Liquid Biofuels Market Research Report - Segmentation By Product (Biodiesel And Bioethanol), By Application (Transportation Fuel, Power Generation and Thermal Heating), and Region - Industry Forecast of 2024 to 2029

Updated On: January, 2024
ID: 10509
Pages: 175

Liquid Biofuels Market Size (2024-2029):

The Global Liquid Biofuels Market estimated at US$ 85.18 billion in the year 2023, is projected to reach a revised size of US$ 129.27 billion by 2029, growing at a CAGR of 8.70% over the analysis period 2024-2029.

Biofuels are expected to experience growth in demand due to their potential to reduce or eliminate dependence on fossil fuels. These are cleaner energy alternatives, which result in zero carbon dioxide emissions during combustion and use raw materials of plant origin for their production. Liquid biofuel is an energy-efficient alternative that helps reduce energy security risks and pollution levels associated with burning fossil fuels. Therefore, it can be mixed in large quantities with traditional fossil fuels for use in applications such as transportation. Although biodiesel has the ability to replace conventional fuel, its production capacity is not sufficient to meet current demand. Therefore, the market is highly regulated with various tax incentives in different countries.

Market Trends:

Governments around the world have introduced many policies and strategies to alleviate concerns about climate change. Energy security, rural development, and climate change mitigation are some of the crucial parameters responsible for these policy goals. Demand for fatty acids for biofuels, hydro-processed esters, and renewable diesel, also known as hydrogen-treated vegetable oil (HVO), is expected to increase over the forecast period. This growth in demand can be attributed to its potential properties of being used unmixed without maintenance regimes, engine modification in transportation infrastructure, and fuel supply.

Market Drivers

Declining fossil fuel-based resources and growing awareness of environmental protection are likely to drive the market. In addition, the presence of various regulatory policies and tax incentives around the world should force biofuel manufacturers to invest more in R&D activities to achieve commercialization of the latest second and third-generation technologies.

Market Restraints:

Insufficient availability of all kinds of raw materials, such as algae, starch, and sugar, would hamper market growth, as not all raw materials present the same performance concerns for the market.

Market Opportunities:

There is considerable potential for plants with low economies of scale by producing biodiesel at a smaller size, with greater potential to benefit small farmers in the raw material stage and contribute to rural development. Increasing demand for biofuels and growing concerns about energy security are other important factors that are expected to drive market growth during the forecast year. North America and the European Union have created a market through energy policies that specify the required rate of incorporation of biofuels into petroleum products.

Market Recent Developments:

  • Trade associations launch liquid biofuel supply chain strategy to address emissions. The three associations will be joined by other trade bodies and industry representatives in a new working group on liquid biofuels, which will use the policy proposals in the strategy paper to support the UK off-grid heating market transition. It will also allow the UK government to maintain a technologically neutral approach and will encourage all industries to find solutions.




Market Size Available

2023 – 2029

Base Year


Forecast Period

2024 - 2029



Segments Covered

By Product, Application, and Region.


Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa



Market Leaders Profiled

Archer Daniels Midland Company (US), Aceites Manuelita S.A. (Colombia), INEOS Group AG (UK), Neste Corporation (Finland), Renewable Energy Group Inc. (US), BlueFire Renewables (US), Cosan (Brazil), Biowanze S.A. (Belgium), GLENCORE Magdeburg GmbH (Germany), Cargill (US), and Others.

Market Segmentation:

Liquid Biofuels Market - By Product:

  • Biodiesel

  • Bioethanol

The demand for biofuels has increased in recent years due to increasing attention to energy security and the use of flexible fuel vehicles. The liquid biofuel market in North America is growing rapidly for bioethanol and biodiesel. The main factors that are driving the growth of the regional market include the high demand for green fuels, strict environmental regulations, and high investments in the development of biofuel refineries.

Liquid Biofuels Market - By Application:

  • Transportation Fuel

  • Power Generation

  • Thermal Heating

The usage of biofuels in the transportation industry is likely to triple by 2030. Greater political support and the cost-reducing invention is needed to balance both biofuel adoption and advanced biofuel consumption in various transport sectors, as envisioned in the sustainable development scenario. Given that sustainable biofuels have a place in the sustainable development arena, more widespread sustainability governance needs to be associated to provide increased biofuel production.

Market Regional Analysis:

The Liquid Biofuels Report includes the segmentation of Regions with their respective Countries.

  • North America 
  • Europe 
  • Asia Pacific
  • Latin America 
  • Middle East & Africa 

North America has dominated the world market in recent years due to the abundance of raw materials and arable land for biofuel production. The United States, Brazil, the European Union, and China are expected to be among the main regions driving demand for liquid biofuels. However, other economies such as Thailand, Indonesia, Canada, Australia, and the Philippines are supposed to create significant opportunities for the biofuel industry. In terms of the overall long-term impact of the potential of biofuels, the growth of the bioethanol and biodiesel markets is primarily based on the availability of agricultural land for non-food production. The Central and South American markets have been driven by increased government initiatives and the growing emphasis on energy security and independence. Also, the heavy dependence on fossil fuels is forcing different governments in the region to seek alternatives. Additionally, biofuels offer a great solution to the fossil fuel depletion crisis in countries like Brazil, Venezuela, and others. India and Brazil are expected to experience an increase in the production of liquid biofuels, with the two countries having the highest production levels in their region. This factor is expected to further accelerate the market, which has not yet reached the volume of the sustainable development scenario for 2030. In terms of bioethanol production, Brazil has recorded the highest production levels in Central and South America. Brazil has also announced its intention to increase and require the use of biodiesel from 10% to 15%.

Market Key Players:

The key players operating in the global Liquid Biofuels Market are 

  1. Archer Daniels Midland Company (US)
  2. Aceites Manuelita S.A. (Colombia)
  3. INEOS Group AG (UK)
  4. Neste Corporation (Finland)
  5. Renewable Energy Group Inc. (US)
  6. BlueFire Renewables (US)
  7. Cosan (Brazil)
  8. iowanze S.A. (Belgium)
  9. GLENCORE Magdeburg GmbH (Germany)
  10. Cargill (US)

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