Biorefinery Market size is projected to surpass USD 210 Billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of biorefinery was USD 142 Billion. The growth of the market can be attributed to the increased conversion of waste into energy. Biorefineries employ waste to produce biofuels, platform chemicals, and other bio-based materials. It can also drastically lessen a major environmental load while also providing electricity. In 2021, 64 power plants in the United States created approximately 13.6 billion kilowatt-hours of electricity by burning around 28 million tons of combustible MSW for electricity generation. Moreover, biomass materials represented approximately 61% of the combustible MSW weight and approximately 45% of the electricity generated.
In addition to these, factors that are believed to fuel the market growth of biorefineries include the rising government initiatives to encourage the use of biorefineries. Governments from all over the world are implementing regulations and policies to boost the development of biorefineries. These policies include incentives and subsidies for the production of renewable energy, as well as mandates for the use of biofuels. On the other hand, the surging popularity of bio-based products is also expected to drive market growth. Several bio-based products, such as plastics, chemicals, and materials are produced from biorefineries. Moreover, the consumers are becoming more conscious of the product they are using and are more inclined to sustainability.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 142 Billion |
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Forecast Year Market Size (2035) |
~ USD 210 Billion |
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Regional Scope |
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Product (Energy Driven, Material Driven)
The global biorefinery industry is segmented and analyzed for demand and supply by product into energy driven, and material driven. Out of the two products produced by biorefinery, the energy driven segment is estimated to gain the largest market share of about 60% in the year 2035. The growth of the segment can be attributed to the rising demand for bio-energy and biofuels and the rising need to reduce carbon emissions. With few alternative low-carbon technological options, biofuels are especially crucial for trucking, shipping, and aircraft. Moreover, according to the International Energy Agency, global biofuel demand increased by 5% per year on average between 2010 and 2019, the Net Zero Emissions by 2050 Scenario necessitates 14% annual growth until 2030. Biofuels are increasingly being created from feedstocks that do not compete with food crops, such as waste and leftovers. In the Net Zero Emissions by 2050 Scenario, biofuels produced from these resources meet 45% of total global biofuel demand by 2030; however, only an estimated 7% of biofuels were produced from wastes and leftovers in 2020.
Feedstock (Starch & Sugar Crops, Energy Crops, Organic & Agricultural Residues, Multi-feedstock)
The global biorefinery market is also segmented and analyzed for demand and supply by feedstock into starch & sugar crops, energy crops, organic & agricultural residues, multi-feedstock, and others. Amongst these five segments, the starch & sugar crops segment is expected to garner a significant share of around 40% in the year 2035. The low cost of starch and sugar crop feedstock and they are readily available as they are present in abundance is likely to drive segment growth. These feedstocks are relatively much cheaper in comparison to other potential feedstock, including woody biomass or algae. Therefore, the adoption of sugar crops has increased as they are a cost-effective choice for biorefinery operations. Moreover, these feedstocks have high carbohydrate content, which can be converted into different valuable products, such as bioplastics, biochemicals, and biofuels.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Technology |
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By Feedstock |
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By Product |
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APAC Market Statistics
The market share of biorefinery in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about 32% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for reducing carbon emission. The Union Cabinet presided over by Prime Minister Shri Narendra Modi, has accepted India's revised Nationally Determined Contribution (NDC), which would be reported to the United Nations Framework Convention on Climate Change (UNFCCC). India has now pledged to lower its GDP's emissions intensity by 45 percent by 2030. Furthermore, it is a step towards India's long-term objective of reaching net-zero emissions by 2070. On the other hand, the growing production of biofuels is also expected to drive market growth in the region. Owing to increased exports, China's biodiesel output is expected to reach 1.7 billion liters in 2021, up more than 54 percent from 2020.
North American Market Forecast
The North American biorefinery market is estimated to be the second largest, registering a share of about 29% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for electricity. Total power end-use consumption in the United States in 2022 was around 3% higher than in 2021. Retail electricity sales to the residential sector were approximately 4% higher in 2022 than in 2021, while retail power sales to the commercial sector were approximately 3% higher in 2022 than in 2021. On the other hand, the rise in the number of biorefineries is also expected to drive market growth in North America. In 2022, the United States had around 199 operational ethanol biorefineries. Furthermore, the Renewable Fuel Standard (RFS) in the United States, requires a certain amount of renewable fuels, such as biodiesel, and ethanol to be added to the transportation fuel supply.
Europe Market Forecast
Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising interest in the circular economy, which aims to reduce waste and maximize the use utilization of resources. Biorefineries are an integral part of the transition to a circular economy, as they can convert waste materials and biomass into valuable products. Moreover, the growing production of renewable energy is also expected to boost the market growth. The European Union’s Renewable Energy Directive mandates the increase of the share of renewable energy in their energy ix to 32% by 2030.
Author Credits: Payel Roy, Dhruv Bhatia
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