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Lignin Bio-oil Market size is poised to cross USD 7 billion by the end of 2036, witnessing around 5% CAGR during the forecast period, i.e., 2024– 2036. In the year 2023, the industry size of lignin bio-oil was close to USD 1 billion. The growth of the market is set to expand on account of growing pollution from fossil fuel. Global CO2 emissions from energy increased by about 0.8%, or approximately 320 million tons, in 2022, hitting an all-time high of over 35 billion tons. Hence, there has growing urge to replace fossil fuel with lignin bio-oil, further boosting market growth.
Due to its aromaticity and renewability, lignin is a possible replacement for conventional fossil resources in the production of biofuels. Additionally, the government is also encouraging the use of lignin bio-oil in order to achieve the target of zero emission. Therefore, this could also encourage market expansion.
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~5% |
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Base Year Market Size (2023) |
~ USD 1 Billion |
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Forecast Year Market Size (2036) |
~ USD 7 Billion |
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Regional Scope |
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Challenges
End-Use (Chemical, Petrochemical, Automotive, Energy)
The automotive segment in the lignin bio-oil market is anticipated to grow at a share of about 50% during the coming years. This is could be owing to growing pollution caused by automotive. Over 6 billion metric tons of carbon dioxide (GtCO2) were created by the worldwide transport industry in 2021, making it one of the greatest polluters. Passenger cars accounted for about 38 percent of the emissions during that year. Hence, the utilization of lignin bio-oil is growing in automotive.
Process (Pyrolysis, Liquefaction)
The pyrolysis segment is set to rise at a share of approximately 70% over the forecast period. In a lack of oxygen, pyrolysis is a quick and easy thermochemical process for converting solid biomass into bio-oil. In fast pyrolysis, the substances in the reactor are heated to the desired temperature at a rapid pace, and lignin is quickly broken down into volatiles that are rapidly condensed into liquid. Fast pyrolysis's adaptability and simplicity of utilization render lignin conversion more efficient and practical. As a result, biomass pyrolysis is an effective way to surge the market demand.
Our in-depth analysis of the global market includes the following segments:
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Process |
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End-Use |
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APAC Market Forecast
The Asia Pacific lignin bio-oil market is set to capture share of about 35% during the forecast period. The growth of the market in this region could be primarily attributed to growing agriculture waste which could be further utilized in extracting lignin. About 499 million of agriculture waste is produced in India every year. Hence, this could also encourage sustainability in handling agriculture waste along with boosting market share in this region.
European Market Analysis
The Europe market for lignin bio-oil is also poised to grow over the projected period. This could be on account of rising investment in the manufacturing of lignin bio-oil. Also, since, the material from which the lignin is formed is easily available in nature the cost of the final product is also reduced. This has influenced the Europe market to adopt lignin bio-oil.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: The major factors driving the growth of the market are growing production of paper & pulp, rising use of lignin bio-oil in chemical industry, and surge in application of lignin bio-oil in aviation.
Ans: The market size of lignin bio-oil is anticipated to attain a CAGR of 5% over the forecast period, i.e., 2024 – 2036.
Ans: The major players in the market are UPM-Kymmene Corporation, Borregaard ASA, Domtar Corporation, Stora Enso and others.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
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