Renewable Fuels Market: Current Analysis and Forecast 2021-2027

In 2018, production of biofuel witnessed fastest growth in comparison of the last 5 years period between 2013-2018. The growth can be credited to the surge in Brazil's ethanol output. Overall, Asia accounts for half of the growth, as its ambitious biofuel mandates aimed at reinforcing energy security boost demand for agricultural commodities and improve air quality. In addition to biofuels, renewable electricity is expected to provide more than 10% of renewable energy to the transport sector by 2024, majorly driven by China. China is expected to witness highest biofuel production growth globally. The rollout of 10% ethanol blending in a growing number of provinces and increasing investments in production capacity drive a tripling of ethanol production in China by 2024. Owing to the developments on vegetable oil markets, nominal biodiesel prices is projected to increase at a slower pace (1.1% p.a.), compared to that of ethanol prices (1.8% p.a.). Nominal price of biodiesel is expected to decrease post 2024 and ethanol prices to resume a decreasing trend post 2026. Fuel consumption trends and policy developments in emerging economies play a significant role in the development of the market. In Brazil, total fuel consumption is expected to increase over the projection period, and ethanol and biodiesel consumption are projected to grow proportionately.
The Covid-19 pandemic have resulted in a drop of 8.5% in global transport fuel consumption in 2020, compared to 2019 value, owing to the restrictions imposed on people's movements and disruption in trade logistics around the globe. Similarly, consumption of biofuel also witnessed 8.7% decline in 2020 with respect to 2019. In the 2020 edition of the OECD-FAO Agricultural Outlook, it is estimated that biofuel markets would largely be influenced by national support policies and fossil fuel demand. Global biofuel demand is expected to recover in 2021 and 2022, in line with the expected total fuel demand recovery
Insights Presented in the Report
"Amongst Source, Solar PV segment dominated the market in 2020."
Based on source the global Renewable Fuels market is bifurcated into Geothermal resources, Biomass Energy, Hydropower, Ocean Energy, Solar PV, Wind Power, Others. Biofuels (bioethanol and biodiesel1) are fuels produced from biomass. At present, about 60% of ethanol is produced from maize, 25% from sugarcane, 2% from molasses, 3% from wheat, and the remainder from other grains, cassava, or sugar beets.
"Amongst End-use Sector, Power and Transportation sector would gain the major market share."
Based on End-use sector the market is divided into Cooling and Heating Sector, Power Sector, Transportation Sector, Others. Currently, in 2020, power sector dominated the demand for renewable fuel, followed by transport sector, which accounted for more than 20% share in terms of demand. Bioenergy involves the use of a wide range of biological materials for energy purposes. These can be converted into thermal energy, electricity, and fuels for transport (biofuels) using different processes.
"North America represents as the largest markets in the Global Renewable Fuels Market."
For a better understanding of the market adoption, report provide detailed analysis for major region and countries including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Netherlands, Spain, Rest of Europe), Asia-Pacific (China, India, Thailand, Indonesia, Rest of APAC), Latin America (Brazil, Argentina, Rest of Latin America) and Rest of World. United States was the leading producer of biofuel globally in 2020, with production amounting to 1,347 petajoules. Brazil and Indonesia were the other major biofuel producers with production of 884 and 283 petajoules, respectively in 2020. Germany's biofuel production in 2020, reached around 146 petajoules, making it 4th top producer of biofuel globally, and leading producer in the European region. Some of the major companies profiled in the report includes Archer Daniels Midland, Eni S.p.A., BlueFire Ethanol Fuels, Inc., Cosan S.A., Coskata, Inc., Sapphire Energy, Neste Oyj, Renewable Energy Group, Shell, British Petroleum.
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- Deep dive country level analysis of the industry
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Globally, total biofuel production is expected to increase by 25% until 2024. In 2018, production of biofuel witnessed fastest growth in comparison of the last 5 years period between 2013-2018. The growth can be credited to the surge in Brazil's ethanol output. Overall, Asia accounts for half of the growth, as its ambitious biofuel mandates aimed at reinforcing energy security boost demand for agricultural commodities and improve air quality. In addition to biofuels, renewable electricity is expected to provides more than 10% of renewable energy to the transport sector by 2024, majorly driven by China. China is expected to witness highest biofuel production growth globally. The rollout of 10% ethanol blending in a growing number of provinces and increasing investments in production capacity drive a tripling of ethanol production in China by 2024. Brazil registers the second-largest growth, boosted by the introduction of the Renovabio program in 2020. The United States and Brazil are expected to account for two-thirds of total biofuel production by 2024.
Renewable electricity used for heat is expected to increase by more than 40%, a similar increase to that of bioenergy, which is expected to account for one-fifth of global renewable heat consumption by 2024. Such growth can be credited to mainly to the rising share of renewables in electricity generation and, to a lesser extent, greater electrification of end uses. Modern bioenergy would remain the largest source of renewable heat by 2024. More than two-thirds of bioenergy growth is forecast to occur in the industry sector, driven by increased demand from India, China and the European Union
Based on source the global Renewable Fuels market is bifurcated into Geothermal resources, Biomass Energy, Hydropower, Ocean Energy, Solar PV, Wind Power, Others. In 2020, XX segment dominated the market, however, XX segment is expected to witness highest CAGR growth during the forecast period.
Based on End-use sector the market is divided into Cooling and Heating Sector, Power Sector, Transportation Sector, Others. Currently, in 2020, XX segment dominated the market, however, XX segment is expected to witness highest CAGR growth during the forecast period.
For a better understanding of the market adoption, report provide detailed analysis for major region and countries including North America (US, Canada, Rest of North America), Europe (Germany, UK, France, Netherlands, Spain, Rest of Europe), Asia-Pacific (China, India, Thailand, Indonesia, Rest of APAC), Latin America (Brazil, Argentina, Rest of Latin America) and Rest of World.
Some of the major players operating in the market include Archer Daniels Midland, Eni S.p.A., BlueFire Ethanol Fuels, Inc., Cosan S.A., Coskata, Inc., Sapphire Energy, Neste Oyj, Renewable Energy Group, Shell, British Petroleum