Global Biofuel Market
The Global Healthcare AI Market is analyzed in this report across biofuel type, feedstock, end-user, and region, highlighting major trends and growth forecasts for each segment.
Introduction:
Biofuels are becoming a foundational element in the global shift toward cleaner, low carbon energy systems. They are proving critical in the decarbonization of transportation and in reducing reliance on fossil fuels. With applications across road transport, aviation, maritime sectors, and even industrial energy, biofuels are at the forefront of energy diversification and rural economic revitalization. The advancement of next generation biofuels such as cellulosic ethanol and biodiesel derived from non food biomass is significantly enhancing sustainability while lowering greenhouse gas emissions.
The global biofuel market is experiencing strong momentum, with projections placing its value at USD 335.6 billion by 2030. This growth is being driven by a confluence of factors: intensifying global efforts to cut emissions, fluctuating crude oil prices, and escalating regulatory support for renewable energy. Government incentives, heightened environmental consciousness, and growing investments in bio refinery infrastructure are further accelerating market expansion. Valued at approximately USD 112.4 billion in 2024, the market is expected to grow at a CAGR of 10.2% over the forecast period.
Market Dynamics:
The global biofuel market is expanding at a fast pace, shaped by a confluence of forces transforming the broader energy landscape. Chief among the growth drivers are rising demand for cleaner energy solutions, increasing urgency to cut greenhouse gas emissions, and firm regulatory backing for renewable energy across multiple countries. Volatile crude oil prices and the growing imperative for energy security are further compelling both public and private sectors to pivot toward alternative fuels such as biodiesel, bioethanol, and sustainable aviation fuel (SAF).
Additionally, technological advances in feedstock utilizing algae, agricultural residues, and waste oils are making second and third generation biofuels increasingly viable for commercial scale deployment. These innovations are unlocking more sustainable production pathways and supporting the rapid adoption of biofuels across transportation, aviation, and industrial heating sectors.
The market also offers strong growth opportunities throughout the value chain. Strategic investments in advanced biofuel refineries, expansion of government blending mandates, and strengthened collaboration between energy providers and agricultural producers are accelerating the sector’s evolution. The commercialization of cellulosic and waste derived biofuels is enabling industry players to meet stricter carbon reduction targets while creating new revenue streams. Meanwhile, the development of drop in biofuels compatible with existing engines and fuel infrastructure is streamlining their integration into hard to decarbonize sectors.
Furthermore, the adoption of digital tools including AI and IoT is optimizing biofuel production efficiency. Demand for sustainable aviation fuels continues to climb as the aviation sector confronts its decarbonization challenge. Circular economy practices, particularly in waste to fuel initiatives, are gaining traction. Regulatory frameworks promoting carbon credits and net zero goals are also enhancing the market’s momentum. TotalEnergies is ramping up SAF production via coprocessing at its Antwerp facility, while Neste Corporation is developing scalable winter oilseed crops in partnership with agricultural and industrial stakeholders. Cross sector collaborations spanning governments, research institutions, and private firms are accelerating breakthroughs in enzyme engineering, fermentation, and feedstock logistics, reinforcing biofuels’ role as a cornerstone in achieving global climate objectives.
Segment Highlights and Performance Overview:
| Category | Leading segment | Description |
| By Biofuel Type | Bioethanol | Bioethanol represents the largest segment within the global biofuel market, comprising roughly 60% to 68.9% of total consumption. Its leading position is largely attributed to its broad adoption as a gasoline additive, where it serves to lower vehicle emissions and improve fuel octane levels. |
| By Feedstock | Vegetable Oils | Vegetable oils form the largest feedstock category in global biofuel production, accounting for approximately 29% to 30% of total output. Oils such as soybean, palm, and rapeseed are primarily utilized in biodiesel manufacturing, favored for their high energy density and broad commercial availability. |
| By End-User | Automotive | The automotive sector accounts for the largest share of biofuel consumption globally, representing approximately 71% to 80% of total demand. Bioethanol and biodiesel are widely deployed in transportation to curb tailpipe emissions and lessen reliance on conventional fossil fuels. |
Geographical Analysis:
The global biofuel market is examined across key regions, including North America, Europe, Asia-Pacific, South & Central America, and the Middle East & Africa.
North America holds the largest share of the global biofuel market, accounting for approximately 33% to 40% of total market value. This leadership is underpinned by a mature production ecosystem, particularly in the United States, which leads globally in both ethanol and biodiesel output. The region benefits from robust policy frameworks such as the Renewable Fuel Standard (RFS), along with abundant domestic feedstock sources like corn and soybean. These factors enable large scale, cost effective biofuel production. Additionally, the widespread adoption of E10 and E85 fuel blends in the transportation sector continues to reinforce steady demand.
Asia-Pacific is projected to record the highest compound annual growth rate estimated at around 12% over the forecast period. This surge is being driven by rising energy demand, intensifying environmental pressures, and strong government backing for renewable fuel initiatives in key markets such as India, China, Indonesia, and Thailand. The region is also attracting increased investment in second generation biofuels, supported by innovation in feedstock technologies and aggressive biofuel blending mandates. These developments are positioning Asia-Pacific as the fastest growing regional market in the global biofuel landscape.
Competition Landscape:
The global biofuel market is characterized by a dynamic and competitive landscape, comprising leading energy firms, agricultural conglomerates, and specialized bio refiners. These players are competing through continuous innovation, diversification of feedstock sources, and strategic alliances aimed at enhancing their technological capabilities and expanding market reach.
Key companies profiled in this report include POET LLC, TotalEnergies, Neste Corporation, Abengoa Bioenergy, Cosan S.A., Petrobras Biocombustível, Verbio Vereinigte BioEnergie AG, ENI, ADM, Bunge Limited, Cargill, and Flint Hills Resources.
Key Developments :
- In June 2025, TotalEnergies announced plans to scale up sustainable aviation fuel (SAF) production to over 500,000 tons per year by 2028. This includes the addition of new SAF coprocessing units at its Antwerp facility and the conversion of selected biorefineries to zero crude operations. The initiative reinforces Europe’s leadership in low carbon aviation fuels, while catalyzing greater investment in biorefinery infrastructure and aligning closely with the region’s net zero aviation targets.
- In March 2025, Eni unveiled its Strategic Plan to expand Enilive’s biofuel capacity to over 5 million tons per annum—including 1 million tons of SAF by 2026—alongside a substantial increase in EBITDA by 2030. This signals a strong shift toward industrial scale SAF production, sending a clear message to both investors and policymakers about the sector’s accelerating momentum.
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