Advanced Biofuels Market Size & Share, by Fuel (Biodiesel, Bio Butanol, Biogas, Cellulosic Ethanol, Biohydrogen); Feedstock (Lignocellulose, Energy Crops, Alage, Municipal Solid Waste); Processing Technology (Biochemical, Thermochemical); Application (Electricity, Heating, Cooking) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6008
  • Published Date: Apr 12, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Advanced Biofuels Market size is anticipated to reach USD 700 Billion by the end of 2036, growing at a CAGR of 16% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of advanced biofuels was USD 50 Billion. The rapid increase in energy utilization across the world is fueling the market growth over the projected timeframe. According to a recent report, global energy consumption growth was comparatively reduced in 2022 (+2.1%) but it remained higher than its average growth rate from 2010 to 2019 (+1.4%/year).

Biofuels are mainly produced from biological sources which include vegetable oil, and crop residues such as wheat, barley, and whey. The raw material used for production is easily accessible in local areas at affordable rates. Beside this, animal fat acts as raw material for biodiesel production as the cost is comparatively lower than vegetable oils. Easy and economical availability of raw materials for biofuel production is driving the market growth.

Advanced Biofuels Market size
Get more information on this report: Request Free Sample PDF

Advanced Biofuels Sector: Growth Drivers and Challenges

Growth Drivers

  • Alternative fuel source with reduced carbon emission - Biofuels act as an alternative fuel to fossil fuels in the automotive sector. They reduce greenhouse gas emissions give energy security and support regional development. They are also known as second-generation biofuels and a significant step towards sustainable development, which is leading to the advanced biofuels market. The raw material used in fuel production is derived from non-edible biomass feedstocks. As per the recent report, the annual consumption of biodiesel in 2021 across the globe was around 13,776 million gallons whereas the total amount of biodiesel produced was 13,966 million gallons in the same year. Furthermore, the demand for biofuels is set to expand with an approximate value of 38 billion liters over 2023-2028 with around a 30% increase from the last five-year period.
  • Favorable government regulations for increasing biofuel production - The government has introduced various policies which are majorly focusing on sustainable development, by increasing the use of sustainable power sources, which can assist in the market widening. People shifted their focus to renewable energy sources by using environment-friendly alternatives for fuel production and electricity generation. Air quality monitoring system have been installed in different places of urban cities by the government as the rate of carbon emission is very high in such places.


  • Lack of knowledge about biofuels - People are unaware of the benefits of utilizing second-generation biofuels. Production of advanced biofuels and the availability of feedstock can meet the growing demand for energy across the world. Moreover, the rate of production and equipment is quite expensive which can hinder the market growth of biofuels.
  • People face difficulties with technological maturity and scalability while biofuel conversion technologies are still in the early phase of research.

Advanced Biofuels Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2023)

USD 50 Billion

Forecast Year Market Size (2036)

USD 700 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
Get more information on this report: Request Free Sample PDF

Advanced Biofuels Segmentation

Fuel (Biodiesel, Bio Butanol, Biogas, Biohydrogen, Cellulosic Ethanol)

The biodiesel segment in the advanced biofuels market is estimated to gain the largest share of about 28% in the year 2036. The segment growth can be attributed to the growing demand for clean and renewable alternatives to petroleum diesel. Using biodiesel as fuel in vehicles can result in improved environmental conditions and public health. In addition, it also offers safety benefits and contributes to a resilient transportation system. According to a recent report, Biodiesel and mixtures were the 129th most traded product in 2022 across the world, with a total trade of USD 36.6 billion. In the years 2021 and 2022, the exports of Biodiesel and mixtures grew by around 42.9%, from USD 25.6 billion to USD 36.6 billion. Biodiesel and mixtures trade represents 0.15% of total world trade.

Feedstock (Lignocellulose, Energy Crops, Algae, Municipal Solid Waste)

The energy crops segment in the advanced biofuels market is predicted to gain a significant share of about 34% in the year 2036. The segment growth can be attributed to the availability of crop residue having the potential to produce energy. Energy crops are likely to grow as dependable and sustainable feedstock which is available easily in local areas and a source for the production of advanced biofuels. Ongoing improvements in agricultural yield and sustainable farming techniques are the reason behind the growth of the advanced biofuel market.

Our in-depth analysis of the global market includes the following segments:




  • Biodiesel
  • Biobutanol
  • Biogas
  • Cellulosic Ethanol
  • Biohydrogen




  • Lignocellulose
  • Energy Crops
  • Alage
  • Municipal Solid Waste


     Processing Technology

  • Biochemical
  • Thermochemical



  • Electricity
  • Cooking
  • Heating

Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.

Customize this Report

Advanced Biofuels Industry - Regional Synopsis

North American Market Forecast

The advanced biofuels market in North America is predicted to hold the largest with a share of about 34% by the end of 2036. The market growth in the region is also expected on account of supportive government regulation to increase biofuel production and the growing demand for cleaner-burning transportation fuels, mainly in the United States.

Additionally, owing to the presence of big companies with innovative ideas and the latest technology for the production of clean and green fuel, it is projected to have a significant impact on the market size. As per a recent report, the United States was the leading producer of biofuel in 2022 with a total production of around 1,627 petajoules. Biofuel produced in the United States accounts for nearly 38% of global biofuel production in 2022. The country has produced the largest amount of biodiesel with annual production of 1.64 billion gallons. Global biofuel production has gradually increased from 180 thousand barrels of oil equivalent per day in 2000 to 1.9 million barrels of oil equivalent per day in 2022. Moreover, the largest consumer of biofuels in the U.S. is the national army, adding to the market revenue.

APAC Market Analysis

The Asia Pacific market is estimated to be the second largest, registering a share of about 25% by the end of 2036. The advanced biofuels market expansion can be attributed majorly to the growing awareness of the benefits of using advanced biofuels in emerging economies. As per the recent report, Indonesia was ranked third in biofuel production across the world in 2022 with a total production of 390 petajoules. Apart from this, Indonesia is the largest producer of biodiesel and renewable diesel in the world. In 2022, the country has reported production of around 13.65 billion liters of biofuel. In addition, factories are producing cellulosic ethanol by using agricultural waste as raw material for biofuel production in the region. Businesses have started investing in the latest technological equipment to match the growing market demand for converting trash into fuel and producing biofuels by using algae as feedstock.

Research Nester
Advanced Biofuels Market
Get more information on this report: Request Free Sample PDF

Companies Dominating the Advanced Biofuels Landscape

    • Renewable Energy Group
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Gevo Inc.
    • BP p.l.c
    • Solix Biofuels
    • Neste
    • Sinopec
    • Imperium Renewables, Inc.
    • Honeywell International Inc.
    • Clariant AG
    • Bangchak Corporation Public Company Limited

In the News

  • Gevo, Inc. has finalized and executed a notice of grant and agreement award with the U.S. Department of Agriculture (USDA). They have made a partnership for a climate-smart commodities grant of up to USD 30 million for Gevo’s climate-smart farm-to-flight program. The focus of this program is to track and quantify the impact of carbon-intensity (CI) of climate-smart practices and also create market incentives for low-CI corn to help speed up of production of sustainable aviation fuel (SAF) and low-CI ethanol.
  • Neste has started the sustainable aviation fuel (SAF) supply to Emirates Airlines at Amsterdam Airport Schiphol. This will expand the partnership between the two companies as was announced in October last year. About 6,000 tons (2 million gallons) of SAF will be supplied into the fueling system at Amsterdam Airport Schiphol in the year 2024.

Author Credits:  Payel Roy, Dhruv Bhatia

  • Report ID: 6008
  • Published Date: Apr 12, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rapid increase in energy utilization across the world and easy & economical availability of raw materials for biofuel production are the major factors driving the growth of the advanced biofuels market.

The market size of advanced biofuels is anticipated to attain a CAGR of 16% over the forecast period, i.e., 2024-2036.

The major players in the market are Renewable Energy Group, Gevo Inc., BP p.l.c, Solix Biofuels, Neste, Sinopec, Imperium Renewables, Inc., Honeywell International Inc., Clariant AG, Bangchak Corporation Public Company Limited, and others.

The Biodiesel segment is set to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Advanced Biofuels Market Report Scope

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

 Request Free Sample Copy

Have questions before ordering this report?

Inquiry Before Buying