

Europe Top and Emerging Biofuel Market - By Feedstock:

• First Generation Feedstock 
• Second Generation Feedstock 
• Third Generation Feedstock 

The first-generation feedstock is likely to dominate the market over the forecast period. The first-generation feedstock consists of regular biomass such as oil-bearing, starch, and sugar while the second-generation feedstock is mostly cellulosic and the third-generation feedstock is algae. 

Europe Top and Emerging Biofuel Market - By Application:

• Automobile and Transportation 
• Industrial
• Municipal 

The automobile and transportation industry is likely to dominate Europe top and emerging biofuels market owing to the rising concerns about the emission of greenhouse gases by vehicles. The government has been forming policies and agreements with industries for increased use of bioproducts, thus driving market demand. 

Market Regional Analysis: 

• Germany 
• UK 
• France 
• Italy 
• Spain 

Germany’s biofuel market is leading with prominent shares in the market. With the presence of more key players in the region, the biofuel market has been emerging for quite a while now. The UK is next in leading the shares of the market. With an increasing demand for the biofuel market, France has been showing a significant amount of growth and contribution to the market as well. 

Italy and Spain are expected to witness significant growth over the forecast period. 

Impact Of Covid-19 on Europe Top and Emerging Biofuel Market:

Just like any other industry, the pandemic had a massive impact on the top and emerging biofuel market. The COVID-19 pandemic negatively affected the growth of Europe’s biofuel market. The steep decline in ethanol reduced the profit margins of ethanol producers. Moreover the reduction in socio-economic activities also adversely affected the demand for the biofuel market in the region during the pandemic. 

Market Key Players:

1. UPM- Kymmene Oyj 
2. Green Fuel Nordic Oy
3. SunPine AB
4. Svenska Cellulose AB 
5. Preem AB
6. Galp Engergia
7. SGPS SA
8. Biomethanol Chemie Nederland BV 
9. Beta Renewables SpA
10. Borregard ASA 

Market Key Developments:

• In September 2021, Royal Dutch Shell announced a final investment decision (FID) to build an 820,000 ton/year biofuel facility at the Shell Energy and Chemicals Park in Rotterdam, Netherlands. This facility is expected to start production by 2024 and is said to be Europe’s biggest source producing sustainable aviation fuel (SAF) and renewable diesel made from waste. 
• In January 2022, Liebherr, a German-swiss multinational equipment manufacturer announced its plan to increase its use of Neste MY Renewable Diesel in its plant in Kirchdorf, Germany. The company develops and manufactures approximately 2500 machines which include hydraulic excavators and material handling machines. 
• In January 2022, Repsol SA selected Honeywell Technologies to supply an integrated control and safety system (ICSS) for the first advanced biofuel production plant to be built in Spain.