Biofuel Enzymes Market Size, Share, Growth Report 2032

Biofuel Enzymes Industry Prospective:

The global biofuel enzymes market size was evaluated at $11.3 billion in 2022 and is slated to hit $16.3 billion by the end of 2030 with a CAGR of nearly 5.2% between 2023 and 2030.

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Biofuel Enzymes Market: Overview

Plants with the use of solar energy and carbon produce carbohydrates through photosynthesis. Furthermore, carbohydrate such as lignocellulose in plants has huge potential for converting into biofuels through the use of enzymes that are thermally stable. Moreover, these thermostable enzymes act as a catalyst in biofuel production through the depolarizing of lignocellulosic feedstock. The biofuel derived in this way has become a key renewable energy resource and has reduced the dependability on fossil fuels along with minimizing GHG emissions, thereby contributing helping in controlling environmental degradation.

Furthermore, biofuel enzymes are utilized in the production of two commercial biofuels including bioalcohols and biodiesel. For instance, bioalcohols like ethanol, methanol, and butanol are produced through microbe fermentation of sugar also referred to as first gen biomass or second-generation biomass known as lignocellulosic biomass. Apart from this, biodiesels that are used as a substitute for petroleum fuels are also produced through the use of enzymes. The common methods involved in microbial fermentation for the manufacturing of biodiesel encompasses enzyme expression involved in biodiesel precursor production like triglycerides & fatty acids along with gene deletion for fatty acid degradation. 

Key Insights

• As per the analysis shared by our research analyst, the global biofuel enzymes market is projected to expand annually at the annual growth rate of around 5.2% over the forecast timespan (2023-2030)
• In terms of revenue, the global biofuel enzymes market size was evaluated at nearly $11.3 billion in 2022 and is expected to reach $16.3 billion by 2030.
• The global biofuel enzymes market is anticipated to grow rapidly over the forecast timeline owing to massive energy requirements and depleting fossil fuel reserves which has given rise to the need for alternate fuel sources.
• In terms of product, the industrial lipases segment is slated to register the highest CAGR over the analysis period.
• Based on application, the biodiesel segment is projected to record a massive surge in the coming years.
• Region-wise, the Asia-Pacific biofuel enzymes industry is expected to register the fastest CAGR during the assessment timeline.

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Biofuel Enzymes Market: Growth Factors

Rise in the demand for clean energy to boost global market trends

Massive energy requirements and depleting fossil fuel reserves have given rise to the need for alternate fuel sources and this has catalyzed the surge of the global biofuel enzymes market. Apart from this, the huge growth potential of the product can be attributed to the conversion of biomass to biofuel with enzymes acting as catalysts. This, in turn, will drive the global market trends over the upcoming years. Moreover, biofuels derived in this way are ideal & clean energy sources with the former producing environment-friendly as well as sustainable forms of energy. This will contribute sizably towards the sizable expansion in the earnings of the market across the globe.

Furthermore, biofuels like biodiesel, biogas, and bioethanol, derived through biomass conversion are renewable energy sources and are termed carbon dioxide neutral as they contribute remarkably towards the reduction of carbon emissions in the atmosphere. In addition to this, the burning of biofuels produces low sulfur dioxide and carbon dioxide particles as compared to fossil fuels or crude oils. All these aforementioned advantages offered by the biofuels produced by using the enzyme will generate humungous market demand in the near future. New product launches are likely to make notable contributions towards the global market size in the near future. For instance, Kemin Industries, a firm manufacturing specialty chemicals, launched ZyloZyme™ AA, an addition to its biofuel enzyme portfolio, for use in bioethanol production.

Biofuel Enzymes Market: Restraints

Less access to raw components to hamper the global industry expansion over 2023-2030

Lack of raw material supply and lack of awareness about the product benefits in emerging economies can hinder the expansion of the global biofuel enzymes industry. Additionally, a rise in the prices of raw components can pose a huge threat to the growth of the global industry in the coming years.

Biofuel Enzymes Market: Opportunities

Increase in the demand for second-gen biofuels to generate new growth avenues for the global market  

Biofuels like ethanol have high octane rankings and their carbon footprints are lower as compared to gasoline after combustion. Reportedly, the use of first-gen biofuels in vehicles has minimized GHG emissions from these vehicles. Apart from this, the second-gen biofuels utilizing lignocellulose and a large part of plant material have assisted in contributing notably towards the renewable energy trends. All these aforementioned factors are likely to generate new opportunities for growth for the global biofuel enzymes market.

For the record, cellulosic feedstock is easily accessible through farming & other sources in countries such as the U.S. and fulfills their fuel energy requirements as well as their demand for green energy. Moreover, the energy present in plant biomass exceeds the large-scale human utilization of energy, thereby further propelling the biofuel enzymes demand for energy production. This, in turn, will embellish the market sphere in the foreseeable future.

Biofuel Enzymes Market: Challenges

Increase in the demand for electric automotive to prove a big challenge in the growth path of the industry globally

Rise in the use of electric as well as hybrid vehicles can pose a huge challenge for the global biofuel enzymes industry surge. Changing government laws related to product usage in various end-use sectors can be detrimental to global industry expansion.

Biofuel Enzymes Market: Segmentation

The global biofuel enzymes market is sectored into product, application, and region.                   

In product terms, the global biofuel enzymes market is segregated into xylanase, industrial lipases, amylases, and cellulose segments. Furthermore, the industrial lipases segment, which acquired approximately three-fourths of the global market revenue in 2022, is anticipated to record the fastest growth rate in the upcoming years. The growth of the segment over the assessment timeline can be ascribed to its humungous use in various end-use sectors.

Based on the application, the biofuel enzymes industry across the globe is divided into biodiesel, starch/corn-based ethanol, and lignocellulosic ethanol segments. Furthermore, the biodiesel segment, which gathered a huge share of the global market in 2022, is predicted to record a massive surge in the years ahead. The segmental expansion over the projected timeline can be credited to a surge in demand for the product in the automotive and power generation sectors owing to its eco-friendly nature. In addition to this, the cost-efficiency of the product and supportive government policies over the use of cleaner fuels have helped in increasing its sale in various end-use sectors. Its easy accessibility and processibility have translated into its enhanced demand as the best alternate energy source over fossil fuel, thereby driving a segmental surge.

Biofuel Enzymes Market: Report Scope

Biofuel Enzymes Market: Regional Insights

North America is predicted to establish a numero uno status in the global biofuel enzymes market in the prognosis timeframe

North America, which amassed approximately 47% of the global biofuel enzymes market revenue share in 2022, is likely to dominate the regional sphere in the next couple of years. In addition to this, the regional market expansion over the upcoming years can be credited to an increase in ethanol production in countries such as the U.S. along with a rise in the penetration of biofuels in countries such as Canada. For the record, the U.S. is the largest manufacturer of ethanol across the globe. Massive need for reducing carbon emissions as well as the depletion of fossil fuels for halting environmental degradation has prompted product demand in the region.

Asia-Pacific biofuel enzymes industry is expected to record the highest CAGR in the ensuing years due to the rise in the use and demand for biofuel enzymes in countries such as India and China. Furthermore, the presence of key players in these countries will further proliferate the regional industry size in the ensuing years.   

Biofuel Enzymes Market: Competitive Space

The global biofuel enzymes market profiles key players such as:

• Transbiodiesel LTD
• Koninklijke DSM N.V.
• Amicogen
• Noor Enzymes Pvt Ltd
• Guangdong VTR Bio-Tech Co. Ltd.
• BASF SE
• Sekab
• DuPont.
• AB Enzymes
• Novozymes A/S
• Dyadic International Inc.
• Iogen Corporation.
• Codexis.
• Advanced Enzyme Technologies.
• Enzyme Supplies Limited
• suzhou Sino Enymes
• Targray Technology International Inc.
• Advanced BioFuels USA.
• Dow
• Aumenzymes   

The global biofuel enzymes market is segmented as follows:

By Product

• Industrial Lipases
• Amylases
• Xylanase
• Cellulose

By Application

• Starch/Corn Based Ethanol
• Biodiesel
• Lignocellulosic Ethanol

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa