Biorefinery Market size is estimated to reach ~USD 210 Billion by the end of 2035 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market 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.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~8% |
Base Year Market Size (2022) |
~ USD 142 Billion |
Forecast Year Market Size (2035) |
~ USD 210 Billion |
Regional Scope |
|
Growth Drivers
Challenges
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.
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 biorefinery industry includes the following segments:
By Type |
|
By Technology |
|
By Feedstock |
|
By Product |
|
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
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.
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.
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
Ans: Increasing demand for electricity and cleaner fuels, and rising need to reduce carbon emissions are the major factors driving the market growth.
Ans: The market size of biorefinery is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.
Ans: The high cost of infrastructure, tough competition from fossil fuels, and feedstock availability affected by climate and land are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Abengoa S.A., Borregaard AS, Cargill, Incorporated, Chempolis Ltd., Clariant, Green Plains Inc., Red River Biorefinery, SGP Bioenergy Holdings, LLC, Veolia Environment SA, and AFYREN SAS
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, product, technology, feedstock, and by region.
Ans: The energy driven segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?