The global Liquid Biofuels Market size stood at USD 116.00 billion in 2019 and is projected to reach USD 219.97 billion by 2027, exhibiting a CAGR of 8.4% during the forecast period (2020-2027).
Liquid Biofuels are transportation fuels derived from agriculture, forestry, and other organic feedstocks. Ethanol and biodiesel are the most common biofuels used in the transportation sector. Depleting fuel reserves have stimulated the oil and gas companies to look for more effective and eco-friendly alternatives to cater to the growing demand for propulsion fuel. This is the major factor that is expected to propel the Liquid Biofuels market growth from 2019 to 2027.
Prices of crude oil are affected by events that can potentially disrupt the supply of oil and gas. These include geopolitical and weather-related issues. Geopolitical tensions are a major disruptive factor that has created uncertainty about the supply or demand for oil and gas. This can lead to higher volatility in the prices of oil and gas. The Middle East & North Africa account for a significant share of oil and gas reserves. It is a highly unstable region due to political and cultural issues. Geopolitical risk and sanctions, U.S. crude inventory draw, speculative positioning by oil producers, and slowing demand growth are some of the factors that have influenced oil prices heavily.
“Biofuel Promotion and Renewable Energy Targets to Augment the Market Growth”
The Renewable Energy Directive (RED) II set by the EU Council and the European Parliament mandates that 6.8% of transportation fuels must be derived from renewable sources such as biofuels and renewable electricity generation. This will aid the EU’s efforts towards achieving the goal of 20% of the energy mix by 2020. There is a growing need for energy security in developing countries such as India and China. Thus, any disturbance in the supply chain of petroleum or an increase in petrol prices can have a negative impact on the growth of their economy. Indigenously produced biofuels are the best solution and they are being increasingly considered as one of the most efficient options to partially substitute petroleum and reduce dependence on crude oil imports.
“Substitution of Conventional Fuels with Biofuels to Propel Market Growth”
The shortage of conventional fuels such as oil & natural gas and environmental degradation caused by them are major global problems. Production and use of renewable energy resources are likely to help overcome these problems. Biofuels are majorly used as substitutes of petroleum-based fuels for transport, and they are considered as a part of important strategies to improve fuel security, mitigate climate change, and support infrastructure development.
View Recent Press Release For More Information:- https://www.marketwatch.com/press-release/liquid-biofuels-market-size-share-and-industry-analysis-2020-by-top-companies-portfolio-future-outlook-latest-trends-revenue-growth-analysis-global-regional-forecast-till-2027-2020-07-26
“Falling Ethanol Prices amid COVID-19 Pandemic to Retard Market Growth”
The outbreak of the COVID-19 contagion has threatened to cause long-term damage to many industries. One of them is the transport industry, which is experiencing a sharp decline in demand. The trickle-down effect is being witnessed in an even steeper fall in biofuel prices, especially ethanol prices. According to a study conducted by Purdue University, the average monthly price of ethanol fell from $1.32/gallon in December 2019 to $0.82/gallon in March 2020 due to a rapid decline in demand for transport services. Reduced profit margins of ethanol producers have slowed down the production of ethanol, which is expected to further cripple the Liquid Biofuels market growth during 2020.
In Canada, the national government is attempting to ease the implementation of low-carbon fuels as the country’s oil sector has taken a severe blow due to the pandemic. Growing turmoil in the hydrocarbon industry as a result of the coronavirus will, therefore, stem the uptake of Liquid Biofuels in the current year.
To get the short-term and long-term impact of COVID-19 on this Market, visit: https://www.fortunebusinessinsights.com/enquiry/covid19-impact/liquid-biofuels-market-103294
“Increasing Production of Biofuels in the US to Accelerate Market Growth in North America”
With North America accounting for 45% of global biofuel production, the region is well-positioned to dominate the Liquid Biofuels market share in the foreseeable future. The US is largest producer of ethanol worldwide, having produced 15.8 billion gallons of ethanol in 2019 alone. In 2019, the region’s market size stood at USD 42.96 billion.
Latin America is expected to emerge as the second most dominant region in the market, supported by surging ethanol production in Brazil. Besides this, Argentina is also aggressively expanding its renewable energy sector, which bodes well for this market. Europe being the largest producer and consumer of biodiesel in the world is expected to offer several lucrative opportunities for players in this market.
“Ethanol Segment to Hold Dominant Market Share”
The market is bifurcated into ethanol and biodiesel. The ethanol segment is projected to lead the Liquid Biofuels market share. Ethanol has been identified as a clean fuel that is mixed with petrol to run automobiles without the need for modifying the engine design. The U.S. and Brazil are the significant ethanol producers across the globe. Together, these countries accounted for 84% share of the global ethanol production in 2018.
Biodiesel can be used as an additive to reduce vehicle emissions or in its pure form, as an alternative renewable fuel for diesel engines. Europe is the largest producer and consumer of biodiesel in the world. Additionally, more than 125 biodiesel plants are operating in the U.S. with the capacity to produce 3 billion gallons per year. The biodiesel industry in the U.S. produced around 2.6 billion gallons of biodiesel in 2018.
“Production Capacity Elevation Measures to be Implemented by Market Players”
Competition in the Liquid Biofuels market is characterized by the variety of strategies implemented by the players to consolidate their position in this market. Prominent among these are the measures adopted by these companies to enhance their production capabilities to meet the rising demand for biofuels around the world.
List of Key Players Profiled in this Market Report:
- Butamax Advanced Biofuels, LLC (U.S.)
- Gevo, Inc. (U.S.)
- Eniven Group (Slovakia)
- Emami Agrotech Limited (India)
- Fulcrum BioEnergy, Inc. (U.S.)
- Renewable Energy Group, Inc. (U.S.)
- Enerkem (Canada)
- ADM (U.S.)
- Pacific Ethanol, Inc. (U.S.)
- BIO OILS ENERGY (Spain)
- Bangchak Corporation Public Company Limited (Thailand)
- Algenol (U.S.)
- CropEnergies AG (Germany)
- Renewable Biofuels Inc. (U.S.)
- POET (U.S.)
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