Advanced Biofuels Market Trends

Growth Drivers

• Alternative fuel source with reduced carbon emission - Biofuels act as an alternative fuel to fossil fuels in the automotive sector. They reduce greenhouse gas emissions give energy security and support regional development. They are also known as second-generation biofuels and a significant step towards sustainable development, which is leading to the advanced biofuels market. The raw material used in fuel production is derived from non-edible biomass feedstocks. As per the recent report, the annual consumption of biodiesel in 2021 across the globe was around 13,776 million gallons whereas the total amount of biodiesel produced was 13,966 million gallons in the same year. Furthermore, the demand for biofuels is set to expand with an approximate value of 38 billion liters over 2023-2028 with around a 30% increase from the last five-year period.
• Favorable government regulations for increasing biofuel production - The government has introduced various policies which are majorly focusing on sustainable development, by increasing the use of sustainable power sources, which can assist in the market widening. People shifted their focus to renewable energy sources by using environment-friendly alternatives for fuel production and electricity generation. Air quality monitoring system have been installed in different places of urban cities by the government as the rate of carbon emission is very high in such places.

Challenges

• Lack of knowledge about biofuels - People are unaware of the benefits of utilizing second-generation biofuels. Production of advanced biofuels and the availability of feedstock can meet the growing demand for energy across the world. Moreover, the rate of production and equipment is quite expensive which can hinder the market growth of biofuels.
• People face difficulties with technological maturity and scalability while biofuel conversion technologies are still in the early phase of research.