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The renewable fuel market size is forecast to increase by USD 66.7 million, at a CAGR of 7.13% between 2023 and 2028. The renewable fuel market is experiencing significant growth, driven by the rising adoption of waste-to-energy technologies and the development of e-fuels. Waste-to-energy technologies convert organic waste into biofuels, reducing the reliance on traditional fossil fuels and addressing environmental concerns. Meanwhile, e-fuels, also known as synthetic fuels, are produced from renewable sources such as water, air, and sunlight, providing a sustainable alternative to conventional fuels. However, the inconsistent availability and quality of feedstocks for renewable fuels pose challenges to market growth. Despite these hurdles, the renewable fuel market is expected to continue expanding due to increasing government support and consumer demand for cleaner energy solutions.
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The market is witnessing significant growth as the world transitions towards net-zero carbon emissions and reduces reliance on non-renewable sources. Renewable fuels, such as biomass-based fuels derived from feedstocks like municipal waste from landfills, play a crucial role in reducing greenhouse gas emissions and mitigating the carbon footprint. These fuels are increasingly being adopted as transport mediums in various sectors, including aviation, cooling & heating, and the power industry. Energy security is another major driver for the renewable fuel market, as countries seek to reduce their dependence on crude oil and gasoline. Large corporations are investing heavily in renewable fuels, with soybean, canola oil, animal fat, and distillers corn being common feedstocks. The renewable fuel market also includes alternative sources like geothermal, wind, and biomass. The transportation sector is a significant consumer of renewable fuels, with the aviation industry also exploring their use. The cooling & heating sector and power industry are also adopting renewable fuels to reduce their carbon footprint and contribute to the energy transition. Capital investment in renewable fuel production is expected to increase, with governments and corporations recognizing the importance of reducing greenhouse gas emissions and achieving energy security.
Rising adoption of Waste-to-Energy Technologies is notably driving market growth. The renewable fuel market encompasses various sources of energy, including Solar, Hydropower, Windpower, Biofuels, and their derivatives. Biofuels consist of Biodiesel, Biogasoline, Ethanol, and other alternatives. Renewable fuels are increasingly being used in power generation and transportation sectors, replacing fossil fuels. Solar and wind energy are gaining popularity in power generation, with onshore and offshore wind energy becoming more cost-effective. Hydropower remains a significant contributor to renewable electricity generation. Biofuels are derived from Biomass, such as Corn, Soybeans, Cassava, Sugar beets, Sugar cane, and Cereal crops. Feedstock costs, including labor and land, significantly impact the production costs of these fuels. Bioethanol and Pyrolysis oil are common biofuels used in the automobile industry.
Further, hydrogen fuels are another emerging alternative for transportation, particularly in the marine, aerospace, locomotive, and heat engines sectors. Renewable fuels are essential in reducing greenhouse gas emissions, especially in the context of the oil market and agricultural subsidies. VOC content and CO2 marine carriers are critical considerations in the adoption of renewable fuels in the marine industry. The renewable fuel market is expected to grow significantly due to the increasing demand for cleaner energy sources and government incentives. Pipeline transport is another area where renewable fuels are gaining traction, offering a viable alternative to traditional fossil fuels. Thus, such factors are driving the growth of the market during the forecast period.
Development of e-fuels is the key trend in the market. The renewable fuel market encompasses various types of fuels derived from renewable sources, including Solar, Hydropower, Windpower, Biofuel, Biodiesel, Biogasoline, Ethanol, and Hydrogen Fuels. Renewable fuels are gaining popularity as alternatives to fossil fuels due to their environmental benefits and decreasing production costs. Biofuels, such as Bioethanol from Corn, Soybeans, Cassava, Sugar beets, Sugar cane, and Cereal crops, are widely used in the automobile production sector for transportation. Onshore and Offshore wind energy are significant contributors to power generation, while Biomass and Pyrolysis oil are utilized for heat engines and fuel cells.
Furthermore, the VOC content and CO2 emissions of these fuels are significantly lower than those of fossil fuels, making them more sustainable options. The production costs of renewable fuels, including labor and land costs, have been decreasing due to advancements in technology and agricultural subsidizations. The oil market's volatility and increasing environmental concerns have further fueled the demand for renewable fuels. The renewable fuel market is expected to continue growing as governments and industries invest in renewable energy sources to reduce their carbon footprint and achieve energy independence. Thus, such trends will shape the growth of the market during the forecast period.
Inconsistent availability and quality of feedstocks for renewable fuel is the major challenge that affects the growth of the market. The renewable fuel market encompasses various sources of energy, including Solar, Hydropower, Windpower, Biofuels, and their derivatives such as Biodiesel, Biogasoline, Ethanol, and Hydrogen Fuels. Renewable fuels are gaining prominence as alternatives to fossil fuels in sectors like Automobile production, Power generation, Transportation, Marine, Aerospace, Locomotive, and Heat Engines. Renewable energy sources like Onshore and Offshore wind energy, Biomass, and Bioethanol derived from Corn, Soybeans, Cassava, Sugar beets, Sugar cane, and Cereal crops are increasingly being used to produce fuel. The cost of production for renewable fuels, particularly Biofuels, depends on factors such as Labor costs, Land costs, and Feedstock availability.
Moreover, the Oil market and Agricultural subsidizations significantly impact the pricing of these fuels. Technological advancements in Fuel Cells, Vehicles, Power Generators, and Pipeline Transport are driving the growth of the renewable fuel market. For instance, Pyrolysis oil and CO2 marine carriers are emerging as promising alternatives in the marine sector. The transition towards renewable fuels is crucial in reducing VOC content and CO2 emissions. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The biofuels segment is estimated to witness significant growth during the forecast period. Biofuels, derived from renewable sources such as Solar, Hydropower, Windpower, Biomass, Bioethanol, Biogasoline, Biodiesel, Pyrolysis oil, and Hydrogen Fuels, offer a sustainable and low-carbon alternative to fossil fuels. These biofuels contribute to reducing greenhouse gas emissions and improving air quality by decreasing the release of harmful pollutants like sulfur oxides (SOx) and particulate matter. Biofuels also provide an opportunity to manage and recycle organic waste through the utilization of agricultural residues and waste materials. Biofuels offer energy security by diversifying energy sources and lessening reliance on finite fossil resources.
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The biofuels segment accounted for USD 64.10 million in 2018. Biofuels play a significant role in various sectors such as Automobile production, Transportation, Marine, Aerospace, Locomotive, Heat Engines, Fuel Cells, and Power Generation through pipeline transport. The production of biofuels, however, comes with challenges such as labor and land costs, which can impact the overall cost competitiveness of these fuels. The Oil market and Agricultural subsidizations also influence the biofuels market dynamics. Despite these challenges, the potential benefits of biofuels in terms of sustainability, emissions reduction, and energy security make them a valuable addition to the energy mix.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Renewable Fuel Market is witnessing significant growth as the world transitions towards net-zero carbon emissions and reduces reliance on non-renewable sources. Renewable fuels, such as biomass-based fuels derived from feedstocks like municipal waste from landfills, play a crucial role in reducing greenhouse gas emissions and mitigating the carbon footprint. These fuels are increasingly being adopted as transport mediums in various sectors, including aviation, cooling & heating, and the power industry.
Further, energy security is another major driver for the renewable fuel market, as countries seek to reduce their dependence on crude oil and gasoline. Large corporations are investing heavily in renewable fuels, with soybean, canola oil, animal fat, and distillers corn being common feedstocks. The renewable fuel market also includes alternative sources like geothermal, wind, and biomass. The transportation sector is a significant consumer of renewable fuels, with the aviation industry also exploring their use. The cooling & heating sector and power industry are also adopting renewable fuels to reduce their carbon footprint and contribute to the energy transition. Capital investment in renewable fuel production is expected to increase, with governments and corporations recognizing the importance of reducing greenhouse gas emissions and achieving energy security.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Renewable fuels, including Solar, Hydropower, Windpower, Biofuel, Biodiesel, Biogasoline, Ethanol, and Hydrogen Fuels, are gaining significant attention in the global energy market. These fuels offer sustainable alternatives to Fossil fuels in various sectors such as Automobile production, Power generation, Transportation, Marine, Aerospace, Locomotive, Heat Engines, and Fuel Cells. Renewable fuels like Bioethanol, Pyrolysis oil, and Biomass are derived from diverse feedstocks such as Corn, Soybeans, Cassava, Sugar beets, Sugar cane, and Cereal crops. The market for renewable fuels is driven by several factors, including the increasing awareness of environmental sustainability and the depletion of fossil fuel resources. The demand for renewable fuels is particularly high in sectors like Transportation and Power generation.
Further, offshore wind energy and Onshore wind energy are two major sources of renewable electricity. The production of renewable fuels involves various processes, including Fuel Cells, VOC content reduction, and CO2 marine carrier technology. The cost of production, however, can be influenced by factors like Labor costs and Land costs. The Oil market and Agricultural subsidizations also play a crucial role in the renewable fuels market. The market for renewable fuels is expected to grow significantly in the coming years, driven by technological advancements and government initiatives to reduce carbon emissions. The use of renewable fuels in vehicles, power generators, and pipeline transport is expected to increase, making them a viable alternative to fossil fuels.
Market Scope |
|
Report Coverage |
Details |
Page number |
217 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.13% |
Market growth 2024-2028 |
USD 66.7 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.29 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Germany, UK, France, and Australia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aemetis Inc., ALTO INGREDIENTS Inc., Archer Daniels Midland Co., BP Plc, Bunge Ltd., Cargill Inc., Chevron Corp., Clariant AG, Cox Energy SAB de CV, Eni SpA, Enviva Inc., Green Plains Inc., INEOS AG, Louis Dreyfus Co. BV, Neste Corp., Novozymes AS, POET LLC, Shell plc, Suncor Energy Inc., TotalEnergies SE, and Valero Energy Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Additional Value/Volume Data
7 Five Forces Analysis
8 Market Segmentation by Type
9 Market Segmentation by End-user
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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