PUBLISHER: The Business Research Company | PRODUCT CODE: 1428002
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428002
Second generation biofuels, also known as advanced biofuels, represent a category of renewable fuels derived from non-food feedstock. These biofuels offer significant advantages over first generation biofuels and are designed to address limitations and issues associated with the latter, such as the use of food crops and potential indirect land-use change.
The primary types of second-generation biofuels include cellulosic ethanol, biodiesel, bio-butanol, bio-dimethyl ether (DME), and others. Cellulosic ethanol is a biofuel produced from cellulose, a complex carbohydrate found in plant cell walls. These biofuels are manufactured through biochemical and thermochemical processes, utilizing various feedstocks such as simple lignocellulose, complex lignocellulose, syngas, algae, and others. Second generation biofuels find applications in transportation, power generation, and other sectors.
The second generation biofuels market research report is one of a series of new reports from The Business Research Company that provides second generation biofuels market statistics, including second generation biofuels industry global market size, regional shares, competitors with a second generation biofuels market share, detailed second generation biofuels market segments, market trends and opportunities, and any further data you may need to thrive in the second generation biofuels industry. This second generation biofuels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The second generation biofuels market size has grown exponentially in recent years. It will grow from $8.28 billion in 2023 to $10.61 billion in 2024 at a compound annual growth rate (CAGR) of 28.2%. The growth observed in the historic period can be attributed to factors such as policy support and regulatory frameworks favoring second generation biofuels, the availability and diversity of feedstock, investment and funding in the sector, oil price volatility impacting the competitiveness of biofuels, and increased public awareness and perception regarding the environmental benefits of advanced biofuels.
The second generation biofuels market size is expected to see exponential growth in the next few years. It will grow to $26.71 billion in 2028 at a compound annual growth rate (CAGR) of 26.0%. The anticipated growth in the forecast period can be attributed to factors such as carbon intensity regulations, the global transition toward cleaner energy sources, stricter emission standards, the emergence of advanced feedstocks, and increased private sector investment in the development of second generation biofuels. Notable trends expected during the forecast period include advancements in enzyme technology, international collaboration and trade agreements in the biofuels sector, ongoing technological advancements, increased collaboration and partnerships, and a focus on techno-economic optimization in the production processes.
The anticipated increase in the use of biofuels for their environmental advantages is poised to drive the growth of the second-generation biofuels market. Biofuels, derived from biological materials such as trees, agricultural waste, crops, or grass, offer a more environmentally friendly alternative to conventional fossil fuels. This substitution has the potential to mitigate the adverse environmental impacts associated with fossil fuel extraction and consumption, including conventional and greenhouse gas (GHG) emissions, finite resource depletion, and dependence on unstable foreign suppliers. Notably, biofuel usage is deemed safe for the environment, a factor contributing to the expansion of the second-generation biofuels market. As indicated in the U.S. Bioenergy Statistics report by the United States Department of Agriculture in April 2023, approximately 15.4 billion gallons of ethanol and 3.1 billion gallons of biodiesel and renewable fuel were produced in the United States in 2022, underscoring the substantial utilization of biofuels and their role in driving the second-generation biofuels market.
The growing demand for clean energy is expected to be a driving force behind the growth of the second-generation biofuels market in the forthcoming years. 'Clean energy' refers to energy sources and technologies considered environmentally benign, with minimal to no adverse effects. Second-generation biofuels play a crucial role in climate change mitigation, enhancing energy security, and promoting an eco-friendlier energy sector by providing a cleaner and sustainable alternative to traditional fossil fuels. According to the International Renewable Energy Agency (IRENA) in March 2023, global renewable energy capacity increased by 10% in 2022, highlighting the growing interest and demand for cleaner energy solutions. This trend contributes to the momentum of the second-generation biofuels market.
Strategic partnerships and collaborations emerge as prominent trends gaining traction in the second-generation biofuels market. Key industry players are actively seeking partnerships to strengthen their market position. For instance, in April 2023, Compania Espanola de Petroleos S.A.U. partnered with Bio-oils Huelva S.L.U. to establish a joint venture aimed at advancing the development of second-generation (2G) biofuels. Additionally, in November 2022, Shell Plc announced an agreement with Razen to purchase 3.25 billion liters of cellulosic ethanol made from sugar cane, showcasing collaboration as a key driver in the market. Such partnerships foster innovation and facilitate the development of new biofuel technologies.
Major companies operating in the second-generation biofuels market are focusing on technological innovations, exemplified by the adoption of sunliquid technology. Clariant's Sunliquid technology, an innovative and environmentally friendly process, transforms agricultural waste into cellulosic ethanol and sugars. The successful production of sunliquid cellulosic ethanol at a new plant in Romania in June 2022 demonstrates the viability of this technology in commercial settings. The cellulosic ethanol produced using sunliquid technology not only serves as a drop-in solution for fuel blending but also finds applications in environmentally friendly aviation fuel and bio-based chemicals, further contributing to the growth of the second-generation biofuels market.
In June 2022, CropEnergies AG, a Germany-based ethanol producer, made a strategic investment in LXP Group GmbH for EUR 2 million, reinforcing CropEnergies' position and aiding LXP in advancing its technology. This strategic collaboration facilitates the faster implementation of LXP's technology and aligns with CropEnergies' broader strategic realignment, underscoring the significance of strategic partnerships in the second-generation biofuels market.
Major companies operating in the second generation biofuels market report are TotalEnergies SE, Reliance Industries Limited, INEOS Group Limited, The Andersons Inc., International Flavors & Fragrances Inc., Darling Ingredients Inc., DuPont Nutrition Biosciences ApS, Green Plains Inc., Flint Hills Resources LLC, Gevo Inc., Abengoa S.A., POET LLC, ICM Inc., Enerkem Inc., Advanced Enzyme Technologies Limited, Fulcrum BioEnergy Inc., LanzaTech Inc., Virent Energy Systems Inc., GranBio LLC, Algenol Biofuels Inc., Novamont S.p.A., Edeniq Inc., Mascoma Corporation, BlueFire Renewables Inc., Fiberight LLC., Clariant AG, Raizen S.A., Copersucar SA, Beta Renewables S.p.A., EcoCeres Inc.
North America was the largest region in the second generation biofuels market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the second generation biofuels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the second generation biofuels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The second generation biofuels market consists of sales of bio-synthetic natural gas, bioethanol, and bio methanol. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Second Generation Biofuels Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on second generation biofuels market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for second generation biofuels ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The second generation biofuels market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.