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The advanced biofuel market share is expected to increase by USD 110.50 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 45.35%.
This advanced biofuel market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers advanced biofuel market segmentations by type (cellulosic ethanol, biodiesel, biobutanol, bioDME, and others) and geography (North America, South America, Europe, APAC, and MEA). The advanced biofuel market report also offers information on several market vendors, including Abengoa SA, Bangchak Corp. Public Co. Ltd., DuPont de Nemours Inc., ENERKEM Inc., Goteborg Energi AB, GranBio Investimentos SA, POET-DSM Advanced Biofuels LLC, Renewable Energy Group Inc., Royal Dutch Shell Plc, and UPM-Kymmene Corp. among others.
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Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The favorable government policies is notably driving the advanced biofuel market growth, although factors such as higher cost of production compared to conventional fuels may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the advanced biofuel industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Advanced Biofuel Market Driver
The favorable government policies are one of the key factors driving the growth of the global advanced biofuel market. Growing environmental and energy security concerns have led governments to intervene and impose legislative and regulatory actions. This has led to an increase in the demand for renewable fuels such as cellulosic ethanol and biodiesel. The global transportation fuel demand is expected to rise due to decreasing fossil fuel reserves and an increasing number of automobiles. This is likely to drive the demand for advanced biofuels. Moreover, the government offers incentives, grants, special loans, and a tax credit to meet the set targets. For example, the US government provides loan guarantees under the biorefinery assistance program for the construction and renovation of commercial-scale biorefineries that produce advanced biofuels. The maximum loan guarantee is $250 million, and the maximum grant funding is 50% of the cost of the project. The US government also provides biodiesel tax incentives of $1 tax credit per gallon of biodiesel. Such initiatives and benefits are driving the production and consumption of advanced biofuels worldwide.
Key Advanced Biofuel Market Trend
The need to comply with environmental regulations will fuel the global advanced biofuel market growth. The benefits of advanced biofuels, such as reducing greenhouse gases and energy insecurity, have captured the interest of governments across the world. With advanced biofuels, such as biodiesel, gaining momentum and finding applications in different sectors, the need to comply with environmental regulations has increased. Currently, biodiesel is the only renewable fuel that has passed the strict regulations of EPA for renewable fuel and the Clean Air Act (CAA) for health study. The feedstocks used for the production of advanced biofuels vary from region to region. Since these feedstocks are used for various other purposes, it is getting into competition with the food sector, thus driving up the prices. Economic Co-operation and Development (OECD) organization has also warned regarding high food prices with respect to increased biofuel consumption. Therefore, to balance the use of specific feedstock, regional governments are overseeing the situation by setting environmental regulations on the consumption and quality of the advanced biofuels produced.
Key Advanced Biofuel Market Challenge
The higher cost of production compared to conventional fuels is a major challenge for the global advanced biofuel market growth. The global advanced biofuel market is still in its nascent stage. Not only is the current technology used in the production of advanced biofuels inefficient compared with that of conventional fuels, but also the cost of procuring feedstock is high. The processing of advanced biofuel feedstock is difficult. Though advanced biofuels are produced commercially, it still requires an efficient, sustainable, and economical processing technique. Moreover, the processing and operational cost for advanced biofuels are high in comparison to conventional fuels. Advanced biofuels have always been an expensive substitute for conventional fuels. Electric vehicles are considered a more economical and sustainable alternative to conventional fuels as well as advanced biofuels. It is probably a cheaper way to reduce carbon emissions. Thus, the demand for electric and hybrid vehicles is increasing. This is likely to hinder the growth of the global advanced biofuel market.
This advanced biofuel market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global advanced biofuel market as a part of the global coal and consumable fuels market within the global coal market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the advanced biofuel market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the advanced biofuel market encompasses successful business strategies deployed by the key vendors. The advanced biofuel market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The advanced biofuel market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the advanced biofuel market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global coal and consumable fuels market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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