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 emerging as a central pillar in the transition toward low carbon energy systems, playing a pivotal role in decarbonizing transportation and reducing dependence on fossil fuels. Their applications span road transport, aviation, maritime, and industrial energy, positioning them at the forefront of both energy diversification and rural economic development. The rise of next generation biofuels including cellulosic ethanol and biodiesel from non food biomass is significantly advancing sustainability while lowering greenhouse gas emissions.

The global biofuel market is gaining significant traction, with its value expected to reach USD 335.6 billion by 2030. This growth is driven by escalating global efforts to reduce emissions, volatile crude oil prices, and increasing regulatory momentum behind renewable energy. Government incentives, heightened environmental awareness, and expanding investments in biorefinery infrastructure are further accelerating market growth. Valued at USD 112.4 billion in 2024, the market is set to expand at a CAGR of 10.2% over the forecast period.

Market Dynamics

The biofuel market is advancing rapidly, shaped by broader energy transformation trends and growing environmental imperatives. A combination of rising demand for cleaner energy, stronger climate regulations, and volatile oil markets is prompting governments and private sector players to scale up investment in alternatives such as bioethanol, biodiesel, and sustainable aviation fuel (SAF).

Technological innovation is also reshaping the sector. Second  and third generation biofuels derived from algae, agricultural residues, and waste oils are becoming increasingly viable at commercial scale, unlocking more sustainable production pathways. These advances are enabling broader adoption of biofuels across transport, aviation, and industrial energy segments.

Strategic growth is unfolding across the value chain. Investment in advanced biorefineries, expansion of national blending mandates, and deeper collaboration between energy firms and agricultural producers are all fueling momentum. The commercialization of cellulosic and waste derived fuels is helping players meet stricter emissions targets while tapping into new revenue streams. At the same time, the development of drop in biofuels fully compatible with existing engines and infrastructure is reducing friction in adoption, particularly in hard to decarbonize sectors.

Digital transformation is also accelerating efficiency. Technologies such as AI and IoT are improving operational performance in biofuel production. Meanwhile, demand for SAF continues to rise as the aviation industry faces pressure to decarbonize. Circular economy practices, especially waste to fuel strategies, are gaining ground. Regulatory frameworks that incentivize carbon credits and support net zero targets are further propelling market development.

Notable players are advancing large scale initiatives. TotalEnergies is scaling SAF output at its Antwerp facility through co-processing, while Neste Corporation is pioneering winter oilseed crop development through strategic partnerships. Cross sector collaboration spanning governments, research institutions, and private enterprises is accelerating breakthroughs in enzyme technology, fermentation processes, and feedstock logistics. Together, these dynamics are cementing biofuels’ role as a key instrument in achieving global climate goals.

Segment Highlights and Performance Overview

By Biofuel Type

Bioethanol holds the leading share of the global biofuel market, accounting for approximately 60% to 68.9% of total consumption. Its widespread use as a gasoline additive improving octane ratings and reducing emissions drives its dominance in the market.

By Feedstock

Vegetable oils are the primary feedstock category, representing around 29% to 30% of global biofuel production. Oils such as soybean, palm, and rapeseed are favored in biodiesel production due to their high energy content and broad commercial availability.

By End User

The automotive sector is the largest consumer of biofuels globally, contributing roughly 71% to 80% of total demand. Both bioethanol and biodiesel are extensively utilized in the transportation industry to lower emissions and reduce reliance on traditional fossil fuels.

Geographical Analysis

The biofuel market spans North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa.

North America leads the global market, capturing approximately 33% to 40% of total value. The region benefits from a well established production infrastructure, particularly in the U.S., which is the world’s top producer of ethanol and biodiesel. Favorable regulatory frameworks such as the Renewable Fuel Standard (RFS), along with ample domestic feedstock supplies mainly corn and soybean support large scale, cost efficient production. The continued adoption of fuel blends like E10 and E85 sustains consistent demand in the transportation sector.

Asia Pacific is expected to post the highest compound annual growth rate, projected at approximately 12% through 2030. This growth is fueled by rising energy needs, tightening environmental regulations, and aggressive renewable fuel policies in key countries including China, India, Indonesia, and Thailand. The region is also drawing significant investment in second generation biofuels, driven by innovations in feedstock and ambitious blending mandates. These trends are positioning Asia Pacific as the fastest growing market in the global biofuel sector.

Competition Landscape

The global biofuel industry features a competitive mix of major energy corporations, agricultural conglomerates, and specialized biofuel producers. Companies are differentiating themselves through continuous innovation, feedstock diversification, and strategic partnerships aimed at enhancing technological capabilities and scaling market access.

Leading players covered 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.

Recent Developments

• In June 2025, TotalEnergies announced plans to ramp up sustainable aviation fuel (SAF) production to over 500,000 tons annually by 2028. This includes expanding SAF co-processing capacity at its Antwerp facility and converting select biorefineries to zero crude operations. The initiative underscores Europe’s leadership in low carbon aviation fuel and aligns with its broader net zero ambitions.
• In March 2025, Eni unveiled its Strategic Plan to increase Enilive’s biofuel capacity to over 5 million tons per year, including 1 million tons of SAF by 2026. The plan also targets a substantial rise in EBITDA by 2030, signaling a strong commitment to industrial scale SAF production and reinforcing investor confidence in the sector’s long term growth potential.

Segmentation included in the report:

By Biofuel Type:

• Biodiesel 
• Bioethanol
• Others

By Feedstock:

• Corn
• Sugarcane
• Palm Oil & Jatropha
• Coarse Grains & Vegetable Oils
• Others

By End User:

• Automotive 
• Aviation
• Energy & Industrial Power 
• Others

Companies:

• POET LLC
• TotalEnergies
• Neste Corporation
• Abengoa Bioenergy
• Cosan S.A. 
• Petrobras Biocombustível
• Verbio Vereinigte BioEnergie AG
• ENI 
• ADM
• Bunge Limited
• Cargill
• Flint Hills Resources