The global Next Generation Biofuels Market size was estimated at USD 7.26 billion in 2023 and is projected to reach USD 49.7 billion in 2030 at a CAGR of 27.2% during the forecast period 2023-2030.
Biofuels, as a product of modern biological processes like anaerobic digestion, represent an alternative to fossil fuels that are produced by geological means. The second generation of biofuels is derived from non-food crops including biomass crops, organic waste, wood, and food crop waste. Meanwhile, the third generation of biofuels involves improving biomass production and utilizing engineered energy crops, such as algae, as a feedstock. The projected diversity of algae-based biofuels is expected to encompass various fuel types, including but not limited to petrol, diesel, and jet fuel.
The market's growth is expected to be propelled by the demand for cleaner fuel and the increasing governmental regulations for desulphurization of petroleum products. Biofuels, which are derived from plants, animal waste, or algae material, are categorized as renewable fuels due to the replenishable feedstock material. The global market is expected to be driven by a limited availability of fossil fuel-based resources and a growing awareness of curbing carbon emissions.
The recent outbreak of coronavirus has adversely affected the next generation biofuels market, owing to the pandemic's significant impact on the wind power industry's supply chain. The worldwide coronavirus pandemic outbreak has expedited the transformation of the next generation biofuels market. As previously noted, the advanced features and technical progressions of the luxury car market exert an influence on the operation of the next-generation biofuels technology market. The current situation is internationally challenging due to the implementation of strict limitations and changes to business working hours and circumstances. Consequently, the global market functions are unable to generate in accordance with the expected demand owing to operational constraints. This, in turn, leads to operating problems and losses, compounded by the decline in luxury car sales in key regions worldwide.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The rise in necessity to produce sustainable and clean energy, with negligible environmental impact, is a major driving force behind the next generation biofuel market. This market is facilitated by second generation biofuel production technology, which allows for the manufacture of commercially acceptable fuel using inedible biomass. Non-food crop residues and agricultural residues, energy crops, wastes procured from forestry industry, and algae are key feedstocks used for the development of next generation biofuels. The market growth of next generation biofuels is primarily affected by the acquisition of economical feedstock. However, feedstock cost contributes to 80-90% of the final fuel cost, rendering it challenging to increase market growth. Additionally, countries with little or no petroleum reserves are experiencing growth in the production of next generation biofuels. It serves as a means for these countries to reduce spending on biofuel imports. These factors have led to the expansion of the market and increased demand for Next Generation Biofuels solutions.
North America to Dominate the Market
