Biofuels Market Size To Reach Around USD 257.61 Bn By 2034

The global biofuels market surpassed USD 132.13 billion in 2024 and is anticipated to reach USD 257.61 billion by 2034, expanding at a CAGR of 6.9% over the forecast period. Growing demand for environmentally-friendly fuels in road transportation, rising awareness about renewable energy, and increasing focus on reducing greenhouse gas emissions are the key drivers for market growth.

Table of Contents

Biofuels Market Key Takeaways

Market Size (2024): USD 132.13 Billion
Projected Market Size (2034): USD 257.61 Billion
CAGR (2025-2034): 6.9%
Largest Market: North America
North America Market Share (2024): 40.49%

Read Also: Biosensors Market

Global Market Overview by Region

North America

North America dominates the biofuels market due to

Well-established government regulations and strong climate policies
Renewable Fuel Standard (RFS) and state low-carbon fuel rules
Advanced biofuel production capabilities, including sustainable aviation fuel (SAF), renewable diesel, and cellulosic ethanol
High investment in research and commercial-scale production

Asia-Pacific

The Asia-Pacific region is expected to grow the fastest because of

High energy demand and air pollution challenges
Government initiatives in countries like China, India, and South Korea
Abundant agricultural residues and biomass feedstocks
Investment in biofuel production facilities, logistics, and transport infrastructure

China has emerged as the leading biofuel producer in Asia-Pacific region, focusing on sustainable aviation fuel and renewable diesel production for domestic use and exports.

Emerging Applications of Biofuels

Jet Fuel: Biofuels are increasingly being used as affordable and reliable jet fuels.
Technological Advancements: Reduced production costs have made biofuels more competitive with fossil fuels.
New Feedstock Introduction: Supports expansion and scalability.
Greenhouse Gas Reduction: Developing countries focus on biofuel adoption to reduce emissions.

Key Growth Factors

Rising demand for environmentally-friendly fuels in road transport
Availability of bioethanol blends and extended use
Focus on lowering greenhouse gas emissions
Increasing crude oil prices
Government support for research and favorable regulations
Rising awareness about renewable energy

Market Dynamics

Drivers

Government Support: Policies in India (E20, 5% biodiesel blending), U.S. Renewable Fuel Standard, Brazil’s RenovaBio scheme, and other emerging economies fuel biofuel growth.

Restraints

Decreased Investments: Reduced funding in China and some capacity shutdowns in the U.S. and Brazil have limited near-term expansion.

Opportunities

Growth in generic drugs market parallels biofuel market in benefiting from government incentives and technology adoption.
Digitalization and automation offer new pathways for expansion.

Leading Companies in the Biofuels Market

BTG International Ltd
Renewable Energy Group, Inc.
Abengoa Bioenergy S.A.
Cargill
DowDuPont, Inc.
Wilmar International Ltd
POET, LLC
Archer Daniels Midland Company
VERBIO Vereinigte BioEnergie AG
My Eco Energy
China Clean Energy Inc.

For inquiries regarding discounts, bulk purchases, or customization requests, please contact us at sales@precedenceresearch.com

About
Latest Posts

ritika jankar